Our pillars
Environmental
We are committed to responsible environmental stewardship, proactively assessing, mitigating and managing our impact to leave a meaningful legacy for future generations.
Environmental
We are committed to responsible environmental stewardship, proactively assessing, mitigating and managing our impact to leave a meaningful legacy for future generations.
Related sustainability principles
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Optimising socio-economic benefit
Related UN SDGs
The following UN SDGs relate to our environmental pillar:
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Refer to our Annual Report and Accounts 2024 for more information on how environmental considerations and associated UN SDGs are integrated into our business operations.
Snapshot of our performance
Our context
Understanding and mitigating climate-related risks is integral to our long-term resilience. In 2023, we completed the implementation of the TCFD framework, embedding climate risk insights into our business continuity plans and operational strategies. The Group has pledged to reduce Scope 1 and 2 emissions by 30% by 2030, using 2021 as the baseline. This commitment aligns with our decarbonisation strategy, which prioritises energy efficiency, consumption reduction and a transition to renewable energy sources.
Our science-based approach enables us to assess climate-related risks and material impacts, ensuring proactive management, mitigation and financial planning. Operating in remote and extreme environments, we have established robust strategies to withstand physical climate risks, including snowstorms, extreme temperatures, excessive rainfall, flash floods and drought. In addition, we closely monitor and model transition risks – such as regulatory changes, carbon taxes and global fossil fuel trends – to ensure these factors are integrated into our short, medium and long-term strategic planning.
Refer to our Annual Report and Accounts 2024 for more information on how climate change has been embedded in our governance, risk management and strategy processes.
Our approach
Gem Diamonds employs a bottom-up approach in identifying climate and decarbonisation risks and opportunities, with a strong focus on resource efficiency and carbon reduction. Our strategy prioritises reducing energy consumption, enhancing operational efficiency and transitioning to renewable energy sources, while we track our progress against defined targets.
We embed energy efficiency and decarbonisation initiatives in our operations. Our Board, Executive Management and workforce align to drive these initiatives, ensuring a unified approach to climate action. Our climate strategy secures adequate energy supply for Letšeng’s future needs and optimises consumption through advanced on-site energy management systems. We remain committed to decarbonisation projects that contribute to long-term sustainability and facilitate the transition to lower-carbon and renewable energy sources, reinforcing our dedication to responsible mining and environmental stewardship.
Letšeng contributes 99% of our total carbon footprint, relying primarily on Eskom-supplied electricity – making it the dominant source of our Scope 2 emissions. Due to Letšeng’s remote location and high altitude, viable renewable or alternative electricity sources remain limited, posing challenges to fully replacing grid and generator-supplied power.
Scope 1 emissions are largely driven by mobile (mining fleet) and stationary (diesel-powered generators) activities, accounting for 98% of these emissions. Our decarbonisation strategy is built on two key pillars:
By focusing on these levers, we aim to improve energy efficiency, reduce our carbon footprint and support long-term sustainability in our operations.
Our internal carbon-pricing model is critical to managing risk, identifying carbon reduction and cost-saving opportunities and guiding project investment decisions. While the Group is not directly subject to carbon taxes, we assess indirect exposure and consider potential future carbon taxation when evaluating investments. Our model is developed through climate scenario planning and incorporates evolving carbon prices aligned with global regulations and market trends. Approved by the Board, it remains adaptable to future changes, ensuring our strategy remains resilient in a shifting regulatory landscape.
Our performance
Our business continuity and disaster management plans are shaped by local weather conditions. Letšeng maintains a two-week supply of food and diesel to mitigate access or energy disruptions, while medical teams are trained in high-altitude rescues and emergency care.
Dams and storage facilities have excess capacity to manage sudden water influxes safely, and our teams assist communities during extreme weather events. With increasing localised flooding and drought, our water management strategy focuses on conservation, recycling and efficient catchment to safeguard this vital resource.
In 2024, we recorded a 27% decrease in our Scope 1 and 2 emissions when compared to our baseline 2021 carbon emissions footprint.
