Responsible Mining Business Integrity Tool
Business integrity affects environmental, social and governance (ESG) performance.
Transparency International’s Responsible Mining Business Integrity Tool helps mining companies evaluate and strengthen their anti-corruption controls and procedures, with a specific focus on project licensing, permitting and acquisitions.
With indicators selected from close to 40 international best practice standards and frameworks, this online and interactive tool helps companies reduce their corruption risk exposure by:
- Highlighting the most critical policies and procedures for business integrity
- Providing a framework for companies to evaluate business integrity performance
- Offering practical guidance and resources
This tool uses indicators based on standards including: GRI, IFC Performance Standards, SASB, UK Bribery Act Guidance, US FPCA Guidance, IRMA, Responsible Mining Index, and the UN Global Compact.
This tool was developed as part of Transparency International’s Accountable Mining Programme, which is funded by the BHP Foundation and the Australian Government through the Department of Foreign Affairs and Trade. The online version of this tool was developed with the support of the Worley Foundation.
Why use this tool?
Having effective systems, underpinned by company-wide values, to detect, prevent and manage corruption risks is a business imperative both to ensure compliance with applicable laws and because it is good for business. Corruption affects project viability, company reputation and future business relationships.
The licensing phase for new mining projects and expansions is particularly susceptible to corruption given the frequent touchpoints with government and communities and the high business stakes. Having effective systems in place to detect, prevent and manage corruption risks during licensing and permitting truly is an imperative for responsible business.
The business case
At a time when social licence to operate is regarded as the top business risk facing the mining industry, a company’s ability to demonstrate business integrity is increasingly essential for the success of any project.
There is also a commercial incentive to take action – companies that show they take corruption risks and business integrity seriously can increase their investment attractiveness. Investors are increasingly demanding clean, corruption-free, conflict-free projects.
Investors are increasing their focus on environmental, social and governance factors. Global ESG investment has undergone significant growth with twenty four stock exchanges now requiring listed companies to report on ESG.
How can this tool help?
The tool helps companies evaluate their business integrity and anti-corruption policies and procedures and identify the areas that need to be strengthened.
It is also designed to help raise awareness among different business units and functions about the importance of business integrity during project licensing and permitting.
For companies with robust business integrity policies and practices, the tool enables them to identify and demonstrate their strengths and improvement efforts to stakeholders such as investors, regulators and the citizens of host countries.
Business integrity based on ethics and transparency is at the heart of licence to operate and affects all other aspects of environmental and social performance.
During times of crisis and instability, ethics and integrity are more important than ever. Strong and transparent anti-corruption programs will be particularly important for mining companies seeking business opportunities in the era of COVID-19 and global geopolitical change.
Responsible mining companies demonstrate business integrity throughout the project lifecycle. This starts with responsible business conduct from the earliest steps when they seek to secure exploration permits or mining rights – wherever their projects may be located.