Staff Writer
At least 67 percent of mining companies in Zimbabwe have environmental, social, and governance (ESG) policies guiding their operational and investment strategies, a new report has shown.
The Chamber of Mines of Zimbabwe’s State of the Mining Industry Survey Report highlighted a growing commitment to ESG initiatives among mining companies.
On average, mining firms are planning to allocate approximately nine percent of their revenues to ESG matters in 2025.
The investment will be directed towards initiatives such as cleaner production technology, renewable energy, and reforestation and rehabilitation programs.
“Survey findings also show that approximately 67 percent of respondent mining executives have an ESG policy that guides their investments and operations, while 33 percent reported that they were working on compiling ESG policies for 2025,” the report said.
Additionally, the survey found that several mining companies are adhering to international ESG standards such as the Global Reporting Initiative standards, International Financial Reporting Standards, International Finance Corporation, International Organisation for Standardisation and Institute for Responsible Mining Assurance certificates, demonstrating a strong commitment to global best practices.
In terms of cleaner production technology, mining companies are actively pursuing strategies to reduce their environmental footprint.
The initiatives include transitioning to low-carbon mining through decarbonisation processes, exploring carbon capture, utilisation, and storage technologies, setting ambitious targets to reduce greenhouse gas emissions, and adopting carbon offsetting strategies where feasible.
To reduce their reliance on fossil fuels, mining firms are investing in renewable energy sources like solar power and implementing energy efficiency measures.
Additionally, water conservation and recycling initiatives are being prioritised to minimise mining companies’ impact on water resources.
The survey also highlighted a strong focus on reforestation and rehabilitation efforts. Mining companies are developing biodiversity action plans, implementing progressive land rehabilitation and restoration programs, partnering with conservation organisations to protect critical habitats, and taking steps to protect and restore ecosystems affected by their operations.
Furthermore, mining companies are committed to avoiding mining and mitigating negative impacts on endangered species.
Employee health, safety, and well-being are also a priority for mining companies with initiatives including strengthening safety management systems, and providing comprehensive health and wellness programs.
According to the survey, miners are also investing in technology and training to enhance safety and operational efficiency, ensuring compliance with labour laws and international standards, promoting fair labor practices, and addressing workplace diversity and inclusion.
Beyond environmental and social considerations, mining companies are also embracing circular economy principles.
The principles include implementing comprehensive waste management and recycling programs, exploring opportunities to reuse, repurpose, and recover value from mining waste streams, and engaging with suppliers and customers to promote sustainable sourcing practices.
The survey also highlighted the importance of building strong relationships with local communities with mining companies supporting community development in areas such as health, education, and infrastructure.
ESG is a framework used to evaluate a company’s performance in areas related to sustainability. Environmentally, it encompasses a company’s impact on the environment, including resource consumption, pollution, and climate change mitigation.
The social factors entail a company’s relationship with its stakeholders, including employees, customers, and communities, including labour practices, human rights, and community development.
Governance factors entail a company’s leadership, corporate structure, and ethical practices and this includes transparency, accountability, and risk management.