Cement, Energy & Environment

FIMI members, who adopt the Code of Conduct, become members of Sustainable Mining Initiative (SMI). In turn, SMI carries out an assessment of the implementation status of the members of these principles and publish a report on yearly basis. In order to carry out the desktop assessment, member companies while reporting to public are required to include statements on how the company complies with FIMI's Code of Conduct. SMI recognizes that the member's sustainability related policies and standards will differ, as will their systems and approaches to managing sustainable development issues. There is no expectation that member company's management systems will be structured specifically around FIMI's Code of Conduct. SIMI has, therefore , developed a set of guidelines to assist member companies for better implementation and assessment against 10 CoC principles. The Code of Conduct has been evolved with international with the expectation of the stakeholders, and aligns with international statements like ICMM's Sustainable Development framework, with su itable changes to suit Indian requirements . SMI's Ten Principles Key action points in respect of each of these principles are annexed at Annexure 1. SMI will carry out annual desktop assessment for the member companies with respect to the progress they are making against the CoC. The resulting annual performance assessment will be published on FIMI/ SMI website. The first performance assessment will begin this year. The adoption and implementation of these principles is expected to lead to a reduction of the environmental and social risks of the member companies and also to a positive change in the sustainability performance of the mining sector. So far, apart from the 10 founding member companies, four associate Members have also adopted Code of Conduct, Viz. • • • • M/s Sandur Managanese and Iron Ores (SMIORE), Karnataka M/s Hothur Traders {HT ), Karnataka M/s M G Mohanty, Odisha (Orissa) M/s M G M Minerals, Odisha (Orissa) Sustainable Development Framework Historically, the extraction of mineral reserves has resulted in varying degrees of environmental degradation and social impacts, including displacement, all across the globe. The Indian - - mining sector has been facing Integrate sustainable development considerations within the severe criticism on several corporate decision making. issues relating to its 2 Conduct business with ethical; practices and sound systems of corporate governance. performance v1s-a-v1s sustainable development. 3 4 5 6 7 8 9 10 Implement risk management strategies based on valid data and sound science. Seek continual improvement in health and safety performance. Seek continual improvement of our environment performance based on a precautionary approach. Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities. Contribute to conservation of biodiversity and integrated approaches to land use planning and management. Facilitate and encourage responsible use, ruse and recovery of mined materials including associated natural resources. Contribute to the social, economic and institutional development of the communities in which we operate. Implement effective and transparent engagements with our communication and verifiable reporting arrangements with our stakeholders. A high level committee which was set up under the Chairmanship of Shri Anwarul Hoda, Member, Planning Commission , in the year 2005, to review the national mineral policy, recommended that apart from introducing best practices in implementation of environment management, there was also a need to take into account the global trends in sustainable developments. The committee recommended development of a Sustainable Development Framework (SDF) specially to Indian context taking into account the work done being in International council of Mining and Metals {ICMM) and 28