Mapping Mining to the SDGs

Lisa Sachs

ECLAC, Santiago Chile

July 11, 2016

Sustainable Development Goals (SDGs)

In September 2015, UN Member States adopted “Transforming Our World: The 2030 Agenda for Sustainable Development”

Defines the development agenda for the next 15 years

Follows the Millennium Development Goals (MDGs) adopted in 2000

Integrate the three dimensions of Sustainable Development: Social, Environmental, Economic (People, Planet, Prosperity)

The MDGs vs. SDGs

MDGs focused on minimum needs; SDGs not only continue global efforts to guarantee minimum needs, but also promote an inclusive, equitable and sustainable post-2015 global society

The MDGs focused on a global partnership for development among states; given their scope and ambition, successful implementation of the SDGs hinges on all stakeholders incorporating the goals into their activities, and engaging in a collaborative partnership to secure implementation by 2030

Mining & the SDGs: Overview

Why mining has such potential to contribute to achievement of SDGs:

Mining can mobilize physical, technological and financial resources on a vast scale for achievement of the SDGs and the broader 2030 Agenda;

Promotion of investment, technology and knowledge transfer, innovation;

Development of infrastructure and linkages;

Potential for downstream development;

Creation of jobs;

Global presence, including in remote, less-developed areas..

Mining can also take important steps to mitigate traditional impacts that the SDGs are trying to address

environmental degradation, displacement of populations, worsening economic and social inequality, armed conflicts, gender-based violence, tax evasion and corruption, and increased risk for many health problems

Most relevant SDGs for Mining

The SDGs will matter for the Extractive

Industries:

Goals and targets will be incorporated into

national plans, regulations & policies

Incorporating SDGs can mean greater

efficiencies & cost saving (e.g. local content,

energy efficiency, more peaceful societies etc.)

Showing alignment with the SDGs will help to

direct national and international attention to

improving outcomes from Extractive Industries

5

Mapping Mining to the Sustainable Development Goals: A Preliminary

Atlas

6

Purpose

To help the mining industry (and partners) navigate where its activities – from

exploration through production and mine closure – can contribute to the

achievement of the SDGs

To encourage mining companies of all sizes to incorporate relevant SDGs into

their business and operations, contextualize and reframe current efforts and

spark new ideas

Aims to facilitate three outcomes:

1. Increase understanding of how the SDGs and mining relate to one

another

2. Raise awareness of opportunities and challenges the SDGs pose for the

mining industry and its stakeholders, and how they might address them

3. Facilitate multi-stakeholder dialogue and collaboration towards

achievement of the SDGs

7

Overview

To map the relationship between mining and each of the 17 SDGs, the Atlas

is structured as follows:

One chapter dedicated to each SDG, also noting the most relevant of the

169 targets

Each chapter provides:

1. Suggestions for incorporating each SDG into mining companies’

core business activities and functions

2. Proposed ways for mining companies to collaborate with other

stakeholders and leverage additional resources to address each

SDG

3. Case studies upon which mining companies and other

stakeholders can draw in building innovative, systematic and

sustainable contributions to achieving each SDG

8

Background & Timeline

Joint project of WEF, UNDP, SDSN and CCSI

Developed on the basis of interviews conducted with over 60 global

experts from the mining industry, civil society, governments, academia,

financial institutions and other international organizations

Consultations held around the world and online

Timeline:

• June-August 2015: Interviews conducted

• September 2015: Special Panel & High-Level Working Session held

alongside UN Summit for adoption of the SDGs to gather feedback

• January 2016: Consultative draft published

• April 2016: Comment period closes

• July 2016: Publication of final draft

• July 2016 - on: Focus on Implementation

9

Key findings

1. Mining impacts all 17 SDGs

• Varying degrees (Mine size, geography, commodity, etc)

• Important roles for government and other stakeholders

2. Scope and nature of mining activities makes some goals

particularly relevant

• SDG1 (Poverty)

• SDG6 (Clean Water and Sanitation)

• SDG7 (Energy Access and Sustainability)

• SDG8 (Decent Work and Economic Growth)

• SDG9 (Infrastructure, Innovation and Industrialization)

• SDG13 (Climate Change)

• SDG15 (Life on Land)

• SDG16 (Peace, Justice and Strong Institutions)

3. Impacts are not all one-directional

• Positive and negative

• Direct and indirect

10

Key finding: Major Issue Areas for Mining and the

SDGs

Inner circle represents the 17

SDGs

Outer circle features the major

issue areas at the intersection

of mining and each SDG

11

SDG1: Poverty Eradication

SDG1: End poverty in all its forms everywhere

1. Integration into core business:

• Pay fair and accurate share of taxes and royalties

• Promote inclusive employment (direct and indirect)

