ESG is an acronym for Environmental Social and Governance.
The growing demand of minerals and metals is increasing the need for mining operations in remote areas. However, some local communities adjacent to mining projects lack capacities and education to mindfully benefit from mining activities, or to engage in other sectors of the local economy. In addition, communities are nowadays more aware and informed by the media or local and global NGOs of their rights and benefits in compensation for natural resource extraction.
SDGs were adopted back in 2015.
GRI (2016) offer a practical guidance to report on the SDGs. The aim is the creation of a harmonized indicator set and methodology for companies to report on their contributions to the SDGs.
GRI (Global Reporting Initiative)
...."This analysis of the goals
and targets is a first step towards a
unified mechanism to help companies
report on the SDGs in a comparable
and effective way. By reporting
on their progress, companies will
improve their performance which will
enable meaningful progress towards
achieving the SDGs.”
Tim Mohin; Chief Executive, GRI.
Social license to operate (SLO) is defined as a corporate approach intended to gain community acceptance. It is also viewed as an agreement between both mining companies and locals, in compensation for mineral and metal extraction. However, SLO requires additional disclosures to ensure the legitimated rights of all stakeholders. SDG’s integrate such disclosures.