Mining, metals industries seek sustainability standards
 SUSTAINABILITY: The MMSD project is a collective effort that seeks to establish sustainability development standards for the global mining and metals industries. Pictured is the Russian Kovdor iron pit mine on the Kola peninsula, supplied with explosives based on technical nitrates from Hydro Gas and Chemicals. (Photo: Terje S. Knudsen) |
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(June 21, 2002) For the past two years, Hydro has been part of a group of companies sponsoring a dynamic project to explore how mining, minerals and metals industries can develop sustainability in their business areas.
The MMSD project concluded with an extensive report presented at a conference in Toronto in May 2002. The document is expected to provide important input to the "Rio + 10" conference in Johannesburg later this year.
 Ivar Oellingrath |
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"Well-written and radical in content, the MMSD report is in line with current trends regarding sustainability and corporate social responsibility," says CSR coordinator for Hydro Aluminium Ivar Oellingrath.
"While the report is not legally binding, the sponsoring companies have pledged to support its content. This means a significant change of direction for an industry that is now openly recognizing past flaws and the need to improve."
At the closing session, a panel of CEOs, including those from Rio Tinto, BHP Billiton and Pechiney, confirmed their commitment to change.
Their main reservations included lack of capacity, unclear division of responsibility among governments, business and local communities, as well as concern for economic consequences.
A "Toronto Declaration" was published, citing the way forward, Oellingrath informed. The Declaration's main message was:
- developing the business case for sustainable development
- establishing performance standards
- need for capacity building
- increased transparency
- focusing on indigenous peoples and human rights
- developing plans for closures simultaneously with the opening of mines.
Further work will be through the International Council for Mining and Minerals (ICMM), which has been established in London under the leadership of Jay Hair. ICMM is meant to be "a vehicle for the mining industry to change." Most of the major mining companies, including Alcoa, have joined. Alcan is expected to follow Alcoa.
Critics of MMSD point to the fact several important NGOs have not joined due to lack of trust and fear of compromising themselves, Oellingrath asserts. Consequently, all stakeholders have not been heard.
Critics also claim Asia has not been properly represented and that standards are set by developed countries/companies, which can jeopardize opportunities in developing economies. They also point out that the MMSD report is non-binding and that the way forward is unclear.
"From a Hydro point of view, the general sentiment of the conference as well as the content of the MMSD report confirms that our current work on sustainability is on the right track," Oellingrath comments.
"It could be that the new industry association, the ICMM, could lead to a weakening of existing business associations, because an important consideration behind its creation is a perceived need to save costs related to such membership fees. This could, at some point in time, make it necessary for Hydro to join the other aluminium majors in the new association."
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