Average of the best scores achieved collectively by all companies for each one of the indicators under the thematic area
Average of the scores achieved by each one of the companies under this thematic area
Summary of results
The assessment results indicate that this is still an emerging issue for many companies. The overall average result of 19% is one of the weakest among all thematic areas. Performance levels are very uneven, with one company, Anglo American, showing considerably stronger results than its peers. Collectively the companies have shown that significant improvement is within their reach, if they adopt the good practices demonstrated by their peers (as shown by the Collective Best Score of 73% – the sum of all best scores seen across all Lifecycle Management indicators).
Leading practices in Lifecycle Management include, for example, a company-wide management standard for risk assessments and measures to prevent outbreaks of vector-borne and infectious diseases.
C.01 Mine Lifecycle Management
C.01.1
CommitmentThe company commits to adopt a lifecycle approach to ensure it manages EESG issues throughout the entire project lifecycle, from exploration to post-closure.
Observation
While many companies make passing references to adopting a lifecycle approach (i.e., addressing social and environmental impacts throughout the life of their operations and planning for closure from the earliest stage), only one quarter of companies have put in place formal policies or requirements on this. And evidence of financial and staffing resources to implement these formal commitments is not always available. Other companies’ policies relate to only some elements of a lifecycle approach, typically environmental issues.
C.02 Project Approval Process
C.02.1
ActionThe company has systems in place to integrate ESG criteria into the stage-gating process in investment decision-making.
Observation
There is very little evidence that companies have formal systems to ensure the identification and application of ESG issues in their investment decision-making processes. Only two companies demonstrate that such systems are in place, while a handful of others show less formal approaches to integrating ESG criteria in investment decision-making. Half of the companies show no evidence at all that ESG issues are considered even to the minimum extent in their investment decision-making.
C.03 Emergency Preparedness
C.03.1
ActionThe company has systems in place to ensure its operations engage local authorities, workers and communities in developing, communicating and testing emergency preparedness and response plans.
Observation
The vast majority of companies show some evidence of having actions or systems in place for their operations to develop emergency preparedness and response plans, with a handful of companies demonstrating formalised company-wide systems on this issue. Less than half of the companies show evidence of engaging with local stakeholders in the design or testing of these plans.
Related Leading Practices
- Participatory design of a contingency plan
- Aligning emergency plan with the UN Awareness and Preparedness for Emergencies at Local Level (APELL) standard
Participatory design of a contingency plan
Antofagasta
In 2016, following demands from the residents of Caimanes, Chile for better information and participation in the design of emergency plans for Antofagasta's Los Pelambres mine site, the company engaged with the community and the local authorities to develop a Contingency Plan for this site. The Plan takes into account the residents' concerns and suggestions, and makes provision for, e.g., setting a new safety zone in Caimanes and installing signage, lighting and an audible alarm to improve evacuation of the community to this zone in the case of an emergency.
Aligning emergency plan with the UN Awareness and Preparedness for Emergencies at Local Level (APELL) standard
Antofagasta
In partnership with other industries, local communities and local government and emergency services, Antofagasta has created an integrated emergency plan for its Antucoya mine site close to the municipality of María Elena. Within the framework of the United Nations’ Awareness and Preparedness for Emergencies at Local Level (APELL) standard, the response capacity was diagnosed then the initiative involved training and certification of key institutions and players at local and regional level, as well as raising awareness and providing information to the community.
C.03.2
ActionThe company has systems in place to ensure its operations identify, assess, avoid, and mitigate risks for workers and communities associated with pandemics and high-burden diseases that are relevant to the company’s operations.
Observation
While all companies report taking steps to protect workers in response to the COVID-19 pandemic, only a few show evidence of company-wide approaches to ensure their operations identify, assess and mitigate risks for workers and communities associated with all potential pandemics and high-burden diseases relevant to the company’s operations. Although almost all companies demonstrate some ad hoc COVID-related action plans and strategies, there is generally little evidence this happens on a systematic basis or that they collaborate with workers or communities in developing these strategies.
