“As a global community, it is important that businesses behave in a responsible and sustainable manner to ensure the positive future of our planet,” says MD.
Australian Vanadium Ltd (ASX:AVL) (OTCMKTS:ATVVF) (FRA:JT71) has appointed global consultancy Advisian, part of the Worley Group, to undertake an initial gap analysis of the company’s environmental, social and governance (ESG) performance as part of its bankable feasibility study.
The analysis is a critical initial step towards developing an ESG roadmap and strategy.
Outcomes will inform the development of a detailed plan for AVL to operate in a sustainable and ethical manner as it moves towards the production of vanadium from the Australian Vanadium Project.
Strong history in ESG
Australian Vanadium managing director Vincent Algar said: “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.”
‘Vital enabler of energy transition’
Advisian president Adrian Smith added: “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”.
Transparent plan
A strong ESG framework is essential to enable a transparent plan on how 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 the adoption of renewable energy, further developing its green hydrogen strategy and looking for innovative solutions to the water supply.
Social perspective
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 it 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 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
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 trees.
Vanadium’s role in the sustainable vanadium redox flow battery allows for greater penetration of renewable energy.
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