The Lexpert Special Editions profiles selected Lexpert-ranked lawyers whose focus is in Corporate, Infrastructure, Energy and Litigation law and relevant practices. It also includes feature articles on legal aspects of Canadian business issues.
Issue link: https://digital.carswellmedia.com/i/1480531
6 www.lexpert.ca Feature a huge opportunity for us," he says, adding that there are now developing technologies to incorporate water recirculation into the mining process. In-house counsel's key role For in-house counsel at companies in the mining industry, getting a handle on ESG has taken on more importance, especially as the mining industry has had a checkered past in this area. Andrew McLaughlin, VP of legal affairs at New Brunswick-based Major Drilling, a leader in specialized drilling and an expert in mineral exploration and mine services, says that over the past several years, he's seen "undeniable momentum" in the industry on addressing ESG issues. "ESG has gone from a 'nice to have' element of corporate strategy to a 'must have,'" he says, "as investors, customers, and those in the compa- ny's supply chain demand more from mining companies." Says McLaughlin: "is whole idea of 'greenwashing' – putting out grand statements on ESG matters and not living up to them – is a thing whose time has come and gone." Expanding ESG concepts into areas such as diversity, health and safety, and fair wages has also helped change the environment in companies such as his that are committed to ESG. He says Major Drilling is an industry leader in this area, but that doesn't mean it is not looking at the environmental side. McLaughlin says that Major Drilling has recently been looking at ways to reduce its greenhouse gas emissions. However, with operations in 15 companies the task is not easy. Mining critical minerals Ironically, while mining is seen as a contrib- utor to ESG problems, especially on environ- mental issues, recent movement away from fossil fuels also presented some solutions for the mining industry. For example, Bains points out that the rise of electric car technology and interest in driving electric cars has meant that critical minerals such as lithium and copper – compo- nents in making batteries – have become an essential part of sustainability. "You have to look at these things holisti- cally," he says. It isn't easy to build electric cars and reduce emissions in the transportation sector without materials such as lithium, but mining lithium can present ESG challenges. "So, you have to consider the ESG profile of a mining operation – what is being mined, and how it all fits into the entire sustainability picture." TOP 10 BUSINESS RISKS AND OPPORTUNITIES FOR MINING AND METALS IN 2022 EY survey of more than 200 global mining and metals executives, conducted June— September 2021 2022 Ranking in 2021 1 Environment and social 4 2 Decarbonization 4 3 License to operate 1 4 Geopolitics 5 5 Capital 6 6 Uncertain demand 7 Digital and innovation 9 8 Workforce 7 9 New business models 10 Productivity and costs 3 Up from 2021 Down from 2021 Same as 2021 New to the radar At Dentons, Morán says the steering committee draws information from experts worldwide to help companies "identify which standards, guidelines, and frameworks they should be adopting." Firms' choices will depend on their strategic goals, regulation, and stakeholder expectations. Ravipal Bains, a Vancouver-based partner with the capital markets and securities prac- tice at McMillan LLP, says many industries, such as mining, are "under a lot of pressure" to demonstrate sustainability. And that comes in several different ways. "For mining, being sustainable means changes to extraction and processing," he says. "It relates to efficiencies in reducing emissions from processing and transpor- tation, but also looking across the entire lifecycle, from the early stages to recycling." While there is progress, Bains says this evolu- tion is also challenging "because you have to develop the technology to allow the industry to become more efficient." Morán points out that in Chile, one of the first challenges for mining companies was to reduce continental water consumption and instead turn to seawater. About 25 percent of water consumed in the mining industry is seawater, which is expected to reach 50 percent by the end of this decade. "is is "THE FOCUS HAS ALWAYS BEEN ON THE 'E' IN ESG IN THE EXTRACTIVE INDUSTRIES, [BUT NOW] SUSTAINABILITY IS ALSO BEING CONSIDERED FROM THE PERSPECTIVE OF SOCIAL ELEMENTS … AND GOVERNANCE GOALS" BRAD CAHOON DENTONS LLP Source: EY (Ernst & Young)