Environmental Governance
Climate change risk is a global issue that may impact how the Company’s operations are run, both today and in the future. Whilst the nature of the Company’s operations is early-stage exploration with limited invasive impact there are inherent environmental risks associated with mineral exploration, which may increase as the exploration programme grows.
The Company is required to comply with the Corporate Sustainability Reporting Directive as enacted by the European Union in July 2024. For companies of the size of Unicorn Mineral Resources, these regulations come into effect as 2028. In the intervening period, as part of its commitment to transparency and sustainable practices, the Company is voluntarily seeking to comply with the requirements of IFRS S1 and IFRS S2. These are covered under the paragraphs below, covering the core content of Governance, Strategy, Risk Management and Metrics/Targets.
Governance
Given the size of the Company, the Board has not devolved the responsibility for assessing sustainability-related risks and opportunities to a sub-committee but oversees the management of specific risks and opportunities, including climate-related risks and opportunities, itself. With the Company’s activities being mainly project based, the Board assess the risks and opportunities on a case-by-case basis.
Strategy
The nature of the Company’s operations is early-stage exploration with limited invasive impact. However, this will change as the exploration programme grows and if the Company were to move from exploration to production, however there are no plans for such a change in the strategy at the current time.
There may also be unforeseen environmental liabilities resulting from past or future exploration or mining activities, which may be costly to remedy. If the Company is unable to fully remedy an environmental problem, it may be required to stop or suspend operations or enter into interim compliance measures pending completion of the required remedy. The potential exposure may be significant and could have a material adverse effect on the Company.
Changes in legislation and regulation regarding climate change could impose significant costs on the Company, including increased energy, capital equipment, environmental monitoring and reporting and other costs required in order to comply with such regulations.
Environmental approvals and permits are currently, and may also in future be, required in connection with the Company's operations. In order to obtain such permits and approvals the Company may need to produce risk assessments and impact assessments which account for the local wildlife, natural habitat, and archaeological issues. These assessments take time and cost to produce and if they are more expensive or extensive than the Board expected, they could impact the Company's work programme and the speed at which it develops its projects. Failure to comply with applicable approvals and permits may result in enforcement actions, including orders issued by regulatory or judicial authorities against the Company, causing operations to cease or be curtailed, and may include costly corrective measures.
Environmental and safety legislation (e.g., in relation to reclamation, disposal of waste products, protection of wildlife and otherwise relating to environmental protection) may change in a manner that would require stricter or additional standards than those now in effect, a heightened degree of responsibility for companies and their directors and/or employees and more stringent enforcement of existing laws and regulations.
The Company has not purchased insurance for environmental risks (including potential liability for pollution or other hazards as a result of the disposal of waste products occurring from exploration and production) as it is not generally available at a price which the Company regards as reasonably proportionate to the risk to the Company's activities.
The incidence of these risks and their mitigation over the Short, Medium and Long term is set out below:
Risk | Mitigation | |
Short Term (1-2 years) | The main risks from drilling programmes include:
| The risks are mitigated by:
|
Medium Term (3-5 years | Drilling programmes will increase in size, and the number and depth of holes, leading to an increase in the environmental risks. | As above |
Long Term (5+ years) | Should the Company move into production, then the environmental risks expand as the invasive impact of mining increases. | A full environmental impact plan is drawn up and approved as part of any mine design. |
Risk Management
The environmental standards for drilling and exploration programmes are set by the relevant National authority often by reference to global standards such as those set by the United Nation or European Union and may differ from country to country. The Company uses well-reputed in-country consultants as necessary to advise on any potential environmental issues that may impact the Company’s activities
The Company has not purchased insurance for environmental risks (including potential liability for pollution or other hazards as a result of the disposal of waste products occurring from exploration and production) as it is not generally available at a price which the Company regards as reasonably proportionate to the risk to the Company’s activities.
Metrics & Targets
At this stage in the Company’s development there are no formal metrics or targets against which to measure the Company’s emissions. The Company’s drilling activities require both energy and water, however no drilling was undertaken in the year under review, with the only exploration work being a gravity survey and some geophysical work that do not require any electricity or other energy consumption.
