Developing A Framework For Sustainable Development Indicators For The Mining and Minerals Industry PDF

Journal of Cleaner Production 12 (2004) 639662
www.elsevier.com/locate/jclepro
Developing a framework for sustainable development indicators

for the mining and minerals industry
Adisa Azapagic
School of Engineering, University of Surrey, Guildford, Surrey, GU2 7NN, UK
Received 15 November 2002; accepted 23 May 2003
Abstract
The mining and minerals industry faces some of the most difficult sustainability challenges of any industrial sector. To secure
its continued social licence to operate, the industry must respond to these challenges by engaging its many different stakeholders
and addressing their sustainability concerns. The industry must also be able to measure and assess its sustainability performance
and to demonstrate continuous improvements over long term. The mining and minerals sector has already started responding to
some of the sustainability challenges, as demonstrated by the Mining, Minerals and Sustainable Development (MMSD) project.
Following the findings of MMSD, this paper aims to contribute to these activities at the sectoral level through a development
of a framework for sustainability indicators as a tool for performance assessment and improvements. The indicators have been
developed specifically for metallic, construction and industrial minerals, but may also be suitable for some energy minerals, parti-
cularly coal. The framework comprises economic, environmental, social and integrated indicators, which can be used both internally,
for identification of hot spots and externally, for sustainability reporting and stakeholder engagement. In an attempt to help
standardise corporate reports and enable cross-comparisons, the framework is compatible with the general indicators proposed by
the Global Reporting Initiative (GRI); however, a number of sector-specific indicators have also been developed to reflect the
characteristics of the industry.
2003 Elsevier Ltd. All rights reserved.
Keywords: Mining; Minerals; Industry; Sustainable development; Indicators
1. Introduction above-average threats for health and safety of workers

and citizens.
Minerals are essential to everyday life, making up These and the other issues have prompted the mining
numerous products we all use. They are also vital raw and minerals industry to engage in the sustainability
materials in a large number of industries, including cer- debate and start devising strategies for responding to the
amics, construction, cosmetics, detergents, drugs, elec- challenge of sustainable development. The more recent
tronics, glass, metal, paint, paper and plastics. Extraction Mining, Minerals and Sustainable Development
and processing of minerals are, however, associated with (MMSD) project [1], which was initiated as a part of the
a number of sustainable development challenges, includ- Global Mining Initiative [2], is just one of the examples
ing various economic, environmental and social issues. of a concerted action of the sector for promoting the
For example, the industry is an important source of concept of corporate sustainability. Over forty compa-
employment and wealth creation. On the other hand, nies and organisations contributed to this initiative with
extractive operations invariably lead to a variety of the aim of identifying the main challenges and possible
environmental impacts, including depletion of non- strategies for a more sustainable future for the industry.
renewable resources, disturbance of the landscape and There are various other examples of similar activities in
the sector at the national and international levels, includ-
ing the US-based Sustainable Minerals Roundtable [3],
the Canadian Minerals and Metals initiative [4] and the

Tel.: +44-1483-689170; fax: +44-1483-686581. work of the European Industrial Minerals Association
E-mail address: [email protected] (A. Azapagic). [5].
0959-6526/$ - see front matter 2003 Elsevier Ltd. All rights reserved.
doi:10.1016/S0959-6526(03)00075-1
640 A. Azapagic / Journal of Cleaner Production 12 (2004) 639662
Although it is unlikely that the concept of corporate the question of information sharing and communication
sustainability will become legislated as such, it is has been addressed by the Global Reporting Initiative
increasingly clear that national and international legis- [11], which has recently completed the development of
lation is being tailored towards promoting sustainable a framework for corporate sustainability reporting. This
development. For example, at the EU level, the Euro- general framework, which is emerging as the most
pean Commission (EC) is actively involved in promoting prominent reporting standard, is also appropriate for the
corporate sustainability [6] and has specifically mining and minerals industry and has already been
addressed the mining and minerals sector in one of its adopted by some companies in the sector, including
previous communications [7] which called for reconci- Argyle Diamonds, Hillside Aluminium, Shell Inter-
ling the need for more secure and less polluting extrac- national, Tata Steel, Teck Comico, and WMC [12].
tive activities while maintaining the competitiveness of There is also a lively activity aimed at the development
the industry. Legislation, combined with stakeholders of sustainability indicators for the mining and minerals
pressure, has acted as one of the main driving forces for sector (e.g. [35]); however, the work on indicators is
the interest of the industry in sustainability. However, still in its infancy and requires further efforts.
the industry is now also starting to recognise that corpor- This paper aims to contribute to these developments
ate sustainability can bring business benefits through [1]: by proposing a comprehensive set of indicators specifi-
cally relevant to and tailored for the mining and minerals
Lower labour and health costs by providing safe and industry. Based on the Brundtland definition of sus-
healthy working environment; tainable development in general [8] and following the
Cost savings due to cleaner production methods and findings of the MMSD project in particular, the indi-
innovation; cators, which were developed in collaboration with a
Easier access to lenders, insurers, preferential loans minerals company, aim to translate the key sustainable
and insurance rates; development issues for the industry into the relevant
Lower closure and post-closure costs; measures of sustainability performance. The framework
Best practice influence on regulation; is suitable for sustainability reporting as well as for
Higher value for goodwill on the balance sheet and internal use by mineral companies. Whilst being sector-
Market advantages created by a socially responsible specific, the proposed indicators are compatible with the
approach to business. GRI general indicators, thus contributing to a further
standardisation of sustainability reporting.
However, in addressing sustainability, the mining and
minerals industry also faces a number of challenges. Fol-
lowing the Brundtland definition of sustainable develop- 2. A framework for sustainable development
ment [8], the main challenge for the sector is to clearly indicators for the mining and minerals industry
demonstrate that it contributes to the welfare and well-
being of the current generation, without compromising The minerals industry is often divided into four sub-
the potential of future generations for a better quality of sectors:
life [1]. Achieving this goal requires a systems approach
that enables balancing of economic, environmental and Energy minerals (e.g. coal, oil);
social concerns through [9,10]: Metallic minerals (e.g. iron, copper, zinc);
Construction minerals (e.g. natural stone, aggregates,
Identification of stakeholders and key sustainability sand, gravel, gypsum), and
issues; Industrial minerals (e.g. borates, calcium carbonates,
Programmes and actions needed to address these issu- kaolin, plastic clays, talc).
es;
Development of sustainability indicators to enable Although these four sub-sectors share many common
performance measuring and monitoring; characteristics with regard to sustainability issues, they
Progress evaluation to ensure continuous improve- are also quite different. For example, a key issue associa-
ments of the triple bottom line; and ted with the use of energy minerals is depletion of non-
Information sharing and communication with stake- renewable resources. Other minerals on the other hand
holders. are (strictly speaking) not depleted, but dissipated in use
and can (at least theoretically) be recovered and reused.
As already noted, the industry is already involved in These and other differences require a particular care in
various activities aimed at addressing sustainability. For the development of an appropriate set of sustainability
example, the industry stakeholders and sustainability indicators that, in turn, is contingent upon identification
issues have been identified by the European Commission of the key sustainability issues that are relevant for an
[7] and within the MMSD project [1]. Among others, industrial activity. In the development of the indicators
A. Azapagic / Journal of Cleaner Production 12 (2004) 639662 641
proposed here, the emphasis has been on the key issues tainable development of the mining and minerals indus-
relevant to three mineral sub-sectors: metallic, construc- try. These are briefly discussed in the next sections, with
tion and industrial minerals. However, it is worth point- the emphasis on the metallic, construction and indus-
ing out that many indicators within this framework are trial minerals.
applicable to energy minerals, particularly coal.
2.2. Industry stakeholders
2.1. Overview of the industry
Identifying the relevant stakeholders and understand-
In the global economy, the mining and minerals sector ing their interests is a prerequisite for the development
is relatively small but very diverse, producing over 80 of an appropriate and meaningful set of sustainability
mineral commodities. The major producers include indicators. As listed in Table 1, the industry stakeholders
USA, Canada, Australia, Russia, Brazil, South Africa, include employees, trade unions, contractors and sup-
China and the EU, with production increasingly being pliers, customers, shareholders, creditors, insurers, local
concentrated in developing countries. An estimated 30 communities and authorities, governments and NGOs.
million people are involved in large-scale mining, rep- As also shown in the table and briefly discussed below,
resenting 1% of the worlds workforce, with a further 13 most stakeholders have a strong interest in economic
million involved in small-scale mining [1]. It is therefore aspects of sustainable development and some concerns
likely that, including dependants, 250300 million for environmental and social issues.
people rely on mining. Many other people are also
directly or indirectly employed in the rest of the minerals
supply chain. 2.2.1. Employees
Over the last centuries, the real price of some mineral The industry provides direct employment to over 40
commodities has declined due to various reasons, includ- million of people which makes employees probably the
ing changes in technologies, production costs, minerals industrys most important stakeholder. In addition to fair
availability and market demand [1]. Volatile returns in remuneration packages, they are likely to be interested
recent years have led to a tightening of profit margins in good, safe and healthy working conditions, with
and to a deterioration of the financial performance of the opportunities for training and career development. These
sector. However, minerals production is still an conditions can in turn improve motivation and pro-
important part of the economy of many countries, some- ductivity, lower labour absenteeism or turnover and
times providing significant employment and contributing result in fewer union disputes [1]. Many, particularly
to a large proportion of the GDP. For example, the min- higher quality, employees are increasingly considering
ing and minerals sector in the EU employs directly other sustainability aspects, including companys
190,000 people [7] while the industrial minerals alone environmental, social and ethical performance.
contribute a value of around 5 billion Euro to the Euro-
pes GDP [5]. 2.2.2. Trade unions
Metallic minerals are obtained from both open pits A number of national and global labour unions are
and underground mines, while construction and indus- active in the mining and minerals sector. Their interest
trial minerals are, with few exceptions, extracted through lies in issues such as fair treatment, equal opportunities
quarrying. Metals are used in a variety of applications, and health and safety. The right to form unions has often
including automotive, packaging and electronic and elec- been contested by some mining companies leading to a
trical industries. Main uses of construction minerals division between labour and management. Commitment
include construction of roads, buildings and railways, to improved participation, which is at the core of sus-
manufacture of cement, lime and plaster and a variety tainable development, will require that companies dem-
of other products such as glass and ceramics. Industrial onstrate that they are conforming with the International
minerals are major raw materials for the chemicals and Labour Organisation Conventions on the Right to Organ-
fertiliser manufacturing industries, as well as for cer- ise [13,14].
amics, glass, paper, paints and plastics [7]. Markets for
construction minerals are mainly confined to local sup- 2.2.3. Contractors
plies, because of the transportation costs that limit dis- The industry relies to a large extent on contractors and
tance between production facilities and the user. How- consultants for various parts of its operations, such as
ever, metals and to an extent industrial minerals are drilling, transport, permitting and mine closure. Most
traded globally; this trend is set to continue as a result contractors would be concerned with the economic per-
of increased competition from lower-cost producing formance of the company they are working for and their
countries. prospects for further contracts. Some consultants, parti-
This brief overview suggests that a number of stake- cularly those involved in permitting and Environmental
holders and sustainability issues may be relevant for sus- Impact Assessments (EIAs), may have an interest in
Table 1
The industry stakeholders and their primary interest in sustainability issues
Sustainability issues
Stakeholders Economic Environmental Social
Employees +
Trade unions
Contractors /+ /+
Suppliers
Customers + +
Shareholders + +
Creditors + +
Insurers
Local communities
Local authorities
Governments
NGOs +
strong interest. + some interest. no interest.
environmental and social aspects of a companys activi- ment banks. Commercial banks expect companies to
ties. reduce financial risks wherever possible. Like share-
holders, they are also increasingly becoming interested
2.2.4. Suppliers in ethical and socially responsible investment, screening
Although at the bottom of the supply chain, the min- companies on their environmental and social perform-
ing and minerals sector still has a number of suppliers, ance. A study by the United Nations Environment Pro-
including providers of energy, chemicals and other gramme (UNEP) found that already in 1995 more than
materials. Like contractors, they will in general be inter- 90 international banks were assessing borrowers on
ested in economic viability of the company they are sup- environmental financial risk and 50 of these incorporated
plying to and whether their contracts will be paid in environmental liability into loan terms [15].
accordance with terms.
2.2.5. Customers 2.2.8. Insurers

