Orla’s commitment to environmental, social and governance (ESG) is critical to the success of the Company and to adding value to our business by allowing us to attract and retain top talent, earn the trust of key stakeholders, effectively manage risk, and ensure our long-term competitiveness and sustainability.
We are committed to conducting business in a responsible manner at all times, which means respecting the health and safety of Orla’s employees, protecting the environment, respecting the human rights of Orla’s employees and the residents in the communities in which we operate, and contributing to the sustainable development of those communities.
We believe that it is our responsibility to transform mineral resources into a net positive benefit for all our stakeholders.
Who Are Our Stakeholders
How We Deliver Net Positive Benefit
Orla has been focused on developing a strong ESG foundation. In 2021, our Senior Management team participated in an education session on ESG and its importance to investors and in relation to Company value.
Orla also conducted an ESG Materiality Assessment, which focused on identifying and prioritizing the ESG factors with the greatest potential to impact our business.
The ESG Materiality Assessment considered leading ESG frameworks and standards (including the Sustainability Accounting Standards Board and the recommendations of the Task Force on Climate-related Financial Disclosures) as well as relevant ESG regulation and initiatives. Through this ESG Materiality Assessment, Orla identified the following ESG factors as having the greatest potential to influence the success of the business:
Orla is also committed to monitoring a set of ESG factors that have the potential to impact value over time and as the Company enters into production including:
Orla has started to gather data to monitor the company’s ESG performance. We are focused on issuing our inaugural Sustainability report in 2023 to provide an update on our 2021 and 2022 ESG performance. We aim to disclose our Report aligned with the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
In 2022, we are updating our materiality assessment as we continue the transition from construction to commercial production at Camino Rojo, including identifying areas for improvement concerning our oversight of ESG factors and integrating those factors into our risk management processes.
At Orla, we believe that effective corporate governance protects employees and shareholder value. Our Board of Directors are committed to upholding the highest standards of governance for the successful operation of the Company. For more information on our approach to corporate governance, including Board documents and Corporate Policies, see Governance.
Orla’s Board of Directors is comprised of a group of experienced professionals with backgrounds in a variety of disciplines including law, accounting, finance, engineering, and geology, who are elected by the Company’s shareholders and who are responsible for the stewardship of the business and affairs of the Company. Each Board member has vast experience within the mining industry in various disciplines creating a technically diverse Board that contributes to the oversight of Management. The Board uses committees to engage management at a detailed level in the key aspects of the Company including governance, environment, health and safety, social, compensation and audit matters.
The Environmental, Sustainability, Health and Safety Committee is responsible for assisting Orla’s Board of Directors in fulfilling its ESG oversight role. The committee is responsible for environmental, health and safety, and sustainability factors and reviews performance, regulations, and pro-active efforts by Management on a quarterly basis and reports to the rest of the Board.
Executive compensation is directly linked to our ESG performance, including lost time injury rate, environmental incidents and the development of a community program.
Our Management Information Circular contains additional disclosure on our corporate governance practices, including the link between ESG metrics and executive compensation.