Lotus Resources is ready to roll out a globally recognised ESG framework for its future

Advanced uranium project developer Lotus is developing a framework for global leading ESG performance to “demonstrate transparency and minimise risk to our business and those impacted by our operations.”

It is no longer just lip service — to create max value for shareholders, miners know they need good Environmental, Social and Governance (ESG) credentials.

Failing to maintain good relationships with stakeholders (like governments, local communities) or meet environmental expectations can lead to large fines, production disruption, or even mine closures.

It also makes financial sense.

In the last few years there has been rapid growth in ESG-related investing, with several large fund management groups now refusing to invest in some types of mining companies — like coal producers — because of their environmental impact.

As Lotus Resources (ASX:LOT) continues to advance the ‘Kayelekera’ uranium project in Malawi towards recommencement of operation, the company is acutely aware of an ongoing responsibility to ensure its meet expectations regarding ESG performance.

Lotus is committed to developing Kayelekera to support the United Nations 17 Sustainable Development Goals.

These development goals are aimed at eradicating poverty and inequality and tackling climate change, especially in developing countries such as Malawi.

Lotus defined the most-pressing ESG issues based on stakeholder feedback and is preparing action plans to address these issues.

Early initiatives that will impact future operations under consideration in the company’s redevelopment strategy for Kayelekera include:

— Using more sustainable grid-based power and renewable energy sources, such as solar.

— Improving water recovery, reducing freshwater intake and discharge to the environment by considering processes such as enhanced evaporation.

— Community Development Agreement to provide support to projects defined by the local communities around Kayelekera when operations restart.

Lotus says it is preparing its first Sustainability Report for Kayelekera, anticipated for completion later this year.

“Uranium is the critical component in the production of nuclear energy, the only reliable energy source of power with zero carbon emissions,” the company says.

“With the growing global targets for reduced CO2 emissions, nuclear energy will continue to play a key role in decarbonisation of global power generation.

“The company’s target is to become a leader in Malawi regarding ESG performance as it continues to advance the development of the Kayelekera Uranium Project in Malawi.”

This article was developed in collaboration with Lotus, 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.