Consumers of mineral products include manufacturing Similar to the other financial institutions, insurers of
companies, service industries and private individuals. At companies in the mining and minerals sector will be
present, the most influential consumers of minerals are interested in a good overall economic, environmental
large manufacturers of metal-intensive products [1]. and social performance. They are particularly concerned
Generally speaking, consumers main interests will be in about potential environmental liabilities related to mine
purchasing mineral products and services at minimum closure and beyond, especially in countries following the
costs and with no associated environmental, health and polluter pays principle. They will also be reluctant to
safety risks. support companies operating in politically unstable parts
of the world, particularly if there is a possibility of
2.2.6. Shareholders armed conflict.
Shareholder returns have always been one of the most
important business driving forces. More recently, some
shareholder groups have also started showing an interest 2.2.9. Local communities
in socially responsible investment. This trend may Many types of communities can be affected by the
influence future business dealings of companies as inves- minerals operations, including those neighbouring the
tors start to avoid companies with an unacceptable social mine sites and those that are home to migrant workers.
and environmental record. Most communities will be interested in a provision of
employment (and through that in the financial perform-
2.2.7. Creditors ance of the company), but also in a clean and healthy
The mining and minerals sector is mainly financed by environment. However, it is also likely that most com-
commercial banks with additional funding provided by munities will adopt the Not-In-My-Back-Yard
international institutions such as the World Bank, Inter- (NIMBY) attitude and object to a proposed new devel-
national Finance Corporation and the regional develop- opment.
2.2.10. Local authorities to grave. The supply chain associated with minerals life
Local authorities have an increasingly important role cycle is outlined in Fig. 1. The diagram shows in the
to play in implementing laws and regulations and distri- vertical direction, the life cycle of mineral products and
buting mineral wealth at the local level. They are in in the horizontal, the life cycle of mine and production
many cases instrumental in the planning process and will facilities. Both of these life cycles must be considered
have a strong interest in all aspects of sustainability. if the indicators are going to be true measures of sus-
They would want to provide employment in the local tainability. The shaded areas overlaid on different parts
area through a proposed development, but also to protect of the life cycles indicate the stakeholders and their inter-
the environment and minimise social risks. Depending est or involvement in the respective life cycle stages.
on legislation in different countries, they are likely to be This representation should be interpreted as indicative
one stakeholder group that will be involved in the whole rather than definitive, as it is not possible to show on
life cycle of a mine or production facility from its design one diagram all the overlaps between the stakeholders
to decommissioning. and relevant stages in the minerals life cycles.
The life cycle of mineral products includes extraction
2.2.11. Governments or primary resources, processing, product use and post-
Governments determine the operating frameworks for use waste management while the mine and production
the industry by defining revenue and tax distribution, facility life cycle includes design, operation, decom-
planning process, environmental standards, and by pro- missioning and rehabilitation. All these stages are asso-
tecting the rights of local communities. Therefore, they ciated with some sustainability issues that are of concern
are interested in all aspects of sustainability, but parti- to the stakeholders identified in the previous section and
cularly in employment and contribution to GDP, safe depicted in Fig. 1. Traditionally, the industry has been
working practices and environmental compliance. Many concerned with the issues associated with the most
governments are now actively pursing a sustainable immediate activities, i.e. mining and processing. Some
development strategy and are keen to see the minerals proactive companies have also considered the impacts of
and other industrial sectors become more sustainable. mine closure and have envisaged rehabilitation in their
planning, but that has by no means been the mainstream
2.2.12. NGOs practice in the industry [7]. Yet, without broadening the
A number of NGOs have an interest in the mining traditional system boundary and considering sus-
and minerals sector. Their main concern is in securing tainability issues along the whole supply chains, the min-
environmentally and socially responsible approach to ing and minerals sector will not be able to respond
mining and associated activities. NGOs have been appropriately to the challenge of sustainable develop-
instrumental in drawing the attention of the general pub- ment.
lic to the mining and minerals sector by campaigning for Following a widely accepted categorisation of sus-
specific issues. Some of them have worked in partner- tainability concerns, the key sustainability issues for the
ship with the industry to develop and disseminate best mining and minerals sector can be classified into three
environmental and social practice. major categories: economic, environmental and social.
Further discussion on the role and interests of the The issues are summarised in Table 2 and discussed
industry stakeholders can be found in [1] and [7]. briefly below, followed in the next section by a descrip-
tion of the proposed related indicators.
2.3. Sustainability issues
2.3.1. Economic issues
Sustainable development indicators translate sus- Economic viability and competitiveness of the mining
tainability issues into (usually) quantifiable measures of and minerals sector is important for sustainable develop-
economic, environmental and social performance with ment as the industry brings various economic benefits to
the ultimate aim of helping address the key concerns. society, including provision of employment and gener-
Identification of relevant issues, that capture the specific ation of wealth. This raises several concerns at both
characteristics of each type of industry, is therefore cru- micro- and macro-levels. To provide economic benefits
cial in the development of indicators. A stakeholder to society, a minerals company must, like any other busi-
analysis should help in highlighting the general types of ness, perform well at the micro-level by minimising
issues; however, to identify the specific concerns, an in- costs and maximising profits and shareholder returns.
depth analysis of each industrial activity is required. This may lead to macro-economic benefits through vari-
Addressing sustainable development requires a holis- ous investments and injection of hard currency
tic approach based on life cycle thinking and mining and (particularly in poorer countries), contribution to GDP
minerals industry is no exception to this [1,7]. Thus, and tax, royalty and other payments to the public sector.
identification of sustainability issues must be done by However, a number of factors can influence the ultimate
considering all activities in the supply chain from cradle returns to society from minerals developments.
Fig. 1. Flow diagram of the life cycles of mineral products and facilities, also showing the relevant stakeholders.
Table 2
Summary of the key sustainability issues for the mining and minerals sector (listed alphabetically)
Economic issues Environmental issues Social issues
Contribution to GDP and wealth creation Biodiversity loss Bribery and corruption
Costs, sales and profits Emissions to air Creation of employment
Distribution of revenues and wealth Energy use Employee education and skills development
Investments (capital, employees, Global warming and other environmental Equal opportunities and non-discrimination
communities, pollution prevention and impacts Health and safety
mine closure) Land use, management and rehabilitation Human rights and business ethics
Shareholder value Nuisance Labour/management relationship
Value added Product toxicity Relationship with local communities
Resource use and availability Stakeholder involvement
Solid waste Wealth distribution
Water use, effluents and leachates (including
acid mine drainage)
One of these factors is management and distribution of mineral resources and a faster depletion of minerals
of mineral wealth and revenues. The micro-economic reserves therefore causing greater environmental damage
issues have traditionally dominated business decision- and returning little economic benefit to society.
making with a focus on short-term returns, which is in One of the ways to partly offset this unsustainable
the mining and minerals industry often based on pro- resource depletion is to increase value-added of minerals
duction volumes rather than on valued-added products by further processing the raw materials closer to the front
and services. This, combined with price volatility of end of the supply chain. This would not only maximise
some minerals, has in some cases led to a profligate use financial returns to the industry, but would also enable
producer countries to derive more benefits from their (e.g. some metals) is also associated with the acid drain-
resources. However, one of the great obstacles in adding age problem that can cause a long-term acidification of
more value to minerals at source is the tariff imposed waterways and can also affect biodiversity. Furthermore,
by industrial countries on imports of processed goods. some effluents generated by the metals mining industry
For example, exporting copper wire or aluminium tubes can also contain large quantities of toxic substances,
into European Union, USA, Japan, Canada and Australia such as cyanides and heavy metals, which can pose sig-
is on average 3.2 and 5.3% more expensive, respectively, nificant human health and ecological risks. This was
than exporting unprocessed copper and aluminium ores demonstrated by the two most recent incidences of the
[1]. tailings dams failures, at the Baia Mare goldmine in
A further challenge is distribution of revenues from Romania and at the Aznalcollar zinc, lead and copper
minerals among private sector, central government and mine in Spain. In general, the environmental impacts of
local communities. This is a contentious issue, which has metals mining are likely to be greater than for other min-
often created tension, political controversy and some- erals, because of toxic chemicals that are often used in
times even armed conflicts. The common practice has minerals separation.
been to split the earnings between the company and the A number of environmental issues can also arise in
central government thus bringing little benefit to the the rest of the life cycle of mineral products, including
local communities. Governments often use corporate the use and disposal stages. For instance, the use of some
taxation and royalty payments to gain an adequate share minerals can have toxic effects on humans and the
of revenues from a mineral development. Developing environment. The most drastic examples here are asbes-
countries as a whole derive 80% of their mineral rev- tos, lead and uranium. Other issues include generation
enues from taxes on corporate profits [16]. However, this of solid waste and loss of valuable resources at the end
approach can deprive these economies of valuable of products useful life. Some minerals can be recovered
income in case of non-profitable mineral developments. and recycled to increase minerals eco-efficiency.
Royalty payments and other taxes (e.g. value-added, At the end of their useful life, the mine and production
stamp duty and fuel) are also used to further increase facilities can also pose several environmental problems,
governments gains from minerals resources. However, including water contamination due to acid mine drainage
high taxes can also deter investors thus depriving a coun- and other toxic leachates, irreversible loss of biodivers-
try of perhaps a vitally important income. To encourage ity, loss of land and visual impact. A number of aban-
investments, some countries introduce subsidies; this doned mine sites and unrestored quarries are a testimony
approach has often been criticised for underpricing min- to the unsatisfactory environmental performance of the
eral resources and stimulating unsustainable levels of industry in the past [7]. This practice is set to change as
production thus leading to a faster depletion of min- modern development projects increasingly include plans
eral reserves. for decommissioning and rehabilitation. However, a
Although many countries are now trying to address recent PriceWaterCoopers survey revealed that, although
this issue, few have been able to institute policy and 88% of surveyed companies have environmental post-
regulatory frameworks that enable more equitable shar- closure mitigation plans, only 45% have detailed socio-
ing of the wealth generated from minerals. Yet, equitable economic plans that are regularly reviewed and have
distribution of wealth is one of the prerequisites for more updated cost estimates [17].
sustainable societies, making this not only an important
