In the heart of the evolving landscape of the mining industry, environmental, social and governance (ESG) considerations are becoming increasingly critical. While companies have made significant strides in environmental compliance, social performance and governance remain challenging areas. SLR Consulting, an international environmental consultancy, is working to change this by helping clients navigate and implement ESG best practice.

Corporations, private equity and investors are recognising that it's no longer sufficient to consider only the impact of a company's operations on the environment, its people, and the communities it serves. Increasingly, they must also address how ESG issues can materially affect a company's performance and overall value.

SLR Consulting's Principal EHS/ESG consultant Carol-Ann Fletcher points out a significant gap in the mining sector's understanding of how social issues should be addressed. "The problems are mainly around consultation and governance," Fletcher explained. "There is often a gap in understanding how to implement resolutions from consultation feedback, leading to issues in engagement and project progression."

SLR Consulting highlights four interlinked challenges in the social aspect of ESG: lack of transparency, lack of engagement, undervaluation of local communities, and the inability to create meaningful value. "If you don't engage a community, rights holders will feel undervalued," Fletcher noted. "Robust engagement processes that are meaningful develop trust between the rights holders and stakeholders, which enables the project to move forward."

In 2023, a Deloitte report revealed that nearly 80% of mining projects worldwide experience significant delays or conflicts due to inadequate social engagement and governance practices.​

Governance challenges often include the lack of sound consultation processes and feedback loops between corporate bodies and local sites. "Good governance starts with a commitment at the highest level," Fletcher said. "It should be documented, be operationalised at the local level, and involve regular reviews and updates."

SLR Consulting assists companies in bridging the gap between policy and implementation by offering comprehensive services. "We do a lot of writing," Fletcher explained. "We write standards, procedures and work instructions, ensuring they fit within the company's culture and meet regulatory requirements." The consultancy also conducts audits to ensure compliance and identify opportunities for improvement. This proactive approach helps clients navigate the ever-changing regulatory landscape and implement best practices effectively.

Building strong relationships with clients is fundamental to SLR Consulting's approach. Understanding each client's unique needs and communicating regulations in plain language are crucial elements of their service. "It's very much a relationship," Fletcher emphasised. "We help clients fill in the gaps by communicating what needs to be done and ensuring they understand the requirements."

Keeping up with regulatory changes is a constant challenge, but SLR Consulting addresses this by maintaining a broad network of experts across different regions. Regular workshops and internal communication ensure that the team stays informed about the latest developments. "There's a lot of internal non-direct project work that happens to keep everyone up to date," Fletcher noted. This internal collaboration and knowledge sharing enable SLR Consulting to provide clients with the most current and relevant information.

Continuous improvement in governance is another cornerstone of SLR Consulting's philosophy. This involves not just putting policies in place but regularly revisiting them to verify adherence to legislative and regulatory requirements, as well as internal and external standards. "Good governance is not a one-time effort," Fletcher said. "It's about continual improvement and making sure that the processes are working as intended." Their audits aim to provide feedback on best management practices and identify opportunities for improvement, helping the company exceed basic compliance. This is essential to keep pace with increasing regulation, procedure and policy amendments.

"It's not about ticking boxes," Fletcher asserted. "It's about embedding these principles into the way the company operates every day." This integration requires commitment from the top management and active involvement across all levels of the organisation.

The consultancy's approach to ESG is holistic, covering environmental effects, social responsibilities and governance frameworks. They work closely with clients to develop tailored strategies that address specific challenges and leverage opportunities. This bespoke approach ensures that the solutions are practical, effective and aligned with the company's long-term goals.

Given the potential consequences, poor governance is a risk that mining companies cannot afford. Beyond fines, project delays or lawsuits, a lack of sound governance can result in the destruction of priceless natural features, causing irreversible damage. The cost is too high for companies to ignore any longer.