Barbara Strozzilaan 336
1083 HN Amsterdam
The Netherlands
gssbsecretariat@globalreporting.org

Item 04 – GRI Sector Standards Project
for Oil, Gas, and Coal –Exposure draft for CoalFor GSSB discussion and approval
Date

15 April 2021

Meeting

29 April 2021

Project

Sector Standards for Oil, Gas, and Coal

Description

This document sets out the exposure draft of Sector Standard: Coal, including the
explanatory memorandum. These are submitted for GSSB approval for public
exposure.
If approved, it is proposed that public exposure commence in mid-May and run
until the end of July.
Please note: This Standard makes references to the GRI Universal Standards.
As the Universal Standards are currently under revision, the references in thisdraft use the names of the Universal Standards as they were at the time of
exposure. The names and other references, along with several figures in the
introduction and the glossary terms will be updated to align with the version of the
Universal Standards to be submitted to the GSSB for approval in May. This
content will be update in this Standard prior to release for public exposure.

This document has been prepared by the GRI Standards Division and is made available to observers
at meetings of the Global Sustainability Standards Board (GSSB). It does not represent an official
position of the GSSB. Board positions are set out in the GRI Sustainability Reporting Standards. The
GSSB is the independent standard setting body of GRI. For more information visit
www.globalreporting.org.
© GRI 2021

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Background information for the GSSB

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4The GRI Sectors Standards Project for Oil, Gas and Coal was initiated in 2019, and work on a Sector
Standard for oil, gas, and coal commenced following the appointment of a 17-member Working Group
in mid-2019.

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In addition to the Working Group, a number of experts and stakeholders were engaged in an external
peer review in February and March 2020 to gather further input on the draft contents. This peer
review involved over 20 participants representing business, civil society, investor and mediating
institutions. Peer review feedback reinforced the need to highlight climate change for these sectors.
The likely material topics presented were largely confirmed as the correct ones, and the contents
were seen as useful from both a reporter’s perspective as well as for engagement purposes.

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During the course of the project, the GSSB received stakeholder submissions from the oil and gas
sector raising concerns about addressing oil, gas, and coal in a combined Sector Standard, indicating
a potential impediment to its uptake. These concerns were echoed by the Oil, Gas, and Coal Working
Group, and the GSSB decided in April 2020 to separate coal from the oil and gas contents.

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As a consequence, two Sector Standards – one for oil and gas, and one for coal – are being
developed under the auspices of Sectors Standards Project for Oil, Gas and Coal. To strengthen thecoal expertise, an additional member was appointed to the Working Group, and a program of further
research on the impacts of the coal sector has been undertaken by the Standards Division.

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The exposure draft for coal incorporates relevant public comment feedback collected to the exposure
draft for oil and gas, aligning with these revisions where seen as appropriate by the Working Group.

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Preliminary findings on topic and disclosure gaps

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It was anticipated that projects for Sector Standards would generate insight on the feasibility ofdeveloping reporting requirements, recommendations, and/or guidance for the sector. The work oncoal to date has surfaced some topics and disclosures that might result in recommendations to revise
or develop new GRI Topic Standards.

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All likely material topics included in the exposure draft include at least one Topic Standards
disclosure, though a number have been supplemented with additional disclosures from outside the
GRI Standards.

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As was expected, in a similar vein to oil and gas, Working Group discussions have been largely
focused on climate change related topics, namely GHG emissions and Climate adaptation andresilience. There has been a strong recommendation from the Working Group to enhance disclosures
within these topics, specifically related to governance, target setting, and organizations’ strategic
decision-making in the context of the low-carbon transition.

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In addition, the topics of Asset integrity and critical incident management, and Land and resourcerights did not have clear directly relevant or sufficient Topic Standards disclosures and might result inrecommendations to revise existing Topic Standards or develop new ones at the completion of the
project.

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Public comment

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The public comment period for the exposure draft of coal is proposed to commence on 19 May andrun until 30 July 2021. This will run in conjunction with the public comment period for agriculture,
aquaculture, and fishing.

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The primary objective of the public comment period is to test the clarity, feasibility, completeness andrelevancy of the content, including:

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Whether the topics that have been identified as likely material for organizations in the coal sector,
and the way they are described, accurately reflect the sector’s most significant impacts on theeconomy, environment, and people, including impacts on their human rights; andPage 2 of 81

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That the list of disclosures from the GRI Topic Standards and other sources included for each likely
material topic are relevant for organizations in the sector to report information about their impacts
and approach.
The public comment will engage stakeholders globally across GRI’s key constituencies. All
engagement will be undertaken remotely.

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Explanatory memorandum

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This explanatory memorandum sets out the objectives of GRI Sector Standards Project for Oil, Gas,
and Coal. It also includes the significant proposals resulting from this project and summarizes the
Global Sustainability Standards Board (GSSB)’s involvement and views on development of the draft.

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Objectives for the project

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The exposure draft for coal is the second Standard being developed under the GRI Sector Standards
Project for Oil, Gas, and Coal. This is a pilot project for the GRI Sector Program.

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The project aims to identify and describe the sectors’ significant impacts and stakeholder expectations
from a sustainable development perspective, and provide evidence and authoritative references forthese. This will serve as a foundation for increased transparency and more consistent reporting fromorganizations in the sectors.

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The project was initiated in 2019 to develop a Sector Standard for oil, gas and coal. As outlined in the
GSSB’s Due Process Protocol, a multi-stakeholder working group was established to contribute in thedevelopment of the Sector Standard.

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During the course of the project, the GSSB received stakeholder submissions from the oil and gas
sector raising concerns about addressing oil, gas, and coal in a combined Sector Standard, indicating
a potential impediment to its uptake. These concerns were echoed by the Oil, Gas, and Coal Working
Group, and the GSSB decided in April 2020 to separate coal from the oil and gas contents. As aconsequence, this exposure draft focuses on the coal sector only.

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For more information on the project, consult the project proposal and terms of reference.

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The GRI Universal Standards have simultaneously been under revision. The implementation model ofthe Sector Standards will be incorporated into these revised Universal Standards. The final Universal
Standards are expected to be approved in Q2 2021. For the purposes of this exposure draft, draft
versions of the Universal Standards are used.

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Significant proposals

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An exposure draft for coal has been developed in line with the project objectives set out above.
Notable inclusions in this exposure draft are summarized below:

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22 topics were identified to be likely material for organizations in the coal sector (see Table 1).
For each likely material topic, the sector’s most significant impacts are described and disclosures
to report information about the organization’s impacts and approach in relation to the topic arelisted. All topics list one or more disclosures from the GRI Topic Standards; six topics list
additional sector disclosures in addition to Topic Standards disclosures; and 15 topics list
additional sector recommendations to supplement Topic Standards disclosures.

•

The Standard emphasizes topics related to climate change, notably GHG emissions andClimate adaptation and resilience. Robust disclosure on these topics, specifically related togovernance, target setting, and organizations’ strategic decision-making related to the low-carbon
transition, have been identified as essential for the coal sector. Additional reporting
recommendations and disclosures draw from relevant climate reporting frameworks, such as the
TCFD Recommendations of the Task Force on Climate-related Financial Disclosures.

•

New tailings disclosures are listed in the topic Asset integrity and critical incident management
for reporting on integrity of tailings facilities. These disclosures have been developed in line with
the Global Industry Standard for Tailings Management, launched in 2020 by the International
Council on Mining & Metals, United Nations Environment Programme and Principles for
Responsible Investment.

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Additional disclosures are also listed related to topics that deal with payment transparency andprevention of corruption, with additional sector disclosures based on the Extractive Industries
Transparency Initiative EITI Standard 2019.

•

Sector Profile section further outlines the sector’s activities, business relationships, and its
interactions with the global sustainable development agenda, including linkages to the UN
Sustainable Development Goals. A mapping between the likely material topics and the relevant
SDGs is included as part of the larger context in the section 1.2 The sectors and sustainable
development, providing a starting point for organizations that seek to integrate the SDGs into theirreporting.

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Table 1: Likely material topics included in the draft Sector Standard: Coal
Likely material topic

Disclosures from GRI Topic
Standards included forreporting on the topic

Whether additional sector
recommendations or disclosures arelisted for the topic

1. GHG emissions

GRI 302: Energy 2016

Additional sector recommendations
included for:• Disclosure MT-3 Management ofmaterial topics• Disclosure 305-1 Direct (Scope 1)
GHG emissions

GRI 305: Emissions 2016

2. Climate adaptation
and resilience

GRI 201: Economic
Performance 2016

Additional sector recommendations
included for:• Disclosure MT-3 Management ofmaterial topics• Disclosure 201-2 Financial
implications and other risks andopportunities due to climate change
Additional sector disclosures

3. Closure andrehabilitation

GRI 402: Labor/Management
Relations 2016
GRI 404: Training and
Education 2016

Additional sector recommendations
included for:• Disclosure 402-1 Minimum notice
periods regarding operationalchanges• Disclosure 404-2 Programs for
upgrading employee skills andtransition assistance programs
Additional sector disclosures

4. Air emissions

GRI 305: Emissions 2016
GRI 416: Customer Health and
Safety 2016

5. Biodiversity

GRI 304: Biodiversity 2016

Additional sector recommendations
included for:• Disclosure 305-7 Nitrogen oxides(NOX), sulfur oxides (SOX), andother significant air emissions• Disclosure 416-1 Assessment of
the health and safety impacts ofproduct and service categories
Additional sector recommendations
included for:• Disclosure MT-3 Management ofmaterial topics• Disclosure 304-3 Habitats protectedor restored

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6. Waste

GRI 306: Waste 2020

7. Water and effluentsGRI 303: Water and Effluents2018

8. Economic impacts

GRI 201: Economic
Performance 2016
GRI 202: Market Presence
2016
GRI 203: Indirect Economic
Impacts 2016

Additional sector recommendations
included for:• Disclosure 306-3 Waste generated• Disclosure 306-4 Waste diverted
from disposal
Disclosure 306-5 Waste directed todisposal
Additional sector recommendations
included for Disclosure 303-2
Management of water discharge-related
impacts
Additional sector recommendations
included for:• Disclosure MT-3 Management ofmaterial topics• Disclosure 201-1 Direct economic
value generated and distributed

GRI 204: Procurement
Practices 2016
9. Local communities

GRI 413: Local Communities
2016

Additional sector recommendations
included for:• Disclosure MT-3 Management ofmaterial topics• Disclosure 413-2 Operations withsignificant actual and potential
negative impacts on local
communities
Additional sector disclosures

10. Land and resourcerightsGRI 413: Local Communities
2016

Additional sector recommendations
included for:• Disclosure MT-3 Management ofmaterial topics• Disclosure 413-2 Operations withsignificant actual and potential
negative impacts on local
communities

11. Rights ofindigenous peoples

GRI 411: Rights of Indigenous
People 2016

Additional sector recommendations
included for:• Disclosure MT-3 Management ofmaterial topics• Disclosure 413-1 Operations withlocal community engagement,
impact assessments, anddevelopment programs• Disclosure 413-2 Operations withsignificant actual and potential
negative impacts on local
communities
Additional sector recommendations
included for Disclosure MT-3
Management of material topics

GRI 413: Local Communities
2016

12. Conflict andsecurity

GRI 410: Security Practices
2016

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13. Asset integrity andcritical incident
management

GRI 306: Effluents and waste
2016

Additional sector recommendations
included for Disclosure MT-3
Management of material topics
Additional sector disclosures

14. Occupational
health and safety
15. Employment
practices

GRI 403: Occupational Healthand Safety 2018
GRI 401: Employment 2016-

GRI 402: Labor/Management
Relations 2016
GRI 402: Labor/Management
Relations 2016

16. Child labor

GRI 414: Supplier Social
Assessment 2016
GRI 408: Child Labor 2016

17. Forced labor andmodern slavery
18. Non-discriminationand equal opportunity

GRI 409: Forced orCompulsory Labor 2016
GRI 202: Market Presence
2016-

GRI 401: Employment 2016
GRI 404: Training and
Education 2016
GRI 405: Diversity and Equal
Opportunity 2016

19. Freedom of
association andcollective bargaining
20. Anti-corruption

GRI 406: Non-discrimination
2016
GRI 407: Freedom of
Association and Collective
Bargaining 2016
GRI 205: Anti-corruption 201623. Payments togovernments

GRI 201: Economic
Performance 2016

Additional sector disclosures
Additional sector recommendations
included for Disclosure 201-4 Financial
assistance received from government

GRI 207: Tax 201922. Public policy andlobbying

GRI 415: Public Policy 2016

Additional sector disclosures
Additional sector recommendations
included for Disclosure MT-3
Management of material topics

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Relationship to draft Sector Standard: Oil and Gas

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Draft Sector Standards for oil and gas, and coal were developed in conjunction until April 2020, with
the intention of forming a single Standard. Following a recommendation from the working group, thesecontents were separated.

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There are two notable changes in the likely material topics for the coal sector compared to oil and gas- the inclusion of child labor as a likely material topic, and the exclusion of anti-competitive behavior.
The exposure draft for coal also has an additional focus on tailings management, which is not relevant
for oil and gas organizations outside of oil sands mining.

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GSSB involvement and views on the development of this draft

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The GSSB appointed a subcommittee of three GSSB members for the Sector Program. The
subcommittee was consulted on key conceptual issues on a regular basis.

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The first (rough) draft of the Sector Standard for oil, gas, and coal – prior to the separation of thecontents – was discussed by the GSSB during a virtual meeting on 26 March 2020, and the scope of
the project was discussed on 23 April 2020.

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The GSSB confirmed its support for content of the exposure draft for coal when it voted to approvethe draft for public exposure at its meeting on 29 April 2021. The recording of the meetings can beaccessed on the GSSB website.

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Superseded publications

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The GRI Sector Standard: Coal will be relevant for coal organizations previously using the G4 Mining
and Metals Sector Disclosures. The content of these Sector Disclosures was not updated as part of
the transition from the G4 Guidelines to the GRI Standards.

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GRI Sector Standards Project for
Oil, Gas, and Coal –Exposure draft for coal

Page 9 of 81

Contents
Introduction............................................................................................................................................ 11
Sectors this Standard applies to ........................................................................................................ 11
Sector classifications ..................................................................................................................... 11
System of GRI Standards .................................................................................................................. 12
Using this Standard ........................................................................................................................... 13
1. Sector profile ..................................................................................................................................... 16
1.1 Sector activities and business relationships ................................................................................ 16
1.2 The sector and sustainable development.................................................................................... 17
Sustainable Development Goals ................................................................................................... 18
2. Likely material topics ......................................................................................................................... 21
2.1 GHG emissions ........................................................................................................................... 21
2.2 Climate adaptation and resilience ............................................................................................... 24
2.3 Closure and rehabilitation ............................................................................................................ 27
2.4 Air emissions ............................................................................................................................... 29
2.5 Biodiversity .................................................................................................................................. 31
2.6 Waste........................................................................................................................................... 33
2.7 Water and effluents ..................................................................................................................... 35
2.8 Economic impacts ....................................................................................................................... 37
2.9 Local communities ....................................................................................................................... 39
2.10 Land and resource rights ........................................................................................................... 41
2.11 Rights of indigenous peoples .................................................................................................... 43
2.12 Conflict and security .................................................................................................................. 45
2.13 Asset integrity and critical incident management ...................................................................... 47
2.14 Occupational health and safety ................................................................................................. 49
2.15 Employment practices ............................................................................................................... 51
2.16 Child labor ................................................................................................................................. 53
2.17 Forced labor and modern slavery .............................................................................................. 55
2.18 Non-discrimination and equal opportunity ................................................................................. 57
2.19 Freedom of association and collective bargaining .................................................................... 59
2.20 Anti-corruption ........................................................................................................................... 61
2.21 Payments to governments ......................................................................................................... 63
2.22 Public policy and lobbying ......................................................................................................... 66
Glossary ................................................................................................................................................ 68
Bibliography .......................................................................................................................................... 69

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Introduction

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GRI Sector Standard: Coal provides information for organizations in the coal sector about their most
likely material topics. These topics have been identified as likely material for organizations in the coalsector on the basis of the sector’s most significant impacts on the economy, environment, and people,
including impacts on their human rights.

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Sector Standard: Coal also contains a list of disclosures from the GRI Topic Standards and othersources for organizations in the coal sector to report information about their impacts and approach inrelation to each likely material topic.

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Sector Standards are developed using multi-stakeholder expertise, authoritative intergovernmental
instruments, and other relevant evidence.

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This Standard is structured as follows:

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Section 1 provides a high-level overview of the sector, including its activities, business
relationships, sustainability context, and the connections between the Sustainable Development
Goals (SDGs) and the likely material topics for the sector.

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Section 2 outlines the topics that have been identified as likely material for organizations in thecoal sector and therefore potentially merit reporting. For each likely material topic, the coalsector’s most significant impacts are described and disclosures to report information about theorganization’s impacts and approach in relation to the topic are listed.

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Glossary contains defined terms with specific meaning when used in the GRI Standards.

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Bibliography lists the authoritative intergovernmental instruments and other sources used todevelop each topic, as well as further resources that may be helpful for reporting on the topic.

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The rest of this Introduction section offers an overview of the sectors this Standard applies to, an
overview of the system of GRI Standards, and further information on using this Standard.

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Sectors this Standard applies to154

GRI Sector Standard: Coal applies to organizations undertaking the following:

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•

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This Standard can be used by coal organizations of any size or type in any geographic location.

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Not all topics listed in this Standard may be material for all organizations in the sector. The
organization will determine its material topics based on its specific circumstances.

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When identifying the applicable Sector Standards, an organization should consider its main sector. If
the organization has substantial activities across more than one sector, it must use all applicable
Sector Standards.

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Sector classifications

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Table1 lists industry groupings relevant to the coal sector in the Global Industry Classification
Standard (GICS®), Industry Classification Benchmark (ICB), International Standard Industrial
Classification of All Economic Activities (ISIC), and Sustainable Industry Classification System(SICS®). The table is intended to assist an organization in identifying whether the Sector Standard:
Coal applies to it and is for reference only.

••

Exploration, mining, and processing of thermal and metallurgical coal from underground or openpit mines.
Supply of equipment and services to coal mines, such as drilling, exploration, seismic information
services, and mine construction.
Storage or transportation of coal, such as slurry pipelines.

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Table 1. Industry groupings relevant to the coal sector in other classification systems
Classification system

Classification name

GICS®

Classification
number10102050

ICB

60101040

Coal

ISIC

B05

Mining of coal and lignite

SICS®

EM-CO

Coal operations

Coal & consumable fuels

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System of GRI Standards

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This Standard is part of the GRI Sustainability Reporting Standards (GRI Standards). The GRI
Standards enable an organization to report information on its most significant impacts on theeconomy, environment, and people, including impacts on their human rights, and how it manages
these impacts.

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The GRI Standards are structured as a system of interrelated standards that are organized into threeseries: Universal Standards, Sector Standards, and Topic Standards.

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Universal Standards: GRI 101, 102, and 103

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Note: All references to the GRI Universal Standards in this Standard refer to [the drafts] that havebeen made available as part of the [review of the Universal Standards]. The GRI Sector Standards
will work in conjunction with the revised Universal Standards. The draft Universal Standards are
subject to the approval of the Global Sustainability Standards Board and may change.

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GRI 101: Using the GRI Standards sets out the requirements that the organization must comply withto report in accordance with the GRI Standards. The organization begins using the GRI Standards by
consulting GRI 101.

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GRI 102: About the Organization contains disclosures that the organization uses to provide
information about its reporting practices and other organizational details, such as activities,
governance, and policies.

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GRI 103: Material Topics provides guidance on how to determine material topics. It also contains
disclosures that the organization uses to report information about its process to determine material
topics, its list of material topics, and how it manages each topic.

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Sector Standards

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The Sector Standards provide information for organizations in a given sector about their most likely
material topics. The organization uses the Sector Standards that apply to its sectors when
determining its material topics and when determining what to report for each material topic.

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Topic Standards

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The Topic Standards contain disclosures that the organization uses to report information on its
impacts and approach in relation to particular topics. The organization uses the Topic Standards
according to the list of material topics it has determined using GRI 103.

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Figure 1. GRI Standards: Universal, Sector, and Topic Standard

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Using this Standard

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An organization in the coal sector reporting in accordance with the GRI Standards is required to use
this Standard when determining its material topics and when determining what information to reportfor the material topics.