economic but also a social issue. Distribution of wealth 2.3.3. Social issues
from minerals is further discussed below, in the section Similar to the economic, social issues can also be con-
on social issues. sidered from a micro- and macro-perspective, where the
former are related to employees and the latter concern
2.3.2. Environmental issues society at large.
Depletion of non-renewable resources and environ- In addition to wages and benefits that are universally
mental impacts as a result of air emissions, discharges important, one of the employee-related issues specifi-
of liquid effluents and generation of large volumes of cally significant for the mining and minerals industry is
solid waste are the most important environmental issues occupational heath and safety. A long-term accident stat-
for the mining and minerals industry. Energy use and istics shows that the industry poses above-average risks
contribution to global warming are also considered to be to employees. Underground metaliferous mines have the
significant. Some estimates show that the mining and highest incidence of fatalities, with the gold industry suf-
minerals industry consume 47% of the energy used glo- fering the highest average fatality ratio [1]. For example,
bally [1]. In addition to these, extraction activities have there has been one fatality per year in every 1000 people
a visual impact on the landscape and lead to destruction in gold mines in South Africa in the period from 1990
or disturbance of natural habitats, sometime resulting in 2000 [18]. Coal mines can also cause a number of fatal-
a loss of biodiversity. Mining of some types of minerals ities, mainly due to methane explosions. There are also
a number of health concerns related to hostile working family life, increased prostitution, alcoholism, domestic
environments to which workers are exposed. These violence and loss of land rights [1]. The MMSD project
include chronic occupational diseases due to dust inha- identifies gender disparity as one of the important issues
lation (particularly silicates, asbestos and uranium) dur- that needs to be addressed by the industry, including
ing minerals extraction. The most common diseases in attracting more women into professional jobs and equal
the industry are pneumoconiosis, silicosis, asbestosis and remuneration for men and women as well as ensuring
lung cancer. Non-occupational illness, such as that women in local communities benefit from mining.
HIV/AIDS also have a significant impact on the work- In addition to the question of women, there are other
force in some countries. For example, 20% of coal and macro-issues related to local communities that can arise
30% of gold miners in South Africa are HIV-positive; in relation to the mining and minerals industry. They
it is predicted that in the next five years, 510% of the include employment in the local area, capacity-building,
workforce will start to die [19]. involvement in decision-making and distribution of
Some mining activities also pose health and safety wealth and revenue between company and local com-
risks to citizens and local communities, either related to munity.
extraction activities or minerals products, or both. These Employment in the sector is generally falling in most
can include health effects due to local air pollution, inci- parts of the world. However, employment opportunities
dental releases of toxic substances and toxicity of pro- provided by the industry can be substantial and in some
ducts. Unprotected access to abandoned and sometimes cases it is the main employer in the area. This can bring
even active open pits can also pose safety risks for citi- wealth and prosperity to communities, but can also cause
zens. considerable disruption in the social life and structure.
Another important issue for the mining and minerals An increasing trend in the industry is contracting out or
industry is employee education and skills development. outsourcing which means that local communities are less
Numerous studies suggest that the industry is facing a likely to benefit from new jobs and business opport-
big challenge in attracting high-quality people, mainly unities. A typical example of this is fly-in, fly-out oper-
because of a negative industry image, the perception of ations that bring workforce from different parts of the
poor future job prospects and poor quality of life in min- world to exploration sites. Lack of locally-available
ing towns [1]. And yet, recruiting and retaining top-qual- skilled workforce is often quoted as a reason for out-
ity staff is expected to be a critical source of competitive sourcing. Capacity-building through education, training
advantage for the industry [20]. Therefore, investing in and skills development could help overcome the skills
human capital through higher education, training and shortage problems and would contribute towards more
transferable skills development with opportunities for sustainable communities, even after the mine closure.
personal career development is a very important precon- Sustainable development is a concern for all, and it
dition for competitiveness of the industry. This will also requires that people be given the opportunity to be infor-
contribute to worker employability and could thus leave med and decide about issues and conditions that affect
a valuable legacy for employees (and society) after the them. Local communities should therefore also be able
mine closure. to participate in decision-making in the matters that
A good and co-operative labour-management relation- influence their livelihoods. This also includes partici-
ship is particularly important for a sustainable develop- pation in deciding on revenue distribution from minerals.
ment of a company. However, historically there has been As already mentioned, many countries are now trying
a deep division in the mining and minerals industry to change this practice and are increasingly including
between employees and management, which has often communities and local authorities in the sharing of rev-
been a cause of disputes between trade unions and min- enues. Minerals companies can also contribute to this
ing companies. Open and participatory management more equitable wealth distribution through various
structures are therefore important as they can help build investments in communities, including schools, hospitals
trust and reduce disputes and so provide a more pleasant and other community projects.
work place. Broad participation is crucial for the implementation
Addressing sustainable development requires compa- of the underlying values of sustainable development and
nies to provide equal opportunities to all regardless of preservation of cultural values [22]. Therefore, involve-
their gender, race or disabilities. One of the equality ment of local communities and other stakeholders in
issues relevant for the mining and minerals industry is decision-making is one way for the mining and minerals
that it has traditionally been male-dominated with few sector to address the challenge of sustainable develop-
women employed in the industry or benefiting from min- ment. Broad representation of key stakeholders and their
ing activities. For example, in the South African mining participation in decision-making ensures recognition of
industry in 1998 women made up only 2.3% of the diverse values, and secures their rights to be informed
workforce [21]. Some of the problems that are often about issues and conditions that influence their life.
associated with mining and affect women are disrupted Protection of human rights is another relevant social
concern that should be addressed when considering sus- report, the elements of financial, environmental, and
tainability of the mining and minerals sector. There have social facets of the company [12]. This trend is also fol-
been accusations that some mining companies abuse lowed in the mining and minerals sector, including com-
human rights, in actions taken either independently or panies such as Argyle Diamonds, Hillside Aluminium,
in collusion with governments [1]. This includes paying Shell International, Rio Tinto and WMC [12]. A recent
unfairly low wages, denying the right to employees to survey by KPMG [26] showed that 30% of mining and
organise in trade unions, the use of child labour, abuse minerals companies included in the analysis produce
of women, forced and compulsory labour, violation of sustainability reports. However, many companies still
indigenous rights and use of force to gain control over use a variety of reporting formats and sustainability indi-
land. These are all serious sustainability issues which cators, which makes cross-comparisons more difficult.
require a concerted action of the industry and national To help overcome this problem and promote compar-
and international community. ability, the GRI has published Sustainability Reporting
This is also true for corruption, which is one of the Guidelines [11], recommending the structure and the
main obstacles in equitable distribution of wealth from contents of sustainability reports. The Guidelines also
minerals. Some companies in the sector have been include a set of generic indicators for industry (see Table
involved in bribing officials, for example to secure or 3); however, the GRI recognises that each sector will
speed up the permitting process. Although in many cases have to develop additional, sector-specific indicators that
these payments are done in the interests of business reflect individual characteristics of different types of
efficiency, bribery and corruption are damaging for the industrial activities.
economy and human development as they divert revenue As already mentioned, the need for the industry-spe-
away from the government priorities and bring little cific indicators has been recognised by many within the
benefit to local communities. A recent survey by Trans- mining and minerals sector, including the MMSD project
parency International, a German NGO, found out that [1], the US Sustainable Minerals Roundtable [3], the
out of 32 leading countries with minerals deposits, 23 Canadian Minerals and Metals initiative [4] and the Eur-
appear to have some kind of corruption problem [23]. opean Industrial Minerals Association [5]. Some of these
This, like the human rights abuse, is a large-scale prob- organisations are already actively involved in the devel-
lem that cannot be addressed by the mining companies opment of sustainability indicators for the mining and
alone, but in collaboration and partnership with all rel- minerals sector. However, these developments are only
evant stakeholders. at the beginning and much more work is need in this
field.
2.4. The framework for sustainability indicators This paper proposes a framework for sustainability
indicators for the mining and minerals industry in an
The purpose of sustainability indicators for industry attempt to further contribute to this ongoing work.
is to help measure a companys economic, environmen- Developed in collaboration with a minerals company and
tal and social performance and to provide information based on the authors previous work [24,27], the frame-
on how it contributes to sustainable development [24]. work includes economic, environmental, social and inte-
Therefore, the indicators must be able to translate both grated indicators. The latter combine two or more
internally-relevant and externally-important sus- aspects of sustainability into one metric to provide a
tainability issues into the representative measures of per- more holistic assessment of the level of sustainability
formance. but also to help decision-makers by reducing the number
Translating the issues associated with the mining and of criteria that need to be considered.
minerals sector into the measures of sustainable develop- As noted earlier, this set of indicators has been
ment is by no means a trivial task. Most of the issues developed specifically for the metallic, construction and
are of a global character and affect many stakeholders industrial minerals. In addition, the framework may also
so that it would be a futile or indeed an impossible task be applicable to some energy minerals, notably coal.
to attempt to translate all of them into meaningful indi- However, additional or different measures of sus-
cators of corporate or sectoral performance. Yet, it tainability may be needed to describe this sub-sector
remains a legitimate aim to measure the level of sus- more fully. The indicators suggested here are suitable
tainability of the mining and minerals sector as a whole for both internal use, e.g. for measuring a baseline and
as well as of the individual companies and to monitor performance monitoring, and for communication to
their progress towards (or away from) sustainability. external stakeholders, e.g. in the form of sustainability
Many companies and sectors are involved in the reports. In an attempt to contribute to the standardisation
development of sustainability indicators, either for of sustainability reporting and so enable comparisons
internal use or as a tool for communication with stake- across reporting organisations, the indicators framework
holders [24,25]. Sustainability reports are emerging as a follows the GRI format. However, to reflect the specific
new trend in corporate reporting, integrating into one characteristics of the sector and capture interests and
Table 3
Comparison of the GRI general indicator categories with the framework proposed in this paper
GRI indicator categories Included in this Additional to the GRI indicators