Related Leading Practices
- Infectious disease control
Infectious disease control
Rio Tinto
Rio Tinto has developed a management standard for addressing health impacts associated with outbreaks of vector-borne and infectious diseases, such as malaria, HIV/AIDS and tuberculosis. The standard sets out requirements for operations to undertake risk assessments and measures to prevent and manage these diseases to protect workers and, for some diseases, their families.
C.03.3
ActionThe company publicly discloses all relevant information about financial assurance that is provided for disaster management and recovery, including insurance against tailings facility failure, throughout its operations.
Observation
No company publicly discloses any relevant information about financial assurances provided for disaster management and recovery, including insurance against tailings facility failure. In a few instances, companies disclose the subsequent costs associated with a disaster recovery (e.g. tailings dam failure, tailings accidental discharge, or leak), but provide no details on any financial assurance mechanisms or amounts set aside to cover these costs beforehand.
C.04 Circular Materials Management
C.04.1
EffectivenessThe company tracks, reviews and acts to improve its performance on materials management to optimise re-use, repair, and recycling of goods used in their operations.
Observation
Two-thirds of companies show some evidence that they track and publicly disclose data on their performance in optimising the re-use, repair and/or recycling of goods used in their operations. However, the data is very limited in scope, and rarely disclosed over time or against targets. There is almost no evidence that companies audit or review the effectiveness of such circular materials management or take responsive action on the basis of those reviews.
Related Leading Practices
- Circular materials management
Circular materials management
Teck
Teck has taken extensive measures to reduce waste and improve the recycling of materials used in its mining operations. The company has set an overall target of zero industrial waste disposal by 2040, with an objective to set site-based goals for industrial waste reduction following site-level inventories and plans, established by 2025, to turn waste into useful and appropriate products. In addition, the company’s Material Stewardship Committee oversees its work to reduce the waste associated with its own products, commissioning and conducting customer assessments on the safe use and circular management of these products.
C.05 Mine Closure and Post-Closure Viability
C.05.1
ActionThe company has systems in place to ensure its operations plan and manage post-closure transition in collaboration with affected communities, to seek to ensure continued viability of their livelihoods.
Observation
More than half of the companies demonstrate to some degree that their approach to closure planning takes into account the post-closure viability of affected communities. However, only a handful of companies show evidence of having formal systems in place to ensure this happens on a systematic basis throughout their operations. For those companies that show they develop plans to address the post-closure needs of communities, most also include land-use considerations in these plans.
Related Leading Practices
- Solar farm on closed mine site
- Incorporating traditional land use into closure planning
- Social aspects of mine closure
Solar farm on closed mine site
Teck
The solar power facility SunMine opened in 2015, built on Teck's fully reclaimed Sullivan mine site in Kimberley, Canada. Teck provided the land and site infrastructure for the project and contributed US$ 2 million towards its construction. SunMine, now owned and operated by the city of Kimberley, uses 4032 solar-cell modules mounted on 96 solar trackers that follow sun movement to maximize solar exposure. The system is supplying enough electricity to the British Columbia Hydro grid to power about 200 homes.
Incorporating traditional land use into closure planning
Teck
Teck decided in 2013 to close its Sä Dena Hes zinc-lead mine that lies within the Liard First Nation traditional territory in the Yukon region of Canada. The company worked closely with the Elders, Chief and Council and community members of the Liard First Nation on the closure and reclamation plan. Discussions on post-mining land use resulted in the incorporation of traditional land uses such as subsistence activities and traditional values into the final closure plans. In addition, Teck signed a socio-economic participation agreement with the Liard First Nation, that included a local indigenous hiring requirement for the general contractor tackling much of the reclamation work on the site. Throughout the closure work in 2014 and 2015, 60 per cent of all Teck-contracted hours were completed by indigenous personnel.
Social aspects of mine closure
Buenaventura
Buenaventura is one of a handful of companies to show evidence of a mine closure management standard that integrates social issues into the requirements. The 2020 standard (in the form of a detailed manual) requires operations to assess, at the earliest possible stage, the socio-economic impacts of closure on affected communities and to undertake a participatory process to plan for the mitigation of these impacts. As well as detailing the mitigation measures to consider (such as job retraining or entrepreneurship skills development), the standard requires targets to be set for social closure objectives to assist later tracking.
