Gemfields Group Limited
Climate Impact & Sustainability Data (2020)
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:44,800 tCO2e (2019); 16,383 tCO2e (2020)
Scope 1 Emissions:24,063 tCO2e (2019); 6,152 tCO2e (2020)
Scope 2 Emissions:2,823 tCO2e (2019); 1,917 tCO2e (2020)
ESG Focus Areas
- Responsible sourcing
- Community development
- Health and safety
- Environmental rehabilitation
- Climate change
Environmental Achievements
- Planted 350 saplings at MRM to rehabilitate 1.3 hectares of backfilled area
- Planted 234 saplings at Kagem to rehabilitate 0.37 hectares of dump sites
- Completed a GHG emissions footprint calculation and disclosure (Scope 1 & 2)
Social Achievements
- Launched Gemfields Foundation to support community and conservation projects in Africa
- Completed construction of 105 houses and public infrastructure for the Resettlement Action Plan (RAP) at MRM
- Donated an ambulance to Namanhumbir health centre in Mozambique
- Continued vocational training at MRM's Vocational Training Centre (VTC)
- Implemented financial literacy training for communities near MRM
- Supported COVID-19 prevention efforts through donations of health and sanitation materials and awareness campaigns in Zambia and Mozambique
Governance Achievements
- Improved broker coverage through finnCap and Liberum
- Relinquished redundant Bermudan listing
- Reviewed Articles of Incorporation to align with market practice and improve corporate governance
- Engaged with activist shareholder group to address concerns regarding Articles and executive remuneration
- Revised remuneration arrangements and will put forward revised Remuneration Policy for shareholder approval at 2021 AGM
Climate Goals & Targets
Long-term Goals:
- Full alignment with TCFD
Medium-term Goals:
- Expand and improve data collection for GHG emissions reporting
Short-term Goals:
- Complete construction of Masasa Primary School in Zambia
Environmental Challenges
- COVID-19 pandemic severely impacted operations, auctions, and market conditions
- Suspension of mining operations at Kagem and MRM
- Restrictions on travel and movement of goods
- Inability to hold traditional auctions
- Insurgency in Cabo Delgado province, Mozambique (indirect impact on MRM)
- Increased illegal mining activity near MRM due to displaced persons
- Security risks and political instability in Ethiopia (impact on WGM)
Mitigation Strategies
- Introduced online auction platform for emeralds and rubies
- Implemented cost-saving measures, including salary reductions and operational suspensions
- Continued essential services and security at suspended operations
- Implemented COVID-19 control programs at MRM and Kagem
- Developed strategies for site safety and workforce protection in Mozambique
- Monitored the situation in Cabo Delgado and engaged with Mozambican authorities
- Provided humanitarian assistance to artisanal miners near MRM
- Provided support to local communities near WGM in Ethiopia
Supply Chain Management
Responsible Procurement
- Supporting efforts to communicate responsible sourcing to consumers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Increased temperatures
- Higher humidity and heat
Reporting Standards
Frameworks Used: King IV, IFRS, SAMREC Code (2016 edition), JORC (for Kagem), TCFD (voluntary alignment)
Certifications: ISO 9001 (MRM - 25% implemented), ISO 14001 (MRM - 25% implemented), ISO 45001 (MRM - 25% implemented)
Third-party Assurance: BDO LLP
UN Sustainable Development Goals
- SDG 1
- SDG 2
- SDG 3
- SDG 4
- SDG 5
- SDG 15
Initiatives align with SDGs to address poverty, hunger, health, education, gender equality, and land conservation.