framework
Economic Customers Products

Suppliers Local communities
Employees
Investors
Public sector
Environmental Materials Mineral resources

Energy Land use
Water Closure and rehabilitation
Biodiversity Nuisance
Emissions Contractors
Effluents
Wastes
Suppliers
Products and services
Compliance
Transport
Overall (environmental expenditure) Included in Economic
indicators (Public sector)
Social Labour practices Employment Suppliers and contractors

and decent work Labour/management relations
Health and safety
Training and education
Diversity and opportunity
Human rights Strategy and management
Non-discrimination Included in Diversity
and opportunity (Labour
practices)
Freedom of association
Child labour
Forced labour
Disciplinary practices
Security practices
Indigenous rights
Society Community Stakeholder involvement
Bribery and corruption
Political contributions
Competition and pricing
Product Customer health and safety
responsibility Products and services
Advertising
Respect for privacy
Integrated Not available N/A Various indicators linking economic,

environmental and social performance
concerns of the relevant stakeholders, it has been neces- organisations, which could afford the time and resources
sary to adapt or omit some of the GRI indicators and to for its implementation.
develop a number of additional measures of sus- The GRI distinguishes between the core and
tainability. The differences between the GRI and this additional indicators, whereby the core are those rel-
framework for indicators are summarised in Table 3. It evant to most organisations and of interest to most stake-
should be noted, that like the GRI guidelines, this frame- holders, while the additional indicators provide further
work is more suitable for large-scale mining and larger information on a companys performance as relevant or
appropriate to a particular type of industrial activity. 2.4.1. Economic indicators

Most of the core and some additional GRI indicators are Economic indicators measure economic impact of a
included in the framework proposed here for the mining company on its internal and external stakeholders and
and minerals industry; however, for simplicity, the dif- on economic systems at the local, national and global
ference between the core and additional indicators is not levels. Therefore, the economic indicators need to
made within this framework. include the usual measures of financial performance such
To ensure that they are a true measure of sus- as profits and shareholder returns, but also to go beyond
tainability, the developed indicators take a life cycle the traditional fiscal indicators to reflect the wider con-
approach to follow all activities from cradle to grave texts in which companies operate. The economic indi-
and to consider the whole supply chains and the relevant cators within this framework are based on the five GRI
stakeholders (as outlined in Fig. 1). Most of the indi- categories of performance (see Table 3) each comprising
cators in this framework are quantitative, expressed a number of specific indicators such as net sales, return
either as absolute values for the reporting period, nor- on investments and taxes paid to the public sector. In
mally one year (e.g. tonnes of CO2/yr) or ratios (tonnes addition to these, as indicated in Table 3, it has been
of CO2/tonne product). However, some aspects of sus- necessary to add two more types of indicator, related to
tainability, notably those related to social and ethical products (e.g. value added) and local communities (e.g.
performance, can be expressed more meaningfully in revenue distribution). This makes the information pro-
qualitative terms, as descriptive statements. Using both vided under this category more transparent and compat-
quantitative and qualitative indicators in combination is ible with the way the environmental and social indicators
essential to presenting a complete and balanced picture are presented. The categories of economic indicators
of a companys sustainability performance. A brief over- proposed within this framework are summarised in Table
view of the economic, environmental, social and inte- 4, which shows the type of information provided by each
grated indicators with an indication of what they aim indicator category as well as the economic issues and
to measure is given below. The categories of economic, stakeholders they affect. The full list of economic indi-
environmental and social indicators considered here are cators is given in Table 5. All together, 24 economic
summarised in Table 4, Table 6 and Table 8. A full list indicators have been proposed, of which six are
of suggested indicators can be found in Table 5, Table additional to those proposed by the GRI. The additional
7 and Table 9, respectively, detailing the purpose of each indicators include generally-applicable measures of
indicator and the units in which they are expressed. The economic performance such as earnings before interest
tables also show which indicators have been adopted and tax (EBIT) as well as the sector-specific indicators,
from the GRI framework and which had to be adapted such as total investments for mine closure and rehabili-
or added. tation.
Table 4
Categories of economic indicators
Indicator category Provides information on/ measures Economic issue(s) addressed Stakeholders directly
affected/interested
Products Types of product, sales, earnings and Sales, earnings and value added Employees, customers, creditors,
values added shareholders, national governments
Customers Main customers, market share and Contribution to GDP and wealth Customers, national governments
contribution to GDP creation
Suppliers and Extent of outsourcing and costs Operating costs Suppliers and contractors
contractors
Employees Employment costs and employee benefits Costs of employment and investment Employees, trade unions
in employees
Providers of capital Financial viability of business and wealth Capital investments, profits and Shareholders, creditors, insurers
creation shareholder value, wealth creation
and revenue distribution
Local communities Investments in community and wealth Investment in communities and Local communities, local authorities,
distribution wealth distribution national governments, NGOs,
shareholders
Public sector Compliance and payments to the public Investments in environmental Local authorities, national
sector protection, including ethical governments (including political
investments and funds for post- parties)
closure rehabilitation; distribution of
revenue and wealth to the public
sector through taxes and royalties
Table 5
Economic indicators
GRI Indicator Provides information on/ Measures Units
Products
Y Breakdown by product type and amount sold Types and diversity of products
Total amount of individual products sold t/yr
Y Net sales Income from sales monetary unit/yr
N Earnings before interest and tax (EBIT) Total earnings monetary unit/yr
Y Value-added Value added to primary resources by further monetary unit/yr
processing to semi-manufactured and manufactured
products. It represents a value of sales minus the
costs of all goods and services purchased
A Value-added per unit value of sales Value-added or net income per unit income from monetary unit /
sales of the products and through that creation of monetary unit
wealth
Customers
Y Geographic breakdown of markets, disclosing: Types of market supplied and geographic spread of
products
National market share greater than 25% Significance of the market presence %
Contribution to GDP greater than 5% Importance for and contribution to the national %
economies (and wealth)
Suppliers and contractors

