INTRODUCTION
Established in 1997 the Global Reporting Initiative (GRI) was pioneering in the creation and development of sustainability-related reporting frameworks. With the aim of promoting transparency and standardisation in the reporting of Environmental, Social and Governance (ESG) performance. Since the inception of the GRI the foundations of reporting have expanded to cover universal, topical and sector-specific standards.
A global first, GRI 14: Mining Sector 2024 is the fourth addition to the GRI Sector Standard series and was developed with consultation from a broad spectrum of stakeholders. In developing the Mining Standard, the GRI have incorporated responsible mining guidance from experts from several industry organisations and bodies including Copper Mark, the Organisation for Economic Co-operation and Development (OECD), the International Council on Mining and Metals and the Initiative for Responsible Mining Assurance (IRMA).
This blog considers how mining companies can prepare to implement the reporting standard into their business and the impact it has on supply chain management.
BACKGROUND
Developed to accelerate accountability in the mining sector the GRI Mining Standard addresses 25 topics that are likely to be material for companies in the sector. Critical themes covered within the Standard include greenhouse gas emissions, human rights, community engagement, anti-bribery and biodiversity. Specific to the mining industry, tailings management, artisanal and small-scale mining and operating in conflict zones are also addressed.
IMPLEMENTATION
Similar to mandatory reporting frameworks including the Corporate Sustainability Reporting Directive (CSRD) in Europe and Business Responsibility and Sustainability Reporting (BRSR) Core in India, mining companies should consider three key steps as part of their GRI reporting preparation:
- Understanding the organisation’s context: Mining companies should engage stakeholders across their organisation to build a picture of operational activities and business relationships to consider how they may impact internal and external sustainability issues.
- Identify actual and potential impacts: Upon identifying all potential sustainability-related issues, businesses should assess the actual and potential impact associated with them. Actual and potential impacts should be identified by considering the impact to human rights, the economy, the environment and the society.
- Assessing the significance of the impacts: Having identified actual and potential impacts, companies should assess the significance of the negative impact whether that be associated with environmental damage, climate change or adverse treatment of workers and their human rights.
Following the completion of these three key preparatory steps businesses are well positioned to identify the relevant disclosures for reporting against the material topics listed within the Sector Standard. Comprehensive preparation also enables businesses to explain omissions from any subsequent disclosures.
ORGANISATIONAL IMPACT
As with similar mandatory and non-mandatory sustainability reporting frameworks, initial preparation for reporting can cause considerable disruption for businesses. The complexity and fragmentation of multinational mining can cause challenges when identifying actual and potential impacts and assessing their significance. Internal and external stakeholder engagement is an important step in the correct identification of impacts together with effective communication and an integrated approach to storage of reporting data.
For businesses with complex or immature supply chains, effective engagement and communication is increasingly important as a means to facilitate relevant information. Many businesses may find they come up against significant resource constraints when taking steps to adopt reporting frameworks for the first time, ultimately, there are likely to be efficiencies as data collection and reporting processes are established and embedded.
VALUE CHAIN IMPACT
Increasingly, regulators and industry bodies have recognised the potential positive and negative impacts that may be associated with a company’s value chain. As with CSRD, the GRI Mining Standard requires companies to consider how their operational activities and those of their value chain have impacts on societal and environmental topics. Reporting entities are expected to identify material impacts across the Mining Standard topical areas and report on activities to address these. Material impacts may be associated with a variety of topics including forced labour and modern slavery, impact on local communities, GHG emissions, occupational health and safety and waste.
For value chain partners there is now an increased expectation from their clients to regularly provide accurate information on their own policies, procedures and impact. Both upstream and downstream, value chain partners are expected to account for their activities and present information that can support the disclosure process. As with the additional burden placed on reporting entities, similar challenges are faced by the supply chain including a lack of financial and operational resource, access to accurate data and an efficient means of evaluating and reporting information.
HOW ACHILLES CAN HELP
Achilles has been supporting multinational mining businesses for over 30 years, offering effective solutions to demonstrate commitment to responsible and sustainable mining, while ensuring compliance with industry standards and legislative requirements. We collaborate with leading mining companies worldwide to address supply chain impacts, support supplier improvement and ensure ESG compliance in key territories such as Australia, Canada and the EU. Specifically, our Global Mining Module evaluate value chain performance against 20 of the 25 topical areas contained within the Standard including; occupational health and safety, employment practices, waste, freedom of association and anti-corruption. In addition to it’s alignment with the GRI Mining Standard, our module is also built to consider elements contained within other responsible mining frameworks including the Responsible Minerals Initiative (RMI), Copper Mark and the Initiative for Responsible Mining Assurance (IRMA).
For mining businesses wishing to adopt an OECD aligned risk-based approach to supply chain due diligence, Achilles has developed an end-to-end solution based on recommendations defined within the Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. With an international team of qualified Lead Auditors, our teams have visited mining operations around the world to assess the implementation of sustainability policies and procedures and the treatment of workers.
The mining industry is vital in supporting the transition to renewable forms of energy. The extraction of critical minerals around the world is increasingly necessary to support the production of battery storage systems and solar panels. However, mining businesses are also under increased scrutiny to transparently account for their carbon emissions and present evidence of realistic climate action plans. Achilles Carbon Reduce is one of the only accredited solutions which combines greenhouse gas verification to ISO 14064-1 and the ongoing development and monitoring of carbon reduction initiatives. Utilising Achilles Carbon Reduce not only supports reporting against GRI topics including GHG emissions and climate adaption and resilience, it also helps businesses with mandatory reporting under legislation including CSRD.
Speak to a Achilles sustainability expert to discuss how we can support your mandatory and non-mandatory reporting.
