Based on ESG Longtermism, Insight into the "Green Future" of Gold Mining - "Exploring the Path of ESG"

2024-10-12

In recent years, ESG has gradually become a high-frequency term on the internet and social media. More and more investors and consumers want to know whether the products they purchase come from responsible companies and business practices, and whether they contribute to social progress. ESG is an abbreviation for the English words "environment," "society," and "corporate governance." It also measures and focuses on the investment philosophy and evaluation standards of a company's potential and performance in sustainable development from these three aspects. This once niche proprietary term is gradually becoming popular, indicating that more and more companies are incorporating performance measurement standards beyond traditional financial performance into their strategic planning, reflecting their social responsibility. Based on the gold industry, gold, which has continuously broken through historical high prices since 2024, has been highly sought after by global investors. Behind every gram of gold, there are a series of complex production and processing processes such as mining and refining. Therefore, the sustainability of the gold industry has attracted more attention from people. Does the gold bars, coins, gold jewelry, etc. purchased by investment institutions, individual investors, and consumers meet ESG standards? Why is ESG particularly important for the gold mining industry and the entire gold industry? In response to such questions, Xie Xionghui, Executive Director and Vice President of Zijin Mining, stated in an interview that "ESG and other related issues are closely related to mining. In the mining industry, it is easy for people to misunderstand it as a synonym for environmental and ecological damage. Therefore, for mining companies, ESG must be done well." At the same time, he also emphasized that whether it is capital, regulatory, media, non-governmental organizations (NGOs), or community residents near mining areas, people's demands and attention to ESG are increasing. The China Securities Regulatory Commission has issued ESG related standards and requirements, and the Hong Kong Stock Exchange has clear regulations on the disclosure of ESG related information by Hong Kong listed companies... It can be clearly felt that people's attention to ESG is continuously increasing. Therefore, a company, especially one that is pursuing internationalization, must prioritize ESG as one of the most important issues. Li Jianzhi, the Security Director of Zhaojin Group, also believes that ESG has been widely recognized and promoted by governments and market entities worldwide, and is an inevitable choice for the sustainable development of the gold mining industry. It is of great significance for improving corporate competitiveness, achieving green development, and promoting social progress. If a company wants to go global and deeply participate in the international market, ESG is the "ticket" and "passport". In fact, before the concept of ESG was introduced, domestic enterprises already had a mature and similar system - CSR. Li Jianzhi provided a brief explanation for the difference between the two: "Corporate Social Responsibility (CSR) emphasizes the responsibility to shareholders, creditors, customers, employees, suppliers, and the environment, and is more understood as public welfare and charity. It is a favorable tool to showcase the positive image and responsibility of the enterprise. ESG, on the other hand, takes capital as the core perspective, focuses on the unity of economic value and social value, and directly links the risks that may arise from the three non-financial indicators of E (environment), S (society), and G (governance) with investment returns, business performance indicators, and financial performance. It requires enterprises to start from corporate governance and establish a long-term sustainable development management system from top to bottom. With the increasingly rich connotation of ESG, in 2019, the World Gold Council launched the "Principles for Responsible Gold Mining", which proposed more targeted ESG practice guidelines and requirements for the gold mining industry for global member units. In response to this, Wang Lixin, CEO of the World Gold Council China, introduced: "It takes a process for us to go from 'not very familiar' to 'comprehensive understanding' of ESG. Although there are different requirements in China, with the introduction of global ESG reference standards, we also need to adapt to this system more quickly. I require association members to adopt the 'Principles of Responsible Gold Mining' to reference and constrain their mining behavior, corporate governance system, and other aspects. Since the release of the 'Principles of Responsible Gold Mining', we have required all association members to sign the first commitment and conduct verification work in accordance with this principle within three years, witnessed by an independent third-party organization, to ensure that our member companies can... To become a leading enterprise in the gold industry. Starting from our member companies, we aim to set a benchmark for the industry in order to ensure that our mining enterprises can lead the market in ESG, reflecting our commitment to promoting the long-term development of the gold industry. Meanwhile, most of our member companies are listed companies, and according to the listing requirements of different countries and regions, listed companies also need to carry out and improve ESG related work as soon as possible. The release of the "Principles for Responsible Gold Mining" not only conforms to market trends and drives member companies to take the lead, but also encourages member companies to fulfill their commitments more seriously The 2023 Central Economic Work Conference proposed that adhering to high-quality development must be taken as the hard principle of the new era, and the new development concept must be fully, accurately, and comprehensively implemented to promote the effective improvement of the quality and reasonable growth of the economy. The Chinese member units of the World Gold Council are all leading group companies in the gold industry, and how to practice ESG concepts will become an important "issue" for enterprises on the path of high-quality development. Xie Xionghui believes that ESG content itself is a part of high-quality development. For the strategic decision-making of enterprises, in terms of management, we have formed a bottom-up three-dimensional ESG framework. For example, at the board level, ESG related work is managed; at the management level, there is an ESG professional committee; at the employee level, we will embed ESG related requirements into the job responsibilities of core employees. In the actual business