Refer to the Managing our environmental footprints section below for details of our carbon footprint reduction initiatives.
Our context
We are committed to minimising environmental impacts and reducing natural resource consumption by collaborating with our value chain to implement cost-effective initiatives.
Our operations depend on a reliable water supply and the responsible management of surrounding water resources. Letšeng is situated at 3 275 metres above sea level, on the watershed between the Khubelu and Matsoku drainages. By the end of 2024, our Mothusi freshwater dam was at 89% capacity, providing enough water to sustain operations for another seven years, even without further precipitation.
Our water management plans are informed by climate models predicting extended droughts followed by brief, intense rainfall events, and are designed to adapt to these changing patterns.
Proper management of mineral and non-mineral waste is essential to our sustainability efforts and the long-term protection of the environment and surrounding PACs. Our waste management strategy ensures responsible handling and disposal of all waste generated by our operations.
Our approach
The Group has established comprehensive sustainability, environmental, climate change and water management policies that outline our commitment to best practices in managing our environmental footprint and impacts. These policies consider the needs of all stakeholders and ensure that we meet our operational and PAC requirements. We have implemented a biannual framework to assess and model our environmental footprint. Regular evaluations of resource consumption trends enable us to take timely action, implementing initiatives that reduce environmental impacts and enhance resource efficiency.
Our decarbonisation strategy prioritises Letšeng, which accounts for 99% of the Group’s carbon footprint. Our focus is on reducing Scope 1 and 2 emissions by improving energy efficiency and assessing viable opportunities to transition from fossil fuels to lower-carbon and renewable energy sources. By minimising energy demand, we ensure that renewable integration and emission offsets are cost effective and efficient. Energy efficiency, alternative energy and decarbonisation are embedded in our business strategy as critical workstreams.
In 2024, we implemented key initiatives to cut carbon emissions, including fleet optimisation, maintaining good haul road conditions, upgrading to energy-efficient lighting, refining blasting practices, minimising mineral waste and relocating services and refuelling infrastructure to reduce travel distances.
At Ghaghoo, where no grid electricity is available, power requirements have significantly decreased since the mine was placed on care and maintenance. In January 2024, a solar power solution replaced diesel generators, cutting CO₂ emissions by 1 066 tonnes annually – equivalent to charging 135.5 million smartphones. The system is expected to pay for itself within six months, aligning with the Group’s cost reduction and decarbonisation objectives while supporting Ghaghoo’s rehabilitation and closure plans.
Water stewardship is a core focus, with a comprehensive management strategy aimed at minimising freshwater use. We actively recycle and reuse water, recover run-off, manage stormwater and seek ways to further reduce reliance on freshwater sources. Letšeng’s water-monitoring and stewardship plan includes biannual water footprint assessments and rigorous quality monitoring on-site and downstream.
Since 2010, our CSI programme has provided communities with safe drinking water and sanitation facilities, improving public health and restoring ecosystems previously affected by E. coli contamination from livestock.
We continue to improve our waste reduction efforts to minimise environmental impact and support PACs. Our operations comply with the Basel Convention on hazardous waste, ensuring that all permits are in place for transboundary disposal from Lesotho to certified sites in South Africa. On-site medical waste incineration reduces transport-related emissions, while non-mineral waste is sorted at source and managed per policy. In 2024, we advanced tyre reuse projects within PACs, promoted green procurement, enhanced food waste composting and updated our waste management strategy.
Over the past three years, we have significantly reduced mineral waste volume and footprint. Letšeng’s mineral waste is stored on-site in accordance with national and international standards. Since launching our mineral waste optimisation drive in 2021, we have integrated haul route planning and waste volume assessments into mining processes to reduce environmental impact.
In 2024, we continued to focus on reducing diesel consumption, emissions and equipment wear. The relocation of diesel depots improved efficiency by shortening refuelling distances, resulting in lower fuel usage. As pit depths increased, driving higher diesel consumption, we worked to minimise tramming distances for maintenance. Where possible, basic maintenance is now performed in-pit, cutting unnecessary travel and further reducing fuel consumption.
