In today's capital market, the ESG investment concept is gradually becoming mainstream, receiving widespread attention and recognition from investors around the world.

As of June 2023, more than 5,300 institutions around the world have signed PRI (Principles for Responsible Investment Supported by the United Nations), and the total amount of assets under management is as high as 121 trillion US dollars. This trend shows that investors are increasingly paying attention to the non-financial performance of companies, particularly in terms of environmental protection, social responsibility, and corporate governance.

By integrating these non-financial factors, investors can not only effectively identify companies with long-term sustainable development potential, but also help them avoid investment targets that may face potential risks and help their portfolios achieve long-term growth.

For listed companies, deeply integrating ESG concepts into corporate strategies can not only enhance their attractiveness in the capital market, but is also the key to achieving long-term sustainable development and value growth.

Recently, Hilway Metal Mining Co., Ltd. (SVM.US) released the FY2024 Sustainability Report. As one of the leading producers of silver and lead and zinc in China, this report by Hilway provides us with an excellent example of how companies can thoroughly observe ESG and achieve sustainable development through active implementation of ESG concepts.

(Source: Public Information)

A comprehensive perspective on Hilway's ESG practices

In recent years, under the guidance of the “double carbon” goal, ESG has taken a new development direction and has become a “must-answer question” for enterprises in the direction of high-quality sustainable development.

Despite differences in investors' understanding and focus on ESG concepts, the consensus on environmental protection is global. After China announced an ambitious “3060” dual-carbon target, various industries are actively taking steps to achieve this goal. As a mining company, Hilway spared no effort.

In order to avoid damage to the environment from mineral resource development, improve resource utilization efficiency, and promote the coordinated development of the mining economy and ecological environment, Hilway actively promotes green mine construction, including eliminating energy-intensive equipment, optimizing information systems, land restoration and management, waste management, etc. By the end of the 2024 fiscal year, the company had 4 “national green mines” and 1 “provincial green mine” in China.

(Source: Public Information)

Hilway is actively introducing a series of green, low-carbon, advanced and applicable mining technologies and equipment, such as XRT intelligent optoelectronic sorters; it uses a 3D information control platform to form a complete and unified spatio-temporal framework and information system to raise the level of informatization in mines.

At the same time, Sylvie implements the concept of environmental protection into daily operations, disposes of waste in compliance and makes efficient use of waste, and strictly complies with a series of environmental laws and regulations enacted by the country.

The company not only formulated the “Solid Waste Management System” with the purpose of “making every effort to ensure the comprehensive utilization” of waste, but also improved mine waste separation efficiency through technological innovation, reduced the amount of waste entering the beneficiation process, saved electricity and energy consumption for subsequent processing, and reduced greenhouse gas emissions. At the same time, it is also possible to further process waste stone, turn waste into treasure, and provide greener, lower carbon gravel aggregates to the market.

In fiscal year 2024, the company generated 25.13 tons of hazardous waste, a year-on-year decrease of 9.74%; the amount of general waste generated reached 1,087 tons, a year-on-year decrease of 16.93%. Among them, the comprehensive utilization rate of waste stone reached 46.15%.

In order to motivate itself to stick to green development, Hilway proposed comprehensive green goals, that is, for waste management, the comprehensive utilization rate of mineral waste will be increased to 50% by 2030; the water recycling rate will increase by 8% compared to 2020, and the intensity of freshwater intake will decrease by 10% compared to 2020.

In facing the restoration and management of the mine environment, Sylvie also actively assumed responsibility and planned land reclamation work in accordance with the principle of “production while managing”. In fiscal year 2024, Hilway planted a total of 56,491 saplings and sowed 2,739 kg of grass seeds.

It is worth mentioning that in the process of implementing and promoting the achievement of the dual carbon target, due to the company's outstanding performance, it has been widely recognized within the industry. In fiscal year 2024, the company's ecological restoration project of the Henan Fa'ende Mine won the first prize of the 2022 Green Mine Major Project Award.

Of course, achieving such results is inseparable from Sylvie's daily investment in environmental protection over the years. According to data, in fiscal year 2024, Sylvie's environmental investment reached 16.77 million yuan, and the total environmental investment in the past five years was close to 80 million yuan.

Overall, based on Hilway's many measures to implement the dual carbon goal above, the company not only completed the task of energy saving and emission reduction, but also provided support for the company to maintain competitiveness in the context of increasingly strict global carbon emission regulations, which helped the company to smoothly upgrade and transform into a green mining enterprise.

In addition to the positive externalities shown in the environment, Sylvie also attaches particular importance to social responsibility and corporate governance.

In terms of social responsibility, the company actively gives back to society through public welfare projects such as community development, education support, and infrastructure construction. In fiscal year 2024, the company's total social welfare donations exceeded 20 million yuan, reflecting the company's emphasis on social responsibility and commitment to community development.

(Source: Public Information)

In terms of corporate governance, by improving the ESG management system and related systems, Hilway has strengthened the diversification of the board of directors and improved the transparency and efficiency of decision-making. In addition, the company also attaches importance to internal compliance management. Through anti-corruption and compliance training, the company has strengthened employees' awareness of compliance and provided a guarantee for the company's steady operation. There were no incidents of corruption or bribery violations in the company during this period.

The good internal environment is also reflected in customer recognition. In fiscal year 2024, there were no customer privacy breaches at Hilway, and the number of customer complaints was 0.

epilogue

Thanks to its outstanding ESG management performance, Sylvie has been recognized by professional organizations.

Hilway's MSCI ESG rating was raised from BBB last year to A grade, achieving three consecutive years of improvement, which is a high level in the precious metals industry operating in China. In addition, Morningstar Sustainalytics, an internationally renowned rating agency, lowered the Silway ESG risk score to 25.2, which is a lower risk score in the industry.

Hilway's ESG practices remind us that corporate social responsibility and sustainable development should not stop at slogans, but should be reflected through practical actions and long-term commitments. Hilway uses ESG as the foundation for corporate value creation, creating a high-quality sample for the sustainable development of mining companies.