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RIA Conference Vancouver 2024RIA Conference Vancouver 2024Finance

IRMA at Responsible Investment Association

In May IRMA  presented at the annual conference of the Responsible Investment Association in Vancouver, British Columbia, Canada. Launched more than 30 years ago, the RIA’s vision is to align capital with sustainable and inclusive development as codified in the Paris Agreement and the UN Sustainable Development Goals. Today, the RIA today serves the needs of investment institutions, financial planners and industry service-suppliers collectively managing more than C$44 trillion in assets. The RIA serves as a secretariat for Climate Engagement Canada, a finance-led initiative to drive dialogue between finance and industry to promote a just transition to a net zero economy.

IRMA participated as part of the Critical Minerals and Mining: Balancing Net-Zero Ambitions with Social Responsibilities panel. IRMA board and secretariat members also hosted a side session to introduce IRMA to Vancouver-based colleagues, and to talk about the issues of climate, energy transition, materials needed from mining, Indigenous rights and the role investors serve.

Given Canada’s large support for mining and mine finance, Canadian investors have the potential to play a major role in encouraging mining companies to pursue the IRMA Standard. IRMA’s strategy includes an effort to engage the RIA and its institutional members.

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Blog

IRMA Welcomes New Board Members

IRMA welcomes two new Board Members representing the purchasing sector: Mercedes-Benz’s Johannes Danz and Microsoft’s Leslie Esparza.

IRMA Board Member Johannes Danz of Mercedes-Benz AGJohannes is a sustainability expert for raw materials and human rights at Mercedes-Benz. In this role, he developed the company’s approach to due diligence in raw material supply chains and holds responsibility for a range of strategic areas including mining standards. Prior to his current position, Johannes served as the program manager of Extractives and Development – a German Development Cooperation program focused on policy advice and the design of strategic topics related to human rights, responsible supply chains and economic beneficiation in mining.

Leslie is the head of Responsible Sourcing for Microsoft Devices, dedicated to ensuring that Microsoft’s products are manufactured ethically and sustainably. She has over 25 years of multi-sector experience developing and leading programs in the fields of ethical sourcing, sustainability, corporate social responsibility, and human rights. Leslie has specific experience related to auditing: as a social compliance auditor she assessed workplaces in over 35 countries; she also led a multistakeholder working group to define social auditing for the then-newly formed Association of Professional Social Compliance Auditors (APSCA).

Johannes and Leslie come to us as the previous Purchasing Board Member representatives depart. Thanks to Claudia Becker of BMW Group and J.J. Messner de Latour, formerly of Microsoft and now IRMA’s Purchasing Sector lead, for the wisdom and service they provided as IRMA Board Members.

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UN Secretary-General's Panel on Critical Energy Transition Minerals Panel bannerUN Secretary-General's Panel on Critical Energy Transition Minerals Panel bannerEnergy Transition

The UN Panel on Critical Energy Transition Minerals

IRMA Engagement in the UN Secretary-General’s Panel on Critical Energy Transition Minerals

IRMA is serving as a non-state actor panel member in the United Nations (UN) Secretary-General’s Panel on Critical Energy Transition Minerals.

The panel, co-chaired by Ambassador Nozipho Joyce Mxakato-Diseko of South Africa and Ms. Ditte Juul Jørgensen, Director-General for Energy of the European Commission, aims to “build trust between governments, local communities and industry, by addressing issues relating to equity, transparency, investment, sustainability and human rights” in the mining sector. The objectives of the panel are to:

  1. Support a just and equitable transition to renewable energies while harnessing critical energy transition minerals for sustainable development.
  2. Ensure countries and local communities endowed with these minerals fully benefit economically, including through local value addition, while safeguarding social and environmental protections for affected communities and ecosystems.
  3. Strengthen international cooperation including through the alignment and harmonization of existing norms, standards and initiatives and agree on areas for enhanced multilateral action.

The UN Secretary General announced formation of the panel at the UN Framework Convention on Climate Change Conference of the Parties (COP28) in Dubai and launched the panel on 26 April 2024. The panel will build on the work of IRMA and other existing standards as well as prior and ongoing UN initiatives to inform recommendations, including a set of voluntary principles, for the UN Secretary-General to share at the UN General Assembly this September.