In addition, the introduction of a heavy equipment trailer enhanced our ability to efficiently move mining equipment in and out of the pit, reducing fuel consumption, carbon emissions and equipment wear.
We also refined our blasting protocols to reduce blast frequency and explosive use, reducing equipment evacuations, diesel consumption, emissions and costs while maintaining operational efficiency.
By continuously refining pit designs, we minimise mineral waste movement – reducing hauling distances, fuel use and emissions. These optimisations not only lower costs, especially given high diesel prices but also improve long-term mine planning by reducing environmental liabilities and rehabilitation requirements.
Letšeng upholds a zero oil contamination policy, making hydrocarbon management a top priority. Preventative measures include pre-task inspections, spill response training and continuous monitoring. Workshops and diesel depots are equipped with oil separators to prevent soil and water contamination, while any accidental spills are treated at our on-site remediation facility.
Through integrated sustainability initiatives, decarbonisation and environmental stewardship, we ensure efficiency, cost reduction and responsible mining remain central to our operations.
Our performance
Carbon
Gem Diamonds' carbon footprint is calculated every six months in accordance with the Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard, an accounting tool developed by the World Resources Institute and the Business Council for Sustainable Development to manage GHG emissions. Biannual carbon footprint assessments ensure that we are able to track our performance against our 2030 decarbonisation target and identify further emissions reduction opportunities.
Our total 2024 carbon footprint for the Group was 104 762 tCO2e (2023: 110 198 tCO2e), 32% lower than our 2021 carbon emissions. This includes direct carbon emissions (Scope 1), energy indirect carbon emissions (Scope 2) and material Scope 3 emissions.
| Carbon emissions | Unit | 2024 | 2021 | Performance against 2021 baseline (%) |
|---|---|---|---|---|
| Scope 1 (direct) | tCO2e | 33 656 | 62 672 | (46) |
| Scope 2 (indirect) | tCO2e | 61 610 | 67 473 | (9) |
| Total Scope 1 and 2 | tCO2e | 95 266 | 130 145 | (27) |
| Scope 3 (indirect) | tCO2e | 9 496 | 23 718 | (60) |
| Total Scope 1, 2 and 3 | tCO2e | 104 762 | 153 863 | (32) |
| Total tonnes mined (ore and waste) | tonnes | 10 472 830 | 24 395 986 | (57) |
| Ore tonnes treated | tonnes | 5 018 739 | 6 172 428 | (19) |
| Carats recovered | carats | 105 012 | 115 336 | (9) |
| Intensity indicator: Scope 1 and 2 (tCO2e)/tonnes mined (ore and waste) | ratio | 0.009 | 0.005 | 80 |
| Intensity indicator: Scope 1 and 2 (tCO2e)/tonnes ore treated | ratio | 0.019 | 0.021 | (10) |
| Intensity indicator: Scope 1 and 2 (tCO2e)/carats recovered | ratio | 0.907 | 1.128 | (20) |
Since 2021, we have significantly reduced Group-wide carbon emissions, driven by a 57% decrease in ore and waste tonnes mined alongside targeted energy efficiency and renewable energy initiatives. These efforts have lowered energy costs while enhancing operational sustainability.
The reduced ore and waste profiles since 2021 have resulted in mobile diesel consumption (diesel consumed by our mining fleet and equipment) reducing by 46%. As a result, we have seen a 46% reduction in our Scope 1 carbon emissions over the period.
Scope 2 emissions have decreased by 9% since 2021 (2024: 61 610 tCO2e), driven by a combination of energy efficiency initiatives implemented and a reduction of ore tonnes treated at Letšeng.
Water
We recognise the critical role of climate change in reshaping freshwater resources, with shifting precipitation patterns affecting water availability. As a responsible mining company, water stewardship is a core component of our business strategy, ensuring both ecosystem health and operational sustainability.
