ESG - Don't ignore it., page-2

What's in it for us ~ say the uneducated !

Apart from the obvious benefits of having a work-force that will think before doing, thus greatly reducing "unplanned Incidents" ie Accidents, there are flow thru benefits across the whole operation: Less damage/wear and tear to machinery, Lower Maintenance, Retention of staff, Reinforcement of the 'Team culture', etc etc. Then there are tangible "Marketing" advantages when finding a consumer for the end Product.

The vast majority of consumers currently buying Electric Cars are doing so because they recognize a benefit for the Environment and like to think that they are "Helping" . At the moment they have no choice, but once Pensana gets its Saltend facility into production ~Tesla buyers will be able to ask "Is the motor made with ESG Certified and sourced materials, or is it from illegally sourced / Environmentally polluting Rare Earths from China" ? Given that the marginal cost between the two alternatives will be less than $50 per car [there is only around 300g in the average EV], I think you can guess the outcome.

That "Certification" is coming and will become an Industry in itself, just like OH&S and JORC have. In fact the Australian Institute of Mining and Metallurgy are already formulating rules for the inclusion of ESG in JORC certification, I am sure that Canada and South Africa and others are following Australia's lead. So what exactly will that mean ? For one it will force Mining Companies into ensuring that they include the full cost of Rehabilitation in their Financial modeling [The definition of Ore is still "mined at a profit"], Fly by night "Market miners" are going to find it a lot harder to promote "Marginal" projects such as ultra low grade Ionic clay, or Deep sea nodule deposits.

The flip side of all of this extra cost is that: The Companies that adopt strict ESG Standards will not only benefit from internal savings from operational efficiencies but also from advantages in Market penetration, while seeing reduced competition from sub-standard producers. The Consumer benefits by having a clear conscience thus improving his Ego. But the biggest beneficiary will be the Local populace, who will be able to improve their living standards without compromising their local environment and future viability.