KEY POINTS
• Environmental, Social and Governance (ESG) consultancy appointed
• Global consultancy Advisian to undertake gap analysis as part of Bankable Feasibility Study (BFS)
• AVL has a existing strong focus on ESG areas such as:
o Green hydrogen strategy for emission reduction
o Renewable energy focused subsidiary VSUN Energy
o Active community engagement in areas of planned operations in the Mid West Region
• AVL’s ESG roadmap to be outlined effectively for investors
• Outcomes will inform the development of a detailed plan for AVL to operate in a sustainable and ethical manner as it moves towards production of vanadium from the Australian Vanadium Project
• ESG goals are high on the agenda of investors globally and include:
o Scope 1 emissions reduction
o Ethical and good governance business practices
o Social and environmental responsibility for local communities
• Final roadmap recommendations will be incorporated into the BFS implementation plan
• Vanadium as a critical, steel and battery metal is a strong contributor to global emission reduction and sustainable use of metals of the Company’s ESG performance. This analysis is a critical initial step towards developing an ESG roadmap and strategy.
Managing Director, Vincent Algar comments, ‘As a global community, it is important that businesses behave in a responsible and sustainable manner to ensure the positive future of our planet. AVL has a strong history in the three areas of ESG and this review will help us to see where any gaps are and to articulate our story to the wide investment market. Ethical investment is where investment for the Australian Vanadium Project will come from and we want to make sure that we are able to help our funding partners to comply with the Equator Principles and have comfort that our goals are aligned.’
Advisian President, Adrian Smith comments, ‘We’re very excited to work with AVL to help with the sustainable development of the battery metals industry, which will be a vital enabler of the energy transition’.
A strong ESG framework is essential to enable a transparent plan for the way the Company conducts itself. Environmental obligations under the regulations of the Environmental Protection Authority are robust, but the Company can work on further mitigation strategies through areas such as adoption of renewable energy, further developing its green hydrogen strategy1 and looking for innovative solutions to water supply.
From a social perspective, engaging with the local communities of Meekatharra and Mullewa, including Traditional Owners, pastoralists and interested parties from an economic and government perspective, is a crucial part of AVL’s strategy as the Company brings the Project into production. Adding economic benefit to the region will come through providing individual employment and
opportunities for businesses in the region. AVL is a member of the Meekatharra Industry Group which was set up by the Federal Government to drive opportunities, particularly for Indigenous people, in the Meekatharra region. AVL is also an active member of the the Mid-West Chamber of Commerce based in Geraldton.
Strong governance of a company is critical to its success and provides the best opportunity for investor gain. AVL is formalising its internal processes to ensure that, as the Company grows and moves towards production, it can withstand the rigours of due diligence which will be required for successful Project funding.
Vanadium itself has a specific ESG role to play, particularly from an environmental perspective. The addition of vanadium to steel for use in construction results in an annual global carbon emission reduction equivalent to planting 260,000,000 trees2 Vanadium’s role in the sustainable vanadiuredox flow battery allows for a greater penetration of renewable energy.
The completion of an ESG gap analysis, followed by a roadmap that can be followed through the Project’s lifespan, will allow AVL to ensure that it is operating in the most sustainable manner that it can and ensuring the Project’s longevity and success.
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