IRMA welcomes your recommendations regarding our engagement in the panel, its objectives, and how to achieve these objectives. Please reach out to contact@responsiblemining.net to inform our engagement.

Useful Links:

 

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Sibanye-Stillwater logoSibanye-Stillwater logoAudits

Sibanye-Stillwater commits Marikana to IRMA audit

The Initiative for Responsible Mining Assurance (IRMA) is pleased to announce that Sibanye-Stillwater has committed its Marikana PGM operation to third-party independent assessment against the IRMA Standard for Responsible Mining. Marikana is located in South Africa.

ERM-CVS, an IRMA-approved independent audit firm, will be carrying out the assessment, which includes a desk review (stage 1) followed by an onsite audit (stage 2). After the ERM-CVS draft audit report is reviewed by IRMA and Sibanye-Stillwater, the company may release the report or has the option to take up to twelve months to implement corrective actions and be re-assessed before a final report is published and a Performance Level assigned.

Stakeholder Engagement in the Assessment

Interested stakeholders and members of the public can sign up to receive updates about the Marikana assessment (e.g., the timing of the stage 2 onsite visit, link to public summary of audit results). The Mines Under Assessment page of IRMA’s website will also provide up-to-date information on all assessments.

Members of the community, public officials, representatives of the workforce, or other organizations are invited to submit comments regarding how the mine site is managing their impacts to the environment including air, water, waste, greenhouse gases, and ecosystems; how the mine supports their workforce; and how the mine interacts with the surrounding community, and how it impacts the community, positively or negatively.

Interested parties may contact the independent audit firm, ERM-CVS, to share comments or to ask to be interviewed as part of the audit process. The audit firm can be reached by email at:

ERM Certification and Verification Services Limited
Email: post@ermcvs.com

Please share this announcement, and feel free to contact ERM-CVS directly to provide names and contact information for other Sibanye-Stillwater stakeholders who may be interested in knowing about and participating in the mine site assessment process.

For more information

  • For general information on the IRMA mine site assessment process, visit the IRMA website.
  • IRMA: Sibanye-Stillwater SA PGM Marikana independent assessment status page
  • If you would like more information on how audits of the Sibanye-Stillwater operations are conducted against the IRMA standard — contact IRMA’s Director of Assurance: Michelle Smith, msmith@responsiblemining.net
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Complaints

Complaints and the IRMA System

This week IRMA posted the first complaints being processed through the IRMA Issues Resolution System. One (IRMA-2024-001) filed by the SIRGE Coalition (Securing Indigenous Peoples’ Rights In The Green Economy), and another (IRMA-2024-002) by the environmental advocacy NGO (and IRMA Board Member) Earthworks, both complaints question how the audit firm ERM CVS assessed the conformity of Albemarle’s Salar de Atacama lithium operation in northern Chile with IRMA’s Free Prior and Informed Consent (FPIC) requirements, and how evidence was weighed and assessed in reaching audit findings.

Although the larger goal is to make mining more responsible – overall and particularly at IRMA audited mines – the means to do that is by providing unprecedented transparency to all stakeholders so that they can open dialogues that incentivize better operational practices. These complaints are exactly that: stakeholders using the information provided by IRMA audits to examine a mine’s practices and ask why they were measured as they were.

It’s important to note that all actors directly or indirectly associated with these complaints are learning how to do their work better. Although the IRMA Standard has been around since 2018, the Albemarle operation was the first lithium operation audited against the Standard, and just the third mine audited overall. The audit firm, the mining company, and IRMA itself are learning how to the IRMA system works in practice and how we can improve it.

In the near future, IRMA and the audit firm will meet, after which point we will get back to the complainants with next steps. As we process these complaints we will update their pages to keep stakeholders current about how the Issues Resolution System is working, and to allow the opportunity for all concerned to keep IRMA true to our core principles.

