Avalon Rare Metals receives positive sustainability performance score from independent report

Avalon Rare Metals (TSX:AVL) (OTCQX:AVARF) said Tuesday it received a positive report from an analysis by sustainability research firm Jantzi-Sustainalytics on its Environmental, Social, and Governance (ESG) performance, as the company looks to improve and attract interest from socially-responsible investors.
 
In May this year, Avalon hired Jantzi-Sustainalytics to assess its sustainability performance against a number of benchmarks including stakeholders' expectations, competitors' performance, industry average performance levels, and socially-responsible investor expectations.  

Avalon's core stakeholders consist of aboriginal/local communities, investors, non-governmental organizations, government, contractors, advisors, and staff. 
 
The report, which was conducted over a three-month period, included in person and telephone interviews with stakeholders, a review of Avalon's corporate policies, operating and administrative procedures, public disclosures, and a questionnaire to management and advisors.

The company's overall score was 69.2%, with the highest score from all of its comparable peers totaling 74.5%. The industry average overall score was 59.0%.

"Avalon is well aware that as it progresses through permitting to production, stakeholder expectations for the sustainable management of material issues will continue to evolve and inevitably become more complex," said Avalon president and CEO Don Bubar. 

"The company is prepared to commit the human resources and provide the policy framework, practices and procedures, and transparent reporting necessary to improve its sustainability performance."

Indeed, by doing so, the company hopes to attract the interest of the socially-responsible investment community, including clean technology investors interested in commodities.

As Avalon progresses through to production over the next 12 to 24 months, it intends to improve its performance results by further enhancing its management systems, transparency and public disclosure, including becoming transparent about the limitations posed by its size and the scope of its projects.

Specifically, Avalon will provide ethical training to its employees, continue to consult further with aboriginal groups to secure formal agreements with them, assess and implement alternative renewable and co-generation production and energy storage schemes, and fully and transparently report on the options considered for the tailings disposal at the Necalacho project, including their potential impact on groundwater and wildlife.

The company will also implement wildlife monitoring and protection programs in concert with government agencies and the Aboriginal peoples, it said.

Avalon also noted that it will be looking to partner with suppliers who can contribute to its sustainability objectives.
 
Avalon is focused on rare metals deposits in Canada. Its flagship project, the 100%-owned Nechalacho Deposit, in Thor Lake, Northwest Territories, is emerging as one of the largest undeveloped rare earth elements resources in the world.

The deposit is rich with 'heavy' rare earth elements, which are key to enabling advances in clean technology and other growing high-tech applications. It is one of the few potential sources of these critical elements outside of China, currently the source of 95% of world supply.

Rare earth elements are used in the production of hybrid and electric vehicles, wind turbines, and energy-efficient lighting, as well as extensively in the electronics industry.