Taking the conversation beyond compliance

Despite over 80 financial institutions worldwide adopting the Equator Principles in an effort to minimise borrowers' governance risks, many mines still seem to regard their environmental and
social (E&S) impacts as marginal to their core business

This attitute is reflected in the underfunding and understuffing of this aspect at many mining companies, exposing them to considerable risk in terms of their social licence to operate.

"Sustainability risks are increasing as legislation becomes more stringent and social-political environments become more complex, and where stakeholders are more vocal about their human rights not being uphled," says Kilian. " There is now also greater media attention on mining operations, with hareholders being eager to avoid reputational damage and liabilities, " says SRK Consulting Partner and Principal Environmental Consultant, Darryll Kilian.

Legislation and standards

Environmental impact assessments (EIA's) in South Africa date back to the 1970's, with the first legal requirement for an EIA coming in with the Environment Conservation Act in 1989. Today, a range of laws, from the National Environmental Management Act to the Mineral and Petroleum Resources Development Act - with a respective focus on biophysical and social issues - now weigh on mining decisions. Indeed, a strong environmental focus extends through the countries of the Southern African Development Community. Read more....

 

Acknowledgement: Leadership Magazine

Leadership Magazine_Taking the conversation beyond compliance

SRK Africa