ESG & CSR
La Mancha incorporates progress on Environmental, Social, Governance (“ESG”) and Corporate Social Responsibility (“CSR”) at the heart of our investment philosophy, because we believe ESG & CSR are integral to sustainable mining. To us, investing sustainably means continuous measurable progress on issues ranging from mitigating climate change, improving working conditions and diversity, to tackling inequality.
ESG is a key area of focus for our diligence process. It is also an integral part of the Fund’s investment mandate. Within the portfolio companies, we promote continuous improvement of ESG metrics through the appointment of key executives to promote ESG awareness throughout each organisation, the adoption of industry leading ESG metrics and reporting, and linking executive pay to ambitious ESG objectives. To date, all the Fund’s portfolio companies have achieved significantly better ESG metrics during our investment tenure.
CSR is another strong area of focus. The Fund’s objective is to be an outstanding corporate citizen and to obtain the strong support from the communities in which its portfolio companies operate. The Fund works to ensure its portfolio companies are committed to building and maintaining strong relationships and contributing to their communities in a transparent manner through the Fund’s board representation. These relationships are underpinned by open and constructive dialogue with communities, host governments, NGOs and other stakeholders across all stages of the mining life cycle.
Responsible Gold Mining Principles
RGMPs are a new framework that set out clear expectations for consumers, investors and the downstream gold supply chain as to what constitutes responsible gold mining. Working with their members, the world’s leading gold mining companies, and collaborating with key industry stakeholders, the World Gold Council has set out the Principles that it believes address key environmental, social and governance issues for the gold mining sector.
The World Gold Council mining principles are promoted in La Mancha’s investments. (link)
Principles for Responsible Investment
PRI were developed by an international group of institutional investors reflecting the increasing relevance of environmental, social and corporate governance issues to investment practices. The process was convened by the United Nations Secretary-General.
La Mancha encourages it’s portfolio companies to adopt and implement those principles.