The World Gold Council said on Monday its members -- 33 of the world's most forward-thinking gold miners -- have committed to reporting their positions and progress on climate-related risks in line with the recommendations of Taskforce for Climate-related Financial Disclosures (TCFD).
The TCFD recommendations and reporting framework is now widely recognised as the preferred method for embedding climate change into the governance, strategy and risk management systems of organisations, and the means by which they disclose comprehensive and high-quality information on these factors to investors and stakeholders.
This unified approach on climate-related reporting further clarifies the commitments already embedded in the World Gold Council's Responsible Gold Mining Principles (RGMPs) which require companies to take action to combat climate change and report in line with accepted standards.
The RGMPs launched in 2019 represent a framework that sets out clear expectations for consumers, investors and industry stakeholders as to what constitutes responsible gold mining.
All WGC members have committed to a three-year implementation timeline, and third-party assurance and public disclosure on that assurance. The new commitment to report via TCFD offers clearer definition of how Principles 10.3 (combating climate change) and 10.4 (energy efficiency and reporting) will be implemented.
"I am delighted that the World Gold Council membership has unanimously agreed to adopt TCFD reporting. Making progress on climate change is a vital aspect of the gold mining sector's commitment to responsible mining," said Randy Smallwood, Chair of the World Gold Council.
"TCFD-aligned reporting combined with the implementation of the RGMPs will further demonstrate to investors, consumers and other stakeholders, gold mining's ability to make a positive and demonstrable contribution to social and environmental progress," he said in a statement.
Terry Heymann, Chief Financial Officer at the World Gold Council, said climate change is the biggest threat of the 21st century and all industries need to show progress in responding to this.
Investors are keen to better understand how their investments are being made climate-resilient in the face of a myriad of climate challenges and the gold industry is eager to show how it is adapting to these challenges. This includes reducing GHG emissions, he said.
"Having our member companies commit to reporting via TCFD will help further demonstrate the industry's determination to address climate-related risks and report on its progress in a clear and transparent way," said Heymann.