Y Cost of all goods, materials, and services purchased Variable costs and also, indirectly, a scale of monetary unit/yr
interactions between a company and its suppliers and
contractors
Employees
Y Total payroll costs and benefits (including pension and Employee income and benefits and through that monetary unit/yr
redundancy payments) broken down by region or investment in human capital and the extent to which
country employees are treated fairly, particularly in different
parts of the world
N Total costs of employment as percentage of net sales Employment costs relative to the income from sales %
and indirectly through that the contribution of human
capital to company income
A Health, pension and other benefits and redundancy Employee benefits and through that the level of %
packages provided to employees as percentage of total investment in human capital beyond the money paid
employment costs in salaries and wages
N Ratio of lowest wage to national legal minimum, How well the company observes national laws
breakdown by country regulating minimum wages and whether it goes
beyond the minimum legal requirements
Y Investment in employee training and education as The level of investment in employee development %
percentage of net sales relative to the income from sales and through that
commitment to human capital
N Percentage of employees that are shareholders in the Importance of the workforce for company and %
company through that the extent to which employees can be
involved in and influence company decision-making
Providers of capital
Y Distributions to providers of capital broken down by Providers of capital and relationships between monetary unit
interest on debt and borrowings and dividends on all borrowings, interests and earnings; also shareholder
classes of shares value
A Average capital employed Total value of the capital employed, including plants, monetary unit
infrastructure, working capital etc.)
Y Return on average capital employed (ROACE) How well a company has employed its capital %/yr
N Percentage of ethical investments relative to total The level of company commitment to socially %
investments responsible investing
Local communities
A Percentage of revenues that are redistributed to local The extent to which a company supports more %
communities from the relevant areas of operation, equitable distribution of wealth through direct
relative to the net sales financial returns to the local communities
(continued on next page)
Table 5 (continued)
GRI Indicator Provides information on/ Measures Units
A Investments into community projects (e.g. schools, The extent to which a company contributes to a %
hospitals, infrastructure) as percentage of net sales better quality of life of local communities through
education, health care and provision of other
infrastructure
Public sector
Y Breakdown by country of the total sum of all types of Contribution to society through taxes and royalties monetary unit/yr
taxes and royalties paid paid
A Fines paid for non-compliance (economic, Whether a company complied with all economic, monetary unit/yr
environmental and social) environmental and social legal requirements
A Total investment for pollution prevention and control The level of investment in environmental protection monetary unit/yr
(air, water and solid waste)
N Total fund for mine closure and rehabilitation, The level of funding available for mine closure and monetary unit
including mitigating the post-closure environmental rehabilitation and through that the level of
and social impacts commitment to minimising the environmental and
social impacts after the mining operations have
ceased
Y Amount of money paid to political parties and Contributions to political parties and related monetary unit/yr
institutions whose prime function is to fund political organisations and indirectly through that the
parties or their candidates relationship with public policy-makers
GRI: Yindicator included in the GRI reporting guidelines; Nindicator not included in the GRI reporting guidelines; Aa GRI indicator
adapted to reflect the sector characteristics.
2.4.2. Environmental indicators hot spots in the supply chain as it shows the most
Of the three types of sustainability indicators, environ- important stages and impacts in the life cycle so that
mental measures of performance are most developed and they can be targeted for maximum improvements. Life
have achieved the highest degree of consensus among cycle assessment (LCA) is the usual tool used for quanti-
experts. They measure a companys impacts on natural fication of environmental impacts of products and pro-
systems, including humans, ecosystems, land, air and cesses along the supply chain (see e.g. [28]).
water. These impacts can be local, regional or global However, it is appropriate to make a distinction
thus affecting a wide range of stakeholders. For example, between the scope of the analysis for mineral products
depletion of minerals resources has both local and global and mine facilities. Given a myriad of uses that most
implications. Locally, it will affect the employees and minerals are put to, in most cases it would be impossible
their job prospects as well as the local communities for mineral companies to follow all their products from
prospects to benefit in the longer term from mining cradle to grave; instead, a reduced, cradle-to-cus-
activities. Globally, depletion of minerals reserves tomer scope may be more suitable but also more practi-
affects both the current and future generations, as they cal. This includes all activities along the supply chain,
can no longer rely on these resources to satisfy their from extraction to delivery of the mineral product to the
needs. customer. However, in cases where companies are also
It is therefore important that the environmental indi- involved in the recovery of waste products, a full
cators reflect not only the key environmental issues but cradle-to-grave approach should be taken. For the mine
also the scale of magnitude of the impacts. This can be and processing facilities, however, the full cradle-to-
achieved by using both the absolute measures of grave approach must be taken, encompassing design,
environmental performance (e.g. tonnes of mineral operation, decommissioning and rehabilitation.
resources extracted per year) and normalised units (e.g. These considerations have been taken into account in
tonnes of a mineral resource depleted per year relative the development of the environmental indicators sug-
to the world reserves of that resource). Normalised units gested here. As summarised in Table 6, the indicators
also enable comparisons between companies of different have been grouped into 15 categories, to address the
sizes, particularly if they are expressed per tonne of pro- environmental issues discussed in section 2.3. Table 6
duct. also shows the stakeholders directly affected by or inter-
As discussed earlier, another important aspect in ested in different issues. A full list of the indicators can
developing the environmental indicators is life cycle be found in Table 7. In addition to the 35 GRI general
thinking which provides a holistic approach required in environmental indicators, a number of new indicators
addressing sustainable development. The life cycle had to be developed within this framework to reflect
approach is particularly useful for the identification of some of the specific concerns associated with the mining
Table 6
Categories of environmental indicators
Indicator category Provides information on/ measures Environmental issue(s) addressed Stakeholders directly affected/interested
Mineral resources Availability, resource efficiency and Use, availability and depletion of Employees and contractors, local
rate of depletion of mineral resources mineral resources communities and authorities, national
governments, NGOs, international
community
Land use Land requirements for mineral-related Land required for mineral-related Local communities (including indigenous
activities activities people), local authorities, national
governments, contractors, NGOs
Materials Use of chemicals, packaging and Use and depletion of resources Suppliers, contractors, NGOs, local
other materials, recycling rate authorities
Water Water use and efficiency Use of water resources Suppliers, local communities and authorities,
national and international governments
Energy Energy use and efficiency, use of Use of energy resources, depletion of Suppliers, contractors, local communities,
fossil fuels and renewable non-renewable resources, contribution NGOs, national governments
to global warming
Closure and Pace of restoration and the level of Land management and rehabilitation Local communities and authorities, creditors,
rehabilitation commitment to rehabilitation insurers, contractors, NGOs, national
governments
Biodiversity The extent to which the extractive Biodiversity loss Local communities, NGOs, national
activities affect habitats and species governments, international community
Air emissions Contribution to air, water and land Air emissions, liquid effluents Local communities and authorities, national
Liquid effluents pollution and related impacts (including acid mine drainage) and governments, NGOs, insurers, shareholders,
Solid waste solid waste and related environmental creditors, international community
impacts
Nuisance The level of nuisance for Nuisance, including noise, dirt and Local communities and authorities, NGOs
neighbouring communities visual impact
Compliance and Environmental responsibility Environmental responsibility in Local communities and authorities, national
voluntary activities demonstrated through compliance and general, including accidents (e.g. governments, creditors, insurers,
voluntary activities shareholders, NGOs
Transport and Transport distances for products and Transport intensity and through that Contractors and suppliers, local communities
logistics employees the use of non-renewable resources, and authorities, national governments, NGOs
emissions to air and related
environmental impacts
Suppliers and Environmental performance of Environmental impacts along the Suppliers and contractors
contractors suppliers and contractors supply chain
Products Life cycle environmental impacts of Life cycle environmental impacts of Customers, NGOs, national governments,
products products, including product toxicity insurers and creditors
and minerals industry. In total, there are 63 environmen- of environmental accidents, including dam failures, the
tal indicators, of which 31 are additional sector-specific level of noise and other nuisance, and the pace of land
measures, related to mineral resources, land use, rehabilitation.
environmental accidents, nuisance and closure and
rehabilitation. For example, the additional indicators 2.4.3. Social indicators
measure rate of depletion of mineral reserves, total land While the economic and environmental performance
area required for extraction activities, number and type are relatively easy to measure and the indicators are gen-
Table 7
Environmental indicators
GRI Indicator Provides information on/measures Units
Mineral resources
N Breakdown of the amount of each saleable primary resource Amounts of primary resources that need to be t/yr
extracted extracted to obtain mineral products and
through that the rate of extraction and depletion
of natural resources
N Total waste extracted (non-saleable material, including the The amount of waste that needs to be moved to t/yr
overburden) obtain mineral products
N Total products yield as percentage of the amount of Resource efficiency with respect to the total %
saleable products relative to the total amount of material amount of material that needs to be extracted to
extracted obtain a certain amount of saleable mineral
product
N Percentage of each resource extracted relative to the total Rate of depletion of the permitted reserves also %/yr
amount of the permitted reserves of that resource indicating how long a company can rely on the
existing (permitted) reserves
Land use
A Total area of permitted developments (quarries/mines and Total land currently occupied and reserved for ha
production facilities) the future extraction and production activities
(permitted development include both current
operations as well as those that will start
sometime in the future); also shows the
companys direct footprint
N Total land area newly opened for extraction activities New land area taken per year, indicating a ha/yr
(including area for overburden storage and tailings) yearly land demand for mining and minerals
activities
N Percentage of newly opened land area relative to total Yearly rate of increase for land demand or a %
permitted development yearly increase in the direct footprint
N Total land area covered by ancient or rain forest that was The loss of ancient or rain forest due to ha/yr
cleared for the extraction activities extraction activities
A Number of sites on environmentally protected or sensitive Environmental sensitivity of the current and number and
areas and a description, including both current and planned future developments description
developments
Materials
A Breakdown by type and the total amount of chemicals used Types and amount each chemical used for the t/yr
production of mineral products
A Percentage of waste chemicals (processed or unprocessed) The level of recycling of chemicals %
used from both internal and external sources
A Breakdown by type and the total amount of packaging used Types and amount packaging used for mineral t/yr
products
A Percentage of recycled or re-used packaging relative to the The level of packaging reuse and recycling %
total amount of packaging
Water
Y Total water use (mains and surface/underground water) Amount of water resources used for the m3/yr
production of mineral resources
Y Percentage of water recycled and reused (e.g. cooling, waste Water use in the minerals operations relative to %
and rain water) relative to the total water withdrawn from water withdrawn from the environment (from
source surface sources or groundwater)
Y Breakdown by type of the amount of the primary energy Type and amount of primary energy used MJ/yr
used (including natural gas, diesel, LPG, petrol and other
fuels)
A Breakdown by type of the amount of the secondary energy The amount of secondary energy (electricity and MJ/yr
(electricity and heat) used and exported heat) used for the minerals activities and the
amount exported, if applicable
Y Energy from renewable sources used and exported The amount of renewable energy used and MJ/yr
exported, if applicable
Y Total primary and secondary energy used The energy intensity of the extraction and MJ/yr
production activities
Table 7 (continued)
N Percentage of renewable energy used relative to total energy Ratio of renewable and non-renewable energy %
consumption used and through that companys commitment
to using more sustainable sources of energy
A Summary of energy policy Whether the company has a policy for energy Description
efficiency and sources of energy and through
that the level of commitment to sustainable
energy management and avoidance of the
related environmental impacts, particularly with
respect to climate change
Closure and rehabilitation

