Latin Resources Ltd (ASX:LRS) has adopted an Environmental, Social and Governance (ESG) framework as it seeks to measure the impact of its operations on the environment, the sustainability of the businesses and the products it creates.
LRS is committed to health, safety, environment and community impacts and to meeting and exceeding its ESG framework, including 21 core metrics and disclosures created by the World Economic Forum (WEF).
To help monitor, and report on its ESG disclosure progress, LRS has turned to impact monitoring technology platform Socialsuite to streamline the disclosure and ongoing ESG reporting process.
Latin’s projects favour an ESG approach
Latin Resources Noomenberry Project, 300 kilometres east of Perth in Western Australia, contains one of the premier halloysite deposits in the country.
The Cloud Nine deposit has a maiden mineral resource estimate of 207 million tonnes (Mt) of kaolinised granite with 123Mt of bright white kaolinite and 84Mt of halloysite-bearing material.
While kaolinite is known mostly for its use in paper and ceramics, halloysite has several key environmentally friendly properties and can be used to assist with the management of Greenhouse Gases (GHG) and can be mined with extremely low environmental impact.
The ability to manage greenhouse gases is key to LRS’s ESG Purpose Statement of “developing minerals to provide the planet with environmentally sustainable products”.
LRS has also committed to developing its lithium spodumene project in Brazil, with lithium being a key mineral used in electric vehicles and battery storage to decarbonise the world by directly contributing to technology-driven GHG emission reduction targets.
“Latin Resources is pleased to be following globally recommended ESG standards, especially with the development of our environmentally sustainable mineral projects with Halloysite and lithium being our major focus,” executive director Chris Gale said.
“I am delighted our board has adopted this universal ESG framework to measure and report our ESG performance. Latin is also dedicated to environmental management by identifying and minimising its footprint with the development of our projects.”
Adopting an ESG framework makes LRS an impact investment
LRS’s halloysite and lithium projects are being designed to create inherent positive impact, however, the adoption of the WEF framework takes this aim to another level.
As mentioned, the management of greenhouse gases already puts LRS’s halloysite project in the ESG frame.
However, the introduction of a proper reporting framework now gives LRS transparency.
LRS will update the market regularly on its ESG disclosure progress and aim to ensure that its projects remain an impact investment for shareholders and local communities.
The company is undertaking a strategic review of its entire portfolio of projects to ensure it continues to align itself with its purpose statement as it transitions to becoming an ESG focused company.
It will focus on projects that can be developed to have a positive impact on the global environment.
$30 trillion industry
Global sustainable investment now tops $30 trillion, up 68% since 2014 and tenfold since 2004.
It is clear, investors are turning to sustainability-focused companies to add to their portfolio.
While it is challenging for some companies in the resource space to adopt ESG frameworks, those that do are likely to benefit in the long term.
LRS is committed to long-term, sustainable value creation that embraces the wider demands of people, planet and shared prosperity and the adoption of the World Economic Forum’s ESG is another step in that direction.
The company is now putting in place an impact measurement plan for each sustainability area including governance, anti-corruption practices, ethical behaviour, human rights, carbon emissions, land use, ecological sensitivity, water consumption, diversity and inclusion, pay equality and tax payments.
Socialsuite to help LRS monitor its impact
Socialsuite, which has global reach, helps a diverse range of organisations monitor and report their impact on people, planet and prosperity via its ESG Go technology platform, which sets up an initial ESG baseline.
Through Socialsuite, LRS will work to a tailored ESG action plan, focusing on delivering and reporting ongoing progress toward disclosing and improving ESG metrics and indicators.
Socialsuite’s ESG Go reporting technology provides an easy way for investors and other stakeholders to assess LRS’s commitment and progress in creating “best in class” ESG credentials and outcomes.
Socialsuite’s ESG Go technology helps companies work towards best-in-class ESG credentials over time through tracking quarterly progress toward key ESG disclosures, quarterly prioritisation of ESG disclosure actions, assistance to implement ESG improvements, team responsibilities and task management through quarterly ESG action plans, ongoing ESG reporting to key stakeholders.