C.05.2
ActionThe company has systems in place to ensure its operations plan and manage post-closure transition in collaboration with workers, to seek to ensure them a just transition
Observation
While many companies mention the need to address the social impacts of closure, this often relates only to impacts on local communities; it is less common to see the impacts on workers specifically highlighted. Very few companies have formal company-wide systems (e.g. management standards or guidelines) for closure planning that include provisions for the identification and mitigation of impacts on workers, and even fewer develop partnerships with governments, or other industries or companies to aim at ensuring a just transition and continued livelihood viability for their workers.
Related Leading Practices
- Social aspects of mine closure
Social aspects of mine closure
Buenaventura
Buenaventura is one of a handful of companies to show evidence of a mine closure management standard that integrates social issues into the requirements. The 2020 standard (in the form of a detailed manual) requires operations to assess, at the earliest possible stage, the socio-economic impacts of closure on affected communities and to undertake a participatory process to plan for the mitigation of these impacts. As well as detailing the mitigation measures to consider (such as job retraining or entrepreneurship skills development), the standard requires targets to be set for social closure objectives to assist later tracking.
C.05.3
EffectivenessThe company tracks, reviews and acts to improve its performance on progressive mine rehabilitation.
Observation
More than half of companies show evidence of company-wide tracking of ongoing rehabilitation within the context of a progressive rehabilitation approach. However far fewer companies demonstrate that they are undertaking performance reviews/audits on their progressive rehabilitation activities. A few companies show (limited) evidence of taking action in response to these reviews/audits.
Related Leading Practices
- Linking sustainability KPIs to variable compensation program for all employees
- Incentivising concurrent reclamation
Linking sustainability KPIs to variable compensation program for all employees
Vale
Vale has linked its sustainability-related Key Performance Indicators (KPIs) to its variable compensation program that applies to all Vale employees. These indicators relate primarily to efforts to reduce water usage, waste production, energy use and greenhouse gas emissions, as well as rehabilitation of degraded areas and implementation of social initiatives. The indicators are weighted in order to encourage continuous improvement in sustainability performance by each of the company's operations.
Incentivising concurrent reclamation
Newmont
Since 2016, Newmont has integrated concurrent reclamation targets into its annual incentive compensation plan. Each region establishes a target for the number of hectares to reclaim on an annual basis and bonus payouts are adjusted downward or upward depending on their performance in achieving the targets.
C.05.4
ActionThe company discloses financial surety arrangements for socio-economic liabilities related to mine closure and post-closure.
Observation
No company shows any evidence of disclosing its financial surety arrangements for socio-economic liabilities related to mine closure and post-closure. This contrasts sharply with the fairly common practice of provisioning and disclosing financial arrangements to cover post-closure environmental liabilities, a dimension that is not relevant to this indicator.
C.06 Mergers, Acquisitions and Disposals Due Diligence
C.06.1
ActionThe company has systems in place to identify and assess potential ESG risks, including human rights risks, associated with mergers, acquisitions and disposals.
Observation
There is little evidence that companies systematically ensure their due diligence on mergers, acquisitions and disposals covers salient environmental, social and human rights, or governance issues. While some companies show evidence of having a company-wide approach, only one company shows evidence of formalised company-wide systems to cover all these ESG dimensions.
Related Leading Practices
- ESG issues in mergers, acquisitions and disposals
ESG issues in mergers, acquisitions and disposals
Vedanta
Vedanta has developed a management standard for the integration of ESG considerations into decisions around acquisitions, divestments and Joint Venture arrangements. The standard requires due diligence around ESG-related liabilities, such as health and safety, water, biodiversity, greenhouse gas emissions, human rights, and cultural heritage. A detailed checklist of specific issues is provided and a process is established for identifying and assessing these liabilities and incorporating them into the decision-making including, as one possible option, the identification of ‘deal breaking’ liabilities.