International reporting standards and codes are becoming increasingly stringent regarding the accurate and appropriate disclosure of organisational social and environmental liability. There are an extensive selection of technical standards available which provide a detailed framework for the reporting of social and environmental (socio-environmental) liabilities in the extractive industries. These frameworks span various business units in an organisation addressing the technical, engineering, management and financial accounting requirements for operational socio-environmental management, closure practice and remediation. These reporting requirements have had ramifications which span across the global extractive industry.
The SAMCODES Standards Committee (SSC) has responded to this shift in global recognition of the importance of competent assessment of and reporting on socio-environmental liability through the publication of the South African guideline for the reporting of environmental, social and governance (ESG) parameters within the mining and oil and gas industries (the SAMESG guideline).
The SAMESG serves as a Best Practice Guideline when reporting on socio-environmental aspects within the SAMREC, SAMVAL and SAMOG Codes (collectively the SAMCODES). The intention of the guideline is to assist individuals in providing adequate information on ESG matters that relate to their influence on the reasonable prospects for eventual economic extraction of the specific commodity being reported.
The SAMESG provides guidance on the reporting of the following aspects:-
- organisational structure, systems, policies, procedures and risk control management plans;
- compliance related ESG aspects;
- key environmental parameters;
- external social and political parameters;
- internal social parameters;
- conformance and compliance audits;
- ESG liability; and
- Risk analysis and materiality processes.