{"id":63468,"date":"2024-05-10T10:34:24","date_gmt":"2024-05-10T17:34:24","guid":{"rendered":"https:\/\/energi.media\/?p=63468"},"modified":"2024-05-10T10:34:24","modified_gmt":"2024-05-10T17:34:24","slug":"opinion-for-critical-minerals-its-better-to-talk-about-sdgs-than-esg","status":"publish","type":"post","link":"https:\/\/energi.media\/opinion\/opinion-for-critical-minerals-its-better-to-talk-about-sdgs-than-esg\/","title":{"rendered":"Opinion: For critical minerals, it\u2019s better to talk about SDGs than ESG"},"content":{"rendered":"

This article was published by Policy Options<\/a> on May 10, 2024.<\/em><\/p>\n

By Zachary Nanji, <\/a>Xuanming Na, <\/a>Stephen Odoi <\/a><\/strong><\/em><\/p>\n

Canada \u2013 known the world over for its seemingly endless supply of natural resources \u2013 is at a crossroads when it comes to the growing global appetite for critical minerals.<\/p>\n

Critical minerals, such as lithium, nickel, and cobalt, are crucial for electric vehicles, wind turbines, solar cells and more, as part of the global green transition. Amidst this landscape, Canada is emerging as a pivotal player, as\u00a0one of the only Western nations<\/a>\u00a0endowed with the mineral resources required for electric vehicles.<\/p>\n

Canada\u2019s 2022\u00a0Critical Minerals Strategy<\/a>\u00a0aims to position Canada as a key supplier in the global minerals market. So does a strategy by British Columbia, which released\u00a0phase one<\/a>\u00a0of it in February. Both strategies aim to drive research and innovation, develop bilateral and multilateral partnerships, and further economic reconciliation with Indigenous Peoples.<\/p>\n

A critical look at critical minerals<\/a><\/p>\n

Canada must invest in critical minerals<\/a><\/p>\n

Mining gives Canada a competitive advantage in electric vehicle market<\/a><\/p><\/blockquote>\n

Both emphasize environmental, social, and governance (ESG) metrics. But use of the term ESG could lead to miscommunication. Instead, Canadian entities dealing with international partners should use plain-language terms to build a shared understanding of sustainability goals.<\/p>\n

A striking\u00a0KPMG survey<\/a>\u00a0published in March revealed that 98 per cent of decision-makers in 75 Canadian mining companies believe the critical-minerals sector requires more investment.<\/p>\n

One way to attract capital is to cooperate with key international partners, such as Japan.<\/p>\n

Connecting with Japan<\/strong><\/h3>\n

Japan is a major importer of critical minerals and relies heavily on stable suppliers for its industrial needs. Canada is a reliable and geopolitically secure trade partner and needs to keep abreast of the characteristics of the Japanese market and trade preferences if it wants to supply Japan.<\/p>\n

Canada and Japan\u2019s long diplomatic history, in addition to a\u00a02023 Memorandum of Cooperation<\/a>\u00a0for a reliable battery supply chain, are testament to the strengths and the importance of their collaboration.<\/p>\n

Japanese business leaders, government officials and think tanks see Canada\u00a0as a world leader<\/a>\u00a0in its commitment to environmental compliance and social responsibility. These values are clearly visible in the federal and B.C. critical-minerals strategies.<\/p>\n

But Canadian governments and companies could communicate more effectively by using common sustainability terminology.<\/p>\n

Examples of this\u00a0include<\/a>\u00a0shifting away from \u201ccorporate sustainability\u201d and toward more holistic concepts like\u00a0kyosei<\/em>\u00a0(culture of co-existence),\u00a0muda<\/em>\u00a0(activities that are wasteful and unproductive), and\u00a0kaizen<\/em>\u00a0(continuous improvement).<\/p>\n

This would better position Canada in trade negotiations, conferences and other engagements.<\/p>\n

The risk in using the term \u201cESG\u201d<\/strong><\/h3>\n

Among the most recognizable values credentials companies use to demonstrate their commitment to best practices is ESG. Yet, Canadian companies and governments could face challenges using the term with international trade partners.<\/p>\n

First, ESG compliance is difficult to measure. There are several\u00a0recognized ESG standards<\/a>\u00a0used in the public and private sectors, but there is\u00a0no international standard<\/a>\u00a0for how to\u00a0operationalize<\/em>\u00a0ESG, and what counts as good environmental, social, and governance performance.<\/p>\n

Second, ESG language is far from ubiquitous in international trade. This is further compounded when working with international partners where a language barrier may make communicating sustainability values more complex.<\/p>\n

So, what language should be used instead?<\/strong><\/h3>\n

One solution is to shift the communication narrative from ESG to a globally recognized frameworks such as the United Nations Sustainable Development Goals (SDGs). This could significantly enhance Canada\u2019s engagement with international partners, particularly Japan.<\/p>\n

The\u00a017 Sustainable Development Goals<\/a>\u00a0aim to eradicate poverty, protect the environment, and stimulate economic growth. The goals have a high degree of overlap with ESG, with the added benefit of being more widely recognized internationally.<\/p>\n

Canada can leverage its success and initiatives within the realm of ESG and integrate them into the broader framework of the SDGs. This includes aligning its actions with specific SDGs that are relevant to critical minerals, such as clean energy (SDG 7); industry, innovation, and infrastructure (SDG 9); and sustainable cities and communities (SDG 11) to showcase the tangible contributions it is making toward broader global goals.<\/p>\n

This approach not only enhances Canada\u2019s credibility and reputation as a responsible supplier of critical minerals but also fosters stronger bilateral cooperation with international partners like Japan.<\/p>\n

We live in a world of pressing climate-policy imperatives and increasing geopolitical divides.\u00a0 Countries that share similar values such as Japan and Canada must work together to reduce emissions within this complex global dynamic.<\/p>\n

Sharing a common language would help champion the commitment to climate action in the critical-mineral mining sector.<\/p>\n

As the late entrepreneur and author Jim Rohn said, \u201cIf you just communicate, you can get by. But if you communicate skillfully, you can work miracles.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

This article was published by Policy Options on May 10, 2024. By Zachary Nanji, Xuanming Na, Stephen Odoi Canada \u2013 known the world over for its seemingly endless supply of natural resources \u2013 is at [Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":63469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[6],"tags":[13,41,2720,611,14,613,2721],"class_list":{"0":"post-63468","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-opinion","8":"tag-canada","9":"tag-energy","10":"tag-esg","11":"tag-evs","12":"tag-featured","13":"tag-mining","14":"tag-sdg"},"acf":[],"yoast_head":"\ncritical minerals - Thoughtful Journalism About Energy's Future<\/title>\n<meta name=\"description\" content=\"Canada \u2013 known for a seemingly endless supply of natural resources \u2013 is at a crossroads on the growing global appetite for critical minerals.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/opinion\/opinion-for-critical-minerals-its-better-to-talk-about-sdgs-than-esg\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"critical minerals - 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