Environmental, Social and Governance (ESG) risk is increasingly a strategic Board level issue for companies and for those investing in them. For companies to enhance and protect business value, they must focus on integrating the management of ESG risks into the mainstream of business management. Equally as important is for investors to independently verify the ESG credentials of the companies they invest it. Do companies fully understand their ESG risk and are they complying with the correct ESG requirements bearing in mind their sectors, countries of operation and general project environment? Do they have an integrated ESG control plan in place? Has it been tested and is it being robustly enforced in practice?
At Strategia we can provide this independent ESG assurance to both companies and investors.
Our ESG Team is comprised of experts in social policy, human rights, societal risk, investor relations, corporate responsibility, government and civil society relations, anti-discrimination, the Equator Principles, public policy and governance covering multiple industries and government departments.
By working with Strategia you benefit from the experience of our ESG Team which is supported by a network of regional and technical specialists. All our teams can deploy worldwide, sometimes at very short notice, in order to properly understand the environment in which you and your clients operate. By being independent, basing our analysis on operation reality and by working closely with our clients, in neighbouring communities and with key stakeholders, including governments, media and NGOs, we are able to identify and help our clients gain a deep understanding of the source of their issues and risks – some of which may not be apparent to the boardroom. As well as providing an experienced operational capability, our teams also reach back for advice and expertise from our wider associate and partner base, giving you access to the extensive combined knowledge and experience of our people.
CASE STUDY – LATIN AMERICA
A comprehensive risk diagnosis by a small team highlighted existential challenges to a Tier 1 gold mining company’s Licence to Operate (LTO), and therefore to company operations as a whole.
Following withdrawal of license and closure of mine, a team deployed to write the LTO strategy needed to protect company value and reputation, drawing on the earlier risk assessment. As a result, their license was restored .
The client is now in a position to implement a strategy for mitigating risk across the business and achieve its long-term vision. Value protected: $2 billion.
CASE STUDY – CAUCASUS
Prevention of access to mine by violent protesters leading to project delay and an unforeseen cost, tens of $m per week, that was threatening the company’s balance sheet.
A partner deployed to assess the situation working with the client’s security manager – supported up by Strategia’s regional and ESG expertise on a ‘reach back’ basis. Consultation with company staff, local and national level stakeholders, along with physical reconnaissance of the area, revealed that the issue was multi-dimensional, involving third parties who were active ‘behind the scene’. We then ran a workshop with the mine’s management to explore options to resolve the impasse.
Our recommendations prevented an escalation of the situation that would have been disastrous for the company’s long-term License to Operate.
What our clients say
“Strategia worked with our team on-the-ground to quickly understand, analyse, and propose concrete solutions for a number of complex and inter-connected problems we were facing. The approach they used allowed us to situate the problems that mining companies face in a broader context and develop strategies to better manage risk”Kelvin DushniskyEx President Barrick Gold
“Strategia’s proactive, integrated approach to managing risk in complex, difficult and challenging environments is unique. It has particular relevance to the mining industry, both for new projects, and for existing businesses which are in challenging circumstances.”Tom AlbaneseCEO Vedanta