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Standards

Update on Standard for Responsible Mining 2.0

As we announced back in October, IRMA is comprehensively revising the 2018 IRMA Standard for Responsible Mining (1.0). This revision process allows IRMA to:

  • Remain accountable to all sectors
  • Remain up-to-date with best practice
  • Add clarity and strengthen auditability
  • Add consistency, and
  • Fill in gaps

Seeking as much as possible to align with ISEAL’s Code of Good Practice for Sustainability Systems, this revision process is informed by:

  • 5 years of ongoing stakeholder engagement
  • Experiences from the initial IRMA third-party audits
  • Review of other standards and initiatives
  • Increased public awareness and evolving expectations of best practice
  • Review of emerging issues garnering international discussions
  • Changes to relevant legislation across the full scope of the standard
  • Comments on previous drafts (IRMA-Ready, Mineral Processing, Chain of Custody)
  • Targeted engagement activities on specific topics
  • IRMA Expert working groups, and
  • Public consultation

Unlike the Standard 1.0 which only covers mineral extraction operations, the  IRMA Standard 2.0 is expected to also cover development, exploration, and mineral processing: the IRMA Standard for Responsible Mining and Mineral Processing. Separately we will launch a Chain of Custody Standard.

Public Comments Received for the 1st Draft of IRMA Standard 2.0

The 90 day public consultation lasted from October 26 through January 26. During that time we:

  • Hosted 2 introductory webinars attended by 150 participants
  • Hosted 20 live topic consultation webinars — across multiple time zones — attended by 180 unique participants
  • Received 2,500+ discrete comments from 82 organizations, and
  • Allowed for additional engagement and feedback outside the formal process

The sector and geographic distributions of these 82 commenting organizations are shown below:

Regions from which Standard 2.0 public comments were submitted

 

Sectors from which IRMA received public comments on Standard 2.0 draft

Of the 28 chapters in first draft Standard 2.0, the most-commented upon were (in alphabetical order):

  • Biodiversity, Ecosystem Services and Protected Areas
  • Community and Stakeholder Engagement
  • ESIA (Environmental and Social Impact Assessment and Management)
  • Fair Labor and Terms of Work
  • Gender Equality and Gender Protections (new)
  • GHG and Energy Consumption
  • Human Rights Due Diligence
  • Indigenous Peoples and FPIC
  • Occupational Health and Safety
  • Waste and Materials Management
  • Water Management

Public Comments Received for the second draft of the Chain of Custody Standard

A first draft was released for public comment in 2021. The 90 day public consultation for the second draft lasted from October 26 through January 26. During that time we:

Timeline

As included in the graphic below, the IRMA Secretariat is currently processing all the public comments received. Although subject to the approval of the IRMA Board of Directors, it is envisaged to release a 2nd draft for public comment in the second half of 2024. We hope to launch the actual Standard 2.0 – once approved by the IRMA Board of Directors – towards the end of 2024, thus triggering a transition period (duration to be decided and approved by the Board) between versions 1.0 and the 2.0 for all the entities and sites engaged (and seeking to engage) in the IRMA System.

Standard 2.0 revision timeline

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Sishen Mine. Credit: Anglo AmericanSishen Mine. Credit: Anglo AmericanAudits

Audits released for first African iron ore mines

Two Anglo American mines are first African iron ore operations audited against the IRMA Standard for Responsible Mining

Kolomela and Sishen achieve IRMA 75

UPDATED 5 April with recording of 4 April webinar

27 March 2024 – Today the Initiative for Responsible Mining (IRMA) released the audits of Kumba Iron Ore’s Kolomela and Sishen iron ore operations against the IRMA Standard for Responsible Mining. Independent audit firm ERM-CVS assessed both operations at IRMA 75 when measuring their performance against the Standard’s best practice social and environmental criteria. Kumba Iron Ore is an Anglo American subsidiary.

The IRMA 75 achievement level means that ERM-CVS verified that the operations at least substantially met all 40 critical requirements of the IRMA Standard, as well as at least 75% of the Standard’s criteria in each of the four principle areas: social responsibility, environmental responsibility, business integrity and planning for positive legacies. The full audit reports are available on the Kolomela and Sishen audit pages on the IRMA website.

“The information stakeholders need to decide what’s going well — and what may require more attention.”

“This report demonstrates that mines can point to transparent, independent evaluations of their environmental and social performance,” said Aimee Boulanger, Executive Director of IRMA. “Through detailed IRMA audit reports, mining companies, communities and companies that purchase mined materials can gain the information they need to decide what’s going well — and what may require more attention — at specific mines.”

