ESG – Sustainability services for the commodities sector

ESG is an acronym for Environmental, Social and Governance, the three key themes that form the core of a modern, responsible investment and development portfolio. It is a concept that has evolved over decades into its current form and serves as a platform for responsible investment and business practices across all economic sectors. ESG is a growing concern for investors, and responsible investment is attracting ever-increasing amounts of capital from investors worldwide.

ESG services are generally categorised into the areas of Environmental Stewardship (E), Social Responsibility (S) and Responsible Corporate Governance (G). These areas cover topics that may vary slightly in an international context, depending on the company being assessed.

• Environmental Stewardship guides companies in managing their environmental impact. It addresses emissions and waste, resource efficiency, decommissioning and reclamation (in the case of mining), biodiversity, energy and climate change, as well as the promotion of sustainable practices and nature conservation efforts.
• Social Responsibility focuses on human and community rights, health and safety at work, and working conditions. It advocates for fair treatment, safe workplaces and positive contributions to society.
• Corporate Governance ensures ethical business practices through due diligence in the supply chain, governance and compliance, economic development and corporate integrity. It promotes transparency, accountability and sustainable growth.

DMT’s many years of experience in the mining sector, combined with our core expertise in these ESG issues, make us your ideal business partner for ensuring a positive assessment of ESG aspects.

ESG is nothing new and has existed in various forms for decades, as it brings together a wide range of technical and socio-economic areas that have evolved alongside changing perceptions of corporate responsibility towards society and the environment since the 1960s. The globalisation of the modern economy, with integrated supply chains and the rapid flow of information across the globe, has led to greater awareness of the need for responsible business practices. Negative socio-economic and environmental impacts caused by companies can no longer be concealed. The generation of executives currently holding leading positions in global industries is aware of the major environmental and social failings of large companies in the past. They have a strong sense of responsibility to manage their own companies in such a way as to avoid penalties and negative publicity. ESG is the umbrella term for the combination of largely traditional technical and socio-economic areas with key new areas, designed to address the new challenges facing society and the environment worldwide, such as working conditions and climate change.

Given the wide range of ESG issues and the corresponding services across various sectors, every company from different economic sectors can request a specific suite of ESG services. Service providers such as DMT focus on the appropriate ESG services according to their applicability to the respective industry sector and the strength of the value chain. Given DMT’s history as an engineering and consultancy firm in the mining sector, combined with our core competencies in individual ESG services extending beyond mining, our main clients range from the exploration to the processing of raw materials, as well as the financial sector, e.g. banks, investors and the manufacturing sector, such as the automotive industry.

The specific benefits depend on the ESG services selected, which are tailored to the needs of investors and clients. In general, the advantages of DMT’s services can be summarised as follows:

• Risk mitigation and financial security: Environmental and social due diligence and technical assessments identify ‘hidden’ liabilities at an early stage. Furthermore, risks are reduced through credible and validated information on supply chains, which can lead to lower insurance costs.
• Acceleration of project timelines: The permitting and environmental impact assessment (EIA) process is often the biggest bottleneck in the mining sector.
• Savings on operating costs: Resource efficiency management focuses on optimising waste and water use. By reducing water consumption and minimising waste generation, direct operating costs and the long-term environmental footprint of waste rock management can be reduced.
• Improved social acceptance: Transparent monitoring and control programmes (air, soil, water) provide the data needed to build trust with local communities and stakeholders.
• Reduced liability at the end of the operational life: Integrated planning for mine decommissioning and rehabilitation begins whilst the mine is still in operation, ensuring that rehabilitation is a manageable, continuous process and does not result in unmanageable final costs.
• Increased appeal to investors/partners/customers: A strong ESG portfolio delivers competitive advantages, provides access to unique markets and positions your company as a more sustainable and responsible partner.
• Best practice: Adherence to principles of continuous improvement to meet international best-practice standards ensures credibility with stakeholders.
• Legal certainty: Preparing for regulatory compliance enables your company to position itself as a reliable business partner.

The involvement of key personnel depends on the ESG service selected. Large companies often set up their own ‘sustainability’ or ‘ESG’ department with clearly defined areas of responsibility, which identifies, assesses and processes the relevant ESG data from the other departments and their key contacts. These companies usually require specialist support from external experts on specific topics. Small to medium-sized enterprises, or companies that cannot afford their own in-house ESG department, naturally require a more comprehensive range of ESG support services. In these companies, a relatively large number of people are involved, as staff generally cover (or are required to cover) several specialist areas.

DMT brings together a wide range of services in the fields of plant and process engineering, civil engineering and infrastructure, oil and gas, as well as mining engineering and consultancy – areas in which we have been active for many decades. As part of the TÜV NORD GROUP, DMT can draw on an extensive network of cross-organisational expertise. Building on this broad spectrum of in-house specialist knowledge, DMT is able to offer bespoke solutions tailored to our clients’ individual ESG challenges.

The initial or ongoing costs of enhancing each ESG service within the reporting suite requested by a client range from a few thousand to several hundred thousand, depending on the resources required. Companies can start gradually with desktop studies to establish a general baseline and then identify areas for improvement, or begin straight away with full technical studies. DMT offers a fully customisable, phased service, and companies are under no obligation to purchase a whole range of services. 

DMT provides you with innovative insights, key decision-making factors and perspectives to help you navigate the ESG landscape and meet international best-practice requirements. As an independent third party, DMT supports you in producing verifiable and credible data that ensures your credibility, accountability, transparency and reliability as a sought-after business partner.