Critical Resources Ltd (ASX:CRR) has engaged Environmental, Social and Governance (ESG) specialists ESG+F Pty Ltd to develop and oversee the execution of the company’s ESG strategy, which they intend to design in compliance with leading global mining and metal ESG standards.
ESG standards are an important metric for downstream relationships and offtake partners, which increasingly require producers to align with ESG-compliant operating principles and strategies, especially in the critical minerals sectors.
CRR says it’s committed to developing a resilient and sustainable business based on strong ESG values.
“Ahead of the curve” in ESG
“The appointment of ESG+F to support the development and implementation of the company’s ESG strategy and governance framework is an important step that allows us to be ahead of the curve on what will become a firm requirement of businesses in the future,” Critical Resources managing director Alex Biggs said.
“We see ESG as an opportunity to develop operating and reporting systems and frameworks that add value and efficiency to our business, particularly when we look at the battery metals and green energy sectors.
“ESG maturity/integration also reflects the company’s position on climate, community engagement and corporate governance.
“ESG compliance also offers greater opportunities to secure funding from tier-1 institutions that demand ESG compliant investment opportunities.”
In November last year the International Financial Reporting Standards (IFRS), a not-for-profit that developed and oversees the International Accounting Standards Board, announced the creation of a new standard-setting board called the International Sustainability Standards Board (ISSB).
CRR believes that the ISSB will form a global baseline standard for sustainability disclosure, prompting the company to engaged ESG+F and design an ESG strategy focused on the initial 100 metrics the board believes are material to Critical Resources’ industry sector, operating jurisdictions, and assets.
ESG an “important risk and opportunity”
ESG+F managing partner Oliver Barnes said: “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 (CAGR) in Australasia of 36% between 2014-2020.
“ESG continues to be an important risk and opportunity for the metals and mining sector.
“For companies like Critical Resources who are involved in the energy transition sector, building a robust approach to ESG provides the opportunity to engage with downstream users at levels beyond just the broader clean energy thematics.
“We are pleased to be working alongside Critical Resources’ board and management team to unlock the full suite of benefits that a rigorous ESG approach can provide.”
About the companies
ESG+F is an Australian ESG specialist that supports companies and investors in identifying, analysing, strategising and managing sustainability-related risks, opportunities and disclosures.
ESG+F works alongside clients to ensure they and their team are fully supported on their ESG journey.
Critical Resources is an emerging base metals and lithium exploration company based in Perth, Western Australia, with assets in New South Wales, Australia, Ontario, Canada and the Sultanate of Oman.
The Halls Peak asset in New South Wales, Australia represents multiple base metal exploration targets with historic mining of high-grade zinc, copper and silver.
The company has also recently acquired the high-grade Mavis Lake lithium asset in Ontario, Canada, which represents excellent exploration potential with historic results including 26.3 metres at 1.7% Li2O.
The Sohar Copper Project in Oman holds a JORC resource of 819,000 tonnes at 3.4% copper for 28,000 tonnes copper metal, with high-grade Volcanogenic Massive Sulphide (VMS) style deposits and a large exploration area of 1,000 kilometres square within a well-established mining region.