As the IRMA Standard is recognized and adopted around the globe, these audits are first steps in a deepening dialogue between mining companies and those affected by their operations. Because the process is still evolving, IRMA cautions that the initial results should be reviewed and interpreted accordingly.

“These mines began audits during the early COVID years. The timeline was delayed by travel challenges, and then the company’s decision to use the optional corrective action period to make improvements. The public has long awaited opportunity to review the information included here, and we applaud Anglo American for volunteering these mines for audit against such comprehensive criteria.” Ms. Boulanger went on to say, “That said, the IRMA Standard is relatively new for companies that volunteer to be audited, and even our accredited auditors are still learning. The same is true for community members and workers who are interviewed as part of the process, some of whom may not yet feel comfortable engaging. So, the Amandelbult and Mototolo audits need to be read with this in mind.”

The report also provides an honest accounting of IRMA’s own progress as the Standard and assessment process continue to mature.

“If the results don’t fully reflect the experience of communities, Indigenous rights holders or other affected groups, we want to hear from them,” Ms. Boulanger said. “We’ll help them communicate with the company to better understand its performance, and with the auditors on any issues they feel were overlooked in the review. This is a cornerstone of our own commitment to transparency. We invite anyone who has criticisms of our work to join us in making it better. Finding ways to improve is built into our system — and a measure of its success.”

The IRMA Standard is being updated in 2024; input on how to improve the IRMA Standard is welcomed. Chapters in the IRMA Standard include requirements on protection to human rights, water resources, worker health and safety, biodiversity, Indigenous free, prior, informed consent and more.

“Committing to an IRMA audit reflects our desire to improve and our openness to dialogue”

Mpumi Zikalala, Chief Executive for Kumba Iron Ore said, “Our achievement of IRMA 75 for Kolomela and Sishen mines is testament to the hard work of our teams. The result is informed by evidence from a diverse range of stakeholders including employees, governments, NGOs, and communities alike. This invaluable input will drive our ongoing efforts to enhance sustainability performance. Achieving excellent results in IRMA audits serves as recognition and proof of our commitment to high standards, best practices, transparency and assurance.”

Including Kolomela and Sishen, 19 industrial-scale mines worldwide are within the IRMA independent assessment system. After an initial self-assessment, a participating mine engages a third-party audit firm — trained and approved by IRMA — to conduct a detailed independent evaluation, including on-site visits to the mine and nearby communities. Following the release of the initial audit, a shorter surveillance audit checks on the mine’s performance. Three years after the initial audit, the operation is fully audited again (Note: The first mines audited in the IRMA system have had extensions to this timeline due to Covid delays and launch-phase learning; updated full reviews will be required to maintain or increase achievement scores.)

The independent IRMA system is the only global mining standard that provides equal power to the public sector (communities and Indigenous rights holders, mine workers, and environmental and human rights advocates) alongside the private sector (mining companies, mined materials purchasers and investors).


Apr 4th Webinar Q&A

For More Information:

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ISO logoISO logoStandards

“Sustainable Critical Minerals Supply Chains” ISO Workshop

Share Your Experience: ISO Workshop on “Sustainable Critical Minerals Supply Chains” 16-17 April, New York City

RSVP with ISO for Virtual or In-Person Participation

IRMA is participating in a series of International Organization for Standardization (ISO) International Workshop Agreement (IWA) 45 sessions focused on “sustainable critical minerals supply chains.” ISO welcomes you to share your experience at the second session of IWA 45 this 16-17 April.

The series, hosted by Standards Australia, explores sustainability tools, guides, and frameworks available to “assist in improving an organization’s sustainability outcomes.” Following a first in-person only session held in Tokyo, Japan, the second IWA 45 session aims to broaden stakeholder engagement, including by enabling both in-person and virtual participation in the New York City session.

The IWA 45 series is important as it will inform the work of the ISO and the national standards bodies of its member countries, including, for example, work under ISO/PC 348 to specify criteria for sustainable raw materials from extraction to final product manufacturing.


