COBUS LOOTS ESG principles are becoming a more important area of consideration for investors, who are increasingly interested in making sure their investments align with the values they hold towards the environment, society and good governance practice
Environmental, social and corporate governance (ESG), as with corporate social responsibility (CSR), has become increasingly important for mining companies’ survival and sustainable operation, says gold producer Pan African Resources, which adds that non-financial aspects are also considered by investor when identifying the risk and growth opportunities of potential investments.
However, there is a difference between the two.
Pan African avers that, while CSR describes how a company’s social and environmental responsibilities and contributions are integrated into business operations, ESG is the criteria used to measure the impact of these activities. CSR defines strategy, while ESG is used to evaluate actual corporate behaviour and improve strategic direction.
“ESG principles are becoming a more important area of consideration for investors, who are increasingly interested in making sure their investments align with the values they hold towards the environment, society and good governance practices,” says Pan African CEO Cobus Loots.
The company remains a profitable, valued and high-margin midtier gold producer with a sustainable and progressive corporate model. Its ESG investments are central to its objectives, by being highly dedicated to responsible environmental stewardship and socioeconomic development in the areas it operates. In continuing its long-term journey towards a cumulative and ambitious ESG strategy, 2021 has been shaping up to be a significant year of achievements, despite the ongoing Covid-19 pandemic.
In delivering the company’s long-term commitments, Pan African’s ESG milestones include cultivating blueberries to provide sustainable employment, generating clean energy at Evander Gold Mine, environmental conservation and land rehabilitation, handover of Cathyville Clinic in Barberton and the opening of Kaapvallei Primary School.
The company says its success is owed to a combination of “quality assets and a committed team filled with a group of people united around a common purpose” – to balance financial goals with human ones.
Overall, Pan African is increasingly invested in making sure that its successful operations align with the values and goals it holds towards the environment, society and good governance practices.
“We are mining for a future and efficiencies [achieved] will never be at the cost of communities or the environment. ESG is a cornerstone of our strategy as we strive to safely extract gold from mineral deposits in a manner that creates sustainable value for all our stakeholders,” says Loots.