MINING AND METALS IN A SUSTAINABLE - Accenture€¦ · Mining and metals companies can accelerate...
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MINING AND METALS IN A SUSTAINABLE WORLD At the 2013 Annual Meeting in Davos, the Mining and Metals governors asked the World Economic Forum to look at the role and contribution of metals and mining in a sustainable world. A team of experts from the Forum, industry and Accenture specialists identified key issues and trends on the topic to inform the governors at the 2014 Annual Meeting so they can identify which activities the team should pursue in 2014 and beyond. FUTURE VISION NEXT STEPS RE-EMPHASIZE THE JOURNEY For the industry to operate in a sustainable world, businesses today need to have a decisive conversation to set the vision and milestones for success INVEST IN R&D Mining and metals enterprises have to start developing the new products, services, technologies and operational processes to operate in frontiers previously considered inaccessible in a clean, affordable and safe environment RETHINK MULTI-STAKEHOLDER MODELS Mining and metals companies can accelerate the transition to a sustainable world by embracing multi-stakeholder models CULTIVATE THE WORKFORCE The skills and capabilities required to operate mining and metals companies in a sustainable world will be different, and this needs to be considered, planned for and developed in advance DEFINE SHARED VALUE To prepare for operating in a sustainable world, mining and metals companies need to look at what drives value for their customers and the communities in which they operate The manner in which mining and metals companies respond to the drivers of change will impact their market position, reputation and value in a sustainable world. There are five things companies should consider today to proactively prepare to contribute positively to a sustainable world: ROLE OF THE WORLD ECONOMIC FORUM There are four key roles for the Forum to support the mining and metals industry in transitioning to a sustainable world: ABOUT THE RESEARCH Accenture is working closely with the World Economic Forum on its Responsible Mineral Development Initiative (RMDI), which explores the priorities and concerns of public and private entities involved in mineral development. As part of the collaboration, Accenture is coordinating a series of country roundtables to discuss local implementation of the ENGAGE INDUSTRY STAKEHOLDERS ON THE TOPIC Initiate a multi-stakeholder dialogue to get commitment for the vision of mining and metals in a sustainable world CONTINUE THE DEVELOPMENT OF A TRANSFORMATION MAP Research the drivers and issues that are impacting the mining and metals industry and identify the gaps between the industry as it operates today and the vision for the industry in a sustainable world DEFINE A ROADMAP Articulate a plan of action for mining and metals companies to guide the transition to a sustainable world, including the development of engagement plans with government and civil society and establishing check points to assess progress OUTLINE THE CIRCULAR ECONOMY Building on existing Forum research, explore the implications of the Circular Economy for the mining and metals industry RMDI framework, in addition to helping shape the industry agenda by co-authoring a set of scoping papers with industry leaders and experts. The papers will be released at the World Economic Forum Annual Meeting 2014. © 2014 Accenture. All rights reserved. 1. The Forum is conducting a ‘transformation map’ exercise to identify and provide context for key drivers of change, the actors and the issues related to a specific topic and their evolving development. The seven drivers for the Mining and Metals Industry have been identified: 1) Higher demands for fairness, 2) Increased democratization, 3) Growing concern for the environment, 4) Abrupt generational change, 5) Intensified rate of technological change, 6) Geographical shift, 7) Rising concerns related to artisanal and small-scale mining. The mining and metals sector will be critical in a sustainable world to reliably and responsibly provide materials and products to global economies and communities. Societal expectations of mining and metals companies are rapidly changing and becoming more demanding. The Global Agenda Council on Responsible Mineral Resource Management recently identified seven drivers for change that are impacting the mining industry today.1 Consistent global policy and regulation, which provide a level playing field with a clear view of what sustainability is and expectations of and requirements for companies. Transition to the circular economy to mitigate anticipated trends such as a growing middle class, commodity price volatility, growing waste volumes and environmental regulations has led to a greater focus on reduce, reuse and recycle, with companies changing operational processes and developing new products and services to meet customer expectations. Technological advances in nanotechnology, robotics and digital have led to full automation across the project life cycle, and 3D printing is routinely used for maintenance and repair. Accessing new sources, such as deep sea and asteroids, is commercialized and part of the portfolio of existing mining companies. Operations are meeting enhanced environmental requirements for minimal emissions, waste and water use. To secure and maintain their license to operate, mining and metals companies collaborate with local governments and local communities to develop and manage mutually beneficial adaptation strategies and operating standards. Project infrastructure, tools and processes are more resilient towards extreme weather conditions. Companies with the most energy and water efficient technologies hold a competitive advantage. Ownership models are more varied, with recognized roles for a wider range of stakeholders, in particular local communities and governments working closely with the private sector to deliver shared value creation. Greater innovation will be evident—including application of leasing arrangements and service contract models underpinned by equitable division of profits. Stakeholder relationships and partnerships are even more critical, with a commitment to delivering shared value to industry, governments and civil society. Partners utilize digital technology and networking platforms to enable low-cost, flexible and highly responsive, interactive, and informed partnerships. New customers hold the industry accountable to higher social and environmental standards for their operations, products and services. The factors once considered externalities, such as environmental efficiency and social impact, are incorporated to the value of goods creating a true cost. As a result, the industry will operate in a fundamentally different way in a sustainable world. The key themes that will influence mining and metals companies are:
Transcript of MINING AND METALS IN A SUSTAINABLE - Accenture€¦ · Mining and metals companies can accelerate...
