The virtual course "ESG, the competitive package: Environmental, social and governance tools and practices for explorers", organized by the Peruvian Institute of Mining Engineers, will be held on April 6 as part of proEXPLO 2023.

In the following interview, Karin Torres, an environmental engineer with more than 19 years of experience, discusses the importance of the environmental, social and governance (ESG) approach in mining, and some details of this important course.

What is the ESG approach?

The ESG approach seeks to integrate sustainability into the corporate strategy of organizations to make them more competitive and attractive to socially responsible investors.

This approach is incorporated through the definition of long-term objectives, targets and indicators aligned with the Sustainable Development Goals (SDGs) and voluntary international standards. These objectives can be environmental, such as decarbonization and energy transition, environmental compensation with net biodiversity gain; focused on governance, such as strengthening corporate governance and transparency in reporting; or on social aspects, such as promoting equity, diversity and inclusion and human rights management, to name a few examples.

What is the challenge for the mining sector in terms of ESG criteria?

The challenge for the mining sector is to know the concepts and international standards that will allow them to transform the information they already generate and make it attractive to investors, the market and their stakeholders. For an investor, compliance with local regulations is the minimum expected of any organization.

The mining trends reports from EY, KPMG, Deloitte and PwC for 2022 and 2023 coincide in pointing out that ESG issues are among the main risks and opportunities for the mining sector and this trend will continue in the coming years.

What aspects did ESG trends in mining focus on a few years ago?

Prior to the pandemic, ESG trends focused on strengthening governance, employee health and safety management, human rights management including supply chain and host communities. The arrival of the COVID-19 pandemic brought to light the importance of the supply chain in ensuring the operational continuity of mines and new opportunities have arisen to drive efficiency, resilience and transparency in supply chain management.

The most important mining companies in the country have robust management systems for these issues. However, it remains a challenge for most companies, especially explorers.

What are the ESG trends in mining today?

Currently, ESG trends are focused on decarbonization and energy transition plans to achieve net zero emissions by 2050 under the framework of the Task Force on Climate-Related Finance Disclosures (TCFD), promoting equity, diversity and inclusion, human rights management under the framework of the UN Guiding Principles on Business and Human Rights (UNGP), disclosure of risks and impacts on biodiversity and natural capital to achieve net profit under the framework of the Task Force on Nature-Related Financial Disclosures (TNFD), tailings management under the Global Industry Standard on Tailings Management (GISTM), and increased transparency in disclosure of information focused on various stakeholders.

In Peru, what progress has been made to strengthen the development of the ESG approach?

It is relevant to mention that the Ministry of Environment is working on developing Peru's Green Protocol (Protocolo Verde), which will identify the economic activities that are sustainable in the context of the European Green Deal. It is also important to note that mining is a key sector for the energy transition and decarbonization, so it is expected to be included in the country taxonomy. Its inclusion will make mining investments in the country more attractive, ESG issues will have greater relevance and there will be a greater offer of sustainable financing; however, to access these opportunities mining companies need to be prepared, they need to identify their sustainability risks, incorporate them into their corporate management strategy and evidence the achievement of goals and compliance with ESG commitments, these factors are key to access financing with more attractive interest rates than those offered by commercial banks.

What is the importance of the course "ESG, the Competitive Package" that you will be giving together with your colleagues?

The course is important to learn about the latest trends in environmental, social and governance (ESG) aspects in the mining sector, with a regional application approach based on the international experience of the speakers in project development. The course will share successful cases of ESG implementation in mining projects that have facilitated access to financing and improved the reputation of the companies and their relationship with their stakeholders.

For example, Dr. Sahley, who is a leading international biodiversity expert who has conducted multiple studies and assessments of biodiversity risks in the mining sector, will share case studies on how to prepare these studies to meet investor requirements.

Also, attorney Jenny Vento, who has extensive experience in Human Rights, will share her experience in the implementation of the UN Guiding Principles on Business and Human Rights. Each of the speakers will share the experiences, challenges and opportunities that exist for the implementation of sustainability strategies.

What practical tools will be taught in this course?

Practical tools will be shared on how to design ESG strategies, from how to assess sustainability risks, including the different ESG fronts, the methodologies required by investors to ensure that the risk assessment is consistent and based on scientific information that can be traceable and verifiable, to how to incorporate these ESG objectives into the mines' corporate strategy.

Within the course materials, links to the main methodologies applied in ESG assessment will be shared, so that participants can use them as a reference in the implementation of their strategies.

Who is this course for?

The course is not only intended for mine sustainability professionals, but also focuses on addressing the challenges of financial managers and decision makers, who are the first line of contact with investors.

For more information, click here: https://wa.me/51942788347

Registrations: https://proexplo.com.pe/proexplo2023/front/public/es/inscripciones-es/CC1

proEXPLO 2023: Discovering the mining of the future