Sherritt International Corp T.S

Scotia issued a note on Sherritt yesterday re the ESG report

[rkhosla]

2020 Sustainability Report

Sherritt released its 2020 sustainability report last week. Notably, it focused on setting goals and targets to which S plans to benchmark itself in the years ahead.

We're encouraged by Sherritt’s efforts to incorporate sustainable activities into its operations and look to future updates on its goals, including progressing towards its goal of net-zero emissions by 2050.

Environmental

In terms of environment, the primary takeaway from the 2020 Sustainability report was to reduce GHG emissions. In 2020, S produced Scope 1 GHG Emissions of 1,998 kt CO2e, and has set ambitious goals of (1) reducing overall GHG emissions intensity from 2019 levels by 10% by 2030, and (2), longer term, achieving net-zero GHG emissions by 2050.

Another focus of environmental performance is tailings management. In 2020, all of S’s JV TMFs underwent annual evaluations performed by third parties as well as reviews by the Independent Tailings Review Board.

Social

Sherritt generated over $500 mln economic benefits for host communities and countries.Highlight contributions include donations made through its Cuba Community Investment Program, support provided to a UNICEF road safety program and safety solar panel installation in Cuba. Sherritt also improved flexible work policies and expanded mental health offerings during lockdowns. The firm had no layoffs due to the pandemic. A Total Recordable Incident Frequency Rate of 0.22 and a Lost Time Incident Frequency Rate of 0.12 were achieved, down 49% and 63%, respectively, over L3Y.

Governance

S has 3 sub-committees to support the Board with respect to ESG matters: the Audit Committee, the Human Resources Committee, and the Environment, Health, Safety and Sustainability (EHS&S) Committee.The Board has 29% women industry average of 16% as per S. S is focused on operating ethically within the organization and with external partiesIn 2020, S completed an independent OECD-aligned audit of JV responsible sourcing policies and due diligence management systems.

Maintaining SP, $0.55 target. Our target is based on 0.60x NAVPS. S is trading at a P/NAV of 0.44x.

[rkhosla]

sorry that was National Bank - not Scotia

[Nickbull]

Does this ESG really matter to anyone? if the company can make money is that not the first goal. These feel left wing ideas are are ok when things are going well. At this point Sherrit needs to focus on servicing. Cutting GHG seems like a lost cause.  jmho Cheers

[rkhosla]

Well you can accept it as requisite window dressing or a genuine effort to minimize harm, but the need for ESG accountability is real - just look at how it has shaken up even the oil majors.  If we are to be part of the green EV revolution then we ought to be doing our little part as well, even if in truth you feel it is token. .  

[satchmo6]

not much hype---Sherritt is becomming the redheaded step child of the mining sector---with less expansion and more welfare for poorer sectors