ESG’S ROLE IN NATURAL RESOURCE AND MANUFACTURING INDUSTRIES

By: Scott Bahr

In today´s climate (pun intended), we are seeing a rising trend in the adoption of Environmental, Social and Governance (ESG) measures. This is due to the increasing demand for environmental awareness growing among consumers. Embracing and incorporating these ESG measures into your business strategy has become vital for ensuring your business not only survives in the present but is also able to thrive in the ever-evolving future.

WHY IS ESG SO IMPORTANT?

The environmental portion of ESG focuses on the impact that your business´ resource consumption is having on the environment. Examples include your company´s carbon footprint, specific materials used, and procurement practices, among many other items that directly affect the earth.

The social aspect of ESG takes a closer look at how your business deals with societal issues, which includes your internal policies regarding labor, and how you promote inclusion and diversity. Finally, the governance aspect deals specifically with your company´s internal policies which revolve around legal compliance and other decision-making.

Right now, the importance of ESG measures is paramount, and these initiatives shouldn’t be underestimated. This is a sentiment that Evan Harvey, Global Head of Sustainability at Nasdaq, strongly shares. “Getting executives and board members to look at ESG as an integrated business function is crucial. So much ESG data is traditionally based on past performance, and not forward-looking. The more real-time you can get with your data, the better able you are to forecast where your company needs to go.”

So, where exactly does your company need to go?

Below is an excellent initiative to get you started.

STRIVING FOR NET-ZERO CARBON USE

Begin by looking into your company´s carbon footprint. Specifically, make it your goal to strive for net-zero carbon use. Bit Service is proud to report that we are practicing what we are preaching in this area already. Thanks to the help of a SIMSA Carbon Calculator, we’re able to keep tabs on our carbon use, and we can then track that data (we currently do this quarterly) to assess exactly where we’re at. Then, we’re able to use that data to calculate ways we can improve upon it, always striving toward that ideal net-zero goal. We´ll explain a little bit more about this helpful tool below.

SIMSA CARBON CALCULATOR

The Saskatchewan Industrial and Mining Suppliers Association (SIMSA) commissioned the development of this unique carbon calculator, which was custom designed specifically for the mining, energy, and industrial supply chain in Saskatchewan. The sole aim of this invention was to help local companies in tracking and reducing their carbon footprints.

Thanks to this ingenious tool, suppliers are now able to assess their present carbon emission levels with great accuracy, while also comparing them with other local outfits. This will then allows them to be proactive with that data by developing strategies to reduce their output. The SIMSA calculator was developed with the assistance of BHP, Cameco, Nutrien, and TC Energy, as well as funding from the Government of Canada. It has already proven to be an invaluable resource, with the promise of helping to bring about much more positive change in the future.

By incorporating steps like these, along with more ESG measures, your business will not only become stronger and more resilient—but better able to navigate both the present and the future as our industry—and the world itself—as it continues to evolve.