MacCormick International Mining Consultancy 1

Transcription

1 MacCormick International Mining Consultancy 1

2 WHO WE ARE MacCormick IMC is a management consultancy dedicated to social governance, assurance and performance in the mining sector q Social Management Systems (SMS) q Social Audit q Social Reporting q Training & Development MacCormick International Mining Consultancy 2

3 TOOLS, RESOURCES AND EXPERIENCE Established in 2009 MacCormick International Mining Consultancy 3

4 OUR INDEX Social Responsibility Index TSX.V MacCormick International Mining Consultancy 4

5 TOPIC: Social Responsibility and Mining in the current context of SRI and ESG. A prac''oner s perspec've on what s missing and how it impacts CSR on implementa'on. MacCormick International Mining Consultancy 5

6 SRI TRENDING GLOBAL Principals for Responsible Investment has more than 1,000 signatory firms with assets over 30 T - this is estimated to be 20% of total of global capital markets Community Investing Institutions (CIIs) is one of the fastest growing segments in SRI) 1:9 Of the 3.3T in ESG Assets under Management btw out of every $9 USD under professional management is invested according to strategies of SRI MacCormick International Mining Consultancy 6

7 GLOBAL FIGURES Investments according to PRI (Principles of Responsible investments) MacCormick International Mining Consultancy 7

8 GLOBAL :BY REGION Global Sustainable Investing by Region (%) Relative proportion of ESG assets in total assets under management by region MacCormick International Mining Consultancy 8

9 SRI TRENDING GLOBAL MacCormick International Mining Consultancy 9

10 SRI TRENDING GLOBAL ESG Funds in the U.S. MacCormick International Mining Consultancy 10

11 GLOBAL FIGURES Total Canadian assets invested according to socially responsible guidelines SRI Strategies - Europe CAGR ( ) Sustainability Themed Investments 38.2% Best- in- class Investments 30.3% *Norms- based Screening Investments 54.0% Exclusion Investments 50.0% ESG Integration in Europe 30.8% Engagement and Voting Strategies 17.8% * CAGR is for MacCormick International Mining Consultancy 11

12 SRI TRENDING GLOBAL Types of Assets and Investment Vehicles incorporamng ESG criteria in 2012 MacCormick International Mining Consultancy 12

13 SRI TRENDING GLOBAL Trend Drivers Client demand and values cited by 72% of surveyed money managers Firms that have not historically identified themselves as SRI are adopting SRI strategies in decision-making; no typical type of firm anymore; paradigm shift Increased investment tied to impact, mission ; investors tying investment to environmental, social challenge reduction. Emergence of specialized stock exchanges with requirement for sustainability data disclosure U.S. Reporting structures: SASB (Sustainability Accounting Standards Board), shift to integrated reporting Need for comparable standards of reporting = fundamental shift in corporate reporting structure Governance criteria incorporation as leading ESG issue Consumer demand and campaigns; this influence also seen in a 73% increase in community development bank assets (2010 to 2012); and 54% asset growth for community development credit unions. MacCormick International Mining Consultancy 13

14 INDICATOR ANALYSIS Current Market Environmental Social Governance (ESG) Rating Tools *Used by Financial Institutions (FI) Roughly 200 Indices! used to govern ESG 10% of current social Indicators generally rely on impact studies or SIA (or components of ESIA) or philanthropic activity Each FI has their own custom system and set of priorities SIA can be done desktop with high-level statistics on estimations or averages of total population in the permit area which does not qualify prior consent or relationships with communities 90% of current tools govern environmental indices' vs. social aspects of projects Community involvement and consent is at the forefront of risk mitigation in the sector MacCormick International Mining Consultancy 14

15 SRI TRENDING GLOBAL Types of InsMtuMonal Investors: ESG Assets 2012 in U.S. MacCormick International Mining Consultancy 15

16 INDICATOR ANALYSIS ESG Criteria Incorporated by Institutional Investors Social issues affect the largest proportion of ESG assets owned by the greatest number of institutional investors- with an emphasis on fair employment practice, labor policies, community issues such as microfinance, affordable housing, and economic development of disadvantaged people and places. Increasingly, shareholders are asking for sustainability reporting to include not only environmental impact, but also how firms deal with labor and community issues. MacCormick International Mining Consultancy 16

17 INDICATOR ANALYSIS Leading Governance Criteria for Investment Vehicles 2012 With a total of 346 vehicles with $643 billion in assets under management- corporate governance has become an increasingly important arena of ESG investment and decision making. Most prevalent issues include: executive pay, board issues, political spend, broader corporate governance. MacCormick International Mining Consultancy 17

18 INDICATOR ANALYSIS Leading Environmental Criteria for Investment Vehicles 2012 Environmental factors are among the most frequently incorporated criteria among money managers (551 funds with $240B in assets). Increased prominence of environmental issues (mainly climate change and carbon emissions) is a driver in the 23% increase in institutional asset owners in U.S. who consider ESG. MacCormick International Mining Consultancy 18

19 INDICATOR ANALYSIS Leading Social Criteria for Investment Vehicles 2012 In asset adjusted terms, social criteria affect more ESG assets under management by money managers than any other broad category- with over $1.2 trillion in assets. Consumer activism (social) boost deposits in community-oriented banks and credit unions. From , pronounced upward trend in support on environmental and social issues. MacCormick International Mining Consultancy 19

20 MINING INDUSTRY SOCIAL GOVERNANCE ACTORS Each of these actors have their own set of tools and rankings for measurement of performance and frameworks for compliance MacCormick International Mining Consultancy 20

21 CONCLUSION MacCormick International Mining Consultancy 21

22 Contact Us MacCormick IMC Toronto, CANADA Bonnie Lyn de Bartok, CEO MacCormick International Mining Consultancy 22