spRING 2011 GlobAl MARKETs INTERNATIoNAl - Willis

More documents

Recommendations

Info

sustaInaBIlIty What does sustaiNaBility CoveR? FRoM a teChNiCal aNd oPeRatioNal PoiNt oF vieW the FolloWiNg CRiteRia aRe the key oNes: 1 Managing Environmental impacts and liabilities: • Environmental management and monitoring system • Environmental controls and procedures • Adequate resources and management commitment • Dealing with environmental emergencies and incidents • Environmental management plan 2 Managing social impacts: • Community engagement and liaison – transparency and public disclosure; involvement of stakeholders • Local employment and procurement • Community support • Managing expectations and problems • Social and community management plan 3 Labour rights and occupational health and safety: • Employment policies and fair rates of pay • Health and safety culture • Occupational monitoring and management • Safe systems of work 4 Mine closure and PMR – Post Mining Regeneration: • Restoration of land and beneficial use of mining areas • Social regeneration and livelihoods • Long term management • Financial provision and funding of closure as project cost 5 Climate change: • Power supply – carbon intensity of generation • Energy use and efficiency • Greenhouse Gas (GHG) emissions – CO 2 , CH 4 • Low carbon technologies • Use of Clean Development Mechanism and carbon credits as revenue sources 76 | Willis | Mining Market Review 2011 In a corporate and financial context, sustainability includes economic and governance criteria, as in the Dow Jones Sustainability Index. Sustainability indexes such as this were established to track the performance of larger quoted companies in terms of corporate sustainability, at company and composite sector levels. The purpose of corporate sustainability indices is to provide non-financial measures of corporate performance for investors who are increasingly diversifying portfolios on ethical and sustainable grounds. CoRPoRate sustaiNaBility assessMeNt CRiteRia – doW joNes sustaiNaBility iNdeX Dimension Criteria Economic Codes of Conduct/Compliance/ Corruption and Bribery Corporate Governance Risk and Crisis Management Industry Specific Criteria Environment Environmental Reporting* Industry Specific Criteria Social Corporate Citizenship/ Philanthropy Labour Practice Indicators Human Capital Development Social Reporting* Talent Attraction and Retention Industry Specific Criteria *Criteria assessed based on publicly available information only
iNteRNatioNal FoRCes The origin of most international standards and expectations for environmental and social performance in the Mining sector is the E.U., North America and Australia. This doesn’t mean that ‘west is best’ – both east and west do some things well and we need to learn and adopt good practice from both. Perhaps the most influential force for improving sustainable practices at the moment is the Equator Principles (EPs). Many financial institutions are signatories to the EPs and the requirement for projects to be compliant is being driven by them. The Equator Principles require adherence to the World Bank/IFC Performance Standards. The World Bank has been a major driver in developing consistent and practical environmental and social performance standards across a range of industry sectors, especially in developing countries, but with many lessons for transitional and recently independent economies. The European Union has developed and issued a number of Directives which, whilst binding only on member states, have served as models for many countries that are developing their own regulatory systems. Those of particular relevance for mining include Directives covering EIA (project and strategic assessment), water resources and the management of Mine Wastes. These are not separate stand-alone systems; they have evolved together through international collaboration and are largely consistent. FiNaNCial iNstitutioNs aNd leNdeRs As mentioned above, many financial institutions – principally commercial banks – are signatories to the Equator Principles, which commit them to ensuring that the projects to which to lend are compliant with certain environmental and social standards. As well as Environmental and Social Impact Assessment requirements, the Equator Principles require the implementation and continuing commitment to the environmental and social management plans, as a condition of any loan. In other words, the post-permitting implementation is audited and checked, ensuring follow through from assessment during permitting and financing, to management plans during operation. In addition, equity markets are also influencing sustainability in many industrial sectors. Natural resource company listings on international stock exchanges, particularly London, include requirements for reporting on a company’s health and safety record, environmental performance and social community relations as part of the Competent Persons Report (Mineral Experts Report) published in the prospectus. Other measures such as Sustainability indices and reporting will become increasingly important in maintaining shareholder interest. Why should CoMPaNies CaRe aBout sustaiNaBility aNd tRaNsPaReNCy? There are three main reasons why sustainability and transparency are important to a company: 1. Reputation and image: • Share price and investor concerns; • Ability to raise capital; • Ability to gain permits and licences. 2. Access to finance: • Access to loan finance and gap finance such as from EBRD; • Environmental, Social and Closure Liabilities can affect value of assets and collateral. 3. Economic benefits: • Reduce costs (waste reduction, energy costs); • Reduce environmental taxes, particularly for Carbon; • Take advantage of income from CERs and carbon trading. Willis | Mining Market Review 2011 | 77
Page 1:
MINING MARKET REVIEW spRING 2011 Gl
Page 5 and 6:
IntroduCtIon
Page 7:
" tHe InsuranCe market remaIns tHe
Page 10 and 11:
exClusIVe ProPerty damage/BusIness
Page 13 and 14:
Isk management
Page 15 and 16:
“ tHe ImPortanCe of qualIty rIsk
Page 17:
Willis | Mining Market Review 2011
Page 20 and 21:
ClaIms The mining claims service an
Page 23 and 24:
ConstruCtIon
Page 25:
The Mining industry will continue t
Page 28 and 29: dIreCtors and offICers CuRReNt tReN
Page 30 and 31: dIreCtors and offICers u.k. BRiBeRy
Page 33 and 34: lIaBIlIty
Page 35: “ tHere Is no questIon tHat safet
Page 38 and 39: marIne CaRgo In 2009 our message wa
Page 40 and 41: marIne CoMModity tRadiNg Perhaps mo
Page 43 and 44: sPeCIe
Page 45: " tHe return of demand and InCreasI
Page 48 and 49: sPeCIal ContIngenCy rIsks The natur
Page 50 and 51: sPeCIal ContIngenCy rIsks Risk Redu
Page 53 and 54: aCCIdent & HealtH
Page 55 and 56: ReCeNt eNhaNCeMeNts Increasingly, m
Page 57: Willis | Mining Market Review 2011
Page 60 and 61: PolItICal rIsks iNtRoduCtioN The Mi
Page 62 and 63: PolItICal rIsks soMe ReCeNt MiNiNg
Page 65 and 66: terrorIsm & PolItICal VIolenCe
Page 67: Democratic Republic of Congo (DRC):
Page 70 and 71: awaItIng IndonesIan HeadIng mInIng
Page 72 and 73: awaItIng IndonesIan HeadIng mInIng
Page 75 and 76: sustaInaBIlIty
Page 77: Who aRe the stakeholdeRs, aNd What
Page 81: Willis | Mining Market Review 2011
Page 84 and 85: InterVIew on m&a and rIsk managemen
Page 88 and 89: 6 | Willis | Mining Market Review 2
Page 93 and 94: dIsaster management
Page 95 and 96: When your HR people interview prosp
Page 97 and 98: When things go majorly wrong, organ
Page 99 and 100: Copyright and disClaimer: © Copyri
show all

spRING 2011 GlobAl MARKETs INTERNATIoNAl - Willis

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?