Sustainability and the Minerals Industry

Sustainability is one of the most significant issues facing the minerals industry today. Sustainability is about the industry's ability to manage its activities in ways that provide for the demands of its customers, while ensuring that, both now and in the future, the whole natural and social environment is not negatively effected in the process. This form of accountability needs to consider impact from the industry's activities and its products.

Many critics of the industry would argue that by definition the mining industry is far from sustainable. It is imperative then that the minerals resource industry, from prospectors, to miners, to producers and distributors, are able to show by their actions that they can indeed abide by such principles. By taking a sustainable development approach to business the industry can better articulate their value to society in holistic terms.

Sustainable business practices will show that this industry can continue to supply the raw materials required to maintain and enhance society's standard of living, and do so in a way that protects and supports social integrity, environmental biodiversity and equitable economic development.

Today there are many variations on the definition of sustainable development; however, it all began in 1987 with what has been termed the Brundtland definition. "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs"

For our purposes it is also important to know that the Australian Minerals Industry Code of Environmental Management defines Sustainable Development in operational terms as;

"Managing activities in a manner consistent with the principles of sustainable development such that economic, environmental and social considerations are integrated into decision making and management"

This operational definition is important for three particular reasons; firstly it represents the minerals industry's accepted position; secondly it points to the three primary elements commonly used to apply the principles of sustainability - economic, social and environmental; and thirdly it points out that it is essential for these to be 'integrated into decision making and management'.

The beauty of a sustainable development approach to business is that everyone wins; the business, society and the natural environment.

Businesses that embrace sustainability initiatives do so because they believe they benefit by at least one or more of the following:

• Enhancing public reputation
• Establishing a business leadership position
• Building competitive advantage
• Securing public 'licence to operate'
• Attracting and retaining quality employees
• Attracting investment capital
• Driving internal behaviour change
• Initiating efficiency improvements
• Attracting better quality business partners
• Maintaining strong shareholder support
• Minimising business risk
• Avoiding, or at least delaying, onerous statutory regulation
• Increasing capacity for innovation
• Maintaining access to land
• Believing it is simply the right thing to do

It would be hard to imagine any business saying they were not interested in such benefits.

When businesses consider ways they can work using a sustainable approach, they must consider all aspects of their operation. The best place to begin by defining what sustainable development means and where it particularly adds value. The aim for each business is to build internal capacity to:

• Define sustainable development for the business
• Identify and engage important stakeholders, particularly employees and the local community, but also including suppliers and customers
• Develop policies and strategies
• Identify sustainability issues relevant to the business
• Identify those activities that are already in place and evaluate any gaps
• Align the overall business vision and mission with achievable sustainable development outcomes
• Agree upon measures and accountability

The next step towards sustainability is to introduce processes and systems and to communicate with important stakeholders, particularly employees, customers and suppliers.

• Establish benchmarks
• Introduce systems to gather information and data - wherever possible build on existing systems and practices
• Collate and analyse results
• Establish action plans for ongoing improvement
• Agree goals and specific targets and communicate them well
• Identify drivers and barriers and agree a strategy to use drivers and overcome barriers
• Start with the 'easy wins'
• Encourage and reward innovation
• Recognise new business opportunities offered by sustainable development
• Publicly report on progress
• Celebrate success - reward initiative and effort
• Establish continuous communication processes

It is most effective to begin where economic benefits are readily identifiable. Existing models like the GRI - Global Reporting Index - and surveys like the DJSI and SAM index provide clear examples so others can learn from those who are doing it well. Further information is available through subscriptions to journals. Establishing networks with others who are also on the 'sustainability' journey provides businesses with links to other businesses who have travelled the same path or who can provide pointers from their own experiences. Keeping all stakeholders informed is a key responsibility of businesses taking this journey.

Initial actions that can be considered by a business may be those that address issues within the business' practices so that they will:

• minimise waste
• use less energy
• have less emissions and/or are easier to dispose of or recycle
• have little or no safety and health issues
• enhance the local economy
• minimise or eliminate exploitation
• come from a business partner committed to sustainability.

This process is not different from good business management. It is simply a process of managing risks and taking advantage of opportunities. Business managers who constantly review their operations to identify and minimise costs are usually following most of these principles without being aware of it.

Prepared from information supplied by StrategiComm

Links to some global companies addressing sustainability.
BHP Billiton
Rio Tinto Ltd
Royal Dutch/Shell Group
BP