ESG Newsletter | GRI Sector Standard Project For Mining

Draft standard of mining sector materiality available for comments

The Global Reporting Initiative (“GRI”) is an independent, international organization that helps businesses and other organizations, by developing best practices and sustainability reporting standards, to communicate and demonstrate accountability for their impacts on the environment, economy and people, providing them with a global common language.  

Recently, GRI has published the Sector Standard Project for Mining, available for public contributions until April 30, 2023.

One of the key objectives of the public consultation period is to gather comments on the GRI draft concerning clarity, feasibility, completeness, and relevance, also aiming to ensure that the 25 identified topics accurately reflect the sector’s most significant impacts on the economy, environment, and people.

A multi-stakeholder expert group prepared the Draft, which comprises 25 topics that encapsulate many impacts derived from mining activity, considering that three of them are new to the GRI Standards: tailings facilities and hazardous waste streams, artisanal and small-scale mining, and operating in conflict zones – three topics that have been widely discussed in Brazil.

The mining sector leaves environmental and social footprints, often concentrated on and around the mining sites, thus reinstating the importance of the participation of all agents involved in the sector. The demand for minerals, especially those essential for transitioning to low-carbon economies, continues to rise. Therefore, the Standard will be a tool to guide the material topics considered for the companies that wish to report their sustainability data.

Mining is part of the priority group for the developing Sector Standards for Sustainability Reporting, as defined by GRI. Sectors are prioritized based on the seriousness and likelihood of their impacts, also considering the sector’s overall size. In addition, both their worldwide distribution and the number of organizations that are able to use the GRI Standards have been considered.

Mining is a key sector in many economies and often requires exclusive access to large areas and the influx of large workforces. Although some extractive companies already publish information on their sustainability performances, according to GRI, the quality of reporting can be improved.

GRI’s Draft on the Sector Standard for Mining addresses the most significant impacts of the mining sector, according to such organization, thus providing a common set of metrics that represents the need for more transparency from stakeholders at a global level. Among the key proposals are:

• Survey of 25 topics identified as likely to be material to the reporting of organizations in the mining sector;
• Local-level disclosure of mining operations, encompassing the direct impacts of mines on their surroundings;
• Emphasis on social impacts and engagement with local communities, seeking their approval and support;
• Relevance of gender diversity in the materiality of topics; and
• Disclosure of climate change impacts across the entire value chain.

When published, the Sector Standard for Mining will apply to any organization engaged in mining and quarrying activities, including exploration, extraction, primary processing of all types of minerals (except for oil, gas and coal, for which GRI’s Sector Standards are already available), support activities (such as transport and storage), as well as the supply of specialized products and services to the sector.

Demarest’s Environmental, ESG, and Mining teams are available to provide further information and clarify any doubts that may be necessary.