THE IMPORTANCE OF ESG STRATEGIES FOR THE DEVELOPMENT OF MINING & METALLURGY
ESG is no longer just a newfangled trend and is already becoming an integral part of the work of many companies. The mining and metals sector is no exception.
Companies in the mining and metallurgical industry bear a great responsibility both to the environment and to the population and employees who live and work in the regions where they operate.
Reducing the carbon footprint, switching to "green" energy sources, raising the standards of human resource management and corporate practices has become critical for the further development of the industry.
According to the publications of the International Finance Corporation: from 2010 to 2015, a review of 656 investment projects was conducted, which showed that companies with the best ESG performance also showed the best performance in terms of return on equity and assets. This suggests that compliance with ESG principles brings direct benefits to companies.
Today, MMC companies are adjusting their strategies not only taking into account economic forecasts, but also taking into account the expectations and requirements of investors for the company's principles regarding ecology, social policy and corporate governance.
For example, ERG (Eurasian Resources Group) has adopted a Regional Development Program aimed at improving the living standards of people, improving the professional skills of young people, developing healthcare and other goals.
To date, the total amount of social ERG investments in the regions of Kazakhstan exceeded $1.1 billion. In 2022 alone, investments were allocated for 44 projects in three regions of the country.
Among the environmental projects, one can note the beginning of the construction of the Khromtau wind farm in the Aktobe region. Due to this, carbon dioxide emissions into the atmosphere will be reduced by 520 thousand tons per year, which will reduce coal generation in Kazakhstan.
Overall, ERG has adopted its own Environmental Strategy, which will help reduce particulate matter emissions by 56% and pollutants by 30%. Until 2030, investments in the program, the company said, will amount to about 228 billion tenge.
Experts will share the best examples of applying ESG strategies at the AMM 2023 - "International Astana Mining & Metallurgy" Congress, which will be held in Astana on June 1-2.
- Created on .