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Determining material topics

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Material topics are topics that represent the organization’s most significant impacts on the economy,
environment, and people, including impacts on their human rights.

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An organization in the coal sector is required to use this Standard when determining its material
topics. The organization needs to review each topic described in Section 2 of this Standard anddetermine whether it is a material topic for the organization.

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This Standard helps the organization determine its material topics, but the organization still needs todetermine its material topics based on its specific circumstances. The topics an organization identifies
as material may vary according to specific circumstances, such as its business model; sector;
geographic, cultural, and legal operating contexts; ownership structure; and the nature of its impacts.
GRI 103: Material Topics provides step-by-step guidance on how to determine material topics.

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Not all topics listed in this Standard may be material for all organizations in the sectors. If any of the
topics that are included in this Standard have been determined by the organization as not material,
the organization is required to list them in the GRI content index and explain why they are not material(see Requirement 7 in Section 3 of GRI 101: Using the GRI Standards).

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See Requirement 3 in Section 3 of GRI 101: Using the GRI Standards and Box 1 in GRI 103: Material
Topics for more information on using Sector Standards when determining material topics.

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Determining what to report

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When a topic included in this Standard is determined by the organization as material, the Standard
helps the organization identify disclosures to report on its impacts and approach in relation to that
topic.

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A what to report section is included for each topic in Section 2 of this Standard. What to reportsections list disclosures from the GRI Topic Standards. They may also list additional sector
recommendations and disclosures for the organization to report on, in cases where the Topic
Standards do not provide disclosures, or where the disclosures from the Topic Standards do notprovide sufficient information about an organization’s impacts and approach in relation to a topic.
Additional sector disclosures may be based on other sources.

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Figure 2 illustrates how what to report sections are structured.

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Figure 2. Structure of what to report sections

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For topics determined by the organization as material, the organization is required to report thedisclosures drawn from Topic Standards listed in the what to report section for that topic. If any
disclosures listed are not relevant for reporting on the organization’s impacts and approach in relation
to the topic, then the organization is not required to report these but is required to list them in the GRI
Context Index, provide the ‘not applicable’ reason for omission and a brief explanation (seeRequirement 7 in Section 3 of GRI 101: Using the GRI Standards).

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The additional sector recommendations and disclosures outline additional information that theorganization should report on the topic. An organization should provide sufficient information about its
impacts and approach in relation to each material topic, so that information users can make informed
assessments and decisions about the organization. The additional sector disclosures andrecommendations have been identified as relevant for organizations in the coal sector in relation to
the topic. Reporting on these is encouraged, however, it is not a requirement.

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When the organization reports the additional sector disclosures, it is required to list them in the GRI
content index.

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See Requirement 5 in Section 3 of GRI 101: Using the GRI Standards for more information on using
Sector Standards when identifying disclosures to report on.

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Defined terms

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Defined terms are underlined in the text of the GRI Standards and hyperlinked to their definitions in
the Glossary. The organization is required to apply the definitions in the Glossary.

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References and resources

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Each GRI Topic Standard includes a list of authoritative intergovernmental instruments and othersources used in developing the Standard, as well as additional resources that can be consulted byorganizations on the topic. Additional authoritative instruments and sources used to develop the
topics in this Standard, as well as further resources that may be helpful for understanding andreporting on the topic by organizations in the coal sector are listed at the end of the Standard.

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1. Sector profile

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Coal is an abundant and widespread natural resource. Its use dates from ancient history, and coal
extraction now represents a large global sector supplying key raw materials for energy generation andmetallurgical processes. It is currently a fundamental input in some major industries, notably steel,which accounts for 15% of the use of world coal production.1 Coal is also used in production ofsynthetic compounds, such as cement, dye, oil, waxes, pharmaceuticals, and pesticides.

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Coal organizations are diverse in nature. While some focus on this sole commodity – combining
extraction, distribution, and consumption channels under a single ownership – others are large
diversified organizations, extracting different commodities or operating across different sectors. Someof the largest organizations in the sector are state-owned enterprises.

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Coal is still widely used to generate electricity in many countries, though its consumption for thispurpose has declined globally since 2013.2

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1.1 Sector activities and business relationships

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When determining its material topics, the organization should consider the impacts of both its
activities and its business relationships.

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Activities

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The impacts of an organization vary according to the types of activities it undertakes. The following list
outlines some of the key activities of the coal sector. The list is not exhaustive.

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Prospecting and exploration: Surveying of resources through, for example, feasibility assessments,
geologic mapping, aerial photography, geophysical measuring, and drilling.

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Development: Design, planning, and constructing a mine, including facilities for coal processing andworkers.

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Mining: Coal extraction using surface mining, underground mining, or in-situ techniques.

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Processing: Crushing, cleaning, and processing coal from unwanted materials; processing it into
briquettes, liquids, and gas or into coke for steelmaking.

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Closure and rehabilitation: Decommissioning processing facilities, land reclamation and rehabilitation,and closing and sealing waste facilities.

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Transportation: Moving coal to the point of consumption by barge, conveyor belt, train, truck, or ship;
or when mixed with oil or water, transported as coal slurry by pipeline.

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Storage: Storing coal at mining sites or import and export terminals.

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Sales and marketing: Trading and customer sales of products for the purpose of, for example, ironand steel production, cement production, electricity production, and manufacturing.

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Business relationships

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An organization’s business relationships include those with business partners, entities in its value
chain, including those beyond the first tier, and any other entities directly linked to its operations,products, or services. The following types of business relationships are of particular relevance whenidentifying the impacts of organizations in the coal sector.

1

International Energy Agency (IEA), Coal Information: Overview, accessed on 5 April 2021.
World Economic Forum (WEF), Chart of the day: Is 2019 the beginning of the end for coal in Europe?, accessed on 5 April
2021; International Energy Agency (IEA), Coal 2019: Analysis and Forecasts to 2024, accessed on 5 April 2021.
2

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Joint ventures are common arrangements, particularly in upstream coal operations, in whichorganizations share costs, benefits, and liabilities of assets or a project. Even as a non-operating
partner, an organization can be involved with negative impacts as a result of a joint venture.

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Suppliers and contractors are used often in the coal sector during certain phases of the project, suchas construction, or to provide services. Some of the most significant impacts related to the topics inthis Sector Standard involve the supply chain.

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309

Customer organizations use coal to produce heat, energy, or materials. When these organizations
burn coal, they generate large amounts of greenhouse gas (GHG) and other air emissions. Whilecustomer organizations play a key role in reducing and managing their emissions, organizations thatextract coal are increasingly expected to take responsibility for emissions from the combustion of theirproducts and to disclose the related emissions. This Sector Standard therefore includes disclosureson all Scopes of GHG emissions (1, 2, 3) as well as on other environmental and health impacts that
occur through product use.

310

1.2 The sector and sustainable development

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Energy is a key driver of economic growth and sustainable development. Coal has been afundamental source of the world’s energy, contributing to economic growth and poverty reduction.
Coal represents the largest resource for electricity production, providing over a third of the total
supply.3

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321

The role of coal remains important in regions or countries where coal is a key source of revenue or a
strategic asset that guarantees energy independence. Although the number of people worldwide
working in coal mining is not very large,4 coal can be the main economic resource of a community. In
addition to employment, coal activities can also bring about local economic development, along with
infrastructure and services. Most of the world’s coal is not traded internationally, but consumed in thesame country where it is produced, though some major producing countries export the majority of thecoal produced.

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326

Meanwhile, coal consumption is declining globally, though in many countries, particularly in Asia, its
use is still growing. Burning coal for energy generation is responsible for 40% of all greenhousegas (GHG) emissions from fossil fuels, representing the main contributor to climate change. In
addition, coal has the highest emissions intensity when combusted. Coal typically releases more than
twice the amount of GHGs than natural gas per unit of energy produced.5

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The majority of the world’s countries has committed to combating climate change, as outlined in the
Paris Agreement. Climate change threatens the lives, livelihoods, health, and homes of millions ofpeople. The International Panel on Climate Change (IPCC) warns that continuing to consume fossil
fuels at the current rate could result in dangerous global temperature increases leading to magnified
risks of extreme weather and climate events.6 Other reports show that with current policy
commitments, the world is indeed heading toward a dangerous 3.2-degree Celsius rise in temperatureby 2100.7 These projections underline the need to transition to a low-carbon economy based onaffordable, reliable, and sustainable energy. Achieving net zero GHG emissions by 2050 is required tolimit global warming to 1.5 degrees Celsius above pre-industrial levels, which is predicted to posesignificantly lower risks to natural and human systems than a warming of 2 degrees Celsius.8 Actions
taken by high-emitting sectors, such as the coal sector, are essential for this transition. These actions

3

International Energy Agency (IEA), World Energy Outlook 2020, 2020, accessed on 5 April 2021.
Eight million people are estimated to work in coal mining in the world; see M. Jakob et al., 'The Future of Coal in a CarbonConstrained Climate', Nature Climate Change, vol. 10, no. 8, August 2020.
5Energy Information Administration (EIA), How much carbon dioxide is produced per kilowatthour of U.S. electricity
generation?, accessed on 5 April 2021.
6International Panel on Climate Change (IPCC), Global Warming of 1.5°C, 2018.
7
United Nations Environment Programme (UNEP), Emissions Gap Report 2019, 2019.
8 International Panel on Climate Change (IPCC), Global Warming of 1.5°C, 2018.
4

Page 17 of 81

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can include business model changes, investing in renewable energy sources, prioritizing energyefficient practices, and developing and adopting new technologies and nature-based solutions toremove carbon from the atmosphere.

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349
350
351
352

The coal sector faces additional pressure to embark on the transition path as governments and thefinancial sector implement climate-resilient policies and portfolios, resulting in financial restrictions ordivestments from coal. While these policies incentivize decarbonizing the economy, they will also
result in decreased employment opportunities for workers in the sector and its supply chains. Manymining communities have few alternative sources of employment, and decline in coal mining can leadto high local unemployment rates. To ensure a just transition, it is essential for governments andorganizations to work together. A just transition refers to a fair and equitable pathway throughindustrial transformation to a sustainable future, that integrates worker-centric public and employer
policies and programs to provide a secure and decent future for all workers, their families, and thecommunities that rely on them. The roadmap to a low-carbon transition will differ between countries
according to their context and differing capabilities to respond to and mitigate impacts of climatechange.

353
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356
357
358
359
360

In addition to contributing to climate change, the coal sector generates various negative impacts on
the environment and people, including impacts on human rights. These include, for example, water,
air, and soil pollution as well as impacts on biodiversity, which can also result in serious healthimpacts on people. Accidents and working conditions can pose further health and safety risks forworkers and local communities. The use of land for sector activities may also lead to disputes, often
triggered by issues related to tenure rights, resettlement of local communities, or restricted access toland and natural resources. These impacts are especially relevant for indigenous peoples, who often
have a special relationship with land and the natural environment.

361

Sustainable Development Goals

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364

The United Nations (UN) Sustainable Development Goals (SDGs), part of the 2030 Agenda for
Sustainable Development adopted by the 193 United Nations member states, comprise the world’s
comprehensive plan to achieving sustainable development.

365
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367

Since the SDGs and targets associated with them are integrated and indivisible, coal organizations
have the potential to impact all SDGs by either enhancing their positive contributions or avoiding andmitigating negative impacts.

368
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370
371
372
373

While the coal sector contributes to meeting the world’s energy demand and thus plays a rolein achieving Goal 7: Affordable and Clean Energy, extracting and burning coal is the primarycontributor to climate change. Climate change can also exacerbate other challenges, such as
achieving access to clean water, food security, and poverty reduction. Ensuring access to affordable,
reliable, and sustainable energy while mitigating GHG emissions as per Goal 13: Climate Action andthe necessary transition to a low-carbon economy is one of the sector’s greatest challenges.

374
375
376
377
378
379

Because the coal sector is in many regions still a central source of employment and income, it makes
positive contributions to Goal 8: Decent Work and Economic Growth and Goal 1: No
Poverty. Coal operations can also stimulate other economic activity and bring along infrastructureand services to local communities around mining sites. With proper management of environmental
impacts caused by coal operations, the sector can thus contribute to Goal 11: Sustainable cities
and communities and Goal 12: Responsible Consumption and Production.

380
381

Table 2 highlights connections between the likely material topics for the coal sector and the SDGs. It
is a starting point for organizations that seek to integrate the SDGs into their reporting.

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382

Table 2: Linkages between the likely material topics for the coal sector and the SDGs
Likely material topics
1.

GHG emissions

Corresponding Sustainable Development Goals
Goal 13: Climate Action
Goal 14: Life Below Water
Goal 1: No Poverty
Goal 7: Affordable and Clean Energy

2.

Climate adaptation and resilience

Goal 8: Decent Work and Economic Growth
Goal 9: Industry, Innovation and Infrastructure
Goal 13: Climate Action
Goal 8: Decent Work and Economic Growth3.

Closure and rehabilitation

Goal 11: Sustainable Cities and Communities
Goal 15: Life on Land
Goal 3: Good Health and Well-being

4.

Air emissions

Goal 11: Sustainable Cities and Communities
Goal 15: Life on Land
Goal 6: Clean Water and Sanitation

5.

Biodiversity

Goal 12: Responsible Consumption and Production
Goal 14: Life Below Water
Goal 15: Life on Land
Goal 3: Good Health and Well-being

6.

Waste

Goal 6: Clean Water and Sanitation
Goal 12: Responsible Consumption and Production
Goal 15: Life on Land
Goal 6: Clean Water and Sanitation

7.

Water and effluents

Goal 12: Responsible Consumption and Production
Goal 14: Life Below Water
Goal 15: Life on Land
Goal 1: No Poverty
Goal 5: Gender Equality

8.

Economic impacts

Goal 8: Decent Work and Economic Growth
Goal 9: Industry, Innovation and Infrastructure
Goal 10: Reduced Inequalities
Goal 1: No Poverty
Goal 3: Good Health and Well-being

9.

Local communities

Goal 5: Gender Equality
Goal 6: Clean Water and Sanitation
Goal 16: Peace, Justice and Strong Institutions
Goal 1: No Poverty

10. Land and resource rights

Goal 11: Sustainable Cities and Communities
Goal 16: Peace, Justice and Strong Institutions

Page 19 of 81

Goal 1: No Poverty
Goal 3: Good Health and Well-being
11. Rights of indigenous peoples

Goal 5: Gender Equality
Goal 11: Sustainable Cities and Communities
Goal 16: Peace, Justice and Strong Institutions

12. Conflict and security

Goal 16: Peace, Justice and Strong Institutions

13. Asset integrity and critical incident
management

Goal 3: Good Health and Well-being

14. Occupational Health and Safety

Goal 11: Sustainable Cities and Communities
Goal 3: Good Health and Well-being
Goal 8: Decent Work and Economic Growth
Goal 1: No Poverty

15. Employment practices

Goal 5: Gender Equality
Goal 8: Decent Work and Economic Growth
Goal 10: Reduced Inequalities
Goal 1: No Poverty

16. Child labor

Goal 8: Decent Work and Economic Growth
Goal 16: Peace, Justice and Strong Institutions

17. Forced labor and modern slavery

Goal 8: Decent Work and Economic Growth
Goal 16: Peace, Justice and Strong Institutions
Goal 5: Gender Equality

18. Non-discrimination and equal
opportunity

Goal 8: Decent Work and Economic Growth
Goal 10: Reduced Inequalities
Goal 16: Peace, Justice and Strong Institutions

19. Freedom of association andcollective bargaining
20. Anti-corruption

Goal 8: Decent Work and Economic Growth
Goal 16: Peace, Justice and Strong Institutions
Goal 12: Responsible Consumption and Production
Goal 16: Peace, Justice and Strong Institutions
Goal 1: No Poverty

21. Payments to governments

Goal 16: Peace, Justice and Strong Institutions
Goal 17: Partnerships for the Goals

22. Public policy and lobbying

Goal 16: Peace, Justice and Strong Institutions

Page 20 of 81

383

2. Likely material topics

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385
386
387

The following section outlines the likely material topics for the coal sector. Each topic describes themost significant impacts related to topic and list disclosures that have been identified as relevant forreporting on the topic by the sector. The organization needs to review each topic in this section anddetermine whether it is material for it to report on.

388

2.1 GHG emissions

389
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391
392

Greenhouse gas (GHG) emissions comprise air emissions that contribute to climate change,such as carbon dioxide and methane. This topic covers direct and energy indirect GHG
emissions (Scope 1 and Scope 2) related to an organization’s activities, as well as otherindirect GHG emissions (Scope 3) related to the end use of an organization’s products.

393
394
395
396
397
398

Greenhouse gas (GHG) emissions are the single biggest contributor to climate change, the impacts ofwhich are occurring at an accelerating rate. Studies show that approximately half of the total
anthropogenic carbon dioxide (CO2) emissions from 1750 onwards have occurred in the last 40 years,
mostly due to increased use of fossil fuels, including coal.9 Although the energy efficiency of
production has improved, increased energy demand has caused a rise in global GHG emissions, themajority of which originates from combustion of fossil fuels.10

399
400
401
402
403
404

Besides CO2, coal operations also cause the emission of another powerful GHG: methane (CH4). ThisGHG has a significantly higher global warming potential than CO2; when considering its impact over
100 years, one ton of CH4 is equivalent to 28 to 36 tons of CO2.11 The energy sector has been
identified as the second-largest source of anthropogenic CH4 emissions. Recent measurements
indicate that available figures on CH4 emissions from energy could be underestimates. Other GHG
emissions related to coal extraction and use include nitrous oxide (N2O) and ozone (O3).

405
406
407
408
409

Activities related to coal mining and processing consume significant amounts of energy. Unless they
are powered by renewable energy sources, these operations generate CO2 emissions. These areclassified as direct (Scope 1) GHG emissions for activities owned or controlled by the organization orenergy indirect (Scope 2) GHG emissions for activities that result from purchased or acquired
electricity consumed by the organization.

410
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413
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415
416

The amount of energy used in coal mining depends on several factors, such as the method of mining,mine depth, geology, mine productivity, and degree of refining required. Activities among the mostenergy-consuming include transportation, exploration activities, drilling, excavation, extraction,
grinding, crushing, milling, pumping, and ventilation processes. Extraction and transportation inunderground mines might require more energy than surface mining due to, for example, greater
requirements for hauling, ventilation, and water pumping. Closure and rehabilitation activities are alsoa source of GHG emissions.

417
418
419
420
421
422
423

Coal mines are also a source of CH4 emissions, which are produced during the process of coalformation and released to the atmosphere during and after the mining process. Coal mine methane(CMM) can be released via degasification systems and ventilation air from underground coal mines,
seepage from abandoned or closed mines through vent holes or cracks in the ground, coal seams of
surface mines, and fugitive emissions from storage and transportation. Underground mines are
responsible for the majority of Scope 1 coal CH4 emissions due to the higher gas content of deeper
seams.

9

Intergovernmental Panel on Climate Change (IPCC), Climate Change 2014: Synthesis Report, 2014.
International Energy Agency (IEA), Market Report Series: Energy Efficiency 2018, accessed 5 April 2021; CO2 Emissions
from Fuel Combustion: Highlights, 2018.
11
Greenhouse Gas Protocol, Global Warming Potential Values; International Energy Agency (IEA), Methane tracker 2020,
accessed 5 April 2021.
10Page 21 of 81

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For coal, end-use activities are responsible for the most significant GHG emissions, which areclassified as part of other indirect (Scope 3) GHG emissions. Coal is a carbon-intensive fuel, and its
combustion generates the single largest source of global CO 2 emissions. These emissions mostly
originate from electricity and heat generation, steel production, and cement manufacturing.

428

What to report – GHG emissions

429
430

If an organization in the coal sector has identified GHG emissions as a material topic, this section
helps it determine what to report on this topic.
Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Managementof material topics

When reporting on goals and targets,
report:- Report the scopes of GHG emissions(1, 2, 3) and the activities andbusiness relationships to which thegoals and targets apply.
-

Report how the goals and targets are
set and which instruments andmandatory legislation the goals andtargets are based on or aligned with.

-

Report the baseline for setting goals
and targets and the timeline forachieving them.

-

Report the percentage of direct(Scope 1) methane emissions.

-

Report the breakdown of gross direct(Scope 1) GHG emissions by type ofsource (stationary combustion,
process, fugitive).

