ESG takes centre stage for Australian Vanadium
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Australian Vanadium is taking its environmental, social and governance responsibility seriously with the appointment of a consultancy to carry out a gap analysis.
The analysis by global consultancy Advisian is being carried out as part of the bankable feasibility study for its namesake project.
With ESG playing an increasingly important role in securing investment, Advisian’s findings will inform the development of a detailed plan for the company to operate in a sustainable and ethical manner as it moves towards vanadium production.
Key goals that are important to global investors are the reduction of Scope 1 emissions, ethical and good governance business practices along with social and environmental responsibility for local communities.
Australian Vanadium (ASX:AVL) is no stranger to ESG with its commitment to a green hydrogen strategy, its VSUN Energy subsidiary being focused on renewable energy vanadium redox flow batteries (VRFB) and active community engagement in Western Australia’s Mid West region.
“As a global community, it is important that businesses behave in a responsible and sustainable manner to ensure the positive future of our planet,” managing director Vincent Algar said.
“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.”
AVL is a keen believer in the green credentials of vanadium itself.
The company noted that the addition of vanadium to steel for use in construction results in an annual global carbon emission reduction equivalent to planting 260 million trees.
It added that its use in VRFBs also allows for greater penetration of renewable energy.
This article was developed in collaboration with Australian Vanadium, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.