MINING AND METALS IN A SUSTAINABLE WORLD
At the 2013 Annual Meeting in Davos, the Mining and Metals governors asked the World Economic Forum tolook at the role and contribution of metals and mining in a sustainable world.
A team of experts from the Forum, industry and Accenture specialists identified key issues and trends on the topic to inform the governors at the 2014 Annual Meeting so they can identify which activities the team should pursue in 2014 and beyond.
FUTURE VISION
NEXT STEPS
RE-EMPHASIZE THE JOURNEY For the industry to operate in a sustainable world, businesses today need to have a decisive conversation to set the vision and milestones for success
INVEST IN R&D Mining and metals enterprises have to start developing the new products, services, technologies and operational processes to operate in frontiers previously considered inaccessible in a clean, affordable and safe environment
RETHINK MULTI-STAKEHOLDER MODELS Mining and metals companies can accelerate the transition to a sustainable world by embracing multi-stakeholder models
CULTIVATE THE WORKFORCE The skills and capabilities required to operate mining and metals companies in a sustainable world will be different, and this needs to be considered, planned for and developed in advance
DEFINE SHARED VALUE To prepare for operating in a sustainable world, mining and metals companies need to look at what drives value for their customers and the communities in which they operate
The manner in which mining and metals companies respond to the drivers of change will impact their market position, reputation and value in a sustainable world. There are five things companies should consider today to proactively prepare to contribute positively to a sustainable world:
ROLE OF THE WORLD ECONOMIC FORUMThere are four key roles for the Forum to support the mining and metals industry in transitioning to a sustainable world:
ABOUT THE RESEARCHAccenture is working closely with the World Economic Forum on its Responsible Mineral Development Initiative (RMDI), which explores the priorities and concerns of public and private entities involved in mineral development.
As part of the collaboration, Accenture is coordinating a series of country roundtables to discuss local implementation of the
ENGAGE INDUSTRY STAKEHOLDERS ON THE TOPIC Initiate a multi-stakeholder dialogue to get commitment for the vision of mining and metals in a sustainable world
CONTINUE THE DEVELOPMENT OF A TRANSFORMATION MAP Research the drivers and issues that are impacting the mining and metals industry and identify the gaps between the industry as it operates today and the vision for the industry in a sustainable world
DEFINE A ROADMAP Articulate a plan of action for mining and metals companies to guide the transition to a sustainable world, including the development of engagement plans with government and civil society and establishing check points to assess progress
OUTLINE THE CIRCULAR ECONOMY Building on existing Forum research, explore the implications of the Circular Economy for the mining and metals industry
RMDI framework, in addition to helping shape the industry agenda by co-authoring a set of scoping papers with industry leaders and experts.
The papers will be released at the World Economic Forum Annual Meeting 2014.
© 2014 Accenture. All rights reserved.
1. The Forum is conducting a ‘transformation map’ exercise to identify and provide context for key drivers of change, the actors and the issues related to a specific topic and their evolving development.
The seven drivers for the Mining and Metals Industry have been identified:
1) Higher demands for fairness, 2) Increased democratization, 3) Growing concern for the environment, 4) Abrupt generational change, 5) Intensified rate of technological change, 6) Geographical shift, 7) Rising concerns related to artisanal and small-scale mining.
The mining and metals sector will be critical in a sustainable world to reliably and responsibly provide materials and products to global economies and communities. Societal expectations of mining and metals companies are rapidly changing and becoming more demanding. The Global Agenda Council on Responsible Mineral Resource Management recently identified seven drivers for change that are impacting the mining industry today.1
Consistent global policy and regulation, which provide a level playing field with a clear view of what sustainability is and expectations of and requirements for companies.
Transition to the circular economy to mitigate anticipated trends such as a growing middle class, commodity price volatility, growing waste volumes and environmental regulations has led to a greater focus on reduce, reuse and recycle, with companies changing operational processes and developing new products and services to meet customer expectations.
Technological advances in nanotechnology, robotics and digital have led to full automation across the project life cycle, and 3D printing is routinely used for maintenance and repair.
Accessing new sources, such as deep sea and asteroids, is commercialized and part of the portfolio of existing mining companies.
Operations are meeting enhanced environmental requirements for minimal emissions, waste and water use. To secure and maintain their license to operate, mining and metals companies collaborate with local governments and local communities to develop and manage mutually beneficial adaptation strategies and operating standards.
Project infrastructure, tools and processes are more resilient towards extreme weather conditions. Companies with the most energy and water efficient technologies hold a competitive advantage.
Ownership models are more varied, with recognized roles for a wider range of stakeholders, in particular local communities and governments working closely with the private sector to deliver shared value creation. Greater innovation will be evident—including application of leasing arrangements and service contract models underpinned by equitable division of profits.
Stakeholder relationships and partnerships are even more critical, with a commitment to delivering shared value to industry, governments and civil society. Partners utilize digital technology and networking platforms to enable low-cost, flexible and highly responsive, interactive, and informed partnerships.
New customers hold the industry accountable to higher social and environmental standards for their operations, products and services. The factors once considered externalities, such as environmental efficiency and social impact, are incorporated to the value of goods creating a true cost.
As a result, the industry will operate in a fundamentally different way in a sustainable world. The key themes that will influence mining and metals companies are:
