8110923, 643 PI Consumerism & the mining industry: par 2— The Inellgent Miner
THE INTELLIGENT MINER
anna
BY CARLY LEONIDA % COMMENTS 2
14TH APRIL 2021
In the first part of this article series, Sympact Advisory's co-founder and managing
partner, Elizabeth Freele, joined me to discuss the rise of conscious consumerism and
societal distrust, and the ways in which they are impacting the mining sector.
Our thoughts and musings were simply too numerous to fit into a single article and so
we continue the conversation here.
To summarise: there is currently a significant lack of trust surrounding the mining
industry and we need to act now to improve this or risk irrelevancy.
TIME TO TAKE ACTION
What could we do to open up channels of c
mmuni
way? 1 asked Freele.
“One thing that we often still mi:
branding, marketing or advertising are a solution?’ she said. “They're not. That traditional
industry is dying.
as an industry, is that we think public rela
ions,
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“If we look at the way marketing and advertising are evolving globally, and the way that
the general public interacts with marketing materials, it’s obvious the traditional ways
aren't working anymore.
Elizabeth Freele is co-founder and managing partner at Sympact Advisory. Image: Elizabeth Freele
“and yet we're still attached them i.e., we continue to focus on packaging up the positive
things about our business in the shiniest, prettiest, sexiest way for the public, while
avoiding the rest.
“The public doesn’t buy into that anymore, because they also read the news and they're
on YouTube, Twitter...
“They know that for every shiny story, there's also ugliness associated with
environmental social governance (ESG) in mining, and so it doesn't feel sincere.
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“There's this gap that they see between our pretty sustainability reports and the
narrative that companies don't control. The challenge in our communication efforts is to
bridge that gap.
“We need honesty and authenticity. We need to own the mistakes that we make, express
the challenges we have, Asking for help and inviting diverse others into the discussion is
something we need to do more of”
SHARE MORE POSITIVE STORIES
Education is a vital component of this. ‘The vast majority of people still don't know how
much mining serves their everyday lives.
‘We missed a huge narrative as an industry around COVID vaccines, for example. There
are a myriad of minerals and metals used inside the vaccines themselves, and also in
needles and medical equipment. Those provide a chance for the mining industry to
engage with society in a broader way than usual,
“Where are the public-facing communication campaigns from our industry
associations?” asked Freele.
“Even at the individual company level, a lot of miners stepped up [during the pandemic]
and did wonderful things to support host communities and regional governments. It
feels like we missed an opportunity there to share our unified story”
Freele added that, in their educational and communication efforts, companies need to
focus on the good that they do.
But critically, first and foremost, they need to make sure that the ‘good’ that they do is
actually good. That it’s not just surface-level, old-school corporate philanthropy done
with the intention of creating a PR story that the public will hopefully buy into. Because
they likely won't.
“Companies sometimes like to put their name on things and make stories more
grandiose than they are when it comes to social impact,” she said. “That’s dangerous, as
it can cost them considerable credibility and even breed resentment.
tps theineligentminerconv2021/04/14/consumerism-the-mining-industy-par2i sit1073, 643 PM Consumers & the mining ndusty part 2— The Inteligent Miner
“So firstly, doing a lot more sustainable social good in partnership with stakeholders is
really key to meeting evolving societal expectations of business. It is then, secondly, that
you will have great content to capitalise on for corporate communication efforts?”
Focusing purely on social purpose branding and communication efforts to gain the
public's approval tends to fail if there isn’t substance behind them. That is a universal
challenge business is facing right now. And as usual, mining is one of the slower
industries to realise it.
Shareholder Stakeholder Systems
ens Lens. ‘lens
,&@
@sympact
‘The mining industry needs to change the way it views itself in order to truly build trust between itself and
society. Image: Sympact Advisory
LFAVE THE ‘US AND THEM ATTITUNF BFHIND
There is also a change in mindset required around the way in which mining companies,
and the mining industry in general, view themselves. This is particularly evident in the
language used.
(Note: | am acutely aware that I use the terms ‘us’ and ‘we' a lot when referring to the
mining industry. Know that it's something I'm working on),
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Freele believes that moving from a business-centric lens towards a systems-centric lens
will be paramount to fostering trust in the future.
“We're used to an ‘us and them’ perspective, and this attitude can unwittingly bring on a
lack of trust? she explained,
“The necessary move is learning to see yourself, as a company with a mine site, as one
entity within a broader social ecosystem, where there are many actors, with many
different interests. You need to put the effort in to get to know those other actors, and
let them get to know you.
“Learning to behave as one entity within that shared ecosystem means seeing your
business within the broader lens of humanity, and humanity within planetary
boundaries”
There's also a view that stakeholder value is not quite enough. Freele commended the
industry on moving beyond mere sharcholder value, but emphasised that it’s happening
in a world on fire.
“This mindset shift is critical to being a meaningful contributor to solving humanity's
grand challenges in the way the public increasingly expects of business,’ she said.
“The kids in the Fridays for Future protests don't care about industries creating
stakeholder value. They care about having a planet that’s going to be decent to live on.
“all our business decisions need to be made through that lens going forward”
Such a change in approach also comes with a positive impact on corporate social
investment efforts, says Freele.
