Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG) is a term used to describe the three broad areas used to assess a company’s sustainability. ESG is becoming an increasing focus for many stakeholders as they acknowledge the material and financial impacts that ESG can have on a company’s short-, medium-, and long-term value, as well as the role of ESG in the greater systemic environment.
The growing investor demand for companies to report on ESG factors has created greater opportunity for companies to consider their sustainability and impacts, and the role of ESG reporting in presenting this information to the market.
There are a variety of global ESG frameworks available in the market to help guide companies disclose their exposure to ESG related risks and report on their ESG performance. However, the abundance of frameworks and requests for information from investors, creates confusion for industry on this already complex issue.
In addition to the many frameworks available in the market, there are a number of third-party rating agencies that measure a company’s ESG risk exposure or ESG risk management, and provide a rating or score.
In order to assist members with understanding the different ESG Frameworks and Rating Agencies available in the market, AMEC has developed several documents:
AMEC Statement of support for net zero by 2050
The Association of Mining and Exploration Companies (AMEC) is committed to action: to support our members as they work to achieve net zero emissions.
The environmental, financial, regulatory, and transitional consequences of climate change are real and will reshape the Australian mining and mineral exploration sector.
An integrated, orderly, phased transition to a low carbon Australian economy aligned to the national commitments made under the United Nations Framework Convention on Climate Change (UNFCCC) will benefit all and future Australians.
The contribution of Australia’s mining and mineral exploration extends beyond supplying the minerals and materials that will enable low emissions and abatement technology.
Achieving net zero emissions in our sector will require innovation, new technologies and a deep-seated commitment to drive change.
AMEC considers Australia needs to:
- Honour our commitment to achieve net zero emissions by 2050;
- Create a single nationally consistent, certain and transparent climate change response;
- Implement these commitments across each sector of the economy and Government equitably;
- Support the development and deployment of low emissions and abatement technologies with a focus on outcomes rather than fuel or technology type;
- Reward innovation and Greenhouse Gas abatement that surpass regulated levels; and
- Enact policy that does not significantly disadvantage new entrants in comparison with established companies.
Australia’s commitment should not disadvantage trade exposed industries and their workers in comparison to international competitors or result in carbon leakage.
Climate Change and Industry’s response to it is evolving. Over the last several years the ambitions, targets and action on emission reduction among member companies has rapidly accelerated.
Government and Industry need to work together to put Australia at the forefront of global action.