N Number of quarries/mines closed Total number of quarries or mines closed number/yr
N Number of sites rehabilitated Total number of sites rehabilitated number/yr
N Total land area rehabilitated Total area of land rehabilitated ha/yr
N Percentage of the land area rehabilitated relative to the total Pace of land rehabilitation %/yr
land area occupied by the closed mines/quarries awaiting
rehabilitation
N Number of awards for rehabilitation and a summary, if The extent to which a company is committed to number/yr
applicable mitigating the environmental consequences of
mining activities by going beyond the minimum
usually required by legislation
Description
N Number of sites officially designated for biological, Companies commitment to maximising benefits number/yr
recreational or other interest as a result of rehabilitation to society after mine closure, in this case by
creating ecosystems and public amenities of
special interest
N Net number of trees planted (after thinning and after The actual number of trees planted that would number/yr and
subtracting any trees removed for the extraction activities) be available in the long-term (normally over description
100 years) for CO2 sequestration
N Summary of the policy for closure and rehabilitation Whether the company has a policy for closure
and rehabilitation and what systems it has in
place for policy implementation
Biodiversity
Y Description of the major impacts on biodiversity associated Major impacts on the ecosystems and a Description
with company activities and/or products and services in potential for biodiversity loss
terrestrial, freshwater, and marine environments
Y Number of IUCN Red List species with habitats in areas Total number of species under a threat of number
affected by operationsa extinction, as classified by the worlds most
comprehensive inventorya of the global
conservation status of plants and animals. These
criteria are relevant to all species and all
regions of the world
A Description of the activities for habitat protected or Activities for protection and rehabilitation of Description
rehabilitation habitats and through that companys
commitment to conservation of species and their
habitats
Y Summary of the biodiversity policy Whether the company has a policy, programmes Description
and targets for protecting and rehabilitating
native ecosystems and species in degraded areas
Air emissions
Y Emissions of greenhouse gases (CO2, CH4, N2O, HFCs, Emissions of greenhouse gases; enables t/yr
PFCs, SF6), breakdown by substance calculation of contribution to global warming
N Equivalent number of fully grown trees that would be Number of trees that could (theoretically) number/yr
required for sequestration of the total CO2 emissionsb sequester the CO2 emissions, normally over 100
years, from companys activities
N The amount of CO2 emissions that can (theoretically) be Total amount of CO2 that can (theoretically) be t
sequestered by the trees planted by the company sequestered by the trees planted by the
company
N Net emissions of CO2 (total CO2 emissions minus CO2 Total CO2 emissions reduced by the amount t/yr
emissions potentially sequestered by trees) which can potentially be sequestered by the
trees planted by the company
Table 7 (continued)
Y Emissions of ozone depleting substances, breakdown by Emissions of ozone depleting substances; kg/y or t/yr
substance enables calculation of contribution to ozone
layer depletion
Y Emissions of acid gases (NOx, SO2 and other), breakdown Emissions of acid gases; enables calculation of t/yr
by substance contribution to acidification
A Emissions of particles Emissions of dust and particles; enables t/yr
calculation of their contribution to local and
regional air pollution as well as a potential to
cause health problems
A Toxic emissions (including heavy metals, dioxins, crystalline Emissions of toxic gases; enables calculation of kg/yr or t/yr
silica and others), breakdown by substance human and eco-toxicity effects
Y Other emissions; breakdown by substance Other significant emissions and companys t/yr
contribution to other environmental impacts
Liquid effluents
Y Total volume of water discharged into waterways The amount of water returned to the m3/yr
environment
N Total volume of tailings and disposal methods Total amount of tailings generated in the m3/yr and
production process and the disposal methods description
N Percentage of permitted sites causing downstream and/or Percentage of permitted mine sites from which %
underground water quality problems relative to the total downstream and/or underground water quality is
number of permitted sites degraded relative to the total number of
permitted mine sites
N Describe any measures put in place to prevent acid main Companys approach to managing acid mine Description
drainage, if applicable drainage
N Describe any measures put in place to prevent tailings Companys approach to preventing Description
dam(s) failure environmental disaster from dam(s) failure
Y Breakdown of substances discharged with liquid effluents Discharges of substances with liquid effluents; t/yr
enables calculating their potential to cause
various environmental impacts
Solid waste
Y Total hazardous and non-hazardous solid waste and The amount of solid waste generated in the t/yr and
breakdown by type and description of disposal methods extraction and production activities (e.g. description
tailings, waste rocks, hazardous waste, office
waste etc.) and the disposal methods, including
reuse, recycling, incineration and disposal
methods for hazardous waste
N Percentage of permitted sites that have a problem of land Share of permitted sites with land contamination %
contamination relative to the total number of permitted sites resulting from mining activities relative to total
number of permitted mine sites
Nuisance
N Total number of external complaints related to noise, road The level of nuisance to neighbouring number/yr
dirt and dust, visual impact and other nuisance communities from minerals-related activities
Compliance and voluntary activities