Topic Standards disclosures
GRI 302: Energy
2016

Disclosure 302-1 Energy
consumption within theorganization
Disclosure 302-2 Energy
consumption outside of theorganization
Disclosure 302-3 Energy
intensity

GRI 305: Emissions
2016

Disclosure 305-1 Direct (Scope
1) GHG emissions

Note: This recommendation is based on
the guidance to clause 2.2.5.3 in GRI 305:
Emissions 2016.
Disclosure 305-2 Energy
indirect (Scope 2) GHG
emissionsPage 22 of 81

Disclosure 305-3 Other indirect(Scope 3) GHG emissions
Disclosure 305-4 GHG
emissions intensity
Disclosure 305-5 Reduction of
GHG emissions
431

Resources and references

432
433

GRI 302: Energy 2016 and GRI 305: Emissions 2016 list authoritative intergovernmental instruments
and other sources relevant to reporting on this topic.

434
435
436

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 23 of 81

437

2.2 Climate adaptation and resilience

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439
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441
442

Climate adaptation and resilience refer to how an organization adjusts to current andanticipated climate-related risks, as well as how it contributes to the ability of societies andeconomies to withstand impacts from climate change. This topic covers an organization’s
strategy in relation to the transition to a low-carbon economy and the impacts of thattransition on workers and local communities.

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444
445
446
447

Signatories of the Paris Agreement have committed to keeping global warming ‘well below 2 degrees’.
Yet the maximum amount of fossil fuels that can be burned while remaining within that limit – theglobal carbon budget – is far lower than the proven reserves that organizations could be extracted.
This puts pressure on producers to modify their business models, establish carbon emissions targets,create carbon sinks, and diversify away from fossil fuels.

448
449
450
451
452

Since coal emits the largest amount of carbon dioxide (CO2) and has the highest intensity ofemissions per unit of energy among fossil fuels (see GHG emissions), burning coal is likely to be thefirst activity governments seek to suppress in fulfilling their commitments under the Paris Agreement.
Since its peak consumption in 2013, the energy transition has commenced and total consumption ofcoal has been declining.12

453
454
455
456
457
458

This transition presents high risks for organizations, workers, and local communities reliant on coal
operations. As the market for coal shrinks, some organizations will be forced to close operations,
impacting their financial viability. Workers are faced with challenges related to their employability andfinding desirable re-employment. Coal mining regions may end up with environmental legacy costs
related to asset closure as well as significant reductions of economic activity that lead to lower tax
revenues and depopulation.

459
460
461
462
463
464
465
466

In 2040, coal use as a share of total global energy use could vary between an estimated 20% and
10% depending on the policy scenario.13 The transition will also be unequal across countries, assome countries are much more dependent on coal for electricity generation than others. Similarly,
while alternatives are available for energy generation, steelmakers still lack a feasible alternative forcoal, so their transition might take longer. Technological solutions for burning coal without emitting
CO2 (e.g., through carbon capture and storage or utilization) are being tested, but the technology has
not progressed at the rate necessary to meet the required emissions reductions to limit global
warming to levels committed to in the Paris Agreement, and new investment is scarce.14

467
468
469
470
471
472

Many coal operations will face closure, but others are expected to remain operational for decades.
Which remain operational longer will depend on technological, geographic, and political factors.
Organizations are at risk of owning stranded assets or pieces of physical capital that become
drastically reduced in value by the transition, leading to write-offs. Organizations may mitigate theserisks by diversifying away from coal, investing in technological solutions, and focusing on market
segments expected to remain operational longer.

473
474
475
476
477
478

A just transition to a low-carbon economy requires recognizing the different levels of dependence on
coal by regions and countries and the need to create quality jobs for persons affected. Examples ofpotential actions from coal organizations to ensure a just transition include providing plenty of noticeof closures, collaborating with governments and unions, retraining and redeploying workers, andproviding alternate investments in affected communities. Meaningful, early consultations withstakeholders and communities have proven crucial (see Closure and rehabilitation).

12International Energy Agency (IEA), Coal Information: Overview, accessed on 5 April 2021.
The share of coal in the energy mix was 27% in 2018. International Energy Agency (IEA) uses two policy scenarios forforecasting the use of coal: under the Current Policy Scenario (assuming no change in policies), this share will be reduced to
20% in 2040; under the Sustainable Development Scenario (assuming policies compatible with the Paris Agreement), the sharewill be reduced to 10% in 2040. World Energy Outlook 2019, accessed 5 April 2021.
14International Energy Agency (IEA), World Energy outlook 2018, accessed 5 April 2021.
13

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480

The transition can also bring along opportunities to reinvigorate economic activity and provide new
employment opportunities and skills development.

481

What to report

482
483

If an organization in the coal sector has identified climate adaptation and resilience as a material
topic, this section helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3
Management ofmaterial topics-

Report the level and function within theorganization that has been assigned
responsibility for managing climate changerelated impacts.

-

Describe the board’s oversight to manage
climate-change related impacts.

-

Report whether responsibility to manage
climate change-related impacts is linked toperformance assessments or incentive
mechanisms, including in the remuneration
policies for highest governance bodymembers and senior executives.

-

Describe any commitments, policies, andactions taken to mitigate the impacts of thetransition to a low-carbon economy onworkers and communities.

-

Describe the climate change-related
scenarios used to assess the resilience of theorganization’s strategy, including a 2-degree
or lower scenario.

-

Describe how the climate-change related
scenarios affect or could affect theorganization’s operations or revenue,
including potential write-offs andearly closure of existing assets.

-

Report the coal production volumes for thereporting year and projected volumes for the
next five years.

-

Report the estimated reserves and potential
emissions from these reserves.

-

Report the percentage of capital expenditure(CapEx) allocated to investments in:

Topic Standards disclosures
GRI 201: Economic
Performance 2016

Disclosure 201-2
Financial implications
and other risks andopportunities due toclimate change

o
o
o
-

prospecting and exploration of newreserves;
low-carbon technology;energy from renewable sources.

Report investments in nature-based solutions
for climate mitigation and technologies toPage 25 of 81

remove CO2; and net captured value of CO2
removed.
-Report diversification of operations away froma reliance on sales and transport of coal.

Additional sector disclosures
Describe the organization’s approach to public policy advocacy on climate change, including:-the organization’s stance on issues related to climate change;
any differences between the organization’s lobbying positions and any stated policies, goals, orother public positions;a list of industry and other membership associations and national or international organizations
participating in public policy advocacy on climate change in which the organization has asignificant role.

Note: The last disclosure is related to SPP-7 Membership associations. If the information reported by
the organization in SPP-7 covers the membership associations requested by this disclosure, theorganization can provide a reference to this information.
484

Resources and references

485
486

GRI 201: Economic Performance 2016 lists authoritative intergovernmental instruments and othersources relevant to reporting on this topic.

487
488
489

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 26 of 81

490

2.3 Closure and rehabilitation

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495

At the end of commercial use, organizations are expected to close assets and facilities andrehabilitate operational sites. The planning and execution of this phase should takeenvironmental as well as socioeconomic impacts into consideration. This topic covers anorganization’s approach to closure and rehabilitation, including impacts on the environment,
local communities, and workers.

496
497
498
499
500
501

Potential impacts of coal mining following closure include soil and water contamination, changes tolandforms, and disturbance of biodiversity and wildlife. Closure can also lead to lasting socioeconomic
consequences for local communities. Closure often requires planning that begins in the early phasesof a project’s lifecycle in order to anticipate potential impacts. Failure to close assets and rehabilitate
sites effectively can render land unusable for other productive uses due to the presence of toxic
materials or contamination. It can also result in health and safety hazards.

502
503
504
505

Environmental impacts from the closure of surface and underground mining can differ. For example,
surface mining requires more land use and more substantial rehabilitation, whereas abandoned
underground mines may emit coal mine methane even after active mining has seized, contributing to
GHG emissions.

506
507
508
509
510
511
512
513

Over the course of a coal mining project, communities may come to depend on the sector’s activities
for jobs, income, royalties, tax payments, charitable donations, and other benefits (see also Payments
to governments). This can lead to negative impacts on the economy and people once the projectends. For example, insufficient notice of closure or lack of adequate planning for economic
revitalization, social protection, and labor transition can hinder the transition of workers and local
communities to a post-closure phase and cause retrenchment, economic downturn, and social unrest.
Without clearly assigned responsible parties or allocated funds, closed coal mines can also leavebehind legacy environmental issues and financial burden for local communities and governments.

514
515
516
517

Closure and rehabilitation of coal operations can also create employment and business opportunities.
This can involve an influx of additional workers for an extended period of time. The arrival of workers
from the surrounding areas or through a fly-in-fly-out approach during this phase can, in turn,exacerbate other pressures on the environment.

518
519
520
521
522
523
524

Closure and rehabilitation of coal mining operations should result in a stable and sustainableecosystem, compatible with planned post-closure land use. Activities can include stabilization of
open-pit or underground workings and removal or conversion of infrastructure to ensure safety ofpeople; rehabilitation of waste rock stockpiles and tailings facilities to control erosion and landdegradation; management of waste, surface water, and groundwater quality issues resulting fromabandoned rock drainage, waste rock, and leaching from tailings (see also Waste and Water andeffluents); and post‐closure monitoring.

525
526
527
528
529
530

The need to reduce GHG emissions and to transition to a low-carbon economy (see Climate
adaptation and resilience) is leading to more frequent closures. These are less likely to be
counterbalanced by openings, as has been the case in the past. In areas where employment largely
derives from coal activities, mitigating significant socioeconomic impacts requires collaboration
between local and national governments, coal organizations, workers, and unions to ensure a justtransition.

Page 27 of 81

531

What to report

532
533

If an organization in the coal sector has identified closure and rehabilitation as a material topic, thissection helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Managementof material topics

Topic Standards disclosures
GRI 402:
Labor/Management
Relations 2016

Disclosure 402-1 Minimum
notice periods regarding
operational changes

Describe how workers are consulted inadvance of significant operational changes.

GRI 404: Training
and Education 2016

Disclosure 404-2 Programs
for upgrading employee skills
and transition assistanceprograms

Describe the labor transition plans in place
to help workers manage the transition to
post-closure phase of operations (which
can include redeployment, assistance withre-employment, resettlement, andredundancy payments).

Additional sector disclosures
Report the organization’s operations that:- have closure and rehabilitation plans;- have been closed;- are in the process of being closed.
Report the total monetary value of financial provisions made by the organization for closure andrehabilitation, including post-closure and rehabilitation monitoring, and aftercare.
534

Resources and references

535
536

GRI 402: Labor/Management Relations 2016 and GRI 404: Training and Education 2016 list
authoritative intergovernmental instruments and other sources relevant to reporting on this topic.

537
538
539

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 28 of 81

540

2.4 Air emissions

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542
543
544

Air emissions include pollutants that can have negative impacts on air quality, ecosystems,
and human and animal health. This topic covers impacts from emissions of sulfur oxides(SOx), nitrogen oxides (NOx), particulate matter (PM), volatile organic compounds(VOC),
carbon monoxide(CO), and heavy metals, such as lead, mercury, and cadmium.

545
546
547
548
549

In addition to greenhouse gas (GHG) emissions, coal is significant sources of anthropogenic air
emissions classified as pollutants. Globally, air pollution causes acute health problems and millions ofdeaths annually15 by contributing to heart and lung diseases, strokes, respiratory infections, andneurological damage. Children, the elderly, and the poor are disproportionately affected, as arecommunities adjacent to operations.

550
551
552
553
554
555

The emission of pollutants also has impacts on ecosystems. For example, nitrogen emissions andmercury that enter the oceans or waterways can impact marine life. They are also a major cause ofground-level ozone – commonly known as smog – which can lead to or worsen respiratory illnesses.
Sulfur oxides can lead to acid rain and increase ocean acidification. Further adverse effects from acidrain and ground-level ozone include degradation of water, soil, flora, and fauna, and impairment of
their ability to function and grow.

556
557
558
559
560

Air emissions from coal operations include CO, NOx, PM from coal dust, and SO2. These emissions
can occur from evaporation from tailings ponds or waste areas; fugitive dust emissions from drilling,
blasting, storage, transportation, loading, and unloading; refining and processing activities; andtransportation of supplies and products. Emissions related to product use include NOx, PM, SO2,
arsenic, cadmium, lead, mercury, selenium, and other heavy metals.

561
562
563
564
565

In addition to their impacts on climate change (see GHG emissions), air emissions from burning coalin power plants or industrial processes can also have negative impacts on people. Outdoor air
pollution causes millions of deaths every year, and burning coal is a major source of this pollution.
These emissions are caused by organizations in other sectors, such as utilities and steel, but theirimpacts can often be directly linked to the coal sector.

566

What to report

567
568

If an organization in the coal sector has identified air emissions as a material topic, this section helps
it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management ofmaterial topics

Topic Standards disclosures
GRI 305: Emissions
2016

15

Disclosure 305-7 Nitrogen oxides(NOX), sulfur oxides (SOX), andother significant air emissions-

Report particulate matter (PM)emissions from coal dust
separately from total PM.

-

Report carbon monoxide (CO)emissions.

World Health Organization (WHO), Ambient Air Pollution: A Global Assessment of Exposure and Burden of Disease, 2016.

Page 29 of 81

GRI 416: Customer
Health and Safety
2016

Disclosure 416-1 Assessment of
the health and safety impacts ofproduct and service categories

Describe actions taken to improve
product quality to reduce air emissions.

569

Resources and references

570
571

GRI 305: Emissions 2016 and GRI 416: Customer Health and Safety 2016 list authoritativeintergovernmental instruments and other sources relevant to reporting on this topic.

572
573
574

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 30 of 81

575

2.5 Biodiversity

576
577
578

Biodiversity not only has intrinsic value, but is also vital to climate, human health and wellbeing, food security, and economic prosperity. This topic covers impacts on biodiversity,
including on plant and animal species and genetic diversity.

579
580
581
582
583
584
585

Coal operations typically require large-scale infrastructure development, which have direct, indirect,
and cumulative impacts on biodiversity in the short and long term. Due to the scale and long lifespansof coal projects, impacts can occur well beyond a project’s temporal and geographical parameters,
including after closure and rehabilitation. Direct impacts include air, soil, and water contamination,
deforestation, soil erosion, and sedimentation of waterways. Other impacts include habitat
fragmentation and conversion, the introduction of invasive species and pathogens, and species
mortality.

586
587
588
589
590

Impacts on biodiversity can result from land clearance for pits, access routes, and progressive
expansion into new areas; habitat fragmentation from access roads and other linear infrastructure;
disruption of surface water, wetland, and groundwater ecosystems; and effluent discharges,
groundwater, or surface stream contamination from acidic water, coal tailings ponds, or overburden
piles.

591
592
593
594
595
596
597

Different mining methods present distinct risks for biodiversity. Open-pit mines generate more severe
impacts than underground mines due to progressive deepening and widening of the mining site,
increasing affected areas over time. Coal resources can also be located in sensitive ecosystems or
areas with high biodiversity value, which can exacerbate impacts on biodiversity. In addition,
increased human settlement around operational sites can have impacts through opening of routes topreviously inaccessible areas, adding stress and contributing to cumulative impacts within thelandscape.

598
599
600
601
602
603
604

Coal activities can contribute to cumulative impacts on biodiversity. For example, habitat
fragmentation caused by the presence of a mining site can be compounded by land use change fromagricultural operations. Extensive land use requirements for open-pit mining can also contribute to
GHG emissions and climate change, namely through land use change resulting in removal of carbon
sinks. Climate change, in turn, is expected to affect all aspects of biodiversity – including individualorganisms, populations, species distribution, and ecosystem composition and function – and theimpacts are anticipated to become more severe as temperatures increase.

605
606
607
608
609
610
611

The coal sector has participated in developing a mitigation hierarchy tool, which can be used to limit
and manage negative impacts on biodiversity and ecosystems. The tool presents a prioritized
sequence of measures for the sustainable management of natural resources, with preventive actions
taking precedence over remediation. Priority is given to avoidance and, where avoidance is notpossible, to minimization of impacts. Only at the point that all preventative steps are adopted should
remediation measures be used, including rehabilitation or restoration of degradation or damage, andoffsetting residual impacts remain after all other measures have been applied.16

16

Cross Sector Biodiversity Initiative (CSBI), A cross sector guide for implementing the Mitigation Hierarchy, 2015.

Page 31 of 81

612

What to report

613
614

If an organization in the coal sector has identified biodiversity as a material topic, this section helps it
determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management ofmaterial topics-

Describe any commitments toachieving no net loss or net gain tobiodiversity on operational sites, andreport whether these commitments
apply to existing or future operations,and whether they also apply tooperations beyond areas of highbiodiversity value.

-

Report whether application of the
mitigation hierarchy has informed
actions to manage the topic andrelated impacts.

Topic Standards disclosures
GRI 304:
Biodiversity 2016

Disclosure 304-1 Operationalsites owned, leased, managed in,or adjacent to protected areas
and areas of high biodiversity
value outside protected areas
Disclosure 304-2 Significant
impacts of activities, products,
and services on biodiversity
Disclosure 304-3 Habitats
protected or restored

Describe how the application of the
mitigation hierarchy has resulted in:-areas protected through avoidance
measures or through offset measures;-

areas restored through on-siterestoration measures or through offset
measures.

Disclosure 304-4 IUCN Red List
species and national conservation
list species with habitats in areas
affected by operations
615

Resources and references

616
617

GRI 304: Biodiversity 2016 lists authoritative intergovernmental instruments and other sources
relevant to reporting on this topic.

618
619
620

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 32 of 81

621

2.6 Waste

622
623
624
625
626

Waste refers to anything that a holder discards, intends to discard, or is required to discard.
When inadequately managed, waste can have significant negative impacts on the environmentand human health, often extending beyond locations where waste is generated and discarded.
This topic covers impacts from waste, including as a result of construction and remediation
activities from active and inactive sites.

627
628
629
630

Waste impacts from coal activities can include contamination of surface water, groundwater, and foodsources with chemicals and heavy metals. Further effects can be loss of land productivity anderosion. Certain wastes require particularly robust management due to their type or volume. In remoteareas with limited waste disposal methods, waste impacts can be more severe or harder to monitor.

631
632
633
634

The largest waste stream from coal operations comprises overburden, rock waste, and tailings. Often
produced in large quantities, these wastes can also contain toxic or noxious substances, including
heavy metals. Effective waste management and minimization are therefore critical for protecting local
communities and preventing damage to the environment.

635
636
637
638
639
640

Overburden from surface mining is usually stored on adjacent undisturbed land until it can backfill thepit once mining is complete. Disposal options are limited for some surface mining techniques, such as
mountain-top removal, since the overburden cannot be returned to the pit. In these cases, thedisposal method consists of adjacent valley filling, which can lead to various environmental andbiodiversity impacts, such as burial of waterways and concentration of noxious substances harmful toecosystems and humans (see also Water and effluents).

641
642
643

Rock waste and coarse tailings are usually managed on heaps or disposed in constructed waste rockdumps or former open-pit operations. Associated environmental impacts concern air pollution fromdust from these dumps, which wind or rainwater can carry to affect air quality, watercourses, or lands.

644
645
646
647
648
649
650
651

Coal slurry waste from mining and processing is generally discarded into ponds, filtered, stored inheaps, or disposed of in underground voids. Surface tailing storage facilities can cover vast areas andbe contained by tailings dams. Tailings without harmful substances can be drained and stored until
being reshaped and covered with soil and vegetated. However, tailings pose a health risk for local
communities when they contain heavy metals, cyanide, chemical-processing agents, sulfides, or
suspended solids that can pollute the environment, including groundwater and surface water(incidents related to tailings facilities are discussed in Asset integrity and critical incident
management).

652
653

Other typical wastes from coal operations include waste oils and chemicals, spent catalysts, solventsand other industrial wastes, as well as packaging and construction wastes.

654
655
656
657

The nature and quantity of generated waste often requires management beyond the productive phaseof a mining operation. At the end of a coal exploration or extraction project, closure and rehabilitation
can also yield significant waste, which can have lasting environmental and socioeconomic
consequences.

Page 33 of 81

658

What to report

659
660

If an organization in the coal sector has identified waste as a material topic, this section helps it
determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Managementof material topics

Topic Standards disclosures
GRI 306: Waste
2020

Disclosure 306-1 Waste
generation and significant
waste-related impacts
Disclosure 306-2
Management of significant
waste-related impacts
Disclosure 306-3 Waste
generated

Report a breakdown of the composition ofwaste by the following waste streams:- overburden;- rock waste;- tailings.

