Siri C. Genik, Principal and Founder of Bridge©, is delighted to welcome Ramzi to the Team, as a member of BRIDGE©’s Board of Advisors. Recently retired from Newmont Goldcorp Mining Corporation, where he served as the Senior Vice President of Projects for 8 years, Ramzi brings a wealth of knowledge and experience in strategic project leadership. From his early years as an executive with Shell to his work across the globe with Newmont-Goldcorp, Ramzi has a proven track record as a visionary and thoughtful leader, engaging extensively with all stakeholders, both internally and externally. Ramzi has experience with leading change and delivering sustainable results.

We look forward to working with Ramzi and continuing to provide all of our clients with strategic, bespoke and innovative solutions, tailored to their specific requirements in delivering successful results.”

…THAT TRULY IS THE QUESTION, if you are trying to decide about sustainability and how to implement it within your organisation.

There is ESG, CSR and Sustainability. Do they mean the same, how do they differ? …more questions.

And thanks to social media, everyone is weighing in … So in fact it seems that Sustainability practices and their application raise more questions than there appear to be answers.

IT LOOKS COMPLICATED … At first glance the concept of ESG may appear to include many moving parts. The paradigm is shifting, of that there is no doubt. To wit the presence of acronyms, synonyms, guidelines, standards, regulations, policies and rulings, statements made by CEOs and industry associations, not to mention a flurry of articles, opinions, tweets and postings (… including this one)!

Depending on what your role is, either within the organisation or on the outside, when you stand back, it may look complicated and there seems to be a myriad of varying answers. And in truth, they are all valid, they all have their meaning. Their application is relevant within each of the organisations that use and refer to them, as they tailor their use to their respective needs and demands of their business model.

If you happen to be in the mining business, the paradigm takes on a whole new meaning… and again, depending on the market capitalization, the nature of the assets as well as a number of other elements, ESG will mean something different for each business.

IT WORKS FOR MID-TIERS OR MAJORS … NOT FOR JUNIORS…. Many small-caps and juniors feel that even the basic concepts of sustainability do not resonate, mostly because they feel they have neither the financial or the manpower capacity, or even the time to address the topic, much less engage in it. There are exploration and drilling requirements, technical reports to be prepared, permits and registrations to be obtained, etc. and of course shareholders and investors to satisfy. These are truly relevant ….

These concerns are all legitimate. However, regardless of the size of the organization, there are a number of common elements that apply. While all companies do not have similar financial or manpower means, or are not necessarily at the same stage of project development or operations, mining companies do care about their investors and attracting funds to help them develop their assets and get to the next stage and the next quarter.

SOME COMMON CORE CONCERNS FOR ESG … Simply put, what are the ESG factors and are they really relevant? How does a company act as an environmental steward, treat its team, customers, suppliers and communities? How does it govern itself? How to determine what results need to be considered, how are they measured, which results are measured, and what to report, or not?

How does this all play out… is it even a level-playing field? Does sustainability “mean” the same thing for juniors, mid-tiers and major players?

Ultimately, regardless of the size of the organization, mining companies do care about their materiality, transparency and accountability – as well as obtaining their social license. Most mining organizations have a vision and a set of values they act by. They do care about who they are and how they act, are accountable to their shareholders to their stakeholders and aware of their surroundings.

SO WHAT DOES IT MEAN AND WHY IS IT IMPORTANT … It starts by simplifying the message and reducing the principles to their most common denominator. In this manner, we can identify those elements that are at the very root of the meaning of ESG.

A sustainable approach is one that builds trust, is transparent and accountable, fosters respect and builds a bridge between the project and the team, the leadership and the board. All have distinct and separate roles but they are not completely disconnected from each other. While each group has their clear and distinct set of responsibilities, at the end of the day they are all accountable to those who have believed and invested in them and are definitely inter-related.

We know that traditionally portfolio managers consider earnings, profit margins and debt levels when making investment decisions. This has not changed. What has changed, however, is that increasingly and based on a more “in-depth” risk assessment, there has been a focus on integrating ESG factors within their investment-making decision.

Beyond what the mining industry has been used to, the role and impact of ESG integration into organizations’ respective business model is far-reaching. In fact ESG has the potential to add value by enhancing the long-term overall and sustainable performance of the organization. Companies that follow sound ESG practices are shown to be well managed, responsible organisations attractive to portfolio managers.

YOU’RE PROBABLY ALREADY DOING IT … because what we’ve just discussed constitutes in fact the basic fundamentals of doing business. And size does not matter.

Integrating ESG into business practices is simply tantamount to sound risk management practices. The difference actually lies in the timing as well as the messaging of the activities and the extent to which this behaviour is truly and consistently taking place.

Much has been made about reporting ESG performance and results, based on the common saying that “you can only manage what you can measure”. And while there are the SDGs and the GRIs, and a large number of data analytics companies that offer reporting software, it may all seem somewhat daunting. However a strong commitment from the leadership shared with the board and flowed down the project team of a few values, which are clearly identified and tracked (albeit on a simple Xcel spreadsheet) will go a long way to highlighting good “social behaviours”.

SIMPLE STEPS CAN GET YOU THERE … the most important one is the one we should do best: “plan” the steps, plot them on the project’s (realistic) timeline and act on them.

Identify and understand the landscape in which you are operating and identify all of your stakeholders (including the “internal” ones – the board, the leadership, the team). Understand their agendas and their interfaces, be they political, regulators, indigenous, unions, surrounding communities, organisations, influencers, media, social-media, etc.…

Remember, at the end of the day, and regardless of your size, your reputation is at stake. Make sure you are “are you walking the talk”, in spite of statements on your website, and perhaps even some reporting.

ENGAGE EARLY IN THE DIALOGUE …THE BACKDROP REMAINS THE TIMELY DELIVERY OF THE PROJECT… At the end of the day, attracting the investors and providing them with the comfort they require to provide funding …this is the priority.

Dialogue with shareholders and stakeholders fosters an environment that is open and transparent, built on trust and respect. While dialogue alone does not “resolve all issues”, it does provide a positive space for the underlying principles of ESG to be adopted and integrated into the company’s business model, regardless of size, location and financial means.

To obtain this social license, and proper ESG integration, you will also need to focus on working with the full team, across all the functions, with all proponents participating together. The exercise of understanding how to advise a board, how to work with the leadership to advise on strategy and help roll out the applicable action plans are all activities that can be done, without a cast of thousands, but does require on-going dialogue. Involving an independent third party to facilitate or provide input to this process can often bring a fresh perspective, whilst also allowing the core business team to get on with their day jobs.

Because of the importance of social media and how we “put our message out there” to attract investors and create awareness of what we do and how we do it, communications and a plan around the release of information becomes extremely important. Social media should be central to a sophisticated and successful ESG communications effort.

“DEBUNKING” THE MYTH ….. It really isn’t that complicated after all.

Depending on where you sit within the organisation, and what your responsibilities and accountabilities are, you will need to determine what actions are required to achieve the organisation’s goals and provide comfort to the investors. You cannot claim to be all things to all people, all of the time… but you can be true to your word, the business vision and your values. Many businesses are already doing some aspects of this, since managing and mitigating risks, lowering cost of capital, focussing on improved operational performance and overall “good performance” for the long-term has long been recognised as the key factors for long term business success.

The challenge for the leadership lies in building the strategy, then implementing and communicating it, as well as finding the right methodology to measure and report results. Asking the right questions and understanding the overarching targets the business can provide is a good place to start, something which can frequently be facilitated with the assistance of external and independent expertise.

IN CONCLUSION … mining companies want “to get it right” and “do the right thing”. As change is happening and brings about shifts in culture within the industry, ESG provides a manner to master it and manoeuvre through increased challenges presented by a number of varying factors.

There are no silver bullets, or a “one-size-fits-all” approach to integrating ESG into your business model in order to achieve sustainability and social license. The solution lies in finding the way to bridge the gap between the “business of mining” and the sustainability approach: how do we determine what makes sense to our particular business, how do we choose those elements that are important to us, and how do we share and report them both internally and externally.

How do we shift from a “next-quarter” business model, to building a mid to long-term strategy for a sustainable bottom line? What is relevant, and what isn’t, and what makes business sense?

The CSR approach, and attaining what is known as “social license” is a business model and a way of doing business… an approach wherein the leadership and the project team integrate this approach to how they deliver their project, the way they interface internally with their teams and externally how they partner and cooperate with the involved stakeholders and communities.

This, in my humble opinion, is what ESG is all about.

If these comments resonate (or not) I welcome your feedback. I would be delighted to help your organisation “kick-start the conversation” and assist in “sparking the fire” or simply helping to take the first step with a simple gap analysis to determine what the next steps would look like… fuel the discussion or help get over the hump.

Siri C. Genik
Principal & Founder
BRIDGE© – Linking Ideas with Reality
www.bridgeconsult.ca
September 2019

I was privileged to have the opportunity of travelling to Mongolia late November 2017***.

A country of strong contrasts and extremes, arid geography and desert climate (although right now Eastern Canada is probably colder!). Its infrastructure is challenging and its natural resources abundant. Mongolia’s population is approximately 3,5 million, its people are warm and welcoming, literate and determined.

Mongolia is not for the faint-hearted! But then again, the mining industry has never shied away from challenge, uncertainty or the unknown! As the industry demystifies the country, they can develop together a strong bond.

Mongolia is the kind of country our mining industry thrives on, where prospectors and developers like to explore, mastering the challenges of remoteness and arid weather, forging forward, attracted by opportunities that no longer can be found closer to home. And the investors are keen to understand and attain some sense of comfort. Mongolia is a new frontier, of sorts….

There have been the mistakes, the mishaps, and the geo-political shifts. Other concerns remain including concerns around the environment, local communities and gender. More global challenges such as artisanal mining are being addressed. Overall however solutions are being crafted to address and redress.