process, we will practice ESG concepts from the source. For example, in the process of project mergers and acquisitions, ESG will be a very important screening indicator for enterprises; In the procurement process of raw materials or supplies, ESG is also one of the measurement indicators for us to choose suppliers. In other words, whether suppliers can ultimately enter our supplier system, ESG standards are very important. I believe that Zijin Mining is already at the forefront of the industry in terms of environmental requirements and standards. In terms of ecological restoration, Zijin Mining advocates for 'simultaneous production and restoration'. All external drainage is monitored online, and third-party data is obtained simultaneously, making the entire process transparent. In addition, in terms of community maintenance, our project general manager will also enter the community to understand the situation and collect demands Li Jianzhi summarized the basic framework of Zhaojin Group's ESG system construction in recent years from four levels. At the industry level, Zhaojin Group always remembers the importance of the country and takes on the hard responsibility of 'producing gold to serve the country' to actively contribute to the safety and stability of the industrial and supply chains. In terms of environmental protection, the group is committed to building green ecological and environmentally friendly mines, constructing 'green factories', and reducing coal consumption by more than 2000 tons annually through initiatives such as promoting the' coal to gas' and 'coal to electricity' projects, and promoting the application of clean energy. At the same time, in order to build environmentally friendly mines for cleaner production, the company invests more than 60 million yuan every year to continuously strengthen dust suppression, tailings pond maintenance, subsidence area and goaf management. In recent years, the company has planted 100000 square meters of green vegetation, 400000 trees, treated 16 subsidence areas left over from history, and backfilled 1.2 million cubic meters of goaf, with a total dust suppression rate of more than 95%. At present, the company has 10 national level green mines, 4 national level green factories, and 3 provincial level green factories under its umbrella. At the social level, we practice the social responsibility of state-owned enterprises, focus on key areas of rural revitalization, and continue to increase assistance and support for communities around mines. We have invested more than 5 million yuan to promote the development of rural industries and the construction of beautiful countryside, effectively driving the economic development of the local area and improving the living standards of the local people. At the level of group governance, Zhaojin Group continuously establishes and improves a basic management system guided by the company's articles of association, and promotes the extension and expansion of institutional construction to secondary enterprises, promoting the transformation of institutional advantages into governance effectiveness The World Gold Council is also very concerned about the measures implemented by major companies to practice ESG. According to Wang Lixin, during the interview, the World Gold Council had just finished its trip to Guizhou. The association organized a visit to a gold mine under China Gold Group. "If the staff of this mine didn't tell us that it was tailings, we wouldn't have been able to see it at all. We thought it was a grassland. Surprisingly, after 5 years of effort, many fruits and vegetables were grown on it, making it difficult to distinguish whether it was tailings." At the same time, he also cited another case of gold tailings management. Shandong Huangjin has a gold mine near the seaside on Sanshan Island, with half of the gold mine "hidden" under the sea. The tailings used to be a protruding "small hill" on the beach, but after several years of construction, it has been transformed into a green park where tourists can freely visit. We can see that mining enterprises are gradually increasing the construction of 'smart mines'. Intelligent mines make greater use of machines and innovative intelligent control systems to reduce the harm to human labor, while also improving mining efficiency. All aspects reflect the current emphasis of gold companies on practicing ESG In addition, the association also pays special attention to community development near mining areas. Most of our member companies have invested a lot of energy into community building, not only through the operation and production of golden enterprises, allowing local community people to participate in production and change their lives, but also providing them with more opportunities for sustainable economic development, "said Wang Lixin. Looking forward to a green future and practicing it steadfastly. The core of practicing ESG philosophy in enterprises is sincere care for nature, society, and humanity. Similarly, for enterprises themselves, they also benefit greatly. The characteristics of the gold industry require gold mining companies to take on the responsibility of practicing ESG concepts, focusing on the future and extending the timeline. Only then can we discover the enormous value that ESG brings to enterprises, industries, and even countries. The human society and the common earth require everyone's care, and as a golden enterprise, it is impossible to leave this system. Therefore, these principles are of great help to enhance the value of our entire environmental industry. Therefore, with the development of society, especially among the younger generation, they are very concerned about whether a company is responsible, and young consumers are more willing to pay a premium for responsible companies Xie Xionghui said. Li Jianzhi summarized the next steps of Zhaojin Group. He stated that in the next step, Zhaojin Group will deepen its systematic thinking, plan ESG work with a strategic perspective, further improve its management system, establish a specific work promotion and coordination mechanism for the board of directors and management, actively conduct stakeholder research, and strengthen breakthroughs in key areas. Finally, Wang Lixin also expressed his confidence and expectations in implementing ESG concepts and promoting high-quality development of the industry. I think in the long run, we should not see ESG as an additional burden and cost investment, but rather as a long-term investment. I believe that with the increasing adoption of ESG reports, our mining companies also recognize the value of ESG and hope that through the efforts of all parties, society can see their investment and efforts in this area. Our common goal is to ensure

Edit:Yao Jue    Responsible editor:Xie Tunan

Source:XinHuaNet

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