News

05/09/22

Mining companies increase engagement in the sector’s ESG Agenda by 85%; unpublished study establishes ESG maturity of mining companies and the sector.

The Brazilian Mining Institute (IBRAM) released, in a webinar organized on 9/5, the latest advances in the ESG Agenda for Mining in Brazil. It is a robust set of commitments, targets, indicators and sectoral actions to make this industry safer, more sustainable and responsible for people and the environment. The established goals were announced in October 2021, when the ESG Agenda was launched. It is the result of the Commitment Letter, publicly presented by IBRAM in September 2019.

Among the main results disclosed in the current balance sheet are: mining companies increased their commitment to the ESG Agenda by 85%; the presence of women and people with disabilities in companies was mapped in more detail; new sector targets were incorporated into the ESG Agenda, such as increasing investment in R&D Tech by 53% by 2030, and energy consumption from renewable sources by 15%.

“This balance sheet seeks to show where the mineral sector is and where it wants to go; so that everyone can know how mining in Brazil is doing in terms of sustainability, commitment to good practices, the environment and society,” said Raul Jungmann, CEO of IBRAM. He explained that the balance released today “is the beginning of a journey, of commitment. Therefore, there is so much to explore, to learn and there is so much knowledge that we are gathering along this path. It is a long way to go, in an open, committed way, dialoguing with everyone around”.

He assured that the mining industry “is committed to the profound transformation of the industry, both in its processes and in its techniques and relationships with people and nature. We recognize our relevance and the importance of the communities where we operate and we work hard to seek greater sustainability in the sector. This means that we are concerned with the environment, with the social license to operate, with governance and good practices”.

According to the chairman of the Board of Directors of IBRAM and CEO of Anglo American in Brazil, Wilfred Bruijn, mining and ESG are factors that cause positive impacts on the present and future of humanity. “ESG is a vibrant and important topic. It is the basis for business survival and longevity. Therefore, we are talking more and more about the topic in our daily lives and in making big decisions. And it’s important to cast the opinion of mining in relation to all of this. It is the foundation of the technological advancement of contemporary world life, it allows us to act to establish sustainable practices that cause positive impacts on society and this is a path of no return”, he said.

The CEO of the Ethos Institute, Caio Magri, said in the webinar that the mineral sector is aware of its challenges and “is increasingly aware of what needs to be done, how to do it and where it can go. The sectoral action promoted by IBRAM (to develop the ESG Agenda) is a reference and has to be followed by other sectoral entities in the perspective of making changes in companies, and with companies, and also changing the market and economic relations” .

Raul Jungmann (IBRAM) during his speech in the webinar on the balance sheet of Mineração do Brasil’s ESG Agenda – credit: disclosure

Partnership with Falconi Consulting

Advances in Mineração do Brasil’s ESG Agenda were measured based on data on the performance of mining companies in relation to practices within the scope of corporate governance, in the relationship with stakeholders and with the environment (ESG), collected by IBRAM, in partnership with Falconi Consultoria.

Data were analyzed and presented by the 12 WG’s that make up the Mining ESG Agenda. The coordinators of each GT showed how the last cycle was, the main results achieved and the sector’s goals for 2030. “By structuring the ESG Agenda, we are on a journey towards knowledge. The more data, the more qualified we will be to face the challenges”, said Dennis Gloria, partner at Falconi Consultoria.

Greater engagement

The structuring of commitments, targets, indicators and actions on the agenda demand an intense and complex survey of data related to the operation and management of mining companies, in the 12 working groups (GTs) formed by IBRAM and the companies. Currently, on average, 51 companies provide data on their operations. Another 11 are in the process of studies and research to start operations and will soon be able to contribute data from their operations, resulting in 62 participants. This total number of companies has grown over the last few months and IBRAM is inviting more companies to voluntarily adhere to this Mineração do Brasil ESG Agenda.

Falconi Consultoria registers an increase of 85% in the average participation of mining companies in the 2022 data collection, in relation to the 2021 data collection, including information on the 12 topics addressed by the GTs:

process safety; management of tailings facilities; occupational health and safety; mitigation of environmental impacts; development of territories;
relationships with communities; communication and reputation; innovation; diversity and inclusion; Water; energy; Waste Management.

For Rodrigo Vilela, CEO of Samarco, “ESG is on all agendas in decision-making processes. Samarco is an example of challenges and difficulties and how ESG becomes fundamental in our history. We are rebuilding the company on an ESG basis. The entire basis of the strategy becomes re-signified through these three letters ESG. It is fundamental to see how the ESG context is increasingly important in the generation of value”, he said.

Tayná Leite, senior manager of the Global Compact, said that she recognizes the importance “of this type of initiative (ESG Agenda) and I hope that it influences more sectoral organizations to be inspired by such a solid document”.

The webinar was mediated by Ana Cunha, Director of Government Relations and Social Responsibility at Kinross, IBRAM Board Member and Coordinator of the ESG IBRAM Committee. “ESG is very relevant and is on the agenda of any company or executive. The balance of goals and metrics highlighted in this webinar the contribution and vision of industry executives and ESG specialists. Mineração do Brasil’s ESG Agenda is a great work that aims to improve everyone’s lives. In the preamble of the 2030 Agenda (from the UN) there is a message related to this, which is to ‘advance without leaving anyone behind’. This is thinking about people, the planet, prosperity, how to do that, how to build a more resilient and more sustainable society”.

In addition to deepening the data on the topics addressed by the sector in the ESG Agenda of Mineração do Brasil, an unprecedented study was carried out, which allows identifying the maturity stage of mining companies in good ESG practices.