Disclosure 306-4 Waste
diverted from disposal

Report a breakdown of the composition ofwaste by the following waste streams:- overburden;- rock waste;- tailings.

Disclosure 306-5 Waste
directed to disposal

Report a breakdown of the composition ofwaste by the following waste streams:- overburden;- rock waste;- tailings.

661

Resources and references

662
663

GRI 306: Waste 2020 lists authoritative intergovernmental instruments and other sources relevant toreporting on this topic.

664
665
666

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 34 of 81

667

2.7 Water and effluents

668
669
670

Recognized by the United Nations as a human right, access to fresh water is essential forhuman life and wellbeing. The amount of water withdrawn and consumed by an organizationand the quality of its discharges can have impacts on ecosystems and people.

671
672
673
674
675
676

Coal activities can have impacts on the availability and quality of water resources, which can in turnhave impacts on ecosystems and water users. The coal sector’s widespread use of water inoperations can reduce water availability for local communities and other sectors that also rely on the
resource. Certain mining methods can involve substantive vegetation clearance and land usechanges, which can also lead to erosion and sediments flows. Alterations in water flows andincreased sedimentation affect water quality and aquatic and terrestrial habitats.

677
678
679
680
681
682

Water in coal mining is used for cooling and cutting in mines; dust suppression in mining and hauling;
washing to improve coal quality; re-vegetation of surface mines; and long-distance transportation ofcoal slurry. The amount of water needed for operations depends on whether mining occurs on thesurface or underground as well as on operational efficiency. The amount of water withdrawn also
varies according to the ability to substitute water, water quality, reservoir characteristics, and recycling
infrastructure.

683
684
685
686
687
688
689

The coal sector’s impacts on water additionally depends on the quantity of water resources in thelocal context; where water is scarce, the sector has a greater impact. A large proportion of the world’s
coal resources are found in areas that are arid or experience water stress. In such areas, the sector’s
activities are likely to increase competition for water with other demands – such as for household use
and fishing, aquaculture, or agriculture activities – and exacerbate tensions between as well as within
sectors or local communities. Droughts, floods, and other extreme weather events related to climatechange will likely pose more challenges related to water availability and quality.

690
691
692
693
694
695
696
697

Coal activities can have significant impacts on the quality of surface water and groundwater, which
can translate into long-term implications for ecosystems and biodiversity, spread waterborne
diseases, cause health and development problems for humans, and impair food chain productivity.
These impacts can occur from leaching from tailings, failure of tailings facilities, and acid minedrainage, which involves acidic water containing heavy metals. Underground operations might also
disrupt or contaminate aquifers. Transportation accidents and related coal spills can result inwaterways and wetlands being contaminated with harmful materials, such as arsenic, lead, mercury,and sulfur compounds.

698

What to report

699
700

If an organization in the coal sector has identified water and effluents as a material topic, this section
helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Managementof material topics

Page 35 of 81

Topic Standards disclosures
GRI 303: Water andEffluents 2018

Disclosure 303-1 Interactions
with water as a sharedresource

Disclosure 303-2
Management of water
discharge-related impacts

Describe actions taken to prevent ormanage impacts from acid mine drainage.

Disclosure 303-3 Water
withdrawal
Disclosure 303-4 Water
discharge
Disclosure 303-5 Water
consumption
701

Resources and references

702
703

GRI 303: Water and Effluents 2018 lists authoritative intergovernmental instruments and othersources relevant to reporting on this topic.

704
705
706

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 36 of 81

707

2.8 Economic impacts

708
709
710
711
712

An organization’s activities can have impacts on the economic conditions of its stakeholders
and on economic systems through, for example, revenues and other payments, hiring, andprocurement. Infrastructure investments and services supported by an organization can also
have impacts on a community’s well-being and long-term development. This topic covers
economic impacts at local, national, and global levels.

713
714
715
716
717
718
719
720

Coal activities can be an important source of investment and income for local communities, countries,
and regions. Actual impacts vary according to the scale of operations, stimulation of other economic
activity, and effectiveness of management of coal-related revenues by local governments. In someresource-rich countries, a significant amount of the gross domestic product is derived frominvestments in the development of coal resources and revenues from mining. However,mismanagement of these revenues can harm economic performance and lead to macroeconomic
instability and distortions (see Payments to governments and Anti-corruption). Economies dependent
on finite resources can also be vulnerable to commodity price and production fluctuations.

721
722
723
724
725
726
727
728

The coal sector can have positive impacts on communities, countries, and regions through royalty
payments, taxes, and wealth creation. Investments by coal organizations in the development ofenabling infrastructure, such as public power utilities to improve access to energy, can benefit local
communities. Coal activities can also stimulate economies and create local employment, with wellpaid jobs in the coal sector potentially resulting in increased purchasing power. Skills development oflocal communities through education and training can also help increase access to jobs in the sector.
Positive impacts on local businesses can result from local procurement of products and services aswell as from supplier development.

729
730
731
732
733
734
735
736

The extent to which local communities benefit from the coal sector’s presence depends on existingdevelopment and industrialization levels and the community’s capacity to offer qualified workers forthe new employment opportunities. In addition, the net employment impacts depend on how
employment by the sector affects existing jobs in other sectors. These impacts can also be affectedby an organization’s employment practices. For example, a fly-in-fly-out work approach can offset
pressures associated with influxes of people in small communities while still supplying workers to fillpositions. However, this approach reduces employment opportunities available to local communities,
thus detracting from potential economic benefits.

737
738
739
740
741
742

Introduction of new coal activities can also generate negative impacts on local communities, including
competition over jobs and economic disparity; vulnerable groups, including women, are often
disproportionately affected (see also Local communities). An influx of external workers can increasepressure on housing, infrastructure, and public services. Other potential negative impacts include
environmental legacy costs related to, for example, contamination, incidents, or lack of proper
rehabilitation after closure (see also Closure and rehabilitation).

743
744
745
746
747
748

Governments and regions with coal resources currently face the risk of stranded assets due to stricter
climate policies and technological developments driving the transition to a low-carbon economy (seeClimate adaptation and resilience). The transition is expected to result in significant reductions in coalmining, making communities and countries that depend on the sector’s revenues or employment
vulnerable to resulting economic downturn. In these cases, collaboration between local and national
governments and organizations in the coal sector is essential to ensure a just transition.

Page 37 of 81

749

What to report

750
751

If an organization in the coal sector has identified economic impacts as a material topic, this section
helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Managementof material topics

Describe the organization’s approach toproviding local procurement andemployment opportunities, including
training programs.

Topic Standards disclosures
GRI 201: Economic
Performance 2016

Disclosure 201-1 Direct
economic value generated
and distributed

GRI 202: Market
Presence 2016

Disclosure 202-1 Ratios ofstandard entry level wage by
gender compared to local
minimum wage

Report direct economic value generated
and distributed by project.

Disclosure 202-2 Proportionof senior management hiredfrom the local community
GRI 203: Indirect
Economic Impacts
2016

Disclosure 203-1
Infrastructure investments andservices supported
Disclosure 203-2 Significant
indirect economic impacts

GRI 204:
Procurement
Practices 2016

Disclosure 204-1 Proportionof spending on local suppliers

752

Resources and references

753
754

GRI 201: Economic Performance 2016 and GRI 202: Market Presence 2016 list authoritativeintergovernmental instruments and other sources relevant to reporting on this topic.

755
756
757

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 38 of 81

758

2.9 Local communities

759
760
761
762
763

Local communities can comprise individuals or groups of individuals living and/or working inareas that are affected or that could be affected by an organization’s activities. An organization
is expected to conduct community engagement to understand the vulnerabilities of local
communities and how they might be affected by the organization's activities. This topic covers
socioeconomic, cultural, health, and human rights impacts on local communities.

764
765
766
767
768

Coal organizations can have positive impacts on local communities through employment, local
procurement, and local taxes (see also Economic impacts, Employment practices and Payments togovernments). Organizations in the sector can also benefit local communities through community
development programs and providing access to infrastructure and services, including access toenergy, if the services and infrastructure are designed with community needs in mind.

769
770
771
772
773

The coal sector’s activities can also lead to negative impacts on communities. For example, land use
requirements for activities or transportation and distribution of products, influxes of people seeking
employment and economic opportunities, environmental degradation, and use of natural resources for
sector activities can all cause negative impacts. Types and significance of impacts commonly
associated with the sector vary according to the characteristics and context of the local community.

774
775
776
777
778
779
780

Land use requirements can cause displacement and loss of access to land, water and other natural
resources (see Land and resource rights). Land use for coal mining can compete with other land
uses, such as farming, fishing, or recreation. Displacement can additionally impact human rights ofindividuals in local communities. The sector’s land use may also result in damage to cultural heritage
sites, which can lead to loss of culture, tradition, or cultural identity. Such damage especially affects
indigenous peoples. Decreased availability of resources can have more severe impacts on women,
who are often responsible for obtaining water, food, and fuel.

781
782
783
784
785
786
787
788
789
790

The arrival of workers from the surrounding areas or through a fly-in-fly-out work approach during
construction or expansion of a coal mine might lead to greater economic inequality within the local
community. There may be an increase in activities that compromise social order, such as substanceabuse, gambling, and prostitution, specifically affecting vulnerable groups. The influx of predominantly
male migrant workers can also change the social dynamics of the local community. This impacts
women in particular, as it can lead to a rise in sexual violence and trafficking as well as sexuallytransmitted diseases (see also Rights of indigenous peoples). The sector has also been linked todomestic and gender-based violence, both on mining sites and in local communities. In-migration ofworkers can also introduce new communicable diseases and increase pressure on local services andresources.

791
792
793
794
795

Organizations can have further impacts on community health, safety, and well-being due to air, soil,
and water pollution; increased levels of noise and light; waste streams and leaks; and dust. Incidents,
such as explosions, fires, mine collapses, spills, and tailings dams failures, can threaten the safety of
local communities (see also Asset integrity and critical incident management). Increased traffic tooperational sites can pose additional road accident hazards.

796
797

When operating in areas of pre-existing conflict or where negative impacts from coal activities are left
unattended, conflicts can arise or become exacerbated (see also Conflict and security).

798
799
800
801

Effective local community engagement can contribute to better management of the social impacts ofcoal projects. If organizations in the coal sector overlook or poorly execute such engagement,
community concerns might not be understood or addressed, which can exacerbate existing impacts
or create new ones.

Page 39 of 81

802

What to report

803
804

If an organization in the coal sector has identified local communities as a material topic, this section
helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Managementof material topics-

Describe the means for identifying andengaging with local communities.

-

List the vulnerable groups that theorganization has identified.

-

List any collective or individual rightsthat the organization has identified to
be of particular concern to the local
communities.

Note: These recommendations are basedon the guidance to clause 1.1 in GRI 413:
Local Communities 2016.
Topic Standards disclosures
GRI 413: Local
Communities 2016

Disclosure 413-1 Operations
with local community
engagement, impact
assessments, anddevelopment programs
Disclosure 413-2 Operations
with significant actual andpotential negative impacts on
local communities

Describe significant impacts on the healthof local communities as a result of exposure
to pollution caused by the organization’s
operations or use of hazardous substances.

Additional sector disclosures
Report the number and description of disputes from local communities, including actions taken andoutcomes of the actions.
805

Resources and references

806
807

GRI 413: Local Communities 2016 lists authoritative intergovernmental instruments and other sources
relevant to reporting on this topic.

808
809
810

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 40 of 81811

2.10 Land and resource rights

812
813
814
815
816

Land and resource rights encompass the rights to use, manage and control land, fisheries,
forests, and other natural resources. Organizations can have impacts on the availability andaccessibility of these to local communities and other users. This topic covers impacts from anorganization’s use of land and natural resources on human rights and tenure rights, includingfrom resettlement of local communities.

817
818
819
820
821
822

Coal operations require access to land for prospecting, exploration, mining, coal and waste storage,
processing, transportation, and distribution of products. This can sometimes lead to displacement ofother land users, restricted access to resources and services, and resettlement. Impacts from land
use vary according to methods of extraction, resource location, processing required, andtransportation methods. For example, displacement is more often associated with open-pit mining
than underground coal mining.

823
824
825
826
827
828
829
830

Unclear rules regarding tenure rights to access, use, and control land often cause disputes, economic
and social tensions, and conflict. Insufficient consultation with, and inadequate compensation to,affected communities can also exacerbate tensions and conflict. For example, the relationshipbetween subsurface (i.e., mineral) rights and surface (i.e., land) rights might be unclear; formal
statutory tenure rules might overlap or conflict with traditional customary rules; legitimate rights may
not be recognized or enforced; or people may lack formal documentation of their rights to land.
Community consultations may also fail to include all affected members. Women, for example, areoften excluded from decision-making processes related to the development a new project.

831
832
833
834
835
836
837

Organizations may provide local communities with monetary compensation or land that is equivalent
to lost assets. However, determining the value of local communities’ lost access to the naturalenvironment is complex. It requires considerations of income-generating activities, human health, andnon-material aspects of quality of life. The amount of compensation provided may therefore not be
equivalent to the loss suffered. In some cases, customary titleholders to the land may not becompensated at all or may only be compensated for crops they were cultivating on the land rather
than also for the land itself.

838
839
840
841
842
843
844

Involuntary resettlement of local communities can have impacts on people’s livelihoods and humanrights. These impacts can be exacerbated for vulnerable groups. Involuntary resettlement can involve
physical displacement (e.g., relocation or shelter loss) and economic displacement (e.g., loss oraccess to assets). Involuntary resettlement typically requires more extensive engagement between
organizations and local communities. Impacts of resettling communities can be exacerbated by aflawed process or lack of transparency, for example, in the absence of free, prior, and informed
consent (FPIC), specifically for indigenous peoples.

845
846
847

Community members resisting resettlement can also face threats and intimidation, as well as violent,
repressive, or life-threatening removal from lands by security forces or government agents (see also
Conflict and security).

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848

What to report

849
850

If an organization in the coal sector has identified land and resource rights as a material topic, thissection helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3
Management of material
topicsDescribe how the organization seeks to ensure
meaningful engagement with vulnerable
groups, including how it ensures safe andequal gender participation.
Note: This recommendation is related to SE-1
Approach to stakeholder engagement. If theinformation reported by the organization in SE1 describes how it seeks to ensure meaningful
engagement with vulnerable groups, theorganization can provide a reference to thisinformation.

Topic Standards disclosures
GRI 413: Local
Communities 2016

Disclosure 413-1
Operations with local
community engagement,
impact assessments, anddevelopment programs
Disclosure 413-2
Operations with significant
actual and potential
negative impacts on local
communities-

Report the locations of operations or
facilities which necessitated involuntary
resettlement or where such resettlement isongoing. For each location, describe how
peoples’ livelihoods and human rights
were affected as a result of theresettlement, and any remedy provided.
(For example, describe the impacts on
people’s customary rights, cultural rights,
and access to economic resources andservices as a result of the resettlement,
and any remedy provided.)-

Describe the process for providing
remediation to local communities subject
to involuntary resettlement, such as theprocess for establishing compensation forloss of assets or other assistance toimprove or restore standards of living or
livelihoods.

851

Resources and references

852
853

GRI 413: Local Communities 2016 lists authoritative intergovernmental instruments and other sources
relevant to reporting on this topic.

854
855
856

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 42 of 81

857

2.11 Rights of indigenous peoples

858
859
860
861
862

Indigenous peoples are considered a vulnerable group that could experience negative impacts
as a result of an organization’s activities more severely than the general population.
Indigenous peoples have both collective and individual rights, as set out in United Nations
Declaration on the Rights of Indigenous Peoples and other international human rights
instruments. This topic covers impacts on the rights of indigenous peoples.

863
864
865
866
867
868
869
870
871

The coal sector can have impacts on indigenous peoples that are often connected with sociocultural
factors, such as their cultural heritage and special relationship with land. Development of coal
activities can present positive economic impacts through, for example, employment opportunities andcommunity development programs but the sector’s activities can also disrupt indigenous peoples’
cultural, spiritual, and economic ties to their lands or natural environments, compromise their rights
and well-being, and cause displacement (see also Land and resource rights). Availability of andaccess to water, as a key concern for indigenous communities, can also be impacted. Considering
many indigenous peoples’ distinct relationship with and dependence on nature, the sector’s role as amajor contributor to climate change exacerbates impacts on the environment.

872
873
874
875
876
877
878
879
880
881
882
883
884
885

The collective and individual rights of indigenous peoples are recognized in international instruments.
Indigenous peoples also often have a special legal status in national legislation, and/or can becustomary or legal owners of lands to which organizations in the coal sector are granted use rights bygovernments. As such, before initiating development projects that require resettlement or havepotential impacts on lands or resources used or owned by indigenous peoples, organizations are
expected to seek free, prior, and informed consent (FPIC) from indigenous peoples. This right isrecognized in the United Nations Declaration on the Rights of Indigenous Peoples and allows
indigenous peoples to give or withhold consent to a project that may affect them or their territories aswell as to negotiate project conditions. However, some national governments might not recognize or
enforce indigenous land rights or indigenous peoples’ rights to consent. Documented cases show
absence of good faith consultations as well as undue pressure and harassment toward indigenous
peoples to accept projects; opposition to such projects has in some cases led to violence and death(see also Conflict and security). Organizations in the coal sector and indigenous peoples regularly
have disputes and conflicts over land ownership and rights.

886
887
888
889
890

The sector can further undermine social cohesion, welfare, and safety of indigenous communities
through tension created by the influx of foreign workers, risks of prostitution and forced labor, violenceagainst women, and increased exposure to communicable diseases (see also Local communities).
Negative socioeconomic impacts from coal mining projects often affect indigenous women more than
men.

891

What to report

892
893

If an organization in the coal sector has identified rights of indigenous peoples as a material topic, thissection helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Managementof material topics

Describe the mutually accepted process toincorporate the right to free, prior, andinformed consent (FPIC) and other rights as
set out in the United Nations Declaration on
the Rights of Indigenous Peoples and theInternational Labour Organization
Convention 169 ‘Indigenous and Tribal
Peoples’.

Page 43 of 81

Describe how the organization seeks toensure meaningful engagement withindigenous peoples, including how it
ensures safe and equal genderparticipation.
Note: this recommendation is related to SE1 Approach to stakeholder engagement. If
the information reported by the organizationin SE-1 describes the means for ensuring
equal and safe gender participation, theorganization can provide a reference to thisinformation.
Topic Standards disclosures
GRI 411: Rights ofIndigenous Peoples
2016

Disclosure 411-1 Incidents ofviolations involving rights ofindigenous peoples

GRI 413: Local
Communities 2016

Disclosure 413-1 Operations
with local community
engagement, impact
assessments, anddevelopment programs

Describe the process for identifying andimplementing community development
programs for indigenous peoples, such asproviding training and access to jobs,
providing supply opportunities and benefitsharing contracts, or implementing an
indigenous employment strategy.

Disclosure 413-2 Operations
with significant actual andpotential negative impacts on
local communities

List the locations of operations whereindigenous peoples are present or affectedby ongoing coal activities.

894

Resources and references

895
896

GRI 411: Rights of Indigenous Peoples 2016 and GRI 413: Local Communities 2016 list authoritativeintergovernmental instruments and other sources relevant to reporting on this topic.

897
898
899

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 44 of 81

900

2.12 Conflict and security

901
902
903
904
905

An organization’s activities may trigger conflict, or they may be located in areas facing conflictsituations. An organization’s use of security personnel or reliance on national security forcesin conflict situations can have negative impacts and needs to be carefully managed to ensurethat the human rights of local communities and other third parties are respected. This topic
covers the organization's security practices and its approach to operating in areas of conflict.

906
907
908

Many organizations in the coal sector operate in regions and situations of conflict. Pre-existing
conflicts are common when, for example, organizations operate in countries characterized by politicaland social instability. The risk of human rights abuses is heightened in areas of conflict.

909
910
911
912
913
914
915

Conflict can also be caused by the presence of coal activities. These conflicts can be triggered bypoor engagement with or exclusion of local communities and indigenous peoples from decisionmaking processes; uneven distribution of economic benefits; negative impacts, such as environmental
pollution or reduced access to resources seen as disproportionate to the benefits received; ordisputes over use of scarce resources. Conflict can also be triggered by mismanagement of coalrelated revenues by public officials for individual gains at the expense of local interests (see also Anticorruption).

