Star Royalties places a key emphasis on maintaining strong Environmental, Social and Governance (“ESG”) principles. From an environmental perspective, the company’s target portfolio weighting for green and/or electric vehicle metals is 20%. Star Royalties has and will continue to invest in carbon offset credit royalties; an environmentally-friendly and highly scalable business model. In addition to forest-related investments, other anticipated green-focused metal investments will include copper, nickel and lithium. There is a zero-hydrocarbon investment mandate.
From a social aspect, Star Royalties is committed to directly partnering with First Nations in the joint development of carbon credit and mining royalty investments. When evaluating potential investments, the company reviews 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.
Star Royalties not only considers the ICMM Principles with respect to its approach to investment but, also in relation to its approach in its own daily management. Environmental and social risk oversight are key principles to Star Royalties’ corporate philosophy. It is for this reason that the company has developed an Environmental, Social, Governance and Nominating Committee.
From a corporate governance perspective, Star Royalties has a Board of Directors composed of mining industry professionals with varied and supportive skillsets. This Board is majority independent of management and highlights diversity. Star Royalties has also adopted an equity-driven management compensation structure, which it believes will foster strong alignment between management and shareholders.