By moving from a philanthropic ‘doing for, to a partner-based and collaborative ‘doing
with’ approach, companies build more meaningful societal relationships, where trust is
fostered.
This also creates more impactful and lasting outcomes, which companies can then tell
powerful stories about.
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DISRUPT OR BE DISRUPTED
What could be the consequences if we don't talk about building trust, if we don't do
anything? I asked Freele.
“I think you already know7’ she said. “It's the lack of new talent, the loss of your investor
base. But it’s also substitute products and business models. For example, where are the
circular economy partnerships in mining that so many other industries are announcing
every day lately?
“Part of the problem is that the world doesn't trust this industry, and part of it’s our
attachment to opaque and traditional ways of operating, Either way, it's a problem if
we're not even in the room to be part of the conversation about a collective sustainable
tomorrow.
“We've got to find our way into that room. Can we participate in circular value chains or
the provision of alternative products? Do we need to be attached to our traditional
product base and operating models?”
It's a good point. If there are ways to be a profitable, valuable business to society that
involves pulling less rock out of the ground, that's not a bad thing.
If we get to the point of premium products ie., where those produced under
responsible, ethical standards command a higher price, then there’s a chance that
companies who don't respond could lose access to preferred markets.
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Doing more sustainable social ‘good’ in partnership with stakeholders is key to meeting evolving societal
expectations of business. Image: Elizabeth Freele
The other scenario, which is probably more likely, is that if a company’s products don't
meet a certain standard, then that organisation may find itself unable to sell its product.
For example, with the new European Union regulations on conflict minerals sourcing
that came out in January, there are assets under development right now that will find
themselves unable to sell their product in the EU market if that regulation is properly
implemented.
As an industry, we're also opening ourselves up for disruption; if we're not going to
produce metals the way consumers and end users would like, then someone else sure as
hell will...
“Phe possibility of new market entrants is definitely real. It’s already happening? said
Freele.
“L know Elon Musk likes to just be a shit disturber sometimes; is he going to do anything
with the lithium concession he acquired in Nevada...? Maybe he will, maybe he won't.
Regardless, it's a data point that suggests where we might be going.
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“If miners, as we know them today, don't keep up, others will find a way to do so,
“As one of my favourite MBA professors always used to say: ‘we have to disrupt ourselves
or face being disrupted.
“We live in exponential times and the world is changing fast, which requires business
leaders to become more nimble and agile. No industry is untouchable in this new era”
lalready see signs of that at an operational level, | told Freele. There are companies now
that are looking to bring in mobile plants, precision mining techniques and such like. But
I don't think we've figured out how to do agility at a corporate level yet.
“You're right. Too often it’s incremental, siloed and ad hoc, and that means it's not
strategic,’ she replied. “It's not fast. It's not industry wide. And therein lies the problem:
as an industry we aren't responding to the rapidly evolving societal expectations at the
necessary rate to thrive.
“That's huge. It’s existential for the mining industry”
EMBRACING THE INEVITABLE,
At the end of the day, the reason people don't want to be a part of this sector, don't want
to be associated with it or invested in it, is because of what we currently are. Mining is,
frankly, unattractive,
“tt usually doesn't fee! honest or authentic. It doesn't fee! collaborative and it doesn't feel
like there is genuine care for the bigger picture; the system we all share in as human
beings” said Freele.
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Corporate social investment matrix
HicH
Benefit to
Society
Low
Company
@ sympact
Diagram illustrating types of corporate social investment and their benefits to both mining companies
and society. Image: Sympact Advisory
“It feels like one hand doesn't know what the other's doing... A mining company aces the
ESG ratings one day, and the next a tailings dam collapses or a human rights scandal
shows up in the press... Mining as a whole doesn’t feel trustworthy”
But it could be, I said. Ever the optimist.
“Of course, it could be,’ said Freele, with passion. “It must be. The world needs it to be!
It's tough though, because the world doesn’t even understand that they need it to be.
“It’s on us to help them understand and to get them to care.
“If we do that, then maybe we can get the innovative young minds of today and
tomorrow to roll up their sleeves and get involved in our challenges to shape a brighter
future.
“Whether that means an injection of new millennial capital, collaborations with other
industries in the value chain, or fresh grads choosing mining over Big Tech.
“But it’s got to come from us first.
tps theineligentminerconv2021/04/14/consumerism-the-mining-industy-par2i ant11073, 643 Pm Consumerism & the mining industypart2~ The eligen: Miner
“It’s not an easy feat, but we can’t count on anyone outside of the industry to get us
there”
Enjoyed this article? Catch up on the first part of the discussion
TAGS * BRANDING + CIRCULARITY * CONSUMERISM * CORPORATE SOCIAL INVESTMENT +
DISRUPTION * ELIZABETH FREELE * ENVIRONMENTAL SOCIAL GOVERNANCE * INTERNATIONAL
WOMEN’S DAY * MINING « MINING INDUSTRY * SYMPACT ADVISORY * THE INTELLIGENT MINER *
TRUST
“® ABOUT CARLY LEONIDA
I'm Carly, author of The Intelligent Miner. I'm a UK-based technical writer and
consultant and have been covering the mining industry for over a decade
@ theintelligentminer.com
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