And it is important to stress that there has also been important progress in recent times. My sense is that Mongolia is a country of people acutely aware of:

• Their culture and the importance their past plays in relation to their present, defining the future;
• Their vast untapped resource wealth;
• Where they want to be: a craving for self-determination and independence, but yet a clear awareness of the importance of playing a role globally;
• Their geographical challenges, being landlocked and yet understanding the importance of connecting nations east and west, north and south: the inevitable opportunity of playing a core role in the new Belt and Road initiative of its southern neighbour;
• The acknowledgment that Mongolia cannot do it on its own, and its need of input, collaboration and cooperation from other countries, such as Canada; and
• A strong hunger for developing best-in-class policies and systems, along the lines of international guidelines, for the building of the natural resource Industry and thus ultimately their Economy.

Mongolia is currently building its foundations, supporting its sought-after stability on pilings of government, private enterprise and local community. It understands that it will need all three to continue to forge its path forward, and address the challenges along the way. It will need some help to achieve this.

Mongolia will need to continue to improve and implement strong legislation and policy. The Natural Resource Industry will need to set-up a framework and address issues, including royalties and taxation, licensing, environment and CSR, amongst others. Mongolia will also need to consider a strategy to reduce, in the medium-term, the uncertainty caused by continuous changes of politicians, and the ensuing fallout. Encouraging the creation and retention of a permanent middle-management within the various ministries and the Government will promote stability, encourage investment, and more importantly help create institutional memory to avoid past mistakes.

Furthermore, to ensure the success and perennity of these measures, Mongolia will have to integrate Infrastructure at all levels: roads, rail, and fibre optics, with the help of innovation, technology, clean energy, renewables and water. There will need to be something in it for everyone, from local herders, their families as well as women, youth and elders, with strong focus on education, training and ongoing capacity building.

But the slate is clean and the opportunities are becoming clearer every day: bridging the past to reach the future has begun, in so many ways. Mongolia has yet much to do to build the road to becoming self-sufficient as well as become attractive to the international business community. It will.

But until then, we should not stay away. I will venture that now is the right time to consider the opportunities afforded by Mongolia. Embarking on the journey however will require planning: understanding realistically the global landscape and carrying out full risk due-diligence. Beyond the traditional risks, consideration all of the non-technical and non-quantitative risks should be a priority in determining the required strategy and execution plan. Proper Stakeholder mapping will help to identify all the concurring and conflicting agendas, and will facilitate strong mitigation definition.

It would be simplistic to think that Mongolia is simply a landlocked country claiming self-determination. Mongolia is a historically rich, but democratically young resilient nation in the process of crafting its position at the world level in a positive and dynamic way. It is being guided by its recently adopted “Mongolia Sustainable development Vision 2030”.

Cooperation, collaboration and engagement will be the key ingredients for success. True partnership-building the essence for success. On these premises and with clear vision, it is definitely the right time to explore Mongolia.

***My thanks to the SESMIM project and their team, supported by Global Affairs Canada for affording me this opportunity, as well as to the board of Women-in-Mining-Canada whom I represented in making a presentation on “Gender and the Natural Resource Industry”. My personal thanks to the members of the Ministry of Mining & Heavy Industry of Mongolia, and all of the people I met during this latest stay.

“Meeting public expectations in relation to the sustainability of natural resource development and industrial activity are an integral part of doing business in the 21st century. In 1987 the World Commission on Environment and Development reported: “Sustainability involves improving the quality of human life while living within the carrying capacity of the planet’s supporting ecosystems.” In practice this means that development of natural resources should seek in a deliberate fashion to concurrently achieve human wellbeing and ecological integrity.”

Patrick E Armstrong

As we build, develop, create and seek to improve and innovate, we should never be oblivious to the surrounding landscape. An inclusive approach to economic development means that we work with expertise in a number of varying fields to ensure that we integrate all stakeholders and deliver our projects in a sustainable fashion.

Financial success never stems from one single source, but from the skilful combination of all of those elements that are inherent to its happening.

And so BRIDGE© is delighted to announce that three strategic experts have joined its Advisory Board, in the fields of Indigenous Relations, Forestry and Rail. We welcome

• Lana Eagle – an Indigenous Relations strategist, with deep expertise in engaging industry to partner with indigenous communities. A strong social innovator, Lana traces pathways to include Reconciliation into economically viable business solutions.
• Réjean Bélanger – an expert in the railway industry both in Canada and around the world. Réjean been particularly instrumental in the realization of responsible railway development throughout Africa, after having held leadership roles in both CN and CANAC; and
• Patrick E. Armstrong – an expert in forestry, land use and environmental policy. Patrick was instrumental in leading to the successful negotiation of the Great Bear Rainforest Agreement;

You will find more details on Lana, Réjean and Patrick’s skills and experience on our website at http://www.bridgeconsult.ca/.

Together with its current team of advisors, BRIDGE© offers its clients an expanding range of services and tools to support them in achieving their goals. Tailoring the right combination of on-the-ground experience with best-in-class standards, the members of the BRIDGE© team can help deliver strong economic sustainable results. We welcome the opportunity to partner with you and discuss your projects, so please get in touch with us to start the conversation.