N Total number of prosecutions for environmental non- How well the company complies with number/yr and
compliance and a summary for each region and country, if environmental legislation description
applicable
N Percentage of planning permissions refused on How successful a company is in obtaining %
environmental and social grounds relative to the number planning permissions, indicating compliance and
applications for permissions commitment to addressing environmental and
social concerns in new developments
Y Number of environmental accidents and a summary for each Number and type of environmental accidents, number/yr
region or country, as applicable also indicating frequency of unintentional Description
emissions to air, water and land and the
resulting pollution
N Percentage of sites certified to an EMS (e.g. Strategic approach to environmental %
ISO14001/EMAS) management
N Summary of any other environmental voluntary activities Companys commitment to environmental Description
protection beyond legislative requirements
Table 7 (continued)
Transport and logistics

A Total transport distance, including in the mine/quarry, Total number of kilometres covered for moving km/yr
transport of products to customers, business travel and materials and people
commuting for fly-in, fly-out operations
A Total distances for all transport per tonne of products Transport intensity per mass unit of mineral km/t
products
A Percentage distance for transport of products to customers Share of sustainable modes of transport, such as %
covered by road, rail and water transport, breakdown by rail and water, in the total transport of products
type

A Summary of any assessments of suppliers and contractors on Supply chain considerations Description
quality and environmental performance
a
The full list can be found at the IUCN web site: http://www.iucn.org/redlist/2000/background.html.
b
See e.g. the web site of the Edinburgh Centre for Carbon Management for calculation methods for CO2 sequestration by trees
(http://www.eccm.uk.com/carbon.htm).
erally well developed and agreed upon, measuring the 2.4.4. Integrated indicators
level of social sustainability of a business or a sector is While it is necessary to present to stakeholders the
not an easy task. One of the reasons is that social indi- information on economic, environmental and social per-
cators must take into account the many interests of both formance in a disaggregated form, integrating two or
employees and those of the wider communities to reveal more indicators into one measure of performance to
companys social impacts at the local, national and glo- inter-relate different aspects of sustainability can also be
bal levels. Furthermore, in social and ethical dimensions helpful, for several reasons. Firstly, integration reduces
of a companys activity, many of the variables such as the number of indicators to a smaller, more manageable
protection of human rights or cultural values are hardly number of performance measures, thus better facilitating
quantifiable, and cannot even be defined in physical decision-making process. Secondly, sustainable develop-
terms [24]. Yet, without addressing these issues, the ment is a holistic concept and ideally we should strive to
assessment of sustainability would not be complete. consider all three pillars of sustainability simultaneously.
Therefore, the set of social indicators proposed within Although in practice this may be difficult to achieve,
this framework has been designed to include both quali- integrated indicators could bring us a step closer to
tative and quantitative indicators, as appropriate. Follow- achieving this aim.
ing the GRI framework, they have been grouped into The GRI has not identified a standardised set of inte-
five categories, related to labour practices, human rights grated performance indicators. Nevertheless, it encour-
and broader issues affecting consumers, local communi- ages companies to develop an appropriate shortlist of
ties and other stakeholders; see Table 8 for a summary.
integrated performance indicators to include in their
A full list of the social indicators is given in Table 9.
reports. The integrated indicators proposed here rep-
The GRI recommends the use of 53 different social indi-
resent an attempt to contribute to a further development
cators. This number has been reduced to 45 in the frame-
in this area. However, as presented, they should be
work proposed in this paper as some of the GRI indi-
treated as examples rather than a definitive list. As illus-
cators are more appropriate for companies in the
consumer products sector rather than to the mining and trated in Table 10, each integrated indicator inter-relates
minerals industry (e.g. those related to advertising). two dimensions of sustainability. For example, the indi-
Among the 45, 12 indicators are additional to the GRI cator related to environmental impacts per value-added,
measures of social performance, most of them account- inter-relates environmental and economic efficiency of
ing for the specific characteristics of the sector and the minerals system, while the indicator on wealth cre-
related to health and safety, indigenous rights and local ation per employee connects economic and social per-
communities. Specific examples of the additional indi- formance. Further development of these indicators will
cators include the number of compensated occupational be necessary to enable integration of all three dimensions
diseases, the number of mines on sacred sites and per- of sustainability.
centage of employees sourced from local communities.
Table 8
Categories of social indicators
Indicator category Provides information on/ Social issue(s) addressed Stakeholders directly
measures affected/interested
Labour Employment Contribution to employment Creation of employment Employees, contractors, suppliers,

practices and and stability of jobs trade unions, local communities
decent work and authorities, national
governments
Labour/management Employee satisfaction and Labour/management Employees, trade unions
relations inclusion relationship and stakeholder
inclusion
Health and safety Employee health and safety Health and safety Employees, trade unions, national
governments
Training and education The level of commitment to Employee education and skills Employees, trade unions, national
human capital investment development governments
Suppliers and contractors The level of commitment to Relationship with local Suppliers, contractors, local
using local suppliers and communities and business communities
contractors and their fair ethics
treatment
Non-discrimination, The level of commitment to Equal opportunities and non- Employees, trade unions, national
diversity and opportunity non-discrimination and to discrimination governments
providing equal opportunities
Human rights Strategy and management The level of commitment to Human rights and business All stakeholders
protecting human rights of all ethics
stakeholders
Freedom of association Compliance with the ILO Human rights and business Employees, trade unions, national
conventions on freedom to ethics governments
organise in Trade Unions
Child labour Abolishment of child labour Human rights and business Local communities, NGOs,
ethics shareholders, customers, creditors,
insurers
Forced labour Abolishment of forced and Human rights and business Employees, NGOs
compulsory labour ethics
Indigenous rights Respect of the rights of Human rights and business Local communities, NGOs,
indigenous people ethics national governments, insurers,
creditors, shareholders
Society Local communities The approach to caring for Relationship with local Local communities and
local communities communities and wealth authorities, national governments,
distribution NGOs, shareholders, creditors
Stakeholder involvement The level of commitment to Stakeholder involvement All external stakeholders
external stakeholder
involvement
Bribery and corruption The approach to avoiding Bribery and corruption Local communities and
bribery and corruption authorities, national governments,
creditors, NGOs
Political contributions and Contributions to political Business ethics National governments, NGOs
lobbying parties
Product Customer health and safety The approach to protecting Health and safety Customers, insurers, national
responsibility customer health and safety governments, NGOs, shareholders
Products The level of care for customers Business ethics Customers
3. Conclusions framework for indicators of sustainable development pro-

posed in this work could be used as a tool for assessing
Sustainable development is becoming increasingly the level of sustainability of the sector as well as of the
more important for the mining and minerals industry. To individual mining and minerals companies. The framework
respond to many sustainability challenges that it is facing, is also suitable for sustainability reporting in accordance
the industry must be able to measure its progress towards with the GRI recommendations, thus enabling cross-
(or away from) sustainable development. The generic comparisons of different companies and sub-sectors.
Table 9
Social indicators
GRI Indicator Provides information on/Measures Units
Labour practices and decent work

Employment
A Breakdown by region or country of the:
Number of direct employees (on company payroll) Contribution to direct employment to community and number
national economy
Number of indirect employees (e.g. contractors, Contribution to indirect employment to community and number
consultants) expressed as full-time equivalents national economy
Percentage of indirect relative to direct jobs The level of outsourcing and a relationship between the %
creation of permanent and temporary jobs; also
indirectly the extent to which the related economic
activities depend on companys activities
Y Net employment creation expressed as percentage Contribution to local and national employment %
contribution to employment in a region or country
Y Employee turnover expressed as percentage of Stability of jobs and the workforce %/yr
employees leaving company relative to the total
number of new employees
Labour/management relations
N Ranking of the company as an employer in internal The level of employee satisfaction with management and Ranking and
surveys labour practices description
Y Policy and procedures involving consultation and Whether the company has mechanisms that enable Description
negotiation with employees over changes in the inclusion and participation of employees in decision-
company (e.g. restructuring, redundancies etc.) making process
Health and safety

N Percentage of hours of training regarding health The commitment to health and safety training and %
and safety relative to the total number of hours through that the importance of health and safety for the
worked company
Y Number of fatalities at work Number of people killed at work number/yr
Y Lost-time accidents Number of hours lost as a result of work-related hr/yr
accidents
A Lost-time accidents relative to the total hours Percentage of hours lost as a result of work-related %
worked accidents relative to the total hours worked, indicating
frequency of accidents
Y Percentage of total absence-hours on health and Absenteeism on health and safety grounds relative to the %
safety grounds relative to the total hours worked total hours worked, indicating frequency and alerting to
any potential health and safety problems
N Number of compensated occupational diseases Number of employees with recognised occupational number/yr
diseases that have been compensated, indicating the scale
of the problem
Y Summary of the policy on HIV/AIDS Companys approach to managing the HIV/AIDS Description
problem in the affected areas and to assisting the
affected workforce
Training and education

A Percentage of hours of training (excl. health and The level of commitment to human capital demonstrated %
safety) relative to the total hours worked (e.g. through investment in employee skills development
management, production, technical, administrative,
cultural etc.)
A Number of employees that are financially sponsored The level of commitment to human capital demonstrated number/yr and
by the company for further education through investment in employee further education description
Y Summary of programmes to support the continued Companys commitment to equipping its employees with
employability of employees and to manage career skills that will keep them employable, particularly if they
endings are made redundant

