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Environmental, Social and Governance (ESG) have been at the forefront of the African mining industry. Dr Eric Lilford, Professor (of Minerals and Energy Economics,) breaks down the Qualification and Quantification of Environmental, Social and Governance (ESG) Risks and Uncertainties Across the Mining Lifecycle.

Using statistics, this report breaks down the risks and uncertainty of ESG in the mining industry in three sessions.
 

• The ESG Paradigm- The requirement to address and disclose, in a transparent manner, ESG metrics and actions to all stakeholders, including investors and banks, as well as to government bodies and communities, is acknowledged.

• ESG Risk and Uncertainty- In discussions with various stakeholders in the mining sector over the last few years, it has become apparent that several deficiencies exist around the way in which the minerals industry assesses and analyses ESG, most notably from a quantification (valuation) standpoint, but also, and to a lesser extent, from an identification or qualification standpoint.

• Addressing Intangible Uncertainties (Unknown Unknowns) - It is necessary to provide further preliminary thinking and to highlight how to quantify intangible uncertainties potentially. In a perfect world, the market is allowed or given the task of quantifying intangible uncertainties. The instrument that mirrors the ESG unknown unknown’s value may be embedded in a somewhat complex solution, being a financial derivative hosting (potentially) embedded warrants.

Dr Eric Lilford will speak at Investing in Mining Indaba 2023 at the Investor Panel: Qualification and Quantification of ESG risk and Uncertainty Across the Mining Lifecycle.

For the full report, click on Qualification and Quantification of Environmental, Social and Governance (ESG) Risks and Uncertainties Across the Mining Lifecycle.