The mining industry has long had to deal with sustainability issues and compliance with the “green” agenda for environmental stewardship.
Thanks to the ESG criteria, many mining companies have been able to improve and balance processes to balance the benefits to the planet, better manage their relationships with employees, suppliers and communities where they operate, as well as the way they lead the company.
ESG criteria have also gained relevance thanks to investors, who increasingly prefer to invest in companies that involve environmental, social and governance issues. Socially responsible investors put ethics before financial returns, which leads them to consider and prioritize ESG aspects in their investment decisions.
ESG is undoubtedly a key factor in the acceleration of investment flows.
One of the companies that have outperformed other companies in the same sector in their efforts and investment to comply with the requirements in this area has been Trillium Gold Mines (TSXV:TGM). According to the company “Modern exploration and mining require modern approaches”. The company has focused its efforts on fostering sustainability values at the core of its operations, which has attracted the attention of investors.
Trillium Gold’s ESG strategy is based on the following criteria:
- Safety & Company Culture
- Health, safety, and wellbeing
- Equal opportunities
- Skills training
In 2020, the COVID-19 crisis accelerated changes in corporate behaviour by focusing on governance and social aspects rather than environmental ones. This is due to the need to prioritize and guarantee public health.
However, strategies to take care of the environmental aspect are not being left aside. ESG-focused funds are rapidly increasing globally and investors are increasingly valuing sustainability strategies and are more and more oriented to invest in companies with a more favourable and regulated ESG environment.
In fact, during 2020, the ESG fund universe grew by more than 100% with total ESG assets estimated at $7.2 trillion versus $3 trillion in 2019. Although the U.S. saw the largest increase in adoption, sustainable assets are mostly coming from Europe, hence the relevance of Canadian companies such as Trillium Gold standing out in ESG aspects.
Trillium Gold Mines has always had a strong presence in the Canadian gold mining sector and has demonstrated with great effort a great fervor for compliance and resolution to social, environmental and governmental issues.
Health, safety, welfare, equal opportunity, vocational training, and environmental awareness top Trillium Gold’s list of business priorities as its projects in Ontario’s Red Lake mining district move forward.
The company recently acquired land in the Birch-Uchi greenstone belt, which includes about 17,000 contiguous hectares between the Confederation North and South properties. This acquisition, together with its ESG plan, has made Trillium Gold’s district scale land assemblage among Canada’s leading gold mining plays.
With this, it is clear how Trillium Gold is positioned for the future. Its ESG commitment and strategy is imperative to the mining industry as a whole and to the sector’s best practices.
At a time when billions are being invested in ESG funds, it is imperative that other companies continue to adopt and improve in this area because as ESG practices become stronger, more and more investors are monitoring their performance and execution.
2021 was a positive year for ESG, sustainability professionals finally saw that their field is getting more attention at the executive level. This means that standards will become more rigorous every day, especially for the mining industry.