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Mining Engagement with IRMA - March 2024Mining Engagement with IRMA - March 2024Mining

IRMA Mining Engagement – March 2024

As of March 2024, 82 mining companies are now engaged in IRMA representing 104 sites:

61 sites are self-assessing under the IRMA Standard (39 have made this public), the first step before an independent audit;

24 are piloting the draft IRMA exploration (IRMA Ready) or mineral processing standard self-assessments

19 are in the independent assessment system: 13 audits are underway (USA, South Africa, Senegal, Mozambique, Brazil, Chile, Argentina) and 6 completed audits have been published (Zimbabwe, Mexico, Chile)

They encompass 30 countries.

Details and maps of the mining sector’s engagement with IRMA are available here.

 

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Credit: Picryl.com under the Creative Commons licenseCredit: Picryl.com under the Creative Commons licenseBlog

Why IRMA doesn’t use the word ‘certified’

You may have noticed that IRMA no longer uses* the words certification or certified in its programs and materials.  Instead, we refer to independent assessment and IRMA achievement (e.g. IRMA 75).

This is intentional.

In our view, “certification” conveys the certifying institution’s approval of the audited company, site or product. Many view certification labels as intended to assure the buyer or end-consumer that they’re buying something which has been approved.

While this approach is simple to understand, widely used, and has a long history in the marketplace, we believe it’s not an appropriate approach for the complexity of mining operations and the scale of industrial mining’s impacts. Certification, in the sense that it signifies approval, often means vastly different things to those impacted by mining—whether mine management, mine workers, customers of mines, or communities living near mines.

Instead, we use a scoring tool to:

  • measure performance against a shared definition of best practices in mining;
  • create incentive for more transparent accounting of impacts and achievements;
  • welcome any operation, at any stage of their journey, to feel they can use the IRMA system to guide changes;
  • build value for continuing improvement; and
  • allow each stakeholder to make their own judgement about what the mine’s independently assessed performance against the IRMA Standard (its scoring as revealed in an IRMA audit report) means, instead of providing a proverbial stamp of approval.

An IRMA audit report offers readers not only an overall achievement level (IRMA Transparency, IRMA 50, IRMA 75, or IRMA 100; explained below) , but also provides scores for hundreds of requirements including the auditor’s rationale for assigning that score. This level of detail is key to:

  • ensure the audit reports can be used as a centerpiece for meaningful conversations, whether between communities and the mine, a mine’s customer and mine management, or any other constellation of interested parties; and
  • guide the mine on specific actions they can take to meet practice in the weeks, months and years ahead.

Because we know that some readers won’t study performance on each requirement and instead want a quick summary of performance we offer an overall achievement score.

  • IRMA Transparency is given to a mine site that is audited against the IRMA Standard, releases the subsequent audit report publicly, and doesn’t reach a higher achievement level.
  • IRMA 50 and IRMA 75 are achieved when a mine meets at least 50% or 75% average of the possible scores in each of the four main principles of the IRMA Standard (environmental, social, business integrity, and leaving positive legacies). In other words, a mine can’t score 100% in social chapters and 0% in environmental chapters and be IRMA 50; they need to achieve at least 50% average in each of the four principles.
  • Mines achieving IRMA 50 and above must also at least substantially meet 40 of the IRMA Standards requirements that are designated as critical. This helps to ensure that as we share these milestones of achievement in working toward best practices, sites with achievement levels don’t have significant issues like child labor or human rights abuses.
  • An IRMA 100 mine follows all aspects of the IRMA Standard. Even at this level, IRMA doesn’t say the mine is “certified”, but provides the information stakeholders need to draw their own conclusions about the mine’s performance and impacts.

It is important to note that IRMA 100 originally signaled “IRMA certification” – and was written directly into specific points of the 2018 IRMA Standard for Responsible Mining. For example

2.2.2.2. “New mines shall not be certified [achieve IRMA 100] by IRMA unless they have obtained the free, prior and informed consent (FPIC) of potentially affected indigenous peoples.”

The 2024 update to the Standard will remove these “certification” references. It is further important to note that “certification” is this example is not equated with “assessed.” A mine can be assessed in IRMA, even if it has not obtained FPIC. The resulting scores will simply relay the details around this important aspect of a mine’s operations.

We continue to look for ways to evolve IRMA’s scoring system to provide clear and meaningful data on performance without oversimplifying the important details or risks.


* Although references to “certification” have been removed from IRMA website text (e.g. the Assessment page used to be the Certification page), the process is still underway for PDF documents.

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