At Letšeng, ongoing water analysis identified elevated nitrate levels in certain water catchment areas. This can result from mining activities, natural soil processes and external sources, such as fertilisers and waste. In response, we commissioned a nitrate management study to implement long-term solutions, working closely with Lesotho’s government through an official nitrate task team.
Key initiatives include:
These initiatives reinforce our commitment to sustainable water management, ensuring responsible operations while protecting vital water resources.
Refer to the detailed 2022 water stewardship case study for more on our approach.
We remain committed to ensuring that our PACs have access to sufficient potable water. Through Letšeng’s CSI initiatives, we have provided clean water and sanitation infrastructure to multiple villages in Lesotho, helping communities address coliform contamination caused by livestock fouling – an issue unrelated to mining activities. At Ghaghoo, we continue to supply potable water to the Gope community, supported by a dedicated water storage facility located at the nearby police camp. Our efforts reflect our ongoing commitment to community well-being and sustainable water access beyond our operational responsibilities.
The Group water footprint (net water usage) for 2024 was 3.4 million cubic metres (m3) (2023: 3.0 million m3), mainly due to a reduction in the water discharge rate. Since 2021, the Group has achieved a 53% reduction in net water usage and a 78% decrease in water withdrawal and capture, reflecting our commitment to responsible water stewardship. Our operations are not water-intensive, and ore processing remains the primary activity requiring water input. To enhance efficiency and minimise water loss, we have implemented multiple water efficiency and water loss prevention initiatives since 2021, leading to a 44% improvement in net water use per tonne of ore treated.
Refer to our Our Approach to Climate Change for more on our water footprint and consumption performance metrics.
Our context
We require a stable and reliable power supply for mining operations. In 2024, load shedding in South Africa reached unprecedented levels, affecting the grid for 335 days. In 2024, load shedding decreased to 83 days, reducing Letšeng’s reliance on diesel-powered generators. Letšeng accounts for 99% of the Group’s total energy consumption, making energy security a key operational and financial priority. Energy efficiency remains a strategic focus, regardless of whether power is sourced from the Eskom-supplied South African grid or diesel generators. Our energy savings initiatives are essential to ensuring long-term operational sustainability, reducing costs, improving efficiency and lowering carbon emissions.
Our approach
We acknowledge the need to transition to lower-carbon energy sources while ensuring a reliable power supply for our operations. Letšeng’s operations rely heavily on fossil fuels, and while we continue to explore alternative energy options, the high altitude and extreme environment limit our ability to transition to lower-carbon energy. In 2024, our Ghaghoo operation, currently in care and maintenance, was fully powered by solar energy.
Our TCFD adoption strategy has highlighted that improving energy efficiency is the first and most effective step towards decarbonisation. By reducing overall energy demand, we enhance sustainability while pursuing a cost-effective transition to alternative energy sources. We continue to evaluate emerging technologies and renewable energy supply solutions to reduce our carbon footprint and secure a stable, cost effective and sustainable energy supply.
Our performance
The Group has implemented a number of initiatives since adopting the TCFD recommendations to reduce energy consumption and associated carbon emissions. We constantly review our energy performance in terms of the 2021 baseline (as set out in our decarbonisation strategy) to ensure that we are progressing our targets. Since 2021, we have:
Refer to our Our Approach to Climate Change for more on our energy footprint performance metrics.
Our context
Gem Diamonds has developed and implemented an innovative biodiversity strategy to protect and sustain ecosystem services within our mine lease areas. Our approach prioritises the preservation of natural habitats while ensuring responsible environmental stewardship.
Situated on the edge of the Maloti-Drakensberg Transfrontier Project and the Ukhahlamba-Drakensberg World Heritage Site, Letšeng operates in a region of high ecological significance. Mining has a finite lifespan, and we are committed to safeguarding indigenous flora and fauna during operations and post-closure.
Biodiversity considerations are integrated into our financial planning, mine closure strategy and long-term sustainability objectives. We ensure that adequate financial provisions are allocated for rehabilitation, while also addressing the environmental and socio-economic needs of our PACs in the post-mining landscape.
