Ann: Management and Organisational Update, page-129

your post re just mining Iron Ore:

have you considered what they would have been if he had of just stuck to iron ore instead of pissing billions against the wall over the past few years?The reason these projects are now being canceled is that the glory days days of Iron ore pricing are now gone and so has the free cash flow to do so.If only he had of just used some business sense and just stuck in his lane.IThis is a valid thought, but have you heard of ESG requirement and reporting? This ESG stuff will put the original mining practices which made FMG (which you want to stick to) , and will stifle companies out of business. AF could have 1. buried his head in the sand or 2. adapt the business or 3. transform the business. He has done 2 and 3.
To answer the ESG question (because frankly it bores me, but is important) I went to AI to ask a simple quested related to FMG and ESG. Here is the answer.

Certainly! Let’s explore ESG in the context of Fortescue Metals Group (FMG).

1. ESG Overview:

   • ESG stands for Environmental, Social, and Governance.
   • It’s a framework used to evaluate a company’s performance and impact in these three critical areas.
   • Let’s break it down:

2. Environmental (E):

   • Focuses on a company’s impact on the natural world.
   • Includes aspects like:
     • Climate Change: Efforts to reduce emissions, transition to clean energy, and manage environmental risks.
     • Biodiversity: Conservation efforts and minimizing harm to ecosystems.
     • Resource Efficiency: Responsible use of water, energy, and raw materials.
     • Waste Management: Reducing waste and promoting recycling.

3. Social (S):

   • Examines a company’s relationships with people—employees, communities, and stakeholders.
   • Includes aspects like:
     • Labor Practices: Fair wages, safe working conditions, and diversity.
     • Community Engagement: Supporting local communities, education, and health.
     • Human Rights: Ensuring respect for human rights across the value chain.
     • Supply Chain: Ethical sourcing and responsible procurement.

4. Governance (G):

   • Focuses on a company’s internal structures, policies, and leadership.
   • Includes aspects like:
     • Board Independence: Effective governance and transparency.
     • Executive Compensation: Fairness and alignment with performance.
     • Shareholder Rights: Ensuring shareholders have a voice.
     • Ethical Behavior: Integrity, accountability, and risk management.

5. FMG’s ESG Commitment:

   • FMG is committed to integrating sustainability into all aspects of its business.
   • Key areas include:
     • People: Health, safety, diversity, and inclusion.
     • Planet: Emissions reduction, biodiversity, and water resources.
     • Process: Social and economic benefits for employees and communities.
   • They align with the United Nations Sustainable Development Goals (SDGs) to drive positive impact.

6. Stakeholder Engagement:

   • FMG engages with a broad range of stakeholders to maintain its reputation and social license to operate.
   • Effective engagement is critical for long-term success.

7. Green Industrial Revolution:

   • FMG is at the forefront of developing technologies to decarbonize hard-to-abate sectors (like iron ore operations) while investing in renewable energy projects.

Remember, ESG isn’t just a buzzword—it’s a fundamental shift toward sustainable business practices. FMG’s commitment to ESG reflects its dedication to a better future!

I think AF and FMG are doing a pretty good job. The share market will also reflect this again, IMHO.