Y Percentage of contracts that are paid in accordance The extent to which suppliers and contractors are treated %/yr and
with agreed terms, with an explanation, if fairly description
appropriate

Table 9 (continued)
N Percentage of local suppliers, relative to the total The level of companys commitment to sourcing locally %
number of suppliers goods and services and through that providing jobs in
local communities, where possible
Non-discrimination, diversity and opportunity
A Percentage of women employed relative to the total Percentage of women employed in the company %
number of employees
A Percentage of women in senior executive and Companys commitment to equal opportunities for %
senior and middle management ranks women
A Percentage of ethnic minorities employed relative Percentage of ethnic minorities employed in the %
to the total number of employees, with an explain company and whether it is compatible with the
of how representative that is of the regional or population makeup in a region or a country
national population makeup
Description
A Percentage of ethnic minorities in senior executive Companys commitment to equal opportunities for ethnic %
and senior and middle management ranks and cultural minorities
Y Summary of the equal opportunity policy Companys approach and level of commitment to non- Description
discrimination and equal opportunity for all, regardless
of their gender, race, culture, age, disability and sexual
orientation
Human rights
A Summary of the policy concerning human rights Companys approach and level of commitment to Description
relevant to companys activities protecting human rights of its stakeholders
Freedom of association
A Statement on whether the company conforms with Whether the company conforms with the requirements of Description
the International Labour Organization Conventions the ILO conventions which protects employees rights to
on the Right to Organize (no. 87&98) form Trade Unions and other associations
Child labour
Y Summary of the policy on excluding child labour Companys commitment to abolishment of child labour Description
as defined by the ILO Convention 138
A Specify any verified incidences of non-compliance Whether the company complies with national and Description
with child labour national and international laws international laws regarding child labour
Forced and compulsory labour
Y Summary of the policy to prevent forced and Companies approach to preventing forced and Description
compulsory labour as specified in ILO Convention compulsory labour, as specified by the ILO Convention
No. 29, Article 2 No. 29
Indigenous rights
N Percentage of quarries/mines on sites sacred for Whether a significant number of developments are on %
indigenous people relative to the total number of sacred sites, which could affect indigenous people and
quarries/mines their rights
Y Summary of the policy to addresses the needs and Companies approach and commitment to addressing the Description
particularly the land rights of indigenous people needs of indigenous people, in the workforce and in
communities
Society
A Total number of health and safety complaints from The extent to which local communities may be or number/yr and
local communities, with a summary, if applicable perceive to be affected by the companys activity with description
regard to their health and safety
N Number of proposed developments that require The extent to which local population will be affected by number and
resettlement of communities, with a description, if new developments in terms of relocation and related description
applicable concerns
N Percentage of sites with fly-in, fly-out operations The extent to which the mining activities are based on %
relative to the total number of sites contracting out or outsourcing indicating the level of
benefit to local communities from new jobs
N Percentage of employees sourced from local The level of companys commitment to providing jobs %
communities relative to the total number of for local communities
employees
N Specify any community projects in which the The interest the company shows in communities through Description
company has been involved participation in various community projects
Table 9 (continued)
Y Awards received for social and ethical behaviour in Excellence in social and ethical behaviour in relation to Description
relation to local communities local communities
N Summary of the policy for liaison with local Companys approach inclusion of local communities and Description
communities communication with their representatives on issues that
concern them
N Summary of the policy for protection of land rights Companys approach to protecting land rights in local Description
and for land compensation communities and providing compensation for the land
used for minerals developments
A Summary a Community Sustainable Development The level of companys commitment to sustainable Description
Plan to manage impacts on communities in areas development of communities during the operation and
affected by its activities during the mine operation after the closure of the mineral development
and post-closure
Stakeholder involvement
N Summary of the policy on stakeholder involvement, Companys approach to stakeholder inclusion, as one of Description
including the mechanisms by which stakeholders the important prerequisites for sustainable development
can participated in decision-making on the issues
that concern them
Bribery and corruption

Y Summary of the policy on addressing bribery and The level of companys commitment to address bribery Description
corruption that meets (and goes beyond) the and corruption and avoid collaboration with corrupt
requirements of the OECD Convention on political regimes
Combating Bribery
Political contributions and lobbying

Y Summary of the policy for managing political Companys approach to managing contributions to Description
contributions and lobbying political parties and political lobbying
Product responsibility
Customer health and safety
Y Number and type of instances of non-compliance The level of companys commitment to customer health number/yr
with regulations concerning customer health and and safety monetary unit/yr
safety, including the penalties and fines assessed
for these breaches
Y Summary of the policy for preserving customer Companys approach to preserving customer health and Description
health and safety during use of products safety in the use of minerals products
Products
A Summary of customer satisfaction and complaints The level of customer satisfaction or dissatisfaction with Description
provision of products
Y Summary of the policy related to product The extent to which the company is committed to Description
information and labelling providing information on their products
The proposed indicators have been developed framework is not dissimilar to the GRI reporting guide-
specifically for the metallic, construction and industrial lines, which are also more appropriate for larger compa-
minerals sub-sectors but could also be applicable to nies. Therefore, further work is needed to develop a
some of the energy minerals, notably coal. While the more simplified framework of indicators for small-scale
framework aims to capture most key issues for the indus- mining and for small-to-medium enterprises since they,
try, it should be emphasised that it would be impossible together with large organisations, play a significant role
and indeed impractical to try to translate all the issues in the sectors efforts to achieve sustainability.
into indicators of sustainable development. Nevertheless,
the framework is quite comprehensive, and given its Acknowledgements
scope, it may be more suitable for large-scale mining
and larger organisations, which could afford the time and The author is grateful to the Royal Academy of Engin-
resources for its implementation. In this respect, the eering that supported this work financially through the
Table 10
Integrated indicatorsexamples
Indicator Provides information on/Measures Units
Environmental and economic integrated indicators

Total material extracted per:
Mass of product sold Eco-efficiency related to the amount of raw materials and the t extracted
overburden that need to be extracted per unit mass of mineral materials/t
products sold and per unit value-added, respectively product
Value-added t extracted
materials/
monetary unit
Energy consumption per:
Mass of product sold Energy intensity of mineral products, showing energy consumption MJ/t product
per unit mass of mineral products sold and per unit value-added,
respectively
Value-added MJ/monetary
unit
Material consumption per:
Mass of product sold Material intensity of mineral products, showing the amount of t/t product
chemicals, packaging and other materials used per unit mass of
mineral products and per unit value-added, respectively
Value-added t/monetary
unit
Environmental impacts per:
Mass of product sold Various environmental impacts generated per unit mass of mineral Various/t
products sold and per unit value-added, respectively product
Value-added Various/monetary
unit
Social and environmental integrated indicators
Number of people employed per tonne of non-renewable Job creation per unit loss of non-renewable resources number/t of
resource depleted (mineral resources and fossil fuels) resource
Total investment in environment, health and safety as Investment in health and safety relative to the profit %/yr
percentage of profit
Ratio of the number of meetings with stakeholders and The level of stakeholder inclusion and the effectiveness with which
environmental, health and safety related complaints the company is addressing their concerns
Social and economic integrated indicators

Wealth created expressed as profit per employee Creation of wealth per employee Monetary
unit/employee
Human capital investment (wages, benefits, training and Investment in human capital relative to total profit %
education) as percentage of profit
Share of operating revenues redistributed to local The extent to which the company is committed to a more equitable %
communities distribution of revenue to communities
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Journal of Cleaner Production 12 (2004) 639662

Developing a framework for sustainable development indicators

Received 15 November 2002; accepted 23 May 2003

Keywords: Mining; Minerals; Industry; Sustainable development; Indicators

1. Introduction above-average threats for health and safety of workers

Stakeholders Economic Environmental Social

strong interest. + some interest. no interest.

2.2.5. Customers 2.2.8. Insurers

Economic issues Environmental issues Social issues

GRI indicator categories Included in this Additional to the GRI indicators

Economic Customers Products

Environmental Materials Mineral resources

Social Labour practices Employment Suppliers and contractors

Integrated Not available N/A Various indicators linking economic,

appropriate to a particular type of industrial activity. 2.4.1. Economic indicators

GRI Indicator Provides information on/ Measures Units

Suppliers and contractors

GRI Indicator Provides information on/ Measures Units

GRI Indicator Provides information on/measures Units

GRI Indicator Provides information on/measures Units

Closure and rehabilitation

GRI Indicator Provides information on/measures Units

Compliance and voluntary activities

GRI Indicator Provides information on/measures Units

Transport and logistics

Suppliers and contractors

Labour Employment Contribution to employment Creation of employment Employees, contractors, suppliers,

3. Conclusions framework for indicators of sustainable development pro-

GRI Indicator Provides information on/Measures Units

Labour practices and decent work

Health and safety

Training and education

Suppliers and contractors

(continued on next page)

GRI Indicator Provides information on/Measures Units

GRI Indicator Provides information on/Measures Units

Bribery and corruption

Political contributions and lobbying

Indicator Provides information on/Measures Units

Environmental and economic integrated indicators

Social and economic integrated indicators

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