916
917
918
919
920

Organizations in the coal sector may use security personnel to protect their assets or ensure theirworkers’ safety. Security personnel may take action against community members, including when
they are protesting projects or protecting their lands. These actions can violate human rights, such as
rights to freedom of association and freedom of speech, as well as lead to violence, injuries, ordeaths. Security contractors may also be connected to military or paramilitary groups.

921
922
923
924
925
926

Security may be provided by host government police or military forces. In such cases, organizations in
the coal sector might be involved with negative human rights impacts as a result of their business
relationships with these military and security forces, over whose actions they have limited control.
When coal projects are endorsed by local governments but remain disagreeable to local communities,
the use of private military or security forces may increase tensions and exacerbate the power
imbalance between companies and local communities.

927
928
929
930
931

Effectively addressing such negative impacts involves assessing security risks, which includes
engaging with stakeholders, and working with security providers to ensure human rights arerespected. This may also help organizations improve safety and security in local communities
through, for example, facilitating communication between government security forces and local
communities and supporting efforts to address other sources of conflict.

Page 45 of 81

932

What to report

933
934

If an organization in the coal sector has identified conflict and security as a material topic, this section
helps it determine what to report on this topic.
Standard

Disclosure

Additional sector
recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management ofmaterial topics

List the organization’s significant
operations in areas of conflict.

Topic Standards disclosures
GRI 410: Security
Practices 2016

Disclosure 410-1 Security personnel
trained in human rights policies orprocedures

935

Resources and references

936
937

GRI 410: Security Practices 2016 lists authoritative intergovernmental instruments and other sources
relevant to reporting on this topic.

938
939
940

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 46 of 81

941

2.13 Asset integrity and critical incident management

942
943
944
945

Asset integrity and critical incident management deal with prevention and control of incidents
that can lead to fatalities, injuries or ill health, environmental impacts, and damage tocommunities and infrastructure. This topic covers impacts from such incidents and anorganization’s approach to critical incident management.

946
947
948
949
950
951

Critical incidents in the coal sector can have catastrophic consequences on workers, local
communities, and the environment, as well as cause damage to the organization’s assets. In addition
to fatalities and injuries, these incidents can cause economic loss, conflict, threats to livelihoods,
compromised food safety and security, social disruption, cultural erosion, litigation stress,
environmental degradation, and direct species mortality. Incidents that cause methane and other
GHG emissions, such as gas and coal dust explosions, also contribute to climate change.

952
953
954
955
956

Critical incidents related to coal mining include mine collapses, poisonous gas leaks, dust explosions,stope collapses, fires, mining-induced seismicity, floods, vehicle collisions, and mechanical errors due
to improperly operated or malfunctioning equipment (see also Occupational health and safety). Coalfires can release fly ash and smoke containing GHG emissions and toxic chemicals that can enter
food chains.

957
958
959
960
961
962

Other critical incidents involve failures related to tailings management. Poor management or design oftailing facilities can lead to leaks or collapses, with severe impacts on local communities, livelihoods,
infrastructure, and the environment. Failures can be due to poor water management, overtopping,foundation or drainage failure, erosion, and earthquakes. Impacts become more severe when tailings
also contain high levels of bioavailable metals or hazardous chemicals. Incidents related to spills andleaks of coal slurry ponds and tailings pipelines can also cause significant damage.

963
964
965
966
967
968
969

Critical incident risks can be identified and anticipated through implementation of a critical control
management approach, which addresses the sources or factors likeliest to lead to potential incidents.
Organizations can mitigate their impacts through measures that ensure emergency preparedness andresponse. This includes effective communication with local communities to mitigate exposure topollution and other impacts during emergencies (see also Local communities). Effective critical control
management can also limit impacts associated with natural calamities and extreme weather events,
which are likely to increase in frequency and intensity due to climate change.

970

What to report

971
972

If an organization in the coal sector has identified asset integrity and critical incident management asa material topic, this section helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3
Management of material
topics-Report whether the organization
complies with the Global Industry
Standard on Tailings Management(GISTM) and, if so, provide a link to thelatest information disclosed in line with
GISTM Principle 15.

-

Describe the actions taken to:o manage impacts from tailings
facilities throughout the lifecycle,
including closure and post-closure;

Page 47 of 81

oprevent catastrophic failures oftailings facilities.17

Topic Standards disclosures
GRI 306: Effluentsand waste 2016

Disclosure 306-3 Significant
spillsAdditional sector disclosures-

List the organization’s tailings facilities.
For each tailings facility, report the following information:• description of the tailings facility;• operational status (active, inactive, closed, etc.);• Dam Failure Consequence Classiﬁcation, in line with the GISTM;• date and main findings from the latest risk assessment.

Note: If the organization has already reported this information as specified in the additional sector
recommendation to MT-3 listed above, the organization can provide a reference to this information.
Describe the organization’s emergency preparedness and response programs and plans.
973

Resources and references

974
975

GRI 306: Effluents and Waste 2016 lists authoritative intergovernmental instruments and othersources relevant to reporting on this topic.

976
977
978

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

17

The terms ‘tailings facility’ and ‘catastrophic failure’ are so defined in ICMM, UNDP, PRI, The Global Industry Standard on
Tailings Management, 2020.

Page 48 of 81

979

2.14 Occupational health and safety

980
981
982

Healthy and safe working conditions are recognized as a human right. Occupational healthand safety involves prevention of physical and mental harm to workers and promotion ofworkers’ health. This topic covers impacts related to workers’ health and safety.

983
984
985
986
987

Many of the work-related hazards in the coal sector are associated with key processes in explorationand mining phases, such as working with heavy machinery and exposure to or handling of explosive,
flammable, poisonous, or harmful substances. Despite the sector’s efforts to eliminate work-related
hazards and improve safety, exposure to these hazards has resulted in higher fatality rates than inmany other sectors.

988
989
990
991
992

Other hazards to workers’ health and safety can result from working in confined spaces or isolated
locations, long working hours, and the type of physical, often repetitive, labor involved. Work-related
hazards vary according to the extraction method. For example, workers in underground mines can be
exposed to more health and safety risks due to challenging working conditions and confinedenvironments.

993
994
995
996
997
998

The coal sector extensively uses suppliers to perform what can amount to major parts of projects.
Suppliers are often subject to lower occupational health and safety standards than employees.
Suppliers can also have higher accident and fatality rates, which can be due to suppliers undertaking
the most dangerous jobs. They might also not be covered by the coal organization’s occupational
health and safety management system, be less familiar with the workplace and the organization’s
safety practices, or be less committed to those practices.

999
1000
1001
1002
1003
1004
1005

Hazards associated with the coal sector with a potential to result in injury include transportation
incidents, which are a common source of fatalities and injuries. These can occur when workers andequipment are transported to and from mining sites, sometimes over long distances along dangerous
routes. Fires and explosions are another major hazard (see also Asset integrity and critical incident
management), which can originate from coal dust and flammable gases, such as methane during coal
extraction, transportation, and processing. Electrical hazards can be associated with high-voltage
systems or equipment used in mining sites.

1006
1007
1008
1009
1010

Incidents categorized as ‘struck-by’, ‘caught-in’, or ‘caught-between’ can involve falling equipment or
structures, faulty operation of heavy machinery, or malfunctioning of electrical, hydraulic, or
mechanical installations. Workers can also be at risk of falls, slips, and trips, such as when workers
access working areas or equipment located high above the ground or via underground walkways,
which can be obstructed, wet, or sloped.

1011
1012
1013
1014
1015
1016
1017

Hazards associated with the sector with a potential to result in ill health include exposure to airborne
respirable dust, which can lead to obstructive or debilitating lung illnesses such as asthma, cancer,
and pneumoconiosis. Free crystalline silica released during processes that use or produce sand, suchas coal extraction, can cause lung cancer and silicosis. Coal dusts are also associated with coal
workers’ pneumoconiosis. In addition, exposure to hydrogen sulfide released by coal seams can leadto incapacitation or death. Concentration of gases such as carbon monoxide, methane, and nitrogenin confined spaces can create poisonous environments, which can lead to asphyxiation.

1018
1019
1020
1021

Physical hazards in the sector include extreme temperatures, which can cause fatigue and bodystress reactions, as well as harmful levels of carcinogenic radiation from industrial processing andharmful levels of machinery noise. Workers can also suffer impaired hearing and musculoskeletal
disorders due to ergonomic-related hazards, such as vibration.

1022
1023
1024

Biological hazards faced by many coal workers include exposure to viruses present in the local
community that cause communicable diseases or bacteria as a result of poor hygiene and quality ofwater or food.

1025
1026
1027
1028
1029
1030
1031

Hazards related to work organization and psychosocial well-being due to common employment
practices in the sector, such as the use of fly-in-fly-out work organization, can increase risks offatigue, strain, or stress, and affect physical, psychological, and social health. These hazards include
expatriation, rotational work, long shifts, irregular or odd working hours, and work that is solitary or
monotonous. Workers can also suffer psychological reactions, such as post-traumatic stress disorderdue to, for example, being involved in a major incident. Gender imbalance can contribute to stress,
discrimination, or sexual harassment (see also Non-discrimination and equal opportunity).

Page 49 of 81

1032

What to report

1033
1034

If an organization in the coal sector has identified occupational health and safety as a material topic,
this section helps it determine what to report on this topic.
Standard

Disclosure

Additional sector
recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management ofmaterial topics

Topic Standards disclosures
GRI 403: Occupational
Health and Safety 2018

Disclosure 403-1 Occupational healthand safety management system
Disclosure 403-2 Hazard identification,risk assessment, and incident
investigation
Disclosure 403-3 Occupational healthservices
Disclosure 403-4 Worker participation,
consultation, and communication on
occupational health and safety
Disclosure 403-5 Worker training on
occupational health and safety
Disclosure 403-6 Promotion of worker
healthDisclosure 403-7 Prevention andmitigation of occupational health andsafety impacts directly linked bybusiness relationships
Disclosure 403-8 Workers covered byan occupational health and safety
management system
Disclosure 403-9 Work-related injuries
Disclosure 403-10 Work-related illhealth1035

Resources and references

1036
1037

GRI 403: Occupational Health and Safety 2018 lists authoritative intergovernmental instruments andother sources relevant to reporting on this topic.

1038
1039
1040

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 50 of 81

1041

2.15 Employment practices

1042
1043
1044

Employment practices refer to an organization’s approach to job creation, terms of
employment and working conditions for its workers. This topic also covers the employment
and working conditions in an organization’s supply chain.

1045
1046
1047
1048
1049

Employment opportunities generated by the coal sector, either directly or through suppliers, can havepositive socioeconomic impacts on communities, countries, and regions. The sector can offer wellpaid opportunities for skilled workers. However, employment practices in the sector are also
associated with a number of negative impacts related to working conditions, use of contract labor anddisparities in working conditions, inadequate labor-management consultations, and job security.

1050
1051
1052
1053
1054
1055

Many jobs in the sector have rigorous shift patterns to ensure continuity of operations around theclock, sometimes requiring overtime employment and night shifts, which can cause high fatigue levels
and augment risks related to occupational health and safety and critical incidents. An organization canalso use fly-in-fly-out work arrangements, in which workers are flown to the site of operations for anumber of weeks at a time and often required to work extended shifts. Irregular work shifts andschedules and time spent away from families can have further psychosocial impacts on workers.

1056
1057
1058
1059
1060
1061

Various activities are commonly outsourced to suppliers. This is prevalent during peak periods, suchas construction or maintenance works, or for specific activities, such as drilling, catering,transportation, and security. By outsourcing activities and using workers employed through suppliers,
organizations in the coal sector may seek to reduce their labor costs and circumvent collective
agreements that would otherwise benefit workers in direct employment (see also Freedom of
association and collective bargaining).

1062
1063
1064
1065
1066
1067
1068

Compared to employees workers who have an employment relationship with the organization, agency
workers commonly receive less favorable employment conditions, lower compensation, and lesstraining. They also have higher accident rates and less job security than directly employed workers.
They might lack social protection and access to grievance mechanisms. Workers beyond the first tiersof business relationships in the organization’s supply chain may be subject to low standards forworking conditions, exposing organizations in the coal sector human rights violations through theirbusiness relationships (see also Forced labor and modern slavery).

1069
1070
1071
1072
1073
1074

Employment terms can also vary significantly for local workers, expatriates (e.g., temporary coal
workers who are brought in by employers), migrant workers, and contractors. Remuneration might beunequal, and benefits, such as bonuses, housing allowances, and private insurance plans, might only
be offered to expatriates. Lack of relevant skills, knowledge, or accessible training programs canrestrict local communities from accessing employment opportunities created by the sector in the firstplace (see also Economic impacts).

1075
1076
1077
1078
1079
1080

Job security is another concern the coal sector faces. For example, closures (see Closure andrehabilitation) or coal price drops can be sudden, leading to job losses. Low job security iscompounded by automation and changing business models, such as changes triggered by thetransition to a low-carbon economy. If organizations fail to offer workers timely skills development
measures, improving their employability in other sectors, they can face underemployment or
unemployment.

Page 51 of 81

1081

What to report

1082
1083

If an organization in the coal sector has identified employment practices as a material topic, thissection helps it determine what to report on this topic.
Standard

Disclosure

Additional sector
recommendations

Management of the topic
GRI 103: Material Topics

Disclosure MT-3 Management ofmaterial topics

Topic Standards disclosures
GRI 401: Employment
2016

Disclosure 401-1 New employee
hires and employee turnover
Disclosure 401-2 Benefits provided
to full-time employees that are notprovided to temporary or part-time
employees
Disclosure 401-3 Parental leave

GRI 402:
Labor/Management
Relations 2016

Disclosure 402-1 Minimum notice
periods regarding operationalchanges

GRI 404: Training and
Education 2016

Disclosure 404-1 Average hours of
training per year per employee
Disclosure 404-2 Programs for
upgrading employee skills andtransition assistance programs

GRI 414: Supplier Social
Assessment 2016

Disclosure 414-1 New suppliers
that were screened using social
criteria
Disclosure 414-2 Negative social
impacts in the supply chain andactions taken

1084

Resources and references

1085
1086
1087

GRI 401: Employment 2016, GRI 402: Labor/Management Relations 2016, GRI 404: Training and
Education 2016, and GRI 414: Supplier Social Assessment 2016 list authoritative intergovernmental
instruments and other sources relevant to reporting on this topic.

1088
1089
1090

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 52 of 811091

2.16 Child labor

1092
1093
1094

Child labor is defined as work that ‘deprives children of their childhood, their potential andtheir dignity, and that is harmful to their physical or mental development including byinterfering with their education'. Freedom from child labor is a fundamental human right.

1095
1096
1097

Around one million children between ages five and 17 are estimated to be engaged in artisanal andsmall-scale mining and quarrying activities.18 Coal is identified as produced with the use of child labor
in several countries, including Afghanistan, Colombia, Mongolia, Pakistan and Ukraine.19

1098
1099
1100
1101
1102

Coal mining activities are dangerous to children in various ways. Children face multiple hazards incoal mines, such as severe accidents and injuries, falling rocks, explosions, fires, and collapse ofmine walls (see also Occupational health and safety). Other impacts can result from working inremote areas with limited access to schools and social services. If there is no family or community
support, the conditions may also foster alcohol abuse, drugs, and prostitution.

1103
1104
1105
1106
1107
1108

Coal organizations interact with a high number of suppliers and customers, including in countries withlow enforcement of human rights. Organizations can be linked to child labor by business relationships
in their supply chains, such as during facilities construction. Risks of child labor in the coal sector areoften found in artisanal and small-scale mining, with more prevalence in the informal sector andremote areas. Child labor is also more frequent in areas affected by armed conflict (see also Conflictand security).

1109
1110
1111
1112

Other impacts on children’s rights and well-being can result from the coal sector’s impacts on the local
communities as well as from organization’s employment practices. These can include parents’working conditions, long hours, shift work, and fly-in-fly-out practices (see also Employment
practices).

1113

What to report

1114
1115

If an organization in the coal sector has identified child labor as a material topic, this section helps it
determine what to report on this topic.
Standard

Disclosure

Additional sector
recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management ofmaterial topics

Topic Standards disclosures
GRI 408: Child labor
2016

Disclosure 408-1 Operations andsuppliers at significant risk forincidents of child labor

18

UNICEF, Children’s rights and the mining sector, 2015; International Labour Organisation (ILO), Global Estimates of Child
Labour – Results and Trends 2012-2016, 2017.
19
U.S. Department of Labor, 2020 List of Goods Produced by Child Labor or Forced Labor, 2020.

Page 53 of 81

GRI 414: SupplierSocial Assessment
2016

Disclosure 414-1 New suppliers thatwere screened using social criteria

Note: This disclosure is also listed in
2.15 Employment practices. If theorganization has identified
employment practices as a material
topic and has already reported thisdisclosure, the organization can
provide a reference to thisinformation.
1116

Resources and references

1117
1118

GRI 408: Child labor 2016 and GRI 414: Supplier Social Assessment 2016 list authoritativeintergovernmental instruments and other sources relevant to reporting on this topic.

1119
1120
1121

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 54 of 81

1122

2.17 Forced labor and modern slavery

1123
1124
1125
1126

Forced labor is work or service which is exacted under the menace of penalty and for which aperson has not offered themselves voluntarily. Freedom from forced labor is a fundamental
right at work. This topic covers impacts and expectations of organizations in relation to forcedlabor and modern slavery.

1127
1128
1129
1130
1131
1132

Coal has been identified as a product at risk of being produced by forced labor or modern slavery inseveral countries, including North Korea, Pakistan, and China.20 Organizations in the coal sector
interact with a large number of suppliers, including in countries characterized by low rates ofenforcement of human rights. This can increase the likelihood of using suppliers that do not adhere torights at work or relevant codes of conduct, leaving supply chains vulnerable to human rights
violations, including incidences of modern slavery.

1133
1134
1135

Coal organizations can contribute to occurrences of modern slavery through joint ventures and otherbusiness relationships, including state-owned enterprises in countries where regular human rights
standards violations occur.

1136
1137
1138
1139
1140

Documented cases of human rights violations throughout the supply chain concern activities such ascoal shipping and construction. Low-skilled migrant workers can also face higher risks of modern
slavery when dealing with third-party employment agencies, such as those who have been found to
overcharge workers for visas and flights or to demand recruitment costs be paid by employees rather
than employers.

1141

What to report

1142
1143

If an organization in the coal sector has identified forced labor and modern slavery as a material topic,
this section helps it determine what to report on this topic.
Standard

Disclosure

Additional sector
recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management ofmaterial topics

Topic Standards disclosures
GRI 409: Forced orCompulsory Labor
2016

Disclosure 409-1 Operations andsuppliers at significant risk for incidents
of forced or compulsory labor

20

United States Department of Labor, 2020 List of Goods Produced by Child Labor or Forced Labor, 2020; Walk Free
Foundation, The Global Slavery Index 2018, 2018.

Page 55 of 81

GRI 414: SupplierSocial Assessment
2016

Disclosure 414-1 New suppliers thatwere screened using social criteria
Note: This disclosure is also listed in
2.15 Employment practices. If theorganization has identified employment
practices as a material topic and has
already reported this disclosure, theorganization can provide a reference tothis information.

1144

Resources and references

1145
1146

GRI 409: Forced or Compulsory labor 2016 and GRI 414: Supplier Social Assessment 2016 list
authoritative intergovernmental instruments and other sources relevant to reporting on this topic.

1147
1148
1149

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 56 of 81

1150

2.18 Non-discrimination and equal opportunity

1151
1152
1153
1154

Freedom from discrimination is a human right and a fundamental right at work. Discrimination
can impose unequal burdens on individuals or deny them opportunities instead of treatingthem fairly and on the basis of individual merit. This topic covers impacts from discriminationand practices related to diversity, inclusion, and equal opportunity.

1155
1156
1157
1158

The conditions, locations, and types of work associated with the coal sector can set a barrier for entry
to the sector, hinder employee diversity, and result in discrimination. Discriminatory practices can
impede access to jobs and career development, as well as lead to unequal treatment, remuneration,and benefits.

