Our Investment Approach and ESG
As a holder of royalties and streams, we have no direct control over the environmental, social, and governance (ESG) risks associated with a mining project in which we hold an interest. Our strategy to mitigate ESG risks includes carefully evaluating the risk factors related to a mining asset before making an investment and then monitoring that asset as well as the operating company.
We are keenly aware that for our royalties and streams to be good investments, the projects to which they relate must be, or evolve toward, successful mining operations. To be successful, those projects must comply with the appropriate environmental standards, maintain the support of local communities and governments and employ the highest levels of governance.
The operators of the projects on which Metalla holds royalty and stream interests include some of the world’s foremost mining companies. These are companies that share our commitment to leading environmental, social and governance practices.
DUE DILIGENCE PROCESS
Metalla conducts a comprehensive and rigorous process of due diligence prior to making an investment. That process is conducted by Metalla’s management and employees, along with consultants and advisors with specialized skills and experience to augment the internal team as appropriate. The Board of Directors reviews the results of the due diligence exercise before making an investment decision.
Since early 2021, ESG has been formally integrated into the due diligence process as a distinct component. The Environment and Sustainability Committee of the Board reviews the ESG aspects of the proposed investment and of the operating company as one aspect of the due diligence process.
PORTFOLIO MANAGEMENT
We monitor each of our investments from publicly available information and where appropriate via direct dialog with the operating companies. That monitoring process includes a review of the ESG status of the project and of the operating company.