Environmental Social Governance: Managing Risk and Expectations

Cover
Half Title
Title Page
Copyright Page
Table of Contents
Foreword
About the authors
Acknowledgements
01 Environmental and social aspects of governance in a changing environment: the Board’s role
	ESG considerations no longer “Nice to Have” but a must
	ESG enters the boardroom
	Boards that adapt will prosper
	Board composition
	The coming impact of ESG on strategy
	Directors’ dilemma: ESG obligations or overkill in the boardroom
	Looking ahead: identifying key trends in ESG
02 Yes, sustainability can be a strategy
	Concept of sustainable development
	Profit, People, and Planet
	What makes our business sustainable?
	Sustainability: cost that pays for itself
	Role of Government regulation and leadership in increasing sustainability
	Sustainability and its connotations
	Green accounting and sustainability performance reporting
	Shaping a more sustainable future for our companies
03 How do ESG values change Company culture?
	Values, principles, and policies
		Mission Statements
		Codes of Conduct
	Cultural awareness
	Grievance management
	Job descriptions
	Use of expatriates
	Your environmental team
	Organisation and reporting relationships
	Use of consultants
	Embedding ESG values in the Company
04 ESG factors in project finance and M&A transactions
	Pros and cons of international project finance
	Working with equator principles financial institutions
	Importance of risk management in our business
	Project screening and categorisation
	Role of lenders’ environmental and social consultants in environmental and social due diligence
	Equator principles as example of private code of conduct
	Covenants in financial agreements
	The bigger picture
	Key takeaways
05 Environmental and social planning and management: what’s measured improves
	Key elements of proactive environmental and social management
	Environmental and social business aspects
	Proactive management means prevention
	Plan for the unexpected
	Documentation
	Environmental and social management as continuous interlinked effort
	Need for adaptive environmental and social management
	Environmental and social management as bureaucratic approach to sustainability
06 Safety governance inside the boardroom
	Directors and prison
	Safety and environment
	How mature is safety governance at your Company?
	Policeman or doctor
	Safety and systems
	Preventing fatalities
	The problem with LTIFR
	The safety pyramid fallacy
	Fatality prevention models
	Golden rules
	Work stress and corporate response
	What you can do as a Board member
07 Impacts of development on communities: sharing benefits
	Social impact assessment
	Gender considerations
	Indigenous peoples
	Community concerns
	Community aspirations and expectations
	Conflicts
	Community development
	Selecting the social team
08 Access to land as a human rights issue
	Land and human rights
	Resettlement principles
	Minimising need for resettlement
	Attention to livelihood restoration
	Managing resettlement
	Allocating resettlement budget
	Involvement of communities in land acquisition and resettlement
	Cut-off date
	Willing buyer/willing seller
	Host communities
	Land management solutions
	Questions to ask
09 Water resources in the future: problems and solutions
	Water scarcity
	Water resource planning requires baseline data
	Saving water
	Smart water management
	Protecting water
	Standards and regulations
	Offsets
	Emerging contaminants
	Source, save, and protect
10 Industry and biodiversity
	Critical habitats and biodiversity impacts
	Mitigation hierarchy to avoid and minimise biodiversity loss
	Biodiversity offsets to achieve no net loss
	Additional Conservation Actions
	Alien invasive species
	Biotechnology and genetic resources
11 Enterprise risk management: putting ESG risks into a business context
	Political risk
	Risk events
	Risk scenarios
		Scenario A – Cyanide Truck Collision
		Scenario B – Sulphuric Acid Truck Collision
	Risk assessment
	Risk acceptability
	Uses and limitations of risk scores
	Role of Board in risk management
12 Environmental liabilities: risks beyond the balance sheet
	Tailoring scope of environmental due diligence
	Evaluating regulatory compliance in acquiring ongoing operations
	What lies beneath – on-site contamination
	Offsite contamination on former sites
	Offsite disposal of hazardous wastes
	In-migrating contamination
	Building materials and indoor air quality
	Emerging issues in environmental due diligence
	Allocating environmental risks in transaction agreements
	Environmental insurance policies
	Environmental risks/liabilities reporting requirements – damned if do and damned if don’t
	End of lease/tenement clean-up
13 Strategies for climate change risk management: stemming the tide
	Climate change risks to industry sectors
	Climate change opportunities for industry sectors
	Energy and GHG emissions management
	Climate variability in future
	Climate change risks to operations
	Company impacts on host communities and climate change
	How companies commit to climate-proofing
14 Crisis management: don’t wait for a crisis to come up with a crisis plan
	Crisis versus normal operations
	Crisis management models
	Scenario-based versus capacity-based model
	Proactive versus reactive crisis management model
	Issue and crisis management relational model
	Incident command system model
	Crisis management cycle
	Crisis management systems
	Crisis Management Plan
15 Right way to close an operation
	Delay, closure, or sale?
	Workforce redundancies
	Closure process
	Contractual provisions and Government requirements
	Clean-up: key influences
	Relinquishment of lease and permits
	Long-term closure liabilities
	Closure in the mining sector
	Closure in the oil and gas sector
	Other industries
	Documentation
	Our role as business leaders during closure
16 Looking ahead
	Millennials
	Gender and diversity
	Environmental and social issues are the next phase of good governance
	Accelerated climate action
	Internet of Things and big data
	Energy management
	Relationship to plastic
	Access to water
	New technologies
	Biodiversity as an emerging material risk
	Extending green practices along the supply chain
	Sustainability as competitive advantage
Appendix: managing catastrophic risk – tailings disposal
Acronyms and abbreviations
References
Index