ESG (Environmental Social & Governance)
Committed to responsible and sustainable practices.
Committed to responsible and sustainable practices.
As a royalty and streaming business, we make the distinction between Trident’s own internal practices and the performance of our portfolio when considering ESG approach.
As a company, Trident is committed to responsible and sustainable practices, but as an office-based business with a small team, we are aware that the most material environmental and social impacts occur within our portfolio and therefore are not within Trident’s direct control.
Trident seeks to invest in royalties or streams where the asset owner runs safe, efficient, cost-effective mines and projects and demonstrates a commitment to the responsible management of their ESG impacts.
Our approach to ESG
We continue to evaluate our approach to ESG to lay strong foundations for future reporting, increase transparency and performance and have a clear roadmap in place for further development. This has involved a materiality assessment to understand and assess our most relevant impacts as well as analysis of the 17 United Nations Sustainable Development Goals (“SDGs”) to identify two initial priority goals to which we believe Trident can meaningfully contribute. As our ESG practices continue to develop, we will endeavour to include additional goals to demonstrate our commitment to sustainable development.
Read our most recent ESG report here.
Our approach to responsible investment
Trident’s team of mining investment professionals has extensive experience and expertise in all aspects of mine development and operation. This is fundamental in the Company’s ability to evaluate and structure potential investments. Our team applies this experience to assess ESG risks and opportunities (alongside financial, technical and political), supplemented by external expertise as required. Trident’s royalty and offtake portfolio has been carefully constructed with a focus on high-quality assets in favourable jurisdictions, which are operated by well-established and reputable mining companies. We believe that this approach provides a diversified portfolio that is expected to generate the best returns for stakeholders in a sustainable manner.
Due diligence and ongoing monitoring
Although Trident is not involved in, nor has any direct control over, the operational decisions of mining partners, the Company is aware of its indirect exposure to ESG risks arising from their business practices and actions. Trident therefore reviews ESG risks and issues as part of its due diligence process prior to entering into a royalty or streaming agreement and aims to monitor ESG issues on an ongoing basis once the agreement is in place.
Whilst all mining and development operations have potential ESG impacts, the nature of risks and issues can vary significantly depending on the project, jurisdiction and local context. Trident’s due diligence process, whether for primary or secondary acquisitions, is based upon an understanding of the material ESG risks and issues of each operation as well as an assessment of how ESG is being managed and monitored by the operator.
Given that secondary royalties have been created by another party prior to Trident’s investment, the due diligence process usually involves publicly available ESG information.
When evaluating new primary investment opportunities, Trident’s internal team employs extensive and diverse methods to identify and assess ESG and other risks prior to entering into agreements. The Company seeks to apply best practices across the risk spectrum, including consideration of safety records, community engagement, water management, energy consumption, closure planning, and employment practices. Trident can build specific requirements from the operator into its royalty agreements ranging from specific ESG related targets, to reporting, to compliance with specific requirements.
Robust corporate governance and business ethics are fundamental to the successful operation of Trident Royalties. This has been underscored by the materiality assessment which highlighted related topics as key priorities.
Trident is committed to maintaining the highest standards in corporate governance throughout its business activities. We aim to conduct our business activities transparently, ethically and efficiently– see further detail in our Corporate Governance Statement.
In terms of our investments, Trident will only provide primary finance to businesses which comply with anti-bribery and corruption and anti-slavery legislation.
Mining projects tend to have an important role in their local communities. Maintaining strong community stakeholder relationships is essential to achieving social licence to operate, allowing for profitable, sustainable and successful mining activities.
Trident endeavours to ensure that the companies it works with have appropriate procedures in place to facilitate effective engagement. Aspects of projects relating to local communities are considered as part of Trident’s investment due diligence process.
Whilst we have little direct contact with communities owing to our business model, Trident assesses community engagement practices as part of its investment due diligence, and we believe that mining project have both the opportunity and a duty to positively contribute to local communities.
Health and safety have been identified by our stakeholders as one of Trident’s most important issues. As an office-based business, it is the health and safety risks for our asset operators which are most material. Trident carefully considers the health and safety procedures in operation and performance track record prior to any potential asset purchase. With regards to Trident’s own social considerations, Trident has assembled a strong team with the requisite diverse experience, as well as the technical and financial acumen to successfully execute the company’s strategy. Trident’s Board demonstrates strong geographical diversity, which we believe is relevant in the context of the global reach of our portfolio. 25% of Trident’s Non-Executive Directors are female (being 16% of the full Board of Directors).
Mining and development activities have the potential to create negative environmental impacts which must be responsibly managed to achieve long-term success and value generation. Given the differing operating contexts of our asset operators as well as the variety of projects, there are different environmental risks and opportunities to consider across our portfolio.
Careful consideration is given within Trident’s investment decision process to the environmental aspects of any potential asset purchase during the due diligence phase. As part of this, we assess many areas, including the environmental impacts of mining operations, emissions, tailings storage and rehabilitation plans. As a minimum, Trident requires compliance with environmental laws and regulations in the locations in which our investee businesses operate. As a result of the climate-related risks inherent in its business model, Trident’s Board has taken the decision to avoid any investment in thermal coal operations.