Can you share a bit about your role in ESG engagement with Teck Resources?
Katie Fedosenko: It’s a really exciting job, and one that’s new for me and new for the organization.
For those who aren’t familiar with Teck, we’re a Canadian mining company. We’ve been around for 110 years, and we produce copper, zinc, and steel-making coal.
So, you might be wondering: why is a Canadian headquartered company in London? The answer is that London is not only to mining finance, but really to thought leadership on sustainability and ESG more broadly. Additionally, from London, we gather insights and intelligence and share it back with our management team, ultimately helping to evolve our strategies today and tomorrow.
To share a bit about Teck, we’re going through an interesting journey to become an energy transition metals organization.
The conversation on responsible mining has really evolved in the last 12 months. And, I think it only has more to go, especially with the recognition of critical minerals being essential for the energy transition, especially solidified more recently by the International Energy Agency.
What does sustainability mean to you within your role at Teck Resources? As one of the leaders in the mining industry, what are some of those key sustainability points of focus?
Katie Fedosenko: Sustainability leadership for Teck is absolutely a key part of who we are as an organization, and a core value of ours. I never imagined that I would end up working in the mining industry. But really, what changed my mind was understanding more and more that the products of mining are essential for the energy transition, which is something I care a lot about. I think a lot of people do around the world.
The key thing for sustainability is conducting mining in the most responsible way possible. And, for us, primarily our mines in the Americas, they’re within special ecosystems. They’re within or adjacent to Indigenous peoples’ territories. And of course, in the context of climate change, there can be significant emissions. So, for sustainability at Teck, we focus on decarbonizing our operations, working towards a nature-positive future, and working in collaboration with local communities, in addition as peoples to share in the benefits of mining.
So, are there specific metrics that you use to measure sustainability and ESG within your role?
Katie Fedosenko: Measuring sustainability is a super tough challenge, no matter what industry you’re in. Teck has been reporting on sustainability for more than 24 years, and we use the Global Reporting Initiative (GRI) as our foundation. We also use things like the Sustainability Accounting Standards Board (SASB). They are mining indicators. And we’re looking really closely at what’s happening with ISSB, and in Europe, the Corporate Sustainability Reporting Directive.
In terms of measuring our performance and sustainability, we have more than 60 different data sets measuring things that you would expect: health and safety, community feedback, water use, etc. It’s important to note that these metrics are not just about what goes in our sustainability reports. Management use this on a daily, weekly, monthly, and annual basis to evaluate our performance. It’s based into executive compensation, and it’s a key part of how we run our operations.
Let’s talk about the business case for ESG engagement. There are great benefits that come with bringing ESG as a main focus for the company. Where does Teck see a lot of the benefits coming from? And how does this trickle down the value chain within the mining industry?
Katie Fedosenko: I think for Teck, and honestly for mining companies around the world, if you can’t mine responsibly, you won’t have the support you need from government, local communities, and your shareholders to continue to operate and to grow. That means early and often engagement from the very beginning.
A good example is our new copper mine in Northern Chile, Quebrada Blanca (QB). At QB, we engaged prior to operations with a local supplier to secure renewable energy for the operation. We also worked with fishermen unions to secure more than 20 agreements with them prior to the mine operating on local benefits, including employment. In fact, one in three people that work at QB are women, which is way above the national average in Chile. And that’s the case for many of our mines around the world.
For sustainability at Teck, we focus on decarbonizing our operations, working towards a nature-positive future, and working in collaboration with local communities, in addition as peoples to share in the benefits of mining.
So, when you think about the business case for sustainability, it’s imperative to continue operating and growing. We see it as a strategic competitive advantage for us, and a key part of our story as we transition to become an energy transition metals organization.
The mining industry has quite a big PR issue in terms of letting communities and the public understand the work that we do. How do you think the mining industry can do better at sharing social contributions and changing people’s perceptions of the industry overall?
Katie Fedosenko: I’ll admit, as someone who doesn’t have a background in mining, I didn’t fully understand the mining sector or the benefits that it creates prior to this role. But I think it’s interesting to note that, for every one job in mining, it creates four. The economic contribution of the mining industry today is significant, and it’ll only grow from here, especially with the growing demand for critical minerals with the energy transition. The footprint of mining is a lot smaller than several other industries, whether it’s agriculture or deforestation. It’s only 0.05% of the total footprint worldwide that mining takes up. So, you have significant benefit for a relatively small footprint.
But there are significant social and environmental impacts of mining, and legacy issues that we must address. And, I think, a key way of doing that is through collaboration with local communities to understand what they’re looking for when it comes to the benefits of mining.
Another example from QB was a programme in which we partnered with the UN women’s organization to deliver. The first thing we did when we arrived in that area was engage with local indigenous women, and understand their barriers to entry in the local economy. The key thing that we heard from them was that there wasn’t sufficient training or resources.
And so, with UN women, we opened a centre called Originarias in that region. So far, thousands of women have gone through with training, not only to work in the mining industry, but to create their own businesses in the local region. And so, when I think about the benefits of mining, absolutely there’s direct employment, but it also must start with understanding what local communities want to accomplish, and working in collaboration with trusted organizations like the UN to help deliver that.
At 121 Group and The Assay, we work predominantly with the junior end of the market. Coming from the perspective of one of the majors in the mining industry, what sort of message or solutions can you provide to those on the smaller end of the industry that may have more budgetary constraints, and may see sustainability and ESG as an added business challenge?
Katie Fedosenko: It’s really exciting to see recognition that sustainability is really a competitive advantage, not only to continue operating, but to get your initial permits and regulatory approvals, no matter what stage of the mining life cycle you might be. A key way that you demonstrate responsibility is through various international recognized standards where members of the International Council of Mining and Metals have commitments to sustainability that we follow. But, there’s also groups like Copper Mark, which has a robust, but I think accessible and pragmatic framework to follow the Mining Association of Canada. MAC has the Towards Sustainable Mining programme, which has been adopted not only in Canada but in Australia, the Philippines, Norway, and many other countries too.
And so, whether you’re a major or a junior, looking at these standards and finding the one that fits the best mold for you in terms of your budget and your team, is a really important way of demonstrating to regulators and communities that you’re doing it responsibly.
A saying we’ve had at Teck for a number of years is if you can’t grow it, you have to mine it. And how it’s mined is just as important as what you’re mining. And so, in terms of being able to provide those critical minerals for the energy transition, no matter what stage of mine life you have, whether you’re a junior or a major, we all must find a way of doing that in a better way.
