ESG (Environmental Social and Governance)
Compliance with the highest levels of ESG will form the foundation of the Group’s investments. The Company will seek only to invest in royalties or streams where the asset owner runs safe, efficient, cost-effective mines and projects and complies with environmental protection policies, community development, transparency and governance while minimising the potential for harmful impacts from its operations to the lowest levels the Company reasonably expects. As a minimum, where providing primary finance, the Company will insist on full compliance by its investee businesses with antibribery and corruption and anti-slavery legislation, as well as all local environmental legislation and regulation. The Company believes that its commitment to these principles will make it an investment partner of choice in jurisdictions in which it proposes to invest.
In light of the Company’s approach to ESG standards, the Directors have decided not to seek any royalty or stream investments in thermal (or energy) coal assets.
Trident does not directly operate any of the underlying mining operation and hence does not directly control or influence the operation of any of the properties over which it has an interest. The projects on which the Company has royalties are owned and operated by independent mining companies which are often publicly listed.
Trident remains nevertheless committed to supporting responsible mining and seeks to address environmental, social and governance issues through a combination of the following:
- Our policies which guide investment decisions
- Our due diligence process for new investments
- Our contractual rights in our royalty agreements
- Monitoring investments for their adherence to adequate standards
When conducting due diligence, environmental, social and governance issues are considered critical components to the long-term success of any project, which in turn, is key to Trident’s success. Trident will typically assess the following as part of its due diligence:
- community initiatives and engagement with indigenous peoples
- safety records
- whether the operator is committed to the principles of the International Council on Mining & Metals or other relevant standards
- water management and reduction plans
- other environmental programmes and initiatives put in place by the operator including carbon reduction and biodiversity protection
- operating plans and closure plans
- workplace standards, protections and policies
The nature of Trident’s royalty investments is such that it does not operate any of the properties underlying its royalty portfolio and, consequently, it does not always have the ability to influence the manner in which the operations are carried out. Nevertheless, a responsible approach to a project’s environmental impact and its sustainability management is essential to the success of the project over its life.
As part of the Trident’s investment decision process, careful consideration is given to the environmental aspects of any potential asset purchase during the due diligence phase. In particular, Trident typically engages with consultants who have the requisite expertise to ensure that it can consider any risks in this regard.
Social and Community
Trident acknowledges that, whilst its activities have little direct contact with communities, it can positively influence the social practices and policies of companies with which it conducts business. Positive social and community relationships are essential to profitable, sustainable and successful mining activities.
Trident endeavours to ensure that companies it works with have appropriate procedures in place to facilitate this engagement. More specifically, Trident’s investment decision process for potential asset purchases involves due diligence relating to the full range of CSR issues, including the social and community aspects of the project.