Finucane, SJ & Beckett, K 2024, 'Environmental, social and governance influences on closure cost provisioning and why we need a global standard for reporting closure financial liability', in AB Fourie, M Tibbett & G Boggs (eds), Mine Closure 2024: Proceedings of the 17th International Conference on Mine Closure, Australian Centre for Geomechanics, Perth, pp. 107-120, https://doi.org/10.36487/ACG_repo/2415_06
(https://papers.acg.uwa.edu.au/p/2415_06_Finucane/)
Abstract: The term ‘environmental, social and governance’ (ESG) refers to a framework of indicators for ethical investment used by companies to communicate to investors their position on a range of environmental, community, and corporate risks and opportunities. Experience has shown that those companies that understand and report clearly on how these factors impact or influence their business are more appealing to those that want to invest in an ethical manner than companies that do not have this awareness or do not communicate effectively in this regard.
Mining companies are responsible for ensuring adequate financial provisions are available to meet their environmental and social obligations when ore-extraction activities and company profits cease, i.e. at mine closure. It seems logical that the estimation of projected closure costs and the mechanisms in place to ensure that sufficient funds are available for closure activities would form part of ESG disclosures, i.e. sustainable finance. However, a review conducted in 2023 found that few of the corporate public reports assessed during that review provided closure cost estimates or information on financial assurance. 
Using the same mine plan and environmental and social values, this paper explores how different ESG frameworks can influence the way in which a company perceives the materiality of, and communicates, closure risks and associated costs. The paper then highlights inherent difficulties in performing due diligence of closure costs for active mines and mines undergoing feasibility studies. The paper concludes by recommending that a global standard for closure cost reporting be developed to strengthen ESG reporting practice to better inform investor and other stakeholder decision-making activities.

Keywords: closure costs, provisioning, ESG, due diligence, closure reporting, financial assurance