Charlene Wrigley, Vice President Sustainability Strategy and Disclosures at gold miner GoldFields said ESG reporting standards enable companies to better understand the benefits and impact of their investments in the minerals sector. However, she suggested that the number of frameworks be streamlined.

To improve the fragmented ESG standards reporting frameworks, Wrigley highlighted the work being done through The Consolidated Mining Standards Initiative (CMSI), which aims to bring together the best aspects of four well-established standards into one, global standard that reduces complexity and clarifies responsible practices for mining companies of all sizes, across all locations and commodities.

“The CMSI’s final public consultation, and final opportunity for input, on the draft Consolidated Standard, Assurance Process and Claims Policy is launching 8 October,” Wrigley noted.

“ESG has to make good business sense, add-value and be fit-for-purpose. A company’s ESG performance has to enable your business strategy and demonstrate impact where it matters most,” Wrigley said.

From an ESG reporting perspective, Charmane Russell, Founder and Managing Director of Southern African communications agency R&A Strategic Communications highlighted the complexity of reporting against the plethora of ESG standards that exist. “The ultimate goal is of sustainability reporting is providing information that is decision-useful,” she said, emphasising that to achieve comprehensive ESG reporting, both financial and impact materiality issued should be viewed collectively for boards to better understand their ESG impact.

Going forward, as ESG standards evolve over time, Pierre Gouws, Associate Director: Sustainable Finance Advisory at sustainability solutions consultancy SLR Consulting said he expected these standards and requirements to shed what is not working and retain what is effective.

“Companies with strong ESG metrics have proven to outperform those that don’t,” Gouws said. The role that ESG plays in protecting business interests shows that it is here to stay, but also iterated the need for standards to be streamlined, he said.

Amid heightened geo-strategic competition for access to critical minerals, Alex Benkenstein, Head of the Climate and Natural Resources Programme at the South African Institute of International Affairs, stressed the importance of grounded engagement among governments and civil society on what ESG compliance should realistically entail. He cautioned that the core questions around ESG should therefore not be overlooked.