Software and services company, company K2fly Limited (ASX: K2F), based in Australia is helping Tier 1 clients operating in asset intensive industries such as Mining, Oil & Gas, Rail, Facilities Management, Water, Electricity, and Gas. With the right combination of leadership, workforce, products and strategic alliances in place with leading international IT players like SAP (Germany), Esri (USA) and GE(USA), K2fly is assisting businesses in the management and maintenance of their physical asset data.
Read here- K2F’s Annual Report FY19
K2fly’s Business Offerings –
Environmental, Social and Governance Reporting
What is ESG? It stands for Environmental, Social and Governance and most commonly used by capital market participants for evaluation of corporate behaviour and determination of both, short-term and long-term financial performance of a business. A Company develops a sustainability report telling the full story about the economic, environmental and social impacts of its activities to be communicated to its stake holders such as employees, governments and the community.
ESG analysis has become a crucial part of an investor’s checklist. Globally, investors and financiers have started to assess companies through an ESG lens to gain a holistic understanding of their operations.
Appropriate Resource Governance and Reporting is a fundamental governance pillar of any publicly listed resource company as it is a critical element to get right for investors, regulators, reputation and care of the core asset.
K2fly’s Infoscope and RCubed SaaS-based software form a one stop comprehensive solution for Resource and Energy sector players to adhere to their ESG obligations.
Infoscope, K2fly’s data management software, empowers clients to maintain their social licence through a combination of multiple and complex stakeholder and regulatory relationships that are associated with handling landholdings in resources and infrastructure projects.
While, RCubed is the only proven Commercial