As a company with a growing international presence, CMOC fully recognizes the importance of sustainable development in its access to resources, markets, and financing. In recent years, international and Chinese stakeholders' expectations of sustainability-related issues have also been evolving, and we face a combination of increasingly high expectations and strict regulatory requirements on matters including the environment, tailings, health and safety, and contractor management. In 2022, we updated our ESG strategy to take account of these changing expectations and regulatory requirements.
Following the completion of the first phase of our three-step growth strategy, we have established a three-tier ESG management framework with clear divisions of responsibility for Board members, senior executives, and our individual operating sites. Over the coming years, as part of the second phase of our growth strategy, we will be introducing a range of measures to improve ESG performance, with a focus on four key areas.
First, we will place ESG at the core of our management by developing a systematic ESG management framework, aligning with leading international benchmarks, and prioritizing ESG risks at all stages of our operations, from the planning of new sites through to production.
Second, we will also incorporate ESG into our organizational culture by expanding our ESG talent pool, improving training for management-level staff, and introducing ESG KPIs to gauge performance on environmental, social, and governance topics.
Third, we will encourage management practices that balance short-term performance with long-term value, continue to improve ESG performance, attach greater importance to medium and long-term forecasts, and take proactive steps to prevent and mitigate material risks.
Fourth, we will improve our ESG communications strategy to raise awareness of our ESG-related initiatives, both within the company and among stakeholders.
CMOC's compliance and sustainability policies are applicable to the entire Group, as well as all of its directly or indirectly controlled or majority-owned subsidiaries. As part of our commitment to align with international benchmarks, these policies reference international best practice frameworks, including the sustainable development principles of the International Council on Mining and Metals (ICMM), the International Finance Corporation's (IFC) Environmental and Social Performance Standards, the International Labor Organization (ILO) Conventions, the International Bill of Human Rights, the UN Guiding Principles on Business and Human Rights (UNGPs), the Voluntary Principles on Security and Human Rights (VPSHR), and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (“OECD Guidance”). Guided by these policies, each of our sites has formulated and revised its own measures and procedures to reflect actual circumstances and material risks.
Responsible mining for a better world – this aspiration lies at the heart of CMOC’s founding principles and mission. In 2022, we once again demonstrated our unwavering commitment to sustainable development by joining the United Nations Global Compact, under which we will implement the Ten Principles on human rights, labor standards, the environment, and anti-corruption. We will also work with all our stakeholders to address global challenges such as poverty, inequality, climate change, environmental degradation, and other issues concerning prosperity, peace, and justice. In addition to encouraging us to uphold our fundamental responsibilities to people and the planet, the sustainable business practices envisaged in the Ten Principles will also help CMOC to secure its long-term success.