Corporate Responsibility Overview
At Star Royalties, maintaining strong Environmental, Social and Governance (“ESG”) principles is fundamental to our very foundation. Stemming from decades of combined management experience in capital markets and assessing and evaluating companies’ ESG track records, we have adopted best-in-class practice approaches in each area as a core philosophy in the creation of the Company.
From an environmental perspective, we created a pure-green investment company, Green Star Royalties, in October 2021 in order to accelerate and streamline the growth of our carbon credit and green strategy. Green Star Royalties has a focus on funding the development of carbon offset projects with the most reputable counterparties in the lowest-risk jurisdictions. Star Royalties’ majority ownership of Green Star Royalties also allows us to be carbon negative as our attributable ownership of Green Star Royalties’ existing and future carbon offset projects will provide us with carbon credits to more than offset our direct CO2 emissions from corporate activities and our attributable CO2 emissions from our gold equivalent ounces. Both Star Royalties and Green Star Royalties have a zero-hydrocarbon investment mandate.
From a social aspect, we are committed to directly partnering with First Nations and Indigenous communities in the joint development of carbon credit and mining royalty investments. When evaluating potential investments, we review the International Counsel on Mining & Metals principles (the “ICMM Principles”), which include considering:
- Ethical business – applying ethical business practices and sound systems of corporate governance and transparency to support sustainable development;
- Decision making – integrating sustainable development in corporate strategy and decision-making processes;
- Human rights – respecting human rights and the interests, cultures, customs and values of employees and communities affected by our activities;
- Risk management – a review of the implementation of effective risk-management strategies and systems based on sound science, and which account for stakeholder perceptions of risk;
- Health and safety – pursuit of continual improvement in the health and safety performance with the ultimate goal of zero harm;
- Environmental performance – pursuit of continual improvement in environmental performance issues, such as water stewardship, energy use and climate change;
- Conservation of biodiversity – contribution to the conservation of biodiversity and integrated approaches to land-use planning;
- Responsible production – facilitation and support of the knowledge-base and systems for responsible design, use, re-use, recycling and disposal of products containing metals and minerals;
- Social performance – pursuit of continual improvement in social performance and contribute to the social, economic and institutional development of host countries and communities; and
- Stakeholder engagement – proactive engagement with key stakeholders on sustainable development challenges and opportunities in an open and transparent manner, effectively report and independently verify progress and performance.
We not only consider the ICMM Principles with respect to our approach to investments, but also in relation to our own daily management. Environmental and social risk oversight are key principles to our corporate philosophy. It is for this reason that the we developed an Environmental, Social, Governance and Nominating Committee.
From a corporate governance perspective, our Board of Directors is composed of mining industry professionals with varied and supportive skillsets. The Board is majority independent of management and highlights diversity. We have also adopted an equity-driven management compensation structure, which we believe will foster strong alignment between management and shareholders.