Our approach
We are dedicated to preserving natural habitats and ensuring no net loss of biodiversity within our mine lease areas. Our approach integrates environmental stewardship with socio-economic sustainability, benefiting our host countries, PACs and business operations.
At Letšeng, we actively mitigate environmental impacts through conservation initiatives and concurrent rehabilitation, enhancing biodiversity throughout the mine’s lifecycle. Strategic partnerships play a crucial role in these efforts, as we work closely with governments, regulators, scientists, industry stakeholders and local communities to implement effective environmental protection measures.
Our sustainable land management initiatives focus on working with local subsistence farmers to implement rotational grazing and veld management programmes, and preventing overgrazing beyond the mine lease area while managing overgrowth within it. Bioremediation remains a cornerstone of our water stewardship strategy, ensuring sustainable water quality for local ecosystems and surrounding communities. To safeguard native flora, we implemented the Priority Plant Relocation Procedure, which includes a high-altitude rescue garden and seed storage facility – now home to Lesotho’s most comprehensive native seed collection.
Biodiversity and veld quality assessments are conducted every two years, with the most recent cycle completed in 2023. These assessments indicate minimal operational impact on biodiversity and an encouraging upward trend in total species diversity, including Red Data and restricted species. Our biodiversity risk assessments consider all threatened, migratory and endemic species, as well as regionally relevant ecosystem services. To mitigate mining-related biodiversity impacts, Letšeng has implemented a biodiversity offset strategy, supported by a comprehensive monitoring programme that tracks species diversity within and beyond the lease area. Operational biodiversity management plans, developed by external specialists, are reviewed annually to ensure alignment with global best practices.
Through these initiatives, we continue to integrate long-term biodiversity conservation into our operations, reinforcing our commitment to sustainable mining and environmental responsibility.
Our performance
Letšeng has successfully trialled and implemented various rehabilitation activities, including eradicating invasive plant species, remediating soil erosion and reseeding with native vegetation to facilitate natural regeneration. Rehabilitation trials on Letšeng’s waste rock area identified Tenaxia disticha, a small evergreen shrub native to South Africa, as a model species for stabilising waste rock facilities. This finding will be instrumental in refining our rehabilitation approach, thereby contributing to long-term environmental sustainability.
As part of our Concurrent Rehabilitation Plan, Letšeng Diamonds remains committed to progressively restoring disturbed areas wherever feasible. This approach balances immediate rehabilitation efforts with the flexibility to adapt to evolving mining technologies and methodologies. Recent initiatives include topsoiling, installing anti-erosion netting and revegetating across approximately nine hectares of the old RSF beach. In addition, we are exploring the feasibility of rehabilitating steeper slopes beyond the industry standard 15-degree benchmark, with early trials yielding promising results.
Livestock overgrazing and trampling pose significant threats to wetland ecosystems, causing soil compaction, vegetation loss and stream bank destabilisation. Recognising wetlands’ crucial role in water retention and biodiversity, Letšeng established designated no-go areas to mitigate these impacts, leading to the return of several plant and animal species previously displaced from the region.
Letšeng’s wetland rehabilitation programme continues to restore critical ecosystems, with notable successes such as the Qaqa wetland, which has been naturally regenerating since 2013. With significantly improved water quality, this wetland is fostering the growth of indigenous vegetation. A planned wetland rehabilitation project in the RTZ valley is expected to further enhance regional biodiversity and ecosystem health.
At Ghaghoo, environmental rehabilitation and closure efforts gained momentum in 2024 with a significant site clean-up and restoration initiative. As part of our concurrent rehabilitation activities, the processing plant and associated infrastructure were decommissioned and removed, marking a critical step in the site's environmental recovery.
Through these efforts, we remain committed to responsible land restoration, ensuring that mining activities leave a lasting positive impact on the environment.
Refer to our Bearded vulture conservation support case study for more information.