Suvo Strategic Minerals Ltd (ASX:SUV) has embraced an environmental, social and governance (ESG) framework based on the leading, global ESG standards.
The hydrous kaolin producer and explorer has established an ESG committee and appointed specialist ESG+F Pty Ltd to oversee the execution of its ESG strategy.
Suvo’s new framework will focus on 100 ESG metrics that are material to its industry sectors.
Overall, the company says its priority is to “develop a resilient and sustainable business incorporating ESG values”.
Maximising long-term measures
Speaking to the company’s ESG mission in a market announcement, Suvo executive chair Robert Martin said: “As a producer and explorer of minerals critical to the world transitioning to a low-carbon economy, it makes strategic sense for Suvo to embed leading ESG processes and expertise across all our operations and supply chains.
“Our goal is to maximise long-term measures both financial and non-financial (ESG) performance.
“With our strategic upgrade underway at Pittong, and mining, environmental and social studies all underway for our White Cloud kaolin and Nova silica sands projects, the company has the opportunity to make measurable and permanent sustainability improvements that optimise its assets for the long term, opens access to new sources of capital and new markets.”
ESG+F managing partner Oliver Barnes commented: “2021 was a breakout year for the ESG market with the global sustainable investment market reaching US$35.3 trillion with a compound annual growth rate in Australasia of 36% between 2014 and 2020.
For companies like Suvo, whose products are essential to countries and companies achieving their emission reduction targets, this presents a once in a generation opportunity.
“We are pleased to be working alongside Suvo’s board and management to unlock the full suite of benefits that a rigorous ESG approach can provide.”
Suvo’s ESG pathway
As climate volatility, nature loss and the COVID-19 pandemic continue to impact our changing world, the team at Suvo is eager to improve how it incorporates climate- and sustainability-related risks in its risk management framework.
In late 2021, the Suvo board undertook an ESG assessment and recently resolved to adopt an ESG framework based on the leading global ESG standards that make up the Technical Readiness Working Group (TRWG).
The International Financial Reporting Standards (IFRS), a not-for-profit organisation that developed and oversees the International Accounting Standards Board, announced in November 2021 the creation of a new ESG standard-setting board called the International Sustainability Standards Board (ISSB).
Suvo believes that the ISSB will serve as the global baseline standard for sustainability disclosure.
The TRWG provides technical support to IFRS on the ISSB, with the Climate Disclosure Standards Board and Value Reporting Foundation becoming part of the ISSB at the end of January 2022.
Suvo’s ESG framework currently focuses on 100 ESG metrics that the board believes are material to Suvo’s industry sector, operating jurisdictions and assets.
Areas the framework focuses on include climate change, responsible use of resources including energy and water, ecological footprint including biodiversity, health and safety, human rights, social supply chain and shareholder rights.
Moving ahead, the board has instructed management, supported by ESG+F, to create a systematic pathway for the implementation of its ESG strategy and to align ESG initiatives within its operations.
Suvo will shortly commence reporting on its ESG objectives and planned improvements.