AusIMM Consultants Society Presentation: Navigating the Changing Landscape: Ethics in ESG ‘Can you dig it – Modifying factors and multi-factor risk’

Harvey B. & Deans, G. (2024) AusIMM Consultants Society Presentation- Navigating the Changing Landscape- Ethics in ESG

Perth Convention Centre, 24th October, 2024.

Bruce Harvey FAusIMM(CP) and Geoff Deans FAusIMM(CP)

ABSTRACT:

The resources sector is guided by various performance, reporting, and disclosure frameworks, which can be confusing due to their diversity. Legal standards often lag behind ethical expectations, so understanding the ethical implications of project impacts is crucial for obtaining a social license to operate, necessary for land use agreements and permits.

The Joint Ore Reserves Committee (JORC) Code update Exposure Draft (JORC 2024a) highlights the importance of ethics by modernizing disclosure requirements for Environment, Social, and Governance (ESG) factors, now central to project valuations. This update addresses increased sector complexity and demands for greater transparency from financiers, regulators, and the public.

The updated Code emphasizes the principles of Transparency, Materiality, and Competence, advocating for thorough assessments of all project-specific factors. It requires progressive disclosure of material matters, allowing stakeholders to evaluate the ethics, risks, and merits of projects. Additionally, the Code mandates disclosure of multi-factor risks, which include cumulative uncertainties from unrelated regional developments and ancillary factors that can affect project value.

Competence ‘in context’ is essential for accurate materiality assessments. The updated Code requires multidisciplinary teamwork and public disclosure of consultants’ qualifications. This approach ensures that advanced project studies go beyond geological assessments, providing a comprehensive framework for decision-making and risk management, as supported by the AusIMM Study Processes Handbook (AusIMM 2024b).