Aligned with moving beyond compliance-driven environmental, social and governance (ESG) reporting and towards “genuine strategic integration”, platinum group metals (PGMs) producer Impala Platinum (Implats) is embedding sustainability considerations into its operations as a core component of its operational structure and projects, says Implats sustainable development executive Dr Tsakani Mthombeni.

While ESG and sustainability have primarily been viewed by the mining industry as a form of disclosure, compliance and investor reporting, the industry’s perspective has since evolved, with sustainability considerations now shaping business decisions, capital allocation and long-term value creation in the industry.

“The conversation has moved from ‘reporting on sustainability’ to ‘managing the business sustainably’,” he says.

Implats is increasingly treating sustainability as a strategic business discipline rather than a standalone function, driven by climate risks, water scarcity, stakeholder expectations, social licence requirements and the need for operational resilience.

This results in a holistic decision-making process in which projects are evaluated against their combined social, economic and environmental impact, as well as strategic priorities, such as decarbonisation, water security, stakeholder impact and future regulatory requirements, alongside traditional financial metrics.

The results enable Implats to create greater value for shareholders, communities and host countries while strengthening its competitiveness and operational resilience, says Mthombeni.

To further embed sustainability across Implats’ operations, ESG measures are being integrated into the business’ performance and incentive structures. Consequently, safety and talent retention are key components of short-term incentives, while decarbonisation and diversity and inclusion metrics – such as encouraging women in management – form part of long-term incentives.

Similarly, capital allocation is guided by the principle that enduring value depends on financial resilience and responsible stewardship, adds Mthombeni.

As such, board-approved strategies and oversight from relevant board committees ensure that major investments are assessed for financial returns and sustainability, with outcomes that benefit shareholders, communities and host countries.

“The value of stronger relationships, social cohesion, improved community confidence and institutional trust is fundamental to maintaining a social licence to operate and creating sustainable value,” he says, adding that while trust between a company and its communities, employees, governments and investors is difficult to quantify, it is critical to sustain.

To further integrate these values, Implats is embedding sustainability capabilities across the organisation through governance, digital systems and skills development. The company’s reporting also reflects this shift, as it is moving away from siloed disclosure towards genuinely integrated thinking, states Mthombeni.

For example, should a solar project be the topic of a discussion, it should also prompt a conversation about jobs, skills and economic opportunity; when water is on the agenda, communities and catchments should also be part of the discussion.

“The real measure of success is whether a project creates lasting value across environmental, social and economic dimensions. That is the journey Implats is on, and it is where we believe the broader sustainability conversation is heading,” says Mthombeni.

Zimplats Solar Project
Implats’ Zimbabwe-based PGMs producer Zimplats’ solar project illustrates this approach. The first phase, entailing a 35 MW solar plant commissioned in August 2024 at $37-million, supplies about 8% of Zimplats’ energy requirements, spanning 109 ha with 74 880 solar panels mounted on a single-axis tracking system.

“The original business case focused on strengthening energy security, reducing exposure to rising electricity costs, supporting the national grid and contributing to our decarbonisation objectives,” explains Mthombeni, adding that broader development opportunities, such as local employment, supplier participation and skills development, were taken into consideration prior to starting the project.

At peak construction, Zimplats employed about 800 workers, with the majority from neighbouring communities. This facilitated collaboration among international engineering, procurement and construction specialists from Egypt and seven Zimbabwean companies, thereby supporting meaningful skills and capability transfer in utility-scale renewable-energy infrastructure.

As implementation progressed, additional opportunities emerged, such the potential for dual land-use beneath the solar installation, including agricultural production, which, in turn, would broaden the solar project’s social and economic impact beyond its original scope.

Zimplats is also exploring local community participation in solar facility maintenance.

Mthombeni avers that the project demonstrates that decarbonisation investments can simultaneously support local economic participation, regional development, skills development and enterprise growth, which is aligned with Implats’ broader commitment to sustainable development in its host communities.