sustainability information in mining: technologies and processes for data aggregation, management,...

Sustainability Information in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting

Stuart JacksonSchneider ElectricSME Annual Meeting and Exhibition 2013

Schneider Electric – Sustainability in Mining: Technologies and Processes for Data Aggregation, Management, and Reporting– SME 2013

Schneider Electric Overview


Content●Part I: The Importance of Sustainability Information

●Complex Pressures●Regulatory, Investors, Competitive/Customer, Social

●Energy Cost Incentive●Energy Costs of Goods Sold

●‘Resources’ Available●Sustainability ‘Overburden’●Reporting/Disclosure Requirements

●Part II: What’s a Mine to Do?●Processes

●Strategy●Inventory Management Plan

●Technology●No Spreadsheets●Enterprise Management Systems


Complex Pressures


Regulatory Pressures and Progress


US EPA FLIGHT●Facility Level Information on Greenhouse Gases

● Data reported as of January 15, 2013


Data Mining: New Depths of Transparency

U.S.>Metals>Iron & Steel>State>Indiana>US Steel Corp>Gary Works, Gary Indiana>11,443,640 MTCO2e


Investor Pressures

●1/3 of World’s Invested Capital Calls for Corporate Environmental Data Disclosure Through CDP

●722 Investors with US $87 Trillion in Assets

●5,000 Requests in 2013


Customer Pressures

●Customer Questionnaires● Customer’s Supply Chain

Source: Greenbiz

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●Vale asks Schneider to Disclose Emissions

●Other companies are reaching into their value chains

Customer Pressures


Energy Cost Incentive

●Energy ●Represents ~15% of the

total cost of production●Affects production costs

●Diesel ranged from $2 to +$4.50 globally for many Schneider Clients

In the U.S., the mining industry spent 3.2 Billion on energy, or 21% of the

total cost of its supplies (not including labor)


Energy – Cost or Asset?

•Competitive Advantage•Market differentiation•GHG Reductions•Lower Energy Costs•Longer Asset Life

http://www1.eere.energy.gov/manufacturing/resources/mining/pdfs/mining_bandwidth.pdf


Global Regions – Sustainability Examples

●Though geography, politics, and sectors differ, similarities exist in the developing sustainability arena

●Lets look at:●Australia

●Brazil

●Chinese Demand


Australia – Canary in the Coal Mine?

●Increasing Costs of Business● High Costs of Labor, Compliance● Carbon Taxes● Mineral Resource Rent Taxes (Iron and Coal)● Water Availability● Stagnant Commodity Prices● Cheap US Natural Gas = Increased US Coal Exports


●Growing Mining and Minerals Sector●Challenges Entering New Markets

● Requires Sound Sustainability Management, Transparency, Disclosure

Brazil -Sustentabilidade


Chinese Demand

●Brazil wants to be part of the market●Demand is driving more production

which means expanding the supply chain’s license to operate


Data Management and Reporting

●The need for sustainability programs is clear

●Lack of human resource capacity, clearly defined data collection processes, accountability, technological tools to multiply efficiency

●Who, what, when, and where of data collection – graphics?●What is the scope of tasks within an environmental team at a mining company?●Who does GHG reporting? Environmental Compliance? Mine engineers? Public Relations?


Sustainability ‘Overburden’

●EPA MRR, CDP, GRI, corporate reports, customer questionnaires

●Reporting demands > available resources

●Reporting emanates from wrong department

●Sustainability is complex, multi-disciplinary – technical and strategic

●“Business is Mining Not Reporting”


Part II: What’s a Mine to Do?

●Where is the Mining Industry as a whole?●Evolution of a Sustainability Program●Processes

●Strategy●Inventory Management Plan

●Technology●No Spreadsheets●Enterprise Management Systems


Sustainability in the Mining Industry

● The small 5% segment who want to avoid sustainable development issues

● The 80% who develop practices based on common sense in response to particular context, which in some cases results in good work but is generally not benchmarked to international standards and can be highly variable in the quality of both delivery and outcomes

● The 15% who are well managed, reporting material issues, showing improvements, and are recognized as leaders


Evolution of a Sustainability Program

1. Develop Sustainability Strategy• Determine corporate profile• Set goals & objectives• Governance structure

2. Implement Reporting Program• Develop management plan• Establish measurement & reporting structure• Operations and Products / Supply Chain• Set baseline with third-party verification

3. Evaluate Footprint & Prioritize Actions• Identify portfolio opportunities• Commit to targets• Create performance metrics (KPIs)

4. Implement Optimization Activities• Reduce (raw material, energy, water, waste)• Renew (renewable energy, recycle, treat & reuse)• Restore (offset impact, manage credits)

5. Communicate Results & Performance• Employee & stakeholder engagement / functional teamwork• Voluntary / mandatory reporting• Investor / Customer scorecards• Supplier engagement and performance


Sustainability Strategy

●Common Sustainability Challenges● Connecting vision with execution

● Cost/benefit metrics for sustainable initiative decision making

● Determination of materiality


Implement Reporting Program

●Develop an Inventory Management Plan (IMP)

●Management and accounting system for metrics

●Sets boundaries, control methods, & methodology for emissions

●Defines roles, responsibilities, and processes for comprehensive reporting

●Who submits data to whom? When?●What technology is going to be used?


Leveraging Technology

●Schneider has clients with 1 to >100k sites - Lessons?●It can’t be done (well) alone●Spreadsheets are often ‘dead ends’

●Data entry errors●Analysis and benchmarking are difficult●Often one person aggregates many

●Mining and Mineral Challenges●Sites have a small number of ‘viable’ reporters●Reporters are burdened●Access to technology can be limited ●Physical availability is scattered ●Sites feel ‘left out’ of seemingly ‘one-way’ process


Leveraging Technology

●Enterprise Management Systems

●Utilize data feeds and interconnectivity of existing systems

●Utilize Utility Bill Management (UBM) Providers

●Capture invoice images – Auditors!

●Train and involve facility-level data providers – Site EHS

●Contextualize

●Part of the ‘Bigger Picture’

●Help them reach goals


Evaluate Footprint and Prioritize Actions

●Identify Portfolio Opportunities●Difficult with Spreadsheets●Benchmark facilities, processes, production

lines●Requires accuracy – conversions, UOM’s

●Commit to Targets●Understand what is feasible●Don’t over-commit on 2nd targets – many do

●Create Performance Metrics


Implement Optimization Activities

●Improve Compliance (Report, Mitigate, Remediate)●Reduce (Raw Materials, Energy, Water, Waste)●Renew (Renewable Energy, Recycle, Treat & Reuse)●Restore (Offset Impacts, Manage Credits)

●Considering offset and credit impacts on GHG Footprint●Processes outlined in Inventory Management Plan

●Leverage technology to adjust inventory, Scope 1 & 2


Communicate Results and Performance

●Documented in Strategy and Inventory Management Plan●Employee & Stakeholder Engagement/Functional

Teamwork●Voluntary/Mandatory Reporting●Investor/Customer Scorecards●Supplier Engagement and Performance ●If you’re not reporting, you’re not doing…


Continuous Improvement

Sustainable


Thank You!

Schneider Electric – Presentation Title – SME 2013

sustainability information in mining: technologies and processes for data aggregation, management,...

Technology

data mining

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mining company

ghg reporting

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greenhouse gases data