1159
1160
1161
1162
1163
1164

Discrimination has been documented in the coal sector concerning race, color, sex, gender, religion,
national extraction, and worker status. For example, jobseekers from local communities are
sometimes excluded from the hiring process because of a recruitment system bias that favors adominant ethnic group or utilizes expatriate workers. Compared to expatriates, local workers might
receive significantly lower pay for equal work. The sector’s widespread use of contract workers, oftenwith differing terms of employment, can also be a source of discrimination.

1165
1166
1167
1168
1169
1170
1171
1172
1173
1174

The coal sector is characterized by a significant gender imbalance. In many countries, the percentageof women working in this sector is significantly lower than the proportion of women working in othersectors. Women are also significantly underrepresented in senior management positions. One of thecauses of this imbalance is that fewer women graduate with degrees pertinent to the sector, such as
in science, technology, engineering, and mathematics. Other barriers for women and primary
caregivers include lack of parental leave arrangements and childcare facilities at mining sites, longwork hours, and fly-in-fly-out work arrangements. Social or cultural customs and beliefs and biases
can also limit women’s access to jobs in this sector or prevent them from taking on specific roles. In
addition, some resource-rich countries have laws that prevent women from working in hazardous or
arduous occupations.

1175
1176
1177
1178

The coal sector has also been linked to domestic and gender-based violence, both at sites ofoperation and within local communities near operations. Male-dominated cultures, imbalanced gender
distribution, and gendered organizational norms have been identified as factors that contribute to thelikelihood of sexual harassment in such contexts.

1179
1180
1181
1182

Understanding how specific groups may be subject to discrimination in the different locations wherean organization operates can help the organization in effectively addressing discriminatory practices,for example, by providing specific training to workers on how to prevent discrimination and create arespectful workplace.

1183

What to report

1184
1185

If an organization in the coal sector has identified non-discrimination and equal opportunity as amaterial topic, this section helps it determine what to report on this topic.
Standard

Disclosure

Additional sector
recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management ofmaterial topics

Page 57 of 81

Topic Standards disclosures
GRI 202: Market
Presence 2016

Disclosure 202-1 Ratios of standard
entry level wage by gender comparedto local minimum wage
Note: This disclosure is also listed in
2.8 Economic impacts. If theorganization has identified economic
impacts as a material topic and has
already reported this disclosure, theorganization can provide a reference tothis information.
Disclosure 202-2 Proportion of senior
management hired from the local
community
Same note as above applies.

GRI 401: Employment
2016

Disclosure 401-3 Parental leave

GRI 404: Training and
Education 2016

Disclosure 404-1 Average hours of
training per year per employee

Note: This disclosure is also listed in
2.15 Employment practices. If theorganization has identified employment
practices as a material topic and has
already reported this disclosure, theorganization can provide a reference tothis information.

Same note as above applies.
GRI 405: Diversity andequal opportunity 2016

Disclosure 405-1 Diversity of
governance bodies and employees
Disclosure 405-2 Ratio of basic salaryand remuneration of women to men

GRI 406: Nondiscrimination 2016

Disclosure 406-1 Incidents of
discrimination and corrective actions
taken

1186

Resources and references

1187
1188
1189

GRI 401: Employment 2016, GRI 404: Training and Education 2016, GRI 405: Diversity and equal
opportunity 2016, and GRI 406: Non-discrimination 2016 list authoritative intergovernmental
instruments and other sources relevant to reporting on this topic.

1190
1191
1192

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 58 of 81

1193

2.19 Freedom of association and collective bargaining

1194
1195
1196
1197
1198

Freedom of association and collective bargaining are fundamental rights at work. They include
the rights of employers and workers to form, join, and run their own organizations without
prior authorization or interference, and to collectively negotiate working conditions and termsof employment. This topic covers impacts resulting from violations of freedom of associationand collective bargaining.

1199
1200
1201
1202

Workers’ rights to organize and to take collective action are essential for improving working conditionsin the coal sector, including conditions relating to occupational health and safety, wages, and job
security. These rights can also enable public scrutiny about the sector’s governance and practices,and help reduce social inequality.

1203
1204
1205
1206
1207
1208
1209

Many jobs associated with the sector have traditionally been represented by trade unions andcovered by collective bargaining agreements, which are negotiated by national, regional, or global
sectoral federations and associations. However, some coal resources are located in countries wherethese rights are restricted. Workers in such locations face risks when seeking to join trade unions andengage in collective bargaining. Even in countries where unions are legal, restrictions might exist thatprevent effective worker representation, and workers who join unions may face intimidation or unfair
treatment.

1210
1211
1212
1213
1214
1215

Documented cases of interference with freedom of association and collective bargaining include
detention of managers and employees; invasion of privacy; not adhering to collective agreements;
prevention of union access to workplaces in order to assist workers; refusal to bargain in good faithwith workers’ chosen unions; threats, harassment, forced disappearance, violence, and deaths; unfair
dismissal of trade union members and leaders; and unilateral cancellation of collective bargaining
agreements.

1216
1217
1218

Contract workers, who are widely used in these sectors, are often excluded from the scope ofcollective bargaining agreements, which can leave them with reduced benefits and worse working
conditions (see also Employment practices).

1219

Freedom of association and civic space

1220
1221
1222
1223
1224
1225

Freedom of association and peaceful assembly are fundamental human rights. These rights entailthat both workers, through their trade unions, as well as citizens, through independent civil society,have the freedom to speak about the sector’s policies and organizations’ practices without
interference. Restrictions imposed on civic space – the environment that enables civil society tocontribute to decisions that affect individual lives – can limit citizens’ ability to engage in public debate
about the sector’s policies and organizations’ practices.

Page 59 of 81

1226

What to report

1227
1228

If an organization in the coal sector has identified freedom of association and collective bargaining asa material topic, this section helps it determine what to report on this topic.
Standard

Disclosure

Additional sector
recommendations

Management of the topic
GRI 103: Material Topics

Disclosure MT-3 Management ofmaterial topics

Topic Standards disclosures
GRI 407: Freedom of
Association and Collective
Bargaining 2016

Disclosure 407-1 Operations andsuppliers in which the right tofreedom of association andcollective bargaining may be at risk

1229

Resources and references

1230
1231

GRI 407: Freedom of Association and Collective Bargaining 2016 lists authoritative intergovernmental
instruments and other sources relevant to reporting on this topic.

1232
1233
1234

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 60 of 81

1235

2.20 Anti-corruption

1236
1237
1238
1239
1240

Anti-corruption refers to how an organization manages the potential of being involved incorruption. Corruption refers to practices such as bribery, facilitation payments, fraud,
extortion, collusion, money laundering, and the offer or receipt of an inducement to dosomething that is dishonest or illegal. This topic covers impacts related to corruption and
expectations of organizations in relation to contract and ownership transparency.

1241
1242
1243
1244
1245

Corruption in the coal sector has been linked to various negative impacts, such as misallocation of
resource revenues, damage to the environment, abuse of democracy and human rights, and politicalinstability. Corruption can lead to diversion of resource revenues from public needs, such as
infrastructure or basic services, which can have severe impacts, especially in countries with highlevels of poverty. This can lead to increased inequalities and conflicts over coal resources.

1246
1247
1248
1249

Factors increasing the likelihood of involvement with corruption include frequent interaction between
coal organizations and politically exposed persons, such as government officials appointed to govern
a country’s natural resources for licenses and other regulations. The sector’s international reach alongwith complex transactions and flows of money can further enable corruption.

1250

Corruption in the coal sector can occur throughout the value chain, with practices that aim to:

1251
1252
1253
1254
1255
1256
1257
1258
1259
1260
1261
1262
1263
1264
1265
1266
1267
1268
1269

•
•
•

1270
1271
1272

To combat corruption and prevent the negative impacts that stem from it, organizations are expectedby the marketplace, international norms, and stakeholders to demonstrate their adherence to integrity,
governance, and responsible business practices.

1273
1274
1275
1276
1277
1278
1279
1280
1281
1282
1283
1284
1285

Transparency of contracts and ownership structures

•
•
•
•
•
•

influencing decision-making processes in order to extract resources;
avoiding environmental requirements;
shaping policies and rules; or influence protection of land rights and land access restrictions
affecting livelihoods of local communities and indigenous peoples;gaining preferential terms or license approvals;
gaining favorable treatment or confidential information in the bidding process for exploration andproduction rights; or for avoiding specific requirements, potentially resulting in awarding licenses
or contracts to less qualified organizations or securing contracts at inflated prices;
influencing environmental, social, and other regulations as well as enforcement of theseregulations, as they relate to impact assessment processes or consultation with local
communities;
incentivizing suppliers of equipment, products, and services to secure contracts by using bribes
and kickbacks to, for example, cover up fraud or to get a waiver of regulations or quality
requirements for products and services;
gaining favorable treatment in relation to taxes and other government levies, such as royalties
and import duties, to deny the state revenue, or to divert payments to private beneficiaries
instead;blocking unfavorable legislation, including environmental policies or pollution taxes (see also
Public policy and lobbying).

Publication of government contracts is a growing practice that is now an international norm in theextractive industries. The practice is endorsed by organizations such as the United Nations (UN),International Monetary Fund (IMF), International Finance Corporation (IFC), International Bar
Association, and the Organisation for Economic Co-operation and Development (OECD).
Contracts governing the extraction of oil and gas resources are commonly devised by governments
and organizations on behalf of citizens or local communities without public oversight. Due to the longterm horizons and widespread impacts of projects, fair terms for sharing risk and rewarding benefits,
including those related to a just transition, are particularly important. Contract transparency helps local
communities hold governments and organizations accountable for their negotiated terms andobligations. It also helps create a level playing field that enables governments to negotiate for better
deals.

Page 61 of 81

1286
1287
1288

Lack of transparency about ownership structures can make it difficult to determine who benefits fromfinancial transactions in the sector. Beneficial ownership transparency has been identified as asignificant opportunity to deter conflicts of interest, corruption, tax avoidance and evasion.

1289
1290
1291

Sources:International Monetary Fund (IMF), Fiscal Transparency Initiative: Integration of Natural Resource Management Issues, 2019.
Extractives Industry Transparency Initiative (EITI), Disclosing beneficial ownership – The key to fighting corruption, 2017.

1292

What to report

1293
1294

If an organization in the coal gas sector has identified anti-corruption as a material topic, this section
helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Managementof material topics

Topic Standards disclosures
GRI 205: Anticorruption 2016

Disclosure 205-1 Operations
assessed for risks related tocorruption
Disclosure 205-2
Communication and training
about anti-corruption policies
and procedures
Disclosure 205-3 Confirmed
incidents of corruption andactions taken

Additional sector disclosures
Describe the organization’s policy on contract transparency and provide a link to publicly available
contracts and licenses.
If a contract or a license is not publicly available, explain the reasons why and report any actions
taken by the organization to overcome any barriers to publication.
Note: This disclosure in based on EITI Standard 2019, Requirement 2.4.Contracts.
List the beneficial owners within the organization’s structure and explain how the organization
identifies the beneficial owners of business partners, including joint ventures and suppliers.
Note: This disclosure in based on EITI Standard 2019, Requirement 2.5. Beneficial ownership c. andf.
1295

Resources and references

1296
1297

GRI 205: Anti-corruption 2016 lists authoritative intergovernmental instruments and other sources
relevant to reporting on this topic.

1298
1299
1300

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 62 of 81

1301

2.21 Payments to governments

1302
1303
1304
1305

Lack of transparency about payments to governments can contribute to inefficientmanagement of public funds, illicit financial flows, and corruption. This topic covers impacts
from an organization's practices related to payments to governments, and expectations oforganizations in relation to transparency regarding such payments.

1306
1307
1308

Organizations in the coal sector deal with a large number of complex financial transactions subject toa variety of payments to governments. These include taxes; commodity trading revenues; production
rights; royalties; signature, discovery, and production bonuses; and other payments.

1309
1310
1311
1312
1313
1314

Transparency about payments to governments can demonstrate the economic importance of the coalsector to the host countries, and enable informed decision-making and public debate. Insufficienttransparency of these payments can impede detection of misallocation of revenues and corruption. In
the absence of contract transparency, transparency about taxes and other payments can offer
valuable insights into the terms of contracts and can help governments increase their accountability
and strengthen revenue collection and management.

1315
1316
1317
1318
1319
1320
1321
1322
1323
1324
1325

Taxes, royalties, and other payments from organizations in the coal sector can amount to an
important source of investment and income for local communities, countries, and regions (seeEconomic impacts). Coal organizations are often subject to paying royalties, along with widely
applicable taxes and payments to governments, for using natural resources. Royalties are obligations
to governments that are not based on corporate profits, but rather on amounts of the commodity
extracted. They are designed to guarantee governments an income from the non-renewable resourcethat is protected from transfer pricing and other mechanisms used by organizations to minimize taxes.
At the same time, the sector receives substantial subsidies from governments in many countries,
even despite government commitments to phase out financial support by 2018.21 Transparency about
the subsidies received can be of great value interest to some stakeholders, such as investors or civilsociety.

1326
1327
1328
1329
1330
1331
1332
1333

When disclosing information on payments to governments, organizations in the coal sector may reportaggregate payments at a global level. However, aggregated figures provide limited insight into
payments made in each country or per project. Reporting country-level or project-level payments
enables governments to compare the actual payments made to those stipulated in fiscal, legal, andcontractual terms and to assess the financial contribution of coal projects to communities. It can alsoenable tax authorities to address tax avoidance and evasion by revealing information on transfer
pricing arrangements and transactions. This can remove information asymmetry and provide a levelplaying field for governments when negotiating contracts.

1334

State-owned enterprises

1335
1336
1337

In some countries – China and India being notable examples – the largest producers of coal are stateowned enterprises (SOEs). As direct customers, SOEs are also highly relevant for the sector. Of all
power plants burning coal, 40% belong to SOEs; the figure rises to 56% if joint ventures are included.

1338
1339
1340

SOEs often have special status, which can involve financial advantages and preferential treatment.
By disclosing their transactions with SOEs, organizations in this sector can increase transparency
about payments to governments and help reduce risks of corruption.

21

In the European Union, subsidies to coal producers added up to €9.7 billion in 2012 (M. Blom et al., 'Subsidies and Costs of
EU Energy', 2014), and remained at similar levels in the following years (see S. Whitley et al.; Overseas Development Institute(ODI), 'Cutting Europe’s Lifelines to Coal: Tracking Subsidies in 10 Countries', 2017).

Page 63 of 81

1341

What to report

1342
1343

If an organization in the coal sector has identified payments to governments as a material topic, thissection helps it determine what to report on this topic.
Standard

Disclosure

Additional sector
recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management of material
topics

Topic Standards disclosures
GRI 201: Economic
Performance 2016

Disclosure 201-1 Direct economic value
generated and distributed
Note: This information is also listed in 2.8
Economic impacts. If the organization
has identified economic impacts as amaterial topic and has already reported
this disclosure, the organization can
provide a reference to this information.
Disclosure 201-4 Financial assistancereceived from government

For state-owned organizations,
report the financial relationshipbetween the government andthe SOE.
Note: This disclosure is basedon EITI Standard 2019
Requirement 2.6 State
participation.

GRI 207: Tax 2019

Disclosure 207-1 Approach to tax
Disclosure 207-2 Tax governance,
control, and risk management
Disclosure 207-3 Stakeholder
engagement and management ofconcerns related to tax
Disclosure 207-4 Country-by-country
reporting

Page 64 of 81

Additional sector disclosures
Report a breakdown of taxes and other payments to governments by revenue stream and project.
Note: This disclosure is based on EITI Standard 2019 Requirement 4.1 Comprehensive disclosure oftaxes and revenues and requirement 4.7. Level of disaggregation.
For coal purchased from the state, or from third parties appointed by the state to sell on their behalf,report:- the volumes and types of coal purchased;- the full names of the buying entity and of the recipient of the payment;- the value of payments made for the purchase.
Note: This disclosure is based on EITI Standard 2019 Requirement 4.2 Sale of the state’s share of
production or other revenues collected in kind and EITI Reporting Guidelines for companies buying
oil, gas and minerals from governments.
1344

Resources and references

1345
1346

GRI 201: Economic Performance 2016 and GRI 207: Tax 2019 list authoritative intergovernmental
instruments and other sources relevant to reporting on this topic.

1347
1348
1349

The additional intergovernmental instruments and references used to develop this topic description as
well as further resources that may be helpful for understanding and reporting on the topic by the coalsector are listed on in the Bibliography on page 69.

Page 65 of 81

1350

2.22 Public policy and lobbying

1351
1352
1353
1354
1355

An organization can participate in public policy development, directly or through anintermediary organization, by means of lobbying and making financial or in-kind contributions
to political parties, politicians, or causes. This topic covers an organization’s approach to
public policy participation, and the impacts that can result from the influence an organization
exerts in such participation.

1356
1357
1358
1359
1360

Lobbying by the coal sector can result in long-lasting impacts on the economy, environment, andpeople, including local communities. In regions where coal generates significant revenue forgovernments, organizations in the sector can have undue influence over public policy discussions.
Documented cases show how the sector has habitually donated to political parties whose policies
favor corporate agendas, or to gain special access to politicians.

1361
1362
1363
1364
1365
1366

The coal sector has actively lobbied against ambitious climate policies. These lobbying activities may
aim to safeguard existing jobs and the livelihoods of coal-mining areas, but also to prevent meaningfulcarbon pricing, carbon budgets, or other actions to reduce GHG emissions that could leave coalassets or resources stranded. These activities sometimes contradict publicly stated corporate
strategies or positions that support policies addressing climate change (see also Climate adaptation
and resilience).

1367
1368
1369
1370

Other lobbying activities by the sector include hindering environmental policies; blocking or amending
legislation on environmental and social assessments of projects or fair participation of all
stakeholders; overturning restrictions on resource development; and supporting the lowering ofcorporate taxes and resource royalties.

1371
1372
1373
1374
1375
1376

Lobbying can also be used to gain or retain government subsidies, which can result in commodity
prices that do not reflect the full environmental or social costs of products. Subsidies for the coalsector can impede the transition to a low-carbon economy. This can consequently hinder sustainable
development in numerous ways, including by reducing or inefficiently allocating available national
resources, increasing dependence on fossil fuels, and discouraging investment in renewable energy
and energy efficiency, which impedes the transition to a low-carbon economy.

1377

What to report

1378
1379

If an organization in the coal sector has identified public policy and lobbying as a material topic, thissection helps it determine what to report on this topic.
Standard

Disclosure

Additional sector recommendations

Management of the topic
GRI 103: Material
TopicsDisclosure MT-3 Management ofmaterial topics-

Report any significant issues thatthe organization focuses on whenparticipating in public policy
development and lobbying.

-

Report the organization’s stance onthese issues as well as any
differences between lobbying
positions and the stated policies,
goals, or other public positions.

Page 66 of 81

Topic Standards disclosures
GRI 415: Public
Policy 2016

Disclosure 415-1 Politicalcontributions

1380

Resources and references

1381
1382
1383
1384

GRI 415: Public Policy 2016 lists authoritative intergovernmental instruments and other sources
relevant to reporting on this topic. The additional intergovernmental instruments and references used
to develop this topic description as well as further resources that may be helpful for understanding
and reporting on the topic by the coal sector are listed on in the Bibliography on page 69.

Page 67 of 81

1385

Glossary

1386
1387
1388
1389
1390

Note to the GSSB: A number of defined terms are being revised as part of the review of the
GRI Universal Standards. To facilitate consistency, this glossary section will be completed
prior to public exposure based on the drafts of Universal Standards submitted to the GSSB for
approval. No new defined terms are proposed to be added as a result of the development of
this Standard.

1391
1392
1393

Some definitions included in this glossary contain terms that are further defined in the complete GRI
Standards Glossary. All defined terms are underlined. If a term is not defined in this glossary or thecomplete GRI Standards Glossary, definitions that are commonly used and understood apply.

Page 68 of 81

1394

Bibliography

1395

Front matter

1396

Authoritative instruments

1397

1. Intergovernmental Panel on Climate Change (IPCC), Global Warming of 1.5°C, 2018.

1398

2. United Nations Framework Convention on Climate Change (UNFCC), Paris Agreement, 2015.

1399

Other sources

1400
1401

3. Britannica, Coal, Fossil fuel, britannica.com/science/coal-fossil-fuel#ref259096, accessed 6
November 2020

1402
1403
1404

4. Energy Information Administration (EIA), How much carbon dioxide is produced per
kilowatthour of U.S. electricity generation?, eia.gov/tools/faqs/faq.php?id=74&t=11, accessedon 5 April 2021.

