Page 12 - Energize October 2021

NEWS

No sector unaffected by growing ESG demands innovation programme, the RE-SOURCING
project has involved SRK Consulting to help
facilitate the necessary input from affected
n a world facing challenges ranging from “The evolving global ESG framework stakeholders in Africa and Asia.
climate change to social inequality, every places social aspects at the centre of the Kilian pointed out that companies
Ibusiness sector will experience rising project lifecycle – requiring decision-makers across the continent are expected to
demands on its environmental, social and to take account of issues such as gender, make more ESG progress on issues such as
governance (ESG) performance. human rights, vulnerability and livelihoods in disclosure, integration and inclusivity as
“The importance of ESG issues has development planning and implementation”, well as health, safety and climate change.
grown steadily in recent decades – building Maharaj said. Aside from the lender requirements,
momentum from concerns around SRK’s ESG offerings focus the expertise this impetus is also being driven by
environmental and human rights, which and experience of a number of professionals international sustainability frameworks
are now front-of-mind for consumers on advising clients to integrate these such as UN Sustainable Development Goals
and governments alike,” said Vis Reddy, requirements into their operations and and AU Agenda 2063 which are in turn
managing director of SRK Consulting. “It systems, according to Franciska Lake, principal influencing national legislation.
is now clear that no project can succeed environmental scientist at SRK Consulting.
without prioritising ESG factors from its Lake notes that, “there has been an Enviro now ESG at SRK
early stages.” important shift to strengthen the link SRK Consulting has long been a pioneer in
Reddy noted that SRK Consulting had between licencing and the engineering offering sustainable solutions to address
been a pioneer in evolving its professional design requirements, which aligns with SRK’s the environmental, social and governance
services to meet a range of sustainability standard integrated approach to projects.” impacts of development, according to Darryll
hurdles – and had recently re-branded its Kilian, partner and principal environmental
environmental business unit to focus on ESG. Broader pressure consultant at SRK Consulting.
Reddy argued that the sustainability “Our environmental business unit – now
Holistic approach requirements of large financiers had once rebranded as the ESG unit – has been evolving
“The rise of ESG confirms SRK’s approach been the prime drivers of ESG, but that this its sustainability approach for decades,” said
that good engineering is a holistic and pressure was now coming through at many Kilian. “This has allowed us to take a leading
complex process that must address a myriad points in the supply chain. role in helping our clients to align with
of risks through the integrated application of “From manufacturers to end-consumers, frameworks and standards – for instance, from
relevant disciplines,” he said. “This applies to our society is looking more closely at the the earliest versions of the Equator Principles
every stage in the economic value chain.” whole supply chain to see whether ethical and the International Finance Corporation’s
According to Darryll Kilian, partner and and other standards are being maintained,” Performance Standards.”
principal environmental consultant at SRK he said. From extracting raw materials to end-
Consulting, mining has to take account of the In a recent example of this, the RE- consumers, society is looking more closely at
greater ESG focus required by financiers and SOURCING initiative is working to ensure the whole supply chain.
other stakeholders. “The financial sector is that the European Union sources its minerals
being subject to mandatory ESG disclosure responsibly and sustainably. Funded by the Contact SRK Consulting, Tel 011 441-1111,
requirements in many jurisdictions and is European Union’s Horizon 2020 research and johannesburg@srk.co.za
responding quickly to stakeholder interest in
ESG investment”, said Kilian.
Consideration of ESG from the earliest
stages of planning, from exploration
onwards, is now recognised to add value
to mining projects. Mineral resource and
reserve reporting codes are being updated to
recognise this,” said Kilian
However, the urgency to address ESG
in planning projects goes well beyond the
mining sector, he said. SRK Consulting has
increasingly seen ESG risks affecting projects
related to water, infrastructure and energy.

Social aspects
Vassie Maharaj, director and principal
consultant in social risk and stakeholder
relations management at SRK Consulting,
highlighted that projects in every sector now
require effective engagement processes for Vassie Maharaj, director and principal consultant in social risk and stakeholder relations management;
meaningful stakeholder participation and Franciska Lake, principal environmental scientist and Darryll Kilian, partner and principal environmental
shared value. consultant at SRK Consulting

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