The mining industry is likely to emphasise digitalisation techniques such as data science, scenario planning and data modelling as it meets environmental, social and governance (ESG) challenges, according to a new report.
Accountancy firm EY's new 'Top 10 Business Risks and Opportunities for mining and metals in 2022' survey states that ESG is the biggest challenge facing major mining companies in the next 12 months.
The company believes ESG remains the most significant challenge despite the effects of the COVID-19 pandemic and that miners will have to "think more broadly" about which specific factors they consider.
Paul Mitchell, global mining and metals, EY, said the industry has become more interested in ESG issues since the beginning of the pandemic.
"In such an uncertain and shifting environment, we are likely to see greater use of data science, scenario planning and data modelling to guide more intelligent decisions and create differentiation," Mitchell said.
Additionally, it said the pandemic focused on social inequalities, putting pressure on companies to go beyond their regulatory obligations and take responsibility for "driving social equality" in regions they operate.
Furthermore, it also said that stakeholder expectations around license to operate (LTO) issues are changing fast, particularly interactions with indigenous peoples and building ethical supply chains.
"Miners that do more to help ensure the long-term, sustainable economic and social growth of the regions in which they operate can leave a positive legacy beyond the life of the mine," Mitchell explained.
