LinkedIn Dialog
Sustainability

DuPont Sustainability ... Survey Results: Sustainability & Social Value in the Mining Industry

Burgess COMMENTARY
It will be interesting to see if this comment gets included in the comment stream of this moderated group on LinkedIn.

July 22, 2013

I realize that modern society needs the products of the mining industry ... and there is valuadd for society that arises because of what gets made with the products of the mining industry. In the process of mining, the mining companies are (usually, but not always) able to earn a profit.

Sadly we are less rigorous about the value destruction associated with the mining industry. What is the impact of mining on people, place and planet? Hardly any of the value destruction is quantified and most goes unreported.

My observations of the mining industry (and the international petroleum industry) around the world is that they operate to make profit, while the impact on local people, local environment, local communities and so on is rather unimportant. The public rarely gets the chance to see any numbers about value destruction, though there is plenty of PR about the big profits and the good works (actually tiny if there were meaningful metrics) that are resulting from the mining operations.

In financial accountancy there is the concept of a reporting boundary. A mining company has a reporting boundary that is tightly drawn round the operations of the corporate entity. The mining industry, on the other hand should draw the boundary around the place where the mines are operating, and in value accountancy, we take into consideration all the changes in the resources and environment and the impact on peoples' lives that result from the mining operations. Investors on the other side of the planet may be gaining in wealth, but are the people living in the place gaining anything or is their quality of life being permanently degraded?

I have a deep seated objection to associating 'sustainable' with any of the extractive industries. For me it is just another example of the corporate world's comfort with PR and misinformation. As a former corporate CFO, I wish the corporate community would start to behave in a manner that would make me and everyone else proud ... but most of the time I am just plain disgusted.

Peter Burgess TrueValueMetrics

Survey Results: Sustainability & Social Value in the Mining Industry

DuPont Sustainable Solutions (DSS) is filming a debate on CNBC Africa to discuss the “evolving license to operate” – why companies still connect sustainability and social development initiatives to reputation and brand, rather than the bottom line, and how they can improve going forward. In honour of this, we would like to share the results of a related survey concerning sustainability and social value in the mining industry. Please see link below. Don’t forget to tune in to CNBC Africa next Tuesday, the 16th of July, at 1:00 PM (GMT +1) to see the debate! dupont.com www2.dupont.com 14 days ago Like CommentUnfollow Flag More Colleen J. Rooney, Serena May and 2 others like this 2 comments

Madaleen van der Walt • What I love about the survey result infographic is that it compares the audience survey results to that of this LinkedIn group! It's worth checking out... ;) 13 days ago

However, the mining industry in my view has the most beautiful opportunities to add value to society. Mines needs infrastructure and capable people, and are part of a long value chain. Mines change the landscape, during and after their operation.

We all agree that our society today would not exist in a world without mines. We need their products, their minerals. And yet, we sometimes feel the need to question 'what/how' they operate.

But the secret for any mining company that wants to maximize support from their stakeholders does not lie in the 'what/how' they operate.

It lies in the 'why' they do what they do, and how they communicate that.

If you don't believe this, then watch this inspiring Ted Talk: http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action.html

If you also feel inspired, like I was, then look at below example of how a mining company can do better, increase support and add to the bottom line, all at once:

Oil Sands Suncor: http://www.dupont.com/products-and-services/consulting-services-process-technologies/operatonal-excellence-consulting/videos/suncor-collaboration-improved-environmental.html

Mining Anglo American: http://www.youtube.com/watch?v=divA4zIAOJI

johnny