1405
1406

5. International Energy Agency (IEA), Coal 2019, iea.org/reports/coal-2019, accessed on 5 April
2021.

1407
1408

6. International Energy Agency (IEA), Coal Information: Overview, iea.org/reports/coalinformation-overview, accessed on 5 April 2021.

1409
1410

7. International Energy Agency (IEA), World Energy Outlook 2020,
https://www.iea.org/reports/world-energy-outlook-2020, accessed 5 April 2021.

1411
1412

8. International Institute for Sustainable Development (IISD), State-Owned Companies
Transitioning Away From Coal, Mining and Coal-Fired Power, 2018.

1413
1414

9. Organisation for Economic Co-operation and Development (OECD) and International Energy
Agency (IEA), OECD Green Growth Studies: Energy, 2011.

1415
1416

10. Organisation for Economic Co-operation and Development (OECD), Arrangement on officially
supported export credits, 2020.

1417
1418
1419

11. O. Sartor, Institut du développement durable et des relations internationals (IDDRI) andClimate Strategies, Implementing coal transitions: Insights from case studies of major coalconsuming economies, 2018.

1420
1421

12. M. Jakob et al., The Future of Coal in a Carbon-Constrained Climate Nature Climate Change,
vol. 10, nr. 8, pp. 704–7, August 2020, doi.org/10.1038/s41558-020-0866-1.

1422
1423

13. P. Friedlingstein et al., 'Global Carbon Budget 2019', Earth System Science Data, vol.11, nr.
4, pp.1783–18384, 4 December 2019, doi.org/10.5194/essd-11-1783-2019.

1424
1425
1426

14. Reuters, Coal India output falls for third straight month on tepid demand,
reuters.com/article/coal-india-output/coal-india-output-falls-for-third-straight-month-on-tepiddemand-idINKBN2426N4, accessed on 5 April 2021.

1427

15. United Nations Environment Programme (UNEP), Emissions Gap Report 2019, 2019.

1428
1429
1430

16. United Nations Principles for Responsible Investment (UNPRI), Phasing out investments inthermal coal, unpri.org/climate-change/phasing-out-investments-in-thermal-coal/3281.article,
accessed on 5 April 2021.

1431
1432
1433

17. World Economic Forum (WEF), Chart of the day: Is 2019 the beginning of the end for coal in
Europe?, weforum.org/agenda/2019/07/coal-generation-production-europe-2019-fallrenewable-lignite/, accessed on 5 April 2021.

1434
1435
1436

18. World Economic Forum (WEF), These are the world's biggest coal producers,https://www.weforum.org/agenda/2018/01/these-are-the-worlds-biggest-coal-producers/,
accessed on 5 April 2021.

Page 69 of 81

1437

GHG emissions

1438

Authoritative instruments

1439
1440
1441
1442
1443
1444
1445
1446
1447
1448
1449
1450
1451
1452
1453
1454
1455
1456
1457
1458
1459
1460
1461
1462

19. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2007: The PhysicalScience Basis, 2007.
20. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2014: Synthesis
Report, 2014.
21. Intergovernmental Panel on Climate Change (IPCC), Good Practice Guidance andUncertainty Management in National Greenhouse Gas Inventories, 2001.
Other sources
22. International Energy Agency (IEA), CO2 Emissions from Fuel Combustion Highlights, 2019.
23. International Energy Agency (IEA), Energy Efficiency 2018: Analysis and Outlooks to 2040,
2018.
24. International Energy Agency (IEA), Methane Tracker, iea.org/reports/methane-tracker,
accessed on 31 May 2020.
25. International Finance Corporation (IFC), Environmental, Health, and Safety Guidelines for
Mining, 2007.
26. United Nations Framework Convention on Climate Change (UNFCCC), What do adaptation toclimate change and climate resilience mean?, 2020, unfccc.int/topics/adaptation-andresilience/the-big-picture/what-do-adaptation-to-climate-change-and-climate-resilience-mean,accessed on 5 April 2021.
27. United States Energy Information Administration (EIA), Assumptions to the Annual Energy
Outlook 2019: Industrial Demand Module, 2019.
28. United States Environmental Protection Agency (US EPA), Overview of Greenhouse Gases,
epa.gov/ghgemissions/overview-greenhouse-gases#methane, accessed on 31 May 2020.
29. World Resources Institute, Estimating and Reporting the Comparative Emissions Impacts of
Products, 2019.

1463

Further resources

1464

The following resources may help organizations in the coal sector report on this topic:

1465
1466
1467
1468
1469
1470

30. Carbon Brief, Methane emissions from fossil fuels ‘severely underestimated’, 2020,
carbonbrief.org/methane-emissions-from-fossil-fuels-severely-underestimated, accessed 5
April 2021.
31. P. Forster, V. Ramaswamy, et al., ‘Changes in Atmospheric Constituents and in Radiative
Forcing’, in Climate Change 2007: The Physical Science Basis, 2007.
32. Greenhouse Gas Protocol, Global Warming Potential Values, 2015.

1471

Climate adaptation and resilience1472

Authoritative instruments

1473
1474
1475
1476
1477
1478
1479
1480
1481
1482
1483
1484
1485
1486
1487

33. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2014: Mitigation of
Climate Change, 2014.
34. Intergovernmental Panel on Climate Change (IPCC), 2014: Climate Change 2014: Impacts,
Adaptation, and Vulnerability, 2014.
35. Intergovernmental Panel on Climate Change (IPCC), Global Warming of 1.5°C, 2018.
Other sources
36. Carbon Tracker Initiative, Carbon Budgets Explainer, 2018.
37. Carbon Tracker, Unburnable Carbon: Are the World’s Financial Markets Carrying a Carbon
Bubble?, 2011.
38. A. Dagnachew, A. Hof, et al., Insight into Energy Scenarios: A comparison of key transitionindicators of 2˚C scenarios, 2019.
39. International Energy Agency (IEA), Coal Information: Overview, iea.org/reports/coalinformation-overview, accessed on 5 April 2021.
40. International Energy Agency (IEA), World Energy Outlook 2018, 2018.
41. International Energy Agency (IEA), World Energy Outlook 2019, 2019.

Page 70 of 81

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1491
1492
1493
1494
1495
1496
1497
1498
1499
1500
1501
1502
1503
1504
1505
1506
1507
1508

42. J. G. J. Olivier and J. A. H. W. Peters, Trends in global CO2 and total greenhouse gas
emissions: 2019 Report, 2020.
43. Organisation for Economic Co-operation and Development (OECD), International Energy
Agency (IEA), OECD Green Growth Studies: Energy, 2011.
44. Organisation for Economic Co-operation and Development (OECD), Monitoring the transition
to a low-carbon economy: a strategic approach to local development, 2015.
45. M. F. Rahman, M. Mostofa, and S. Huq, ‘Low-Carbon Futures in Least-Developed Countries’,
wri.org/climate/expert-perspective/low-carbon-futures-least-developed-countries, accessed on
5 April 2021.
46. O. Sartor, Institut du développement durable et des relations internationals (IDDRI) andClimate Strategies, Implementing coal transitions: Insights from case studies of major coalconsuming economies, 2018.
47. E. Stuart, ‘Leaving No One Behind in Sustainable Development Pathways’,
wri.org/climate/expert-perspective/leaving-no-one-behind-sustainable-development-pathways,
accessed on 5 April 2021.
48. Task Force on Climate-Related Financial Disclosure (TCFD), Recommendations of the Task
Force on Climate-related Financial Disclosure, 2017.
49. Task Force on Climate-Related Financial Disclosure (TCFD), The Use of Scenario Analysis in
Disclosure of Climate-Related Risks and Opportunities, 2017.
50. University of Cambridge, Climate change: Action, trends and implications for business: The
IPCC’s Fifth Assessment Report, Working Group 1,2013.

1509

Further resources

1510

The following resources may help organizations in the coal sector report on this topic:

1511
1512
1513
1514

51. International Finance Corporation (IFC), Good Practice Note: Managing Retrenchment, 2005.
52. Transition Pathway Initiative (TPI), Methodology and Indicators Report, 2019.
53. World Resources Institute (WRI), A Recommended Methodology for Estimating andReporting the Potential Greenhouse Gas Emissions from Fossil Fuel Reserves, 2016.

1515

Closure and rehabilitation

1516

Other sources

1517
1518
1519
1520
1521
1522
1523
1524
1525
1526
1527
1528
1529
1530

54. P. D. Cameron and M. C. Stanley, Oil, Gas, and Mining: A Sourcebook for Understanding theExtractive Industries, 2017.
55. International Energy Agency (IEA), World Energy Outlook 2020,
https://www.iea.org/reports/world-energy-outlook-2020, accessed on 5 April 2021.
56. United Nations (UN) Tax Committee’s Subcommittee on Extractive Industries Taxation Issues
for Developing Countries, Guidance Note on the Tax Treatment of Decommissioning for the
Extractive Industries, 2016.
57. J. Watts and J. Ambrose, ‘Coal industry will never recover after coronavirus pandemic, say
experts’, The Guardian, 17 May 2020, theguardian.com/environment/2020/may/17/coalindustry-will-never-recover-after-coronavirus-pandemic-say-experts, accessed on 5 April
2021.
58. World Bank, Towards Sustainable Decommissioning and Closure of Oil Fields and Mines: A
Toolkit to Assist Government Agencies, 2010.
59. World Bank, Managing Coal Mine Closure: Achieving a Just Transition for All, 2018.

1531

Further resources

1532

The following resources may help organizations in the coal sector report on this topic:

1533
1534

60. International Council on Mining & Metals (ICMM), Integrated Mine Closure – Good Practice
Guide, 2nd Edition, 2019.

1535

Air emissions

1536

Other sources

1537
1538

61. A. Markandya and P. Wilkinson, 'Electricity Generation and Health', The Lancet, vol 370, no.
9591, pp. 979–90, 15 September 2007, doi.org/10.1016/S0140-6736(07)61253-7.

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1542
1543
1544
1545
1546
1547
1548
1549
1550
1551
1552
1553
1554

62. International Energy Agency (IEA), Energy and Air Pollution: World Energy Outlook Special
Report, 2016.
63. The United Nations Economic Commission for Europe (UNECE), Air pollution, ecosystems
and biodiversity,
unece.org/environmental-policy/conventions/envlrtapwelcome/cross-sectoral-linkages/airpollution-ecosystems-and-biodiversity.html, accessed on 5 April 2021.
64. Union of Concerned Scientists, How Coal Works, ucsusa.org/resources/how-coal-works,
accessed 17 October 2020.
65. World Coal Association (WCA), Coal and air quality, worldcoal.org/coal-and-air-quality-0,
accessed 17 October 2020.
66. World Health Organization (WHO), Air pollution, who.int/health-topics/air-pollution, accessed
31 May 2020.
67. World Health Organization (WHO), Air pollution and child health: Prescribing clean air,advance copy, 2018.
68. World Health Organization (WHO), Ambient Air Pollution: A Global Assessment of Exposureand Burden of Disease, 2016.

1555

Biodiversity

1556

Intergovernmental instruments

1557
1558
1559
1560
1561
1562
1563
1564
1565
1566

69. Intergovernmental Panel on Climate Change (IPCC), Climate Change and Biodiversity, 2002.
70. Intergovernmental Panel on Climate Change (IPCC), Climate Change and Land, 2019.
Other sources
71. N. Butt, H. L. Beyer, et al., Biodiversity Risks from Fossil Fuel Extraction, Science, 2013.
72. Convention on Biological Diversity, Mainstreaming of Biodiversity into the Energy and Mining
Sectors, 2018.
73. Cross Sector Biodiversity Initiative (CSBI), A cross sector guide for implementing the
Mitigation Hierarchy, 2015.
74. M. B. J. Harfoot, D. P. Tittensor, et al., Present and future biodiversity risks from fossil fuelexploitation, Conservation Letters, 2018.

1567

Further resources

1568

The following resources may help organizations in the coal sector report on this topic:

1569
1570
1571
1572
1573
1574
1575

75. International Finance Corporation (IFC) Performance Standard 6: Biodiversity Conservationand Sustainable Management of Natural Resources, 2012.
76. International Council for Mining and Metals (ICMM), International Petroleum Industry
Environmental Conservation Association (IPIECA), Equator Principles, A cross-sector guidefor implementing the Mitigation Hierarchy, 2017.
77. Integrated Biodiversity Assessment Tool (IBAT) Alliance, Integrated Biodiversity Assessment
Tool, https://www.ibat-alliance.org/, accessed 5 April 2021.

1576

Waste

1577

Authoritative instruments

1578
1579
1580
1581
1582
1583
1584
1585
1586

78. European Commission, Best Available Techniques (BAT) Reference Document for theManagement of Waste from Extractive Industries, 2018.
Other sources
79. Alberta Energy Regulator, Tailings, aer.ca/providing-information/by-topic/tailings.html,
accessed on 5 April 2021.
80. P. D. Cameron and M. C. Stanley, Oil, Gas, and Mining: A Sourcebook for Understanding theExtractive Industries, 2017.
81. International Finance Corporation (IFC), Environmental, Health, and Safety Guidelines for
Mining, 2007.

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1589
1590
1591
1592
1593
1594
1595
1596
1597

82. C. Roche, K. Thygesen, K., E. Baker, E. (Eds.), United Nations Environment Programme(UNEP), Mine Tailings Storage: Safety Is No Accident. A UNEP Rapid Response
Assessment, 2017.
83. Union of Concerned Scientists, ‘The Hidden Cost of Fossil Fuels’, 2008,
ucsusa.org/resources/hidden-costs-fossil-fuels, accessed 5 April 2021.
84. United Nations Development Programme (UNDP), Circular Economy Principles for NDCs andLong-term Strategies, 2019.
85. United Nations Environment Programme (UNEP), Towards a Pollution-Free Planet, 2017.
86. United States Environmental Protection Agency (EPA), Basic Information about Surface Coal
Mining in Appalachia, epa.gov/sc-mining/basic-information-about-surface-coal-miningappalachia, accessed 5 April 2021.

1598

Further resources

1599

The following resources may help organizations in the coal sector report on this topic:

1600
1601
1602
1603
1604

87. International Finance Corporation (IFC), Environmental, Health, and Safety Guidelines for
Waste Management, 2007.
88. United Nations Environment (UN environment), International Council for Mining and Metals(ICMM), Principles for Responsible Investment (PRI), Global Industry Standard on Tailings
Management, 2020.

1605

Water and effluents

1606

Other sources

1607
1608
1609
1610
1611
1612
1613
1614
1615
1616
1617
1618
1619

89. L. Allen, M. Cohen, et al., ‘Fossil Fuels and Water Quality’, The World's Water Volume 7: The
Biennial Report on Freshwater Resources, chapter 4, 2011, worldwater.org/wpcontent/uploads/2013/07/chapter_4_fossil_fuel_and_water_quality.pdf.
90. P. D. Cameron and M. C. Stanley, Oil, Gas, and Mining: A Sourcebook for Understanding theExtractive Industries, 2017.
91. Greenpeace, The Great Water Grab: How the Coal Industry is Deepening the Global Water
Crisis, 2016.
92. International Energy Agency (IEA), Water Energy Nexus: Excerpt from the World Energy
Outlook 2016, 2016.
93. International Energy Agency (IEA), ‘Water for Energy’, World Energy Outlook 2012, 2012.
94. United Nations Environment Programme (UNEP), Towards a Pollution-Free Planet, 2017.
95. United States Environmental Protection Agency (US EPA), Profile of the Fossil Fuel ElectricPower Generation Industry, 1997.

1620

Further resources

1621

The following resource may help organizations in the coal sector report on this topic:

1622

96. International Council for Mining and Metals (ICMM): Water Stewardship Framework, 2014.

1623

Economic impacts

1624

Authoritative instruments

1625
1626
1627
1628
1629
1630
1631
1632
1633
1634
1635

97. United Nations Office for Disaster Risk Reduction (UNISDR), Words into Action Guidelines:
National Disaster Risk Assessment, Special Topics, D. Direct and Indirect Economic Impact,
2017.
98. Organisation for Economic Co-operation and Development (OECD), OECD Principles forPrivate Sector Participation in Infrastructure, 2007.
Other sources
99. Bill & Melinda Gates Foundation, Paper 7: Leveraging extractive industries for skills
development to maximize sustainable growth and employment, 2015.
100. Extractive Industries Transparency Initiative (EITI), Social and economic spending: The
impact of the extractive industries on economic growth and social development, eiti.org/socialeconomic-spending, accessed on 5 April 2021.

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1639
1640
1641
1642
1643
1644

101. International Institute for Environment and Development (IIED), Breaking New Ground:
Mining, Minerals and Sustainable Development, 2002.
102. J.-F. Mercure, H. Pollitt, et al., ‘Macroeconomic impacts of stranded fossil fuels assets’,
Nature Climate Change, vol. 8, pp. 588-593, 2018, nature.com/articles/s41558-018-0182-1,
accessed on 5 April 2021.
103. United Nations Conference on Trade and Development (UNCTAD), Extractive industries:
Optimizing the value retention in host countries, 2012.
104. K. Storey, ‘Fly-in/Fly-out: Implications for Community Sustainability’, Sustainability, vol. 2, pp.
1161-1181, 2010.

1645

Further resources

1646

The following resource may help organizations in the coal sector report on this topic:

1647
1648

105. Organisation for Economic Co-operation and Development (OECD), Collaborative Strategies
for In-Country Shared Value Creation, 2016.

1649

Local communities

1650

Authoritative instruments

1651
1652
1653
1654
1655
1656
1657
1658
1659
1660
1661
1662

106. Organisation for Economic Co-operation and Development (OECD), Due Diligence Guidance
for Meaningful Stakeholder Engagement in the Extractives Sector, 2015.
Other sources
107. Cordaid, When Oil, Gas or Mining Arrives in Your Area: Practical Guide for Communities, Civil
Society and Local Government on the Social Aspects of Oil, Gas and Mining, 2016.
108. International Finance Corporation (IFC), Unlocking Opportunities for Women and Business: A
Toolkit of Actions and Strategies for Oil, Gas, and Mining Companies, 2018.
109. United Nations Environment Programme Financial Initiative (UNEP FI), Human Rights
Guidance Tool for the Financial Sector, Mining and Metals,
unepfi.org/humanrightstoolkit/mining.php, accessed on 5 April 2021.
110. The Advocates for Human Rights: Promoting Gender Diversity and Inclusion in the Oil, Gas,
and Mining Extractive Industries, 2019.

1663

Further resources

1664

The following resource may help organizations in the coal sector report on this topic:

1665

111. IFC, Performance Standard 4 Community Health, Safety, and Security, 2012.

1666

Land and resource rights

1667

Authoritative instruments

1668
1669
1670
1671
1672
1673
1674
1675
1676
1677
1678
1679
1680
1681
1682
1683
1684

112. European Union and UN Interagency Framework Team for Preventive Action, Toolkit andGuidance for Preventing and Managing Land and Natural Resources Conflict: Land andConflict, 2012.
113. Organisation for Economic Co-operation and Development (OECD), Due Diligence Guidance
for Meaningful Stakeholder Engagement in the Extractives Sector, 2015.
Other sources
114. Avocats Sans Frontières, Human Rights Implications of Extractive Industry Activities in
Uganda: A Study of the Mineral Sector in Karamoja and the Oil Refinery in Bunyoro, 2014,asf.be/wp-content/uploads/2014/09/ASF_UG_ExtractiveSectorHRImplications.pdf.
115. P. D. Cameron and M. C. Stanley, Oil, Gas, and Mining: A Sourcebook for Understanding theExtractive Industries, 2017.
116. GRI, Land Tenure Rights: The need for greater transparency among companies worldwide,2016.
117. Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES),
Report of the Plenary of the Intergovernmental Science-Policy Platform on Biodiversity andEcosystem Services on the work of its seventh session, 2019.
118. International Council on Mining & Metals (ICMM), Land Acquisition and Resettlement, 2015.

