Evolution Energy Minerals Ltd (ASX:EV1)'s environmental, social and governance (ESG) performance at both corporate and project levels has been assessed a 'B' in a maiden independent review by Digbee ESGTM.
Adherence to the company’s ESG framework and actioning the recommendations provided by Digbee, will see Evolution achieve an ESG rating of 'A' or better, opening the door to additional pools of ESG-focused financing.
The company is expected to deliver a substantially higher score of at least an 'A' by the second half of 2022.
Committed to at least an 'A' rating
EV1 managing director Phil Hoskins said: “The Digbee report identifies key areas for improvement that will support efforts to integrate ESG considerations throughout our business and will support the substantial work already underway.
“The board of Evolution Energy Minerals is committed to achieving at least an 'A' rating assisting the company to become the standout near-term sustainable graphite producer.
“Project financiers and capital markets are placing increasing importance on ESG factors in their investment decisions.
“Put simply, financiers will not consider an investment unless minimum ESG standards are met.
“The engagement of Digbee to provide an independent and transparent assessment of our ESG performance is critically important as we seek to position Chilalo for development and align with the requirements of ESG-focused financiers.”
ESG at heart of its culture
Digbee CEO Jamie Strauss added: “With a strong focus on ESG, including a robust ESG board-level committee and clear focus on energy-transition materials, Evolution Energy Minerals is ensuring that ESG is at the heart of its culture.
“Primarily as a result of the company only having been formed recently, a number of documents, plans and activities required for the foundations of good-practice ESG have yet to be implemented.
“However, the team has identified these gaps and has plans in place to address them in the coming months.
“As a result, some of the scores outlined in this assessment may appear lower than anticipated.
“We fully expect these scores to improve as and when key ESG initiatives are implemented.
“It should be noted that there is an opportunity for the rating to be improved significantly, with the company having the potential to achieve an overarching rating of at least an 'A' in the near future.”
Areas for improvement
Some of the areas for improvement identified in the report and which the company is working to address include:
➢ Environmental
- Reduction in carbon footprint – a specialist advisor has been engaged to undertake a Life Cycle Assessment for the Chilalo Project, to determine the quantity of greenhouse gases (GHG) that the project will produce. Simultaneously, the company is reviewing options to reduce emissions through the use of renewable power and other means.
- Requirement for a tailings storage facility (TSF) – the company has commenced a process to review options available for storage of tailings with a view to dry stacking tailings, thereby removing the requirement for a TSF.
➢ Social
- Resettlement of individuals living/working in the project area – preparation of an updated Relocation Action Plan (RAP) is under way. A team is at site carrying out the work required to update the RAP, in accordance with Good International Industry Practice as defined by the IFC Performance Standards.
- Increasing community relations capability – the company has a dedicated community liaison officer in the project area and is about to open an office in the village of Nangurugai. As Chilalo moves towards a development decision, additional community engagement personnel are expected to be employed.
➢ Governance
- Additional policy documents – As a new company, work is under way to establish its suite of policy documents which includes policies that will demonstrate its unwavering commitment to ESG and procedures that govern how that will be achieved.
- Reporting ESG information to all stakeholders – the company is developing channels to ensure ESG information is regularly available to key stakeholders, including those in Tanzania.
Independent assessment platform
Digbee ESGTM is the leading independent assessment platform for ESG disclosure for the mining sector.
It provides mining companies with a right-sized, future-looking set of frameworks against which they can credibly disclose, track, compare and improve ESG performance.
Digbee has been developed in consultation with mining companies, ESG specialists and capital providers and is endorsed by leading financial institutions, producing mining companies and other industry stakeholders.
All ESG submissions are manually reviewed and scored against a set of rigorous and standardised rating criteria that have been developed in consultation with a wide range of stakeholders.
Scoring is undertaken by a team of accredited ESG experts who have deep experience in mining projects similar to those being assessed.