sustainability evaluation: new solutions neededjustmeans ranked 17th by newsweek and 621 by...
TRANSCRIPT
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Sustainability Evaluation: New Solutions NeededBusiness, Financial and Reputational Implications for Mining Companies
Maureen Upton, Resource Initiatives LLC, Denver, CO
November 23, 2010EXPOSIBRAM AMAZÔNIA 2010Belem, Brazil
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Outline
Comparison of recently published sustainability rankings
Existing sustainability evaluations are questionable
New sustainability solutions needed: an opportunity for mining companies
Proposed new approach: (Data analysis + Sustainability media analytics) Combo
Core sustainability indicators
Comparative Analysis of mining and non-mining companies
Sustainability media analytics tracking system
Conclusions and recommendations
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We compare two leading Sustainability evaluators
http://www.newsweek.com/2010/10/18/green-rankings-us-companies.htmlhttp://www.justmeans.com/top-global-1000-companies
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Wildly divergent Sustainability scores from two sources
** For comparative analysis, Justmeans scores were converted into the 1-100 scale used by Newsweek’s scoring system
Which rating
should be trusted ?
Which Which rating rating
should be should be trusted ?trusted ?
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Comparative analysis is meaningless!
Comparison leads to wildly
different conclusions!
Comparison Comparison leads to leads to wildly wildly
different different conclusions!conclusions!
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Sustainability assessments are inconsistent across the board…
Ranked 17th
by Newsweek and 621 by Justmeans
Ranked 17th
by Newsweek and 621 by Justmeans
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Solution: How to credibly measure sustainability performance – perceived and real
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New Sustainability Model
Sustainability Strategy =
Hard Data Analysis + Sustainability Media Analytics
Creates lasting impact on markets, media and communities
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Sustainability Reputations Matrix©
• Companies must know their box
• Then, plan and take actions
•• Companies Companies must know must know their boxtheir box
•• Then, plan Then, plan and take and take actionsactions
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TanahmetricsTM: Methodology
1. Evaluation of 2008/2009 Sustainability reports of 35 most prominent companies across mining & non-mining sectors
2. Collected 436 GRI indicators
3. Evaluated each indicator for comparability, independence, reliability, relevance to multiple stakeholders. Excluded redundant, highly-correlative, subjective/self-serving and arrived at:
4. More than 70 indicators & performance ratios covering 5 main categories that transcend any one company, region, or even industry: Environmental Stewardship, Resource Use, Socio-economic Contribution, Health & Safety, Transparency & Governance
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TanahmetricsTM: Mining Sustainability Topics
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TanahmetricsTM: (1) Environmental Stewardship
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TanahmetricsTM: (2) Resource Use
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TanahmetricsTM: (3) Socio-economic contributions
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TanahmetricsTM: (4) Health & Safety
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TanahmetricsTM: (5) Transparency & Governance
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Mining and non-mining disclosure comparison
On average top mining companies
report twice as many comparable environmental and Sustainability data
as the top non-mining companies in the Dow Jones
Sustainability Index
On average top mining companies
report twice as many comparable environmental and Sustainability data
as the top non-mining companies in the Dow Jones
Sustainability Index
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Mining out-spend non-mining companies on Sustainability
Avg: 0.42% Avg: 0.14%
• Top mining companies spend more than $1 billion annually
• Yet, public perception remains quite negative…
•• Top mining Top mining companies companies spend more spend more than $1 billion than $1 billion annuallyannually
•• Yet, public Yet, public perception perception remains quite remains quite negativenegative……
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Carbon Footprint—Benchmarking Snapshot
• Mining companies have bigger carbon footprint than non-mining companies
• Mining companies have an opportunity show climate commitment and continual improvement
•• Mining Mining companies have companies have bigger carbon bigger carbon footprint than footprint than nonnon--mining mining companiescompanies
•• Mining Mining companies have companies have an opportunity an opportunity show climate show climate commitment and commitment and continual continual improvementimprovement
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Sustainability Media Analytics
Online Media
Data compilation from internet
Database development
Intelligence extraction
Expert Review
• Evaluation runs hourly and daily
• Results available on Sustainability dashboard
• Medium and long term strategic analysis
• Incorporate in Sustainability strategy of companies
•• Evaluation runs Evaluation runs hourly and dailyhourly and daily
•• Results available Results available on Sustainability on Sustainability dashboarddashboard
•• Medium and long Medium and long term strategic term strategic analysisanalysis
•• Incorporate in Incorporate in Sustainability Sustainability strategy of strategy of companiescompanies
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Sample screenshot of media analytics dashboard
• View internet chatter by location on Google map
• View instant news and twitter volume by topic
• Most frequently cited cities, people and NGOs
• View the latest news
•• View internet View internet chatter by chatter by location on location on Google mapGoogle map
•• View instant View instant news and twitter news and twitter volume by topicvolume by topic
•• Most frequently Most frequently cited cities, cited cities, people and NGOspeople and NGOs
•• View the latest View the latest newsnews
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360° Approach Essential for Sustainability Success
Companies should:
1.Strengthen their on-site monitoring and company-level data analysis;
2.Regularly monitor online chatter on blogs, media outlets, Twitter, Facebook, etc to understand public perception.
Data Analysis
Perception Monitoring
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Conclusions and Recommendations
Current sustainability measurement systems are not credible
Sustainability performance must be measured with hard, publicly available and verifiable data.
Mining companies need to understand their current position and then take action to close the gaps between real and perceived sustainability performance
The only reliable way to measure actual public perception is a broad analysis of current online discussions by stakeholders around the world and of all varieties.
This way, the Sustainability narrative of mining companies can be transformed via the methodology of TanahmetricsTM sustainability analysis.
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TanahmetricsTM: Contact Us
Maureen Upton, Resource Initiatives [email protected]
www.resourceinitiatives.com