Lucara is an established diamond producer with the Karowe Mine (Karowe) in Botswana as its principal asset. For the past five years, Prizma has been assisted Lucara Diamond Corp. (Lucara) with its annual sustainability reporting efforts. Here are selected highlights.
The report provides a sustainability snapshot, summarizing environmental, social and economic performance. Lucara celebrated receiving the Prospectors & Developers Association of Canada (PDAC) 2016 Environmental & Social Responsibility Award.
Working with and through its partner, the Lundin Foundation, Lucara continued to invest in the Karowe Emerging Entrepreneur Fund (KEEF). It provides technical assistance and access to capital to aspiring entrepreneurs ranging from women-owned brick manufacturing to a tailoring business.
Lucara is supportive of the United Nations Sustainable Development Goals (UN SDG). An initial mapping of Lucara's activities against the SDG shows that royalty and tax payments (over $115 million in 2016) contribute to the Botswana government's efforts related to SDG 1: No Poverty. Lucara's payroll, procurement, community investments and support for local micro-enterprises contribute to SDG 8: Decent Work and Economic Growth. And Lucara's compliance with the Kimberly Process, pursuing certification for the Responsible Jewellery Council (RJC), and payment disclosure in line with Canada's Extractive Sector Transparency Measures Act (ESTMA) contribute towards SDG 16: Peace, Justice and Strong Institutions.
Lucara's 2016 sustainability report can be accessed here. The report was prepared in accordance with the new GRI Standards (core), and was subject to a moderate assurance in accordance with the AA1000 Assurance Standard.
What are your thoughts on Lucara's sustainability report? What recommendations would you make to improve Lucara's sustainability performance and its reporting?
About the author: Mehrdad Nazari (MBA, MSc) has over 25 years of professional experience, including 10 years at the European Bank (EBRD, London). His advisory practice is focused on reviewing and aligning projects with the IFC Performance Standards and the Equator Principles (ESIA, ESMS); E&S due diligence (IE/IMG); and sustainability reporting and assurance (GRI, AA1000). Previously, Mehrdad headed CSR/ESG Research at CoreRatings, London (now DNV), advising socially responsible asset managers; served as Principal Environmental Specialist at the European Bank (EBRD), London; and was Project Manager and EHS Auditor with Dames & Moore Frankfurt (now AECOM). Mehrdad studied in Germany, USA, and the UK; has attended numerous courses ranging from ISO 140001 EMS to Human Rights and Impact Assessment; and delivered numerous courses on IFC PSs & EPs, and sustainability reporting.