A 2024 EY survey named environmental stewardship as a top concern in the mining industry. Environmental, Social, and Governance (ESG) considerations have become increasingly significant due to regulatory demands, financing standards, and societal expectations. ESG frameworks offer organizations guidance on environmental metrics and best practices, serving as a valuable tool for navigating this complex landscape.
Exploring Industry ESG Frameworks
ESG reporting frameworks provide a structured approach to reporting and compliance, facilitating transparency, stakeholder engagement, and the creation of long-term value. Integrating ESG principles into business operations helps reduce risk, improve operational efficiency, and align with stakeholder expectations.
Because the sustainability sphere is still young, multiple industry reporting frameworks exist, with some overlap occurring. Understanding the nuances between frameworks is helpful for assessing which to utilize for reporting purposes. Below are the main mining industry-related frameworks.
Consolidated Mining Standard Initiative (CMSI)
CMSI is a collaborative effort between four established standards, The Copper Mark, ICMM’s Mining Principles, Mining Association of Canada’s Towards Sustainable Mining (TSM), and World Gold Council’s Responsible Gold Mining Principles, to unify these voluntary responsible mining standards into one global standard.
Once finalized, this standard is expected to be used by existing members of the above-named organizations, giving it the widest coverage of any voluntary standard to date. This standard is slated for a second round of public consultation during 2025.
Towards Sustainable Mining (TSM)
The TSM framework is a globally recognized program developed in Canada that supports minerals companies in evaluating, managing, and communicating site-level sustainability performance. This framework involves annual self-assessment of eight performance protocols to measure and report. Every three years, an accredited auditor will review self-assessments for accuracy. The reports are then publicly measured against 30 performance indicators, with member companies committing to demonstrating continual improvement until they achieve good practice.
The Copper Mark
The Copper Mark is the leading assurance framework to promote responsible practices across the copper, molybdenum, nickel, and zinc value chains. This framework works to address past, present, and future critical impacts on communities and environments, supports the circular economy, and contributes to a sustainable society. The Copper Mark standards define the expectations for responsible production, including reducing their carbon footprint and increasing metal recycling.
The World Gold Council
The World Gold Council is a membership organization that created the Responsible Gold Mining Principles (RGMPs), which is a framework that sets expectations for consumers, investors, and the downstream gold supply chain. They have developed an Assurance Framework and Guidance on implementing the RGMPs.
International Council on Mining and Metals (ICMM)
The ICMM has a set of 10 mining principles designed to maximize the industry’s benefits to onsite communities while minimizing negative impacts and addressing social concerns. Member companies annually validate and disclose their adherence to performance expectations through self-assessment and third-party validations. The ICMM principles are closely aligned with the TSM’s principles, making it easy to conduct ESG initiatives and reports in line with both frameworks.
Initiative for Responsible Mining Assurance (IRMA)
The IRMA Standard for Responsible Mining defines best practices for responsible mining at the industrial scale. It provides a list of expectations that independent auditors use as a benchmark for responsible mines. In practice, IRMA verification entails rigorous assessments of mine sites against standards for worker rights, community engagement, environmental impact, and governance.
GRI Standard for Mining
The GRI Sector Standard for Mining addresses the sustainability impacts of the mining industry and provides a comprehensive framework for mining companies to measure, manage, and report their sustainability performance. The standard covers 25 key topics surrounding environmental, community, and worker impacts. It sets expectations for site-level transparency that reflects local impacts. Organizations that report to this standard benefit from increased transparency, enhanced environmental stewardship, and better risk management.
Sustainable Critical Minerals Alliance (SCMA)
The Sustainable Critical Minerals Alliance is a collaborative effort between Australia, France, Germany, Japan, the UK, Canada, and the USA. Alliance members commit to high ESG standards, focusing on sustainable practices that prevent biodiversity loss, protect wildlife, and create safe local working conditions. The alliance employs a nature-forward approach that accelerates the reuse and recycling of critical minerals, reduces greenhouse gas emissions, and safeguards the restoration of ecosystems.
The Benefits of Utilizing these Frameworks
Frameworks, like those listed above, provide essential guidance for standardizing measurements and best practices. Integrating these frameworks into strategy and operations provides enhanced transparency and stakeholder trust, drives sustainable performance, mitigates risk, and aligns with evolving regulatory, financial, and societal expectations. While multiple frameworks exist, the industry is working to consolidate standards to unify industry reporting. The world is continually trending towards emphasizing sustainability in global business and operations, so don’t risk falling behind peers with an outdated governance method. If your organization is interested in reaping the benefits of sustainable operations, consider working with one or more of these frameworks to guide your ESG journey.