ESG in EMR

[H1] ESG in EMR: Sustainability Matters More Than Ever—Act Now
ESG in EMR has come a long way from when it simply looked good in an annual report.
Environmental, Social, and Governance (ESG) should be top of mind in the Energy, Mining and Renewables (EMR) Sectors.
Companies that ignore the rapidly evolving ESG reporting requirements risk falling behind, becoming uncompetitive or uninvestable.
Sustainable practices are now a prerequisite for business, but the question is where to start.

[H2] The Journey of ESG in EMR So Far
Here is a quick recap for anyone new to the world of ESG regarding energy, mining, and renewables.
Although the term ESG seems like the latest buzzword, the concept of Environmental, Social, and Governance has been around for at least twenty years. Companies within these sectors have long understood their environmental impact and obligations. They’ve also had to walk the tightrope between responsibility and profitability.
As consciousness on the topic expanded, so has pressure to embed sustainable practices into daily operations and decision-making. By now, companies are expected to report on every facet of their business, including ESG activities. Meaningful activities. The public are quick to call out “greenwashers”, and investors are quick to disassociate. Take, for example, the call to break up Royal Dutch Shell by Third Point Partners.
Navigating ESG is a labyrinth. Several frameworks are circulating, and there are dozens more standards to which organisations must comply. That’s why “Mining executives view environmental issues as the biggest risk to their business, outranking the price of the products they sell and access to talent” (The Financial Review).

[H2] Making ESG Make Sense (Applications for ESG In EMR)
There is no one-size-fits-all approach to ESG in EMR. Even though some standards may overlap, energy, mining, and renewables have distinctly different goals, as do the companies within each sector.
It helps to compare each sector’s priorities as follows (broadly):
 

 
From here, you can discern material topics granularly. Be mindful that reporting and compliance are not checkbox exercises. You want to set targets relative to your industry and carefully consider where or how your current operations can make a concerted effort to protect people and resources. Transparency, accountability, and authenticity are crucial to ESG reporting.

[H3] Good Data will be the Cornerstone for Determining ESG Materiality
Here at Moore, we believe we can simplify the process of determining ESG factors within the EMR sectors via good data. We are continually gathering intelligence based on qualitative and quantitative feedback from our clients.
We will soon launch an industry-wide survey to illuminate further the different disclosure requirements for ESG in EMR sectors (Sign-up to participate <sign-up link>).  
For more information about ESG reporting and your business, please contact your local Moore firm.