ESG Standard Boosts Defenses Against COVID-19

Board members of the Initiative for Responsible Mining Assurance (IRMA) recently held a webinar where they discussed how IRMA has helped companies and communities to respond to COVID-19. Companies that have adopted IRMA standards have found that they can face COVID-19 more confidently.

IRMA offers “independent third-party verification and certification against a comprehensive standard for all mined materials, which provides one-stop coverage of the full range of issues related to the impacts of industrial-scale mines.” The IRMA standard is based on four main principles: business integrity, social responsibility, planning for positive legacies and environmental responsibility.

The business integrity principle calls for a commitment to comply with the laws of the jurisdiction where the company operates. Also, it asks miners to implement stakeholder grievance mechanisms. The social responsibility principle requires companies to proactively guarantee worker and community health and safety. Workers must be informed of safety hazards and remove themselves if there is any danger. Companies must report safety hazards and work in partnership with health agencies to prevent dangerous situations. The planning for positive legacies principle means that companies must have emergency protocols in place and that they are expected to develop and test responses to possible emergencies. These elements result in strong stakeholder relationships, which are crucial for facing a health emergency. Additionally, they make sure companies are ready for possible health contingencies when they do arise.

Glen Mpufane, from IndustriALL Global Union, an international worker’s organization, emphasized the interface between mining workers and communities. He said that workers are potential vectors of disease as they move from the mine to the community. To mitigate contagion, Mpufane underscored trust between different stake holders is key. Trade unions are crucial in the effort to build trust. “IRMA is the most comprehensive standard for responsible mining,” he said. “In the midst of the pandemic, we have found that companies that align with the standard enjoy higher trust levels.” By implementing IRMA, miners show that they abide by conventions. They build strong relations with trade unions, which serve to get workers on board with the strategy to fight the pandemic.

John Samuel from Anglo American plc, started his intervention by pointing out that mines and communities depend on each other. He said that IRMA helps miners to be ready for an event like the COVID-19 outbreak, because it strengthens companies’ safety profiles. Even when mines are used to dealing with health, safety and hazardous situations, a company with a strong ESG profile is exceptionally prepared for COVID-19, Samuel highlighted.

The first mine in the American continent to seek IRMA’s certification is Santa Cruz Silver’s Zimapan. In an interview with Mexico Business News, CEO Carlos Silva said: “We believe that we cannot do business properly unless we behave responsibly toward the environment and society.” In addition to the aforementioned advantages for dealing with COVID-19 that IRMA gives miners, Silva notes that a strong ESG profile enables companies to access capital more easily. That is especially relevant in times of crisis. “It is very important that the Mexican mining industry seeks certifications by independent parties such as IRMA. Recognitions like ESR are also good but the level of credibility that a certification provides is superior. Just like the stock exchange requires us to be 43-101 certified, society and investors demand that we are environmentally and socially certified. Having a strong corporate responsibility profile is attractive for investors and differentiates a company in the market,” Silva said.