By Ndaizivei Garura
Environmental Social Governance (ECG) reporting has come under the limelight for the wrong reasons in Zimbabwe.
Also known as sustainability reporting, it is a practice of publicly disclosing a company’s environmental, social, and governance performance. It also involves the publication of a report that provides information about a company’s sustainability practices, policies, and performance.
In Zimbabwe, companies listed on the Zimbabwe Stock Exchange are obligated to produce these reports. However, it has since emerged that some mining companies use ESG initiatives and reporting mainly for their benefit. They prioritize their own interests and reputational benefits over the well-being of local communities.
Hwange Colliery is one of the companies that releases ESG reports. Currently, Hwange mining town still battles coal seam fires which continue raging underground and have burnt a total of 3 children in the last two months. The mine has however failed to provide evidence of its commitment to managing environmental risks through ESG initiatives. A German consultant, DMT Environmental Technologies was engaged in 2021 to investigate the real cause of coal seam fires and the findings are still to be shared with the mining-affected communities. Amongst some of the issues to be addressed by the mining company are greenhouse gas emissions, hazardous waste disposal, and water pollution. ESG reporting should demonstrate the environmental stewardship of mining companies. The real benefits should go beyond the investors who seem to be the top beneficiaries after ticking the compliance box and reaping the profits.
Key to sustainability reporting is a mining company’s social performance, which covers labour practices, human rights, and community involvement. This is where real corporate social responsibility is supposed to be evidenced. The Zimbabwe Consolidated Diamond Company reported in its 2022 ESG report the awarding of scholarships to 3 students and the refurbishment of the local clinic. The development leaves a lot to be desired when compared to the profits gained from diamond sales and the meagre ESG initiatives reported.
These ESG reports should not be theoretical documents that satisfy the compliance checks to benefit the mine owners. In many instances, these ESG initiatives have been used to “greenwash” mining operations and deflect attention away from the negative impacts being experienced by communities.
It is crucial that ESG activities and reporting are open, trustworthy, and responsible in order to allay these concerns. Companies are expected to engage in meaningful dialogue with local communities and other stakeholders to understand their real concerns and incorporate their perspectives into their ESG initiatives.
ESG reporting, according to best practices, ought to be incorporated into legislation and policy frameworks to guide their verification procedures. In addition, host communities should hold companies accountable for their ESG performance and ensure that their interests are considered. When done well, ESG reports can be a valuable tool for ensuring that host communities benefit from the minerals in their area.
CNRG has therefore taken upon itself to carry out advocacy work that enables the strengthening of environmental management and a facelift for the host communities. It is envisaged that this will enable the host communities to become real beneficiaries of mining activities.