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1688
1689
1690
1691
1692
1693
1694
1695
1696
1697
1698

119. Pensamiento y Acción Social (PAS) and L. Turrriago, ‘Caso El Hatillo: El re-asentamiento
como la legalización del despojo y el acaparamiento de las tierras por el modelo extractivista’,
pas.org.co/hatillo-despojo-extractivista, accessed on 5 April 2021.
120. The Advocates for Human Rights: Promoting Gender Diversity and Inclusion in the Oil, Gas,
and Mining Extractive Industries, 2019.
121. United Nations Environment Programme Financial Initiative (UNEP FI), Human Rights
Guidance Tool for the Financial Sector, Mining and Metals,
unepfi.org/humanrightstoolkit/mining.php, accessed on 5 April 2021.
122. United Nations Human Rights Office of the High Commissioner website, Land and Human
Rights, ohchr.org/EN/Issues/LandAndHR/Pages/LandandHumanRightsIndex.aspx, accessedon 5 April 2021.
123. F. Vanclay, ‘Project-induced displacement and resettlement: from impoverishment risks to an
opportunity for development?’, Impact Assessment and Project Appraisal Journal, vol. 35, pp.
3-21, 2017, doi: 10.1080/14615517.2017.1278671.

1699

Further resources

1700

The following resources may help organizations in the coal sector report on this topic:

1701
1702
1703
1704
1705

124. International Finance Corporation (IFC), Good Practice Handbook: Land Acquisition andResettlement (draft), 2019.
125. International Finance Corporation (IFC), Performance Standard 5, Land Acquisition andInvoluntary Resettlement, 2012.
126. International Finance Corporation (IFC), Performance Standard 8: Cultural Heritage, 2012.

1706

Rights of indigenous peoples

1707

Authoritative instruments

1708
1709
1710
1711
1712
1713
1714
1715
1716
1717
1718
1719
1720
1721
1722
1723
1724
1725
1726
1727
1728
1729
1730
1731
1732
1733
1734
1735
1736
1737

127. International Labour Organization (ILO) Convention 169, ‘Indigenous and Tribal Peoples
Convention’, 1989.
128. United Nations (UN) Declaration, ‘United Nations Declaration on the Rights of Indigenous
Peoples’, 2007.
Other sources129. Amnesty International, ‘Inter-American Court ruling marks key victory for indigenous peoples’,2012,
amnesty.org/en/press-releases/2012/07/ecuador-inter-american-court-ruling-marks-keyvictory-indigenous-peoples-20, accessed on 5 April 2021.
130. Amnesty International, Out of sight, out of mind: Gender, indigenous rights, and energy
development, 2016.
131. A. Anongos, D. Berezhkov, et al., Pitfalls and pipelines: Indigenous peoples and extractive
industries, 2012.
132. J. Burger, Indigenous Peoples, Extractive Industries and Human Rights, 2014.
133. European Parliament, Committee on Foreign Affairs, Report on Violation of the Rights ofIndigenous Peoples in the World, Including Land Grabbing, 2018.
134. G. Gibson, K. Yung, et al. with Lake Babine Nation and Nak’azdii Whut’en, Indigenous
communities and industrial camps: Promoting healthy communities in settings of industrialchange, 2017.
135. Global Witness, Defenders of the earth: Global killings of land and environmental defenders in
2016, 2017.
136. K. Herbertson, ‘Momentum Builds for Gaining the Consent of Indigenous Peoples’, 2010,
wri.org/blog/2010/05/momentum-builds-gaining-consent-indigenous-peoples, accessed on 5
April 2021.
137. International Finance Corporation (IFC), Projects and People: A Handbook for Addressing
Project Induced In-Migration, 2009.
138. International Labour Organization (ILO), Observation (CEACR) – adopted 2018, published
108th ILC session (2019) Indigenous and Tribal Peoples Convention, 1989 (No. 169) –Venezuela, Bolivarian Republic of (Ratification: 2002), 2019,
ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:13100:0::NO::P13100_COMMENT_ID,P11110_C

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1744
1745
1746
1747
1748
1749
1750
1751
1752
1753

OUNTRY_ID,P11110_COUNTRY_NAME,P11110_COMMENT_YEAR:3962283,102880,Vene
zuela,%20Bolivarian%20Republic%20of,2018.
139. B. McIvor, First Peoples Law: Essays in Canadian Law and Decolonization, 2018.
140. The Advocates for Human Rights, Promoting Gender Diversity and Inclusion in the Oil, Gas,
and Mining Extractive Industries, 2019.
141. UN Permanent Forum on Indigenous Issues (UNPFII), Combating violence against
indigenous women and girls: article 22 of the United Nations Declaration on the Rights ofIndigenous Peoples: Report of the international expert group meeting, 2012.
142. UN Permanent Forum on Indigenous Issues (UNPFII), Report of the international expert
group meeting on extractive industries, Indigenous Peoples’ rights and corporate social
responsibility, 2009.
143. United Nations Department of Economic and Social Affairs (UN DESA), Indigenous Peoples,
Climate Change, un.org/development/desa/indigenouspeoples/climate-change.html, accessedon 5 April 2021.
144. United Nations Human Rights Council (HRC), Report of the Special Rapporteur on the rights
of indigenous peoples, James Anaya - Extractive industries and indigenous peoples, 2013.

1754

Further resources

1755

The following resources may help organizations in the coal sector report on this topic:

1756
1757
1758

145. International Finance Corporation (IFC), Performance Standard 7: Indigenous Peoples, 2012.
146. International Council on Mining & Metal (ICMM), Indigenous peoples and mining goodpractice guide, 2015.

1759

Conflict and security

1760

Authoritative instruments

1761
1762
1763
1764
1765
1766
1767
1768
1769
1770
1771
1772
1773
1774
1775
1776
1777
1778
1779
1780
1781
1782
1783

147. European Union (EU) and UN Interagency Framework Team for Preventive Action, Toolkit
and Guidance for Preventing and Managing Land and Natural Resources Conflict: Extractive
Industries and Conflict, 2012.
148. Office of the High Commissioner for Human Rights (OHCR), Basic Principles on the Use ofForce and Firearms by Law Enforcement Officials, 1990,.
149. Office of the High Commissioner for Human Rights (OHCR), Code of Conduct for Law
Enforcement Officials, 1979.
150. Voluntary Principles on Security and Human Rights, The Voluntary Principles on Security and
Human Rights, 2000.
Other sources151. Institute for Human Rights and Business (IHRB), From Red to Green Flags: The Corporate
Responsibility to Respect Human Rights in High-Risk Countries, 2011.
152. K. Neu, and D., Avant, Overview of the relationship between PMSCs and extractive industry
companies from the Private Security Events Database, 2019.
153. Office of the High Commissioner for Human Rights (OHCHR), ‘Call for submissions: therelationship between private military and security companies and extractive industry
companies from a human rights perspective in law and practice’,ohchr.org/EN/Issues/Mercenaries/WGMercenaries/Pages/CallforsubmissionesPrivateMilitarySecurity.aspx, accessed on 5 April 2021.
154. Office of the High Commissioner for Human Rights (OHCR), Private military and security
companies in extractive industries – impact on human rights, 2017.
155. United Nations Environmental Programme (UNEP), From Conflict to Peacebuilding: The Roleof Natural Resources and the Environment, 2009.

1784

Further resources

1785

The following resources may help organizations in the coal sector report on this topic:

1786
1787

156. International Alert, Human Rights Due Diligence in Conflict-Affected Settings: Guidance forExtractive Industries, 2018.

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1788
1789
1790

157. International Council on Mining & Metals (ICMM), International Committee of the Red Cross(ICRC), International Finance Corporation (IFC), and IPIECA, Voluntary Principles on Security
and Human Rights: Implementation Guidance Tools, 2011.

1791

Asset integrity and critical incident management

1792
1793
1794
1795
1796
1797
1798
1799

Other sources158. R. Sullivan, D. Russell, et al., Managing the Unavoidable: investment implications of achanging climate, 2009.
159. Business for Social Responsibility, Adapting to Climate Change: A Guide for the Mining
Industry, 2011.
160. C. Roche, K. Thygesen, K., E. Baker, E. (Eds.), United Nations Environment Programme(UNEP), Mine Tailings Storage: Safety Is No Accident. A UNEP Rapid Response Assessment,
2017.

1800

Further resources

1801

For additional reporting support, organizations can consult the following resources:

1802
1803
1804
1805
1806
1807
1808
1809
1810
1811
1812
1813

161. International Council on Mining & Metals (ICMM), United Nations Environment Programme(UNEP), Principles for Responsible Investment (PRI), Global Industry Standard on Tailings
Management, 2020.
162. International Council on Mining & Metals (ICMM), Health and safety critical control
management, 2015.
163. International Council on Mining & Metals (ICMM), United Nations Environment Programme(UNEP), Good practice in emergency preparedness and response, 2005.
164. Organisation for Economic Co-operation and Development (OECD), Guidance on Developing
Safety Performance Indicators Related to Chemical Accident Prevention, Preparedness andResponse for Industry, 2008.
165. UK Health and Safety Executive, Step-By-Step Guide to Developing Process Safety
Performance Indicators, 2006.

1814

Occupational health and safety

1815

Authoritative instruments

1816
1817
1818
1819
1820
1821
1822
1823
1824
1825
1826
1827
1828
1829
1830
1831
1832
1833
1834
1835

166. International Labour Organization (ILO) Convention 176, ‘Safety and Health in Mines
Conventio’n, 1995.
Other sources167. Center for Disease Control and Prevention (CDC), The National Institute for Occupational
Health and Safety (NIOSH), Mining Topic: Respiratory Diseases,
cdc.gov/niosh/mining/topics/RespiratoryDiseases.html, accessed 30 October 2020
168. Health and Safety Executive (HSE), Heat stress, hse.gov.uk/temperature/heatstress,
accessed on 5 April 2021.
169. International Labour Organization (ILO), Working towards sustainable development:
Opportunities for decent work and social inclusion in a green economy, 2012.
170. Occupational Safety and Health Administration (OSHA) US Department of Labor, Silica,
Crystalline: Health Effects, osha.gov/dsg/topics/silicacrystalline/health_effects_silica.html,
accessed on 5 April 2021.
171. Occupational Safety and Health Administration (OSHA) US Department of Labor, Hydrogen
Sulfide: Hazards, osha.gov/SLTC/hydrogensulfide/hazards.html, accessed on 5 April 2021.
172. The Advocates for Human Rights, Promoting Gender Diversity and Inclusion in the Oil, Gas
and Mining Extractive Industries: A Women’s Human Rights Report, 2019.
173. World Nuclear Association, Naturally-Occurring Radioactive Materials, 2019, worldnuclear.org/information-library/safety-and-security/radiation-and-health/naturally-occurringradioactive-materials-norm.aspx, accessed on 5 April 2021.

1836

Further resources

1837

The following resources may help organizations in the coal sector report on this topic:

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1840
1841
1842
1843

174. International Labour Organization (ILO) Code of Practice: Safety and health in undergroundcoalmines, 2009.
175. International Council on Mining & Metals (ICMM), Good practice guidance on occupational healthrisk assessment, 2016.
176. International Council on Mining & Metals (ICMM), Overview of leading indicators for occupational
health and safety in mining, 2012.

1844

Employment practices

1845

Authoritative instruments

1846
1847
1848
1849
1850

177. Organisation for Economic Co-operation and Development (OECD), Due Diligence Guidance
for Meaningful Stakeholder Engagement in the Extractives Sector, 2015.
Other sources
178. International Labour Organization (ILO), Mining (coal; other mining) sector,
ilo.org/global/industries-and-sectors/mining/lang--en/index.htm, accessed on 5 April 2021.

1851

Child labor

1852

Authoritative instruments

1853
1854
1855

179. International Labour Organization (ILO) and International Organisation of Employers (IOE),
How to do business with respect for children’s right to be free from child labour: ILO-IOE childlabour guidance tool for business, 2015.

1856
1857
1858
1859

180. International Labour Organization (ILO) Convention 138, ‘Minimum Age Convention’, 1973.
181. International Labour Organization (ILO) Convention 182, ‘Worst Forms of Child Labour
Convention’, 1999.
182. United Nations (UN) Convention, ‘Convention on the Rights of the Child’, 1989.

1860

Other sources

1861
1862

183. International Labour Organisation, Global Estimates of Child Labour – Results and Trends
2012-2016, 2017.

1863
1864
1865

184. International Labor Organization (ILO), Mining and quarrying.
https://www.ilo.org/ipec/areas/Miningandquarrying/lang--en/index.htm, accessed on 5 April
2021.

1866
1867
1868

185. Organisation for Economic Co-operation and Development (OECD), Practical actions forcompanies to identify and address the worst forms of child labour in mineral supply chains,
2017.

1869
1870
1871

186. UNICEF, Children’s rights and the mining sector: UNICEF extractive pilot, 2015;
187. Unite States (U.S.) Department of Labor, 2018 List of Goods Produced by Child Labor or
Forced Labor, 2018.

1872
1873

188. United States Department of Labor, 2020 List of Goods Produced by Child Labor or Forced
Labor, 2020

1874

Forced labor and modern slavery

1875

Authoritative instruments

1876

189. International Labour Organization (ILO) Convention 29, ‘Forced Labour Convention’, 1930.

1877
1878
1879
1880
1881

Other sources
190. M. Coderre-Proulx, B. Campbell, I Mandé, and International Labour Organization (ILO),
International migrant workers in the mining sector, 2016.
191. International Transport Workers’ Federation (ITF), BHP ignores pleas to help starving crew,
itfglobal.org/en/news/bhp-ignores-pleas-help-starving-crew, accessed 5 April 2021.

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1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901

192. International Transport Workers’ Federation (ITF), Bulk carrier detained in Australia, crew
owed $64,000, https://www.itfglobal.org/en/news/bulk-carrier-detained-in-australia-crew-owed64000, accessed on 5 April 2021.
193. Global Slavery Index, ‘Global Findings’, Global Slavery Index 2018, chapter 3,
globalslaveryindex.org/resources/downloads.
194. Global Reporting Initiative (GRI), Responsible Labor Initiative, Advancing modern slavery
reporting to meet stakeholder expectations, 2019.
195. International Council for Mining and Metals (ICMM), Tackling modern slavery in the mining
supply chain, icmm.com/en-gb/case-studies/action-against-modern-slavery, accessed on 5
April 2021.
196. International Labour Organization (ILO) and Walk Free Foundation, Global estimates ofmodern slavery: forced labour and forced marriage, 2017.
197. International Transport Workers’ Federation (ITF), ‘ITF and Malaviya Seven crew dismayed
by delay’, 2017, itfglobal.org/en/news/itf-and-malaviya-seven-crew-dismayed-delay, accessedon 5 April 2021.
198. National Union of Rail, Maritime and Transport Workers (RMT), ‘Modern day slavery charge
made by RMT’, 2016, rmt.org.uk/news/modern-day-slavery-charge-made-by-rmt, accessed on
5 April 2021.
199. United States Department of Labor, 2020 List of Goods Produced by Child Labor or Forced
Labor, 2020

1902

Diversity and non-discrimination

1903

Other sources

1904
1905
1906
1907
1908
1909
1910
1911

200. J. Soper, ‘Ghanaian Workers Fight Pay Discrimination’, 2015,
pulitzercenter.org/reporting/ghanaian-workers-fight-pay-discrimination, accessed on 31 May
2020.
201. United Nations Environment Programme Financial Initiative (UNEP FI), Human Rights
Guidance Tool for the Financial Sector, Mining and Metals,
unepfi.org/humanrightstoolkit/mining.php, accessed on 5 April 2021.
202. The Advocates for Human Rights: Promoting Gender Diversity and Inclusion in the Oil, Gas,
and Mining Extractive Industries, 2019.

1912

Freedom of association and collective bargaining

1913

Authoritative instruments

1914
1915
1916
1917
1918
1919
1920
1921

203. International Labour Organization (ILO), 386th Report of the Committee on Freedom of
Association, 2018.
Other sources
204. International Trade Union Confederation (ITUC), 2016 ITUC Global Rights Index: The World's
Worst Countries for Workers, 2016.
205. International Trade Union Confederation (ITUC), Saudi Arabia bans trade unions and violates
all international labour standards, 2012, ituc-csi.org/saudi-arabia-bans-trade-unions-and,accessed on 5 April 2021.

1922

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Authoritative instruments

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206. Organisation for Economic Co-operation and Development (OECD), Convention on
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207. Extractives Industry Transparency Initiative (EITI), Factsheet: Disclosing beneficial ownership,2017.
208. FATF, FATF guidance: Politically exposed persons (recommendations 12 and 22), 2013.

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209. International Monetary Fund, Fiscal Transparency Initiative: Integration of Natural Resource
Management Issues, 2019.
210. Organisation for Economic Co-operation and Development (OECD), Corruption in the
Extractive Value Chain: Typology of Risks, Mitigation Measures and Incentives, 2016.
211. A. Sayne, A. Gillies, and A. Watkins, Twelve Red Flags: Corruption Risks in the Award ofExtractive Sector Licenses and Contracts, 2017.
212. Transparency International, Corruption Perceptions Index 2018, 2018.
213. E. Westenberg and A. Sayne, Beneficial Ownership Screening: Practical Measures to Reduce
Corruption Risks in Extractives Licensing, 2018.
214. A. Williams and K. Dupuy, Deciding over nature: Corruption and environmental impact
assessments, 2016.

1942

Further resources

1943

The following resource may help organizations in the coal sector report on this topic:

1944

215. Extractives Industry Transparency Initiative (EITI), The EITI Standard, 2019.

1945

Payments to governments

1946

Authoritative instruments

1947
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216. European Parliament, ‘Directive 2013/34/EU of the European Parliament and the Council of
26 June 2013 on the annual financial statements, consolidated financial statements andrelated reports of certain types of undertakings’, 2013.
217. Organisation for Economic Co-operation and Development (OECD), Transfer Pricing
Documentation and Country-by-Country Reporting, Action 13 - 2015 Final Report, OECD/G20
Base Erosion and Profit Shifting Project, 2015.

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218. Extractive Industries Transparency Initiative (EITI), Fact sheet: Project-level reporting in theextractive industries, 2018.
219. Extractive Industries Transparency Initiative, Transparency in the First Trade, 2019.
220. Extractive Industries Transparency Initiative (EITI), Nigeria EITI: Making transparency count,uncovering billions, 2012.
221. S. Whitley et al., and Overseas Development Institute (ODI), 'Cutting Europe’s Lifelines to
Coal: Tracking Subsidies in 10 Countries', 2017, odi.org/publications/10788-cutting-europeslifelines-coal-tracking-subsidies-10-countries.
222. A. Sayne, A. Gillies, and A. Watkins, Twelve Red Flags: Corruption Risks in the Award ofExtractive Sector Licenses and Contracts, 2017.
223. Transparency International, Under the Surface: Looking into Payments by Oil, Gas andMining Companies to Governments, 2018.
224. M. Blom and et al, “Subsidies and Costs of EU Energy,” 2014.

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Further resources

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The following resources may help organizations in the coal sector report on this topic:

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225. Extractives Industry Transparency Initiative (EITI), The EITI Standard, 2019.
226. Organisation for Economic Co-operation and Development (OECD), Upstream Oil, Gas, andMining State-Owned Enterprises, Governance Challenges and the Role of International
Reporting Standards in Improving Performance, 2018.

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227. Australasian Centre for Corporate Responsibility (ACCR), Politics – BHP, 2017.
228. Climate investigations, Coal’s Lonely Lobbyists, 2016, climateinvestigations.org/coal-lobby/,accessed on 5 April 2021.
229. D. Coady, I. Parry, et al., Global Fossil Fuel Subsidies Remain Large: An Update Based on
Country-Level Estimates, 2019.

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230. N. Graham, S. Daub, and B. Carroll, Mapping Political Influence: Political donations andlobbying by the fossil fuel industry in BC, 2017.
231. European Parliament Directorate General for Internal Policies, Fossil Fuel Subsidies, 2017.
232. InfluenceMap, Climate Lobbying: How Companies Really Impact Progress on Climate, 2018,
influencemap.org/climate-lobbying, accessed on 31 May 2020.
233. InfluenceMap, Trade association and climate: Shareholders make themselves heard, 2018,
influencemap.org/report/Trade-associations-and-climate-shareholders-make-themselvesheard-cf9db75c0a4e25555fafb0d84a152c23, accessed on 5 April 2021.
234. D. Koplow, C. Lin, et al., Mapping the Characteristics of Producer Subsidies: A review of pilot
country studies, 2010.
235. Organisation for Economic Co-operation and Development (OECD) Anti-corruption & Integrity
Hub, Lobbying, oecd.org/corruption-integrity/explore/topics/lobbying.html.
236. Competition Commission of India, Case No. 60 of 2017, 2017.

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