ESG frameworks can still support the achievement of circularity

The circular economy has become a key focus in sustainability efforts due to environmental and economic concerns. It emphasizes closed-loop processes to extend resource life, maximize economic benefits, and minimize environmental impacts. The World Economic Forum s reports highlight the potential cost of climate change, estimated at $1.7 to $3.1 trillion per year by 2050, underscoring the urgency for sustainable practices. Environmental, social, and governance (ESG) frameworks are gaining traction as a solution to the challenges of decarbonization. These frameworks, which include metrics and reporting standards, are voluntary or mandated and have financial implications. ESG-oriented investing has grown significantly, with assets reaching $30 trillion, up 68% since 2014. Consumer demand for sustainable products is also on the rise, with 46% of consumers worldwide stating they intentionally buy more sustainable products. ESG frameworks inherently support circularity principles, such as reducing resource consumption, reusing materials and parts, and recycling for value creation and proper disposal. They offer internal benefits like reduced operating expenses, enhanced employee retention, and opportunities for social license to operate. However, the diversity of ESG frameworks and their application across different industries and jurisdictions can pose challenges. Despite these challenges, ESG frameworks remain a viable starting point for addressing the circularity gap. Innovation in ESG evaluation, guidance, and adoption tools is ongoing, with organizations like Cambrian College s Centre for Smart Mining (CSM) working with mining groups to develop clean and green extraction methods. In the Canadian context, ESG frameworks can differentiate Canadian mining operations on the global stage. By promoting innovation in recycling, energy efficiency, and closed-loop supply chains, Canadian mining can position itself as a leader in sustainable resource management. While the circular economy remains the long-term goal, ESG frameworks can guide organizations towards sustainable practices and help bridge the gap between current practices and a more circular economy. A continued commitment to ESG adoption is essential for achieving this goal.

Source: canadianminingjournal.com
Published on 2024-10-05

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