• Build local, national, and regional procurement strategies,

leveraging skills, expertise, innovation and technology to further

stimulate growth and employment

• Plan early for land access, resettlement and livelihood restoration

12

SDG6: Clean Water and Sanitation

SDG6: Ensure availability and sustainable management of water and

sanitation for all

1. Integration into core business:

• Conserve and recycle clean water, including recycling, retreating and

reusing

• Monitor water quality, using participatory monitoring processes, to

address risks and improve transparency

• Adopt approaches to water access and quality that consider the

social, cultural and technical aspects, to avoid conflict and build trust

2. Collaborate and leverage:

• Contribute to watershed management

• Share benefits through water infrastructure

• Support potable water and sanitation planning

and infrastructure

13

SDG7: Energy Access and Sustainability

SDG7: Ensure access to affordable, reliable, sustainable and modern

energy for all

1. Integration into core business:

• Improve energy efficiency, including investing in R&D on new low-

energy technology, reducing use, conducting energy audits, etc.

• Incorporate renewable energy (off-grid or mini-grid wind, solar or

geothermal energy)

2. Collaborate and leverage:

• Support local energy initiatives

• Shared benefit energy infrastructure

14

SDG8: Decent Work and Economic Growth

SDG8: Promote sustainable, inclusive and sustainable economic

growth, full and productive employment and decent work for all

1. Integration into core business:

• Drive economic growth with local procurement and supplier

development strategies

• Establish more inclusive recruitment, education, and training

2. Collaborate and leverage:

• Collaborate to build a sector-wide, regional or national approach to

local content

• Establish business incubators and small business

support centers

15

SDG9: Industry, Innovation and Infrastructure

SDG9: Build resilient infrastructure, promote inclusive and sustainable

industrialization and foster innovation

1. Integration into core business:

• Support local procurement and skill development to support

industrialization and foster innovation

• Consider shared infrastructure solutions to improve access and

create both economies of scope and scale.

2. Collaborate and leverage

• Use business profile to create horizontal linkages

• Use convening power to create clusters

• Promote domestic R&D initiatives

16

SDG13: Climate Change

SDG13: Take urgent action to combat climate change and its impacts

1. Integration into core business:

• Adopt a corporate policy, governance structure and processes to

address climate change

• Reduce, measure and report emissions

• Align company strategies with national efforts and share policy on

climate change

• Build climate change resilience in the design and placement of

operations and associated infrastructure.

2. Collaborate and leverage

• Participate in climate-related R&D and pilots (emissions trading, CCS)

• Public support for carbon pricing

17

SDG15: Life on Land

SDG15: Protect, restore and promote sustainable use of terrestrial

ecosystems, sustainably manage forests, combat desertification, halt

and reverse land degradation and halt biodiversity loss

1. Integration into core business:

• Achieve net zero or net positive impact of critical habitats

• Implementing biodiversity offsets

• Preserving ecosystem services, based on comprehensive baseline

assessments

2. Collaborate and leverage

• Support projects that link communities and biodiversity

• Encourage and participate in landscape

planning

18

SDG16: Peace, Justice and Strong Institutions

SDG16: Promote peaceful and inclusive societies for sustainable

development, provide access to justice for all and build effective,

accountable and inclusive institutions at all levels

1. Integration into core business:

• Prevent company-community conflict, through engagement, grievance

mechanisms, conflict assessments, etc.

• Implement Human Rights Impact Assessments

• Respect FPIC and special status of indigenous peoples (extend to all

affected communities)

• Participate in conflict-free minerals certification schemes and support

implementing relevant regulations

2. Collaborate and leverage

• Transparent country-by-country and project-by-project financial reporting

• Arms-length transfer pricing of intra-company

transactions

• Promoting the rule of law

19

“Mapping Mining to the SDGs” - Roles

Roles of Governments:

Legal, regulatory & policy frameworks,

aligned with

national sustainable development

plans

Monitor and enforce regulations

Manage and invest revenues in the

SDGs

Facilitate inclusion, dialogue and

collaborative processes

Transparency and information

Role of Industry and mining

operations:

Core business – align with national /

local development plans

Social investments – align with

national / local development plans

Indirect – taxes, contribute to public

policy

Beyond compliance with the law in

weak governance environments

Communities, civil

society, academia

Monitoring, transparency

Capacity development

Information, data,

statistics

Development partners,

multilateral organizations

Capacity development

Expertise

Facilitate cross-country

exchanges, learning

20

What is needed to enhance sustainable development

outcomes from the mining sector?

Knowledge

• Deepen understanding about how sector can enhance contribution to specific goals

Capacity

• Capacity building of stakeholders for implementation, monitoring, enforcement

Policies & practices

• Align mining policies & regulations with SDGs and national development priorities

• Integrate sustainability into business practices

Dialogue, partnership

s

• Systematize & institutionalize dialogue and partnership in the sector

21

Thank You!

Lisa.Sachs@law.columbia.edu

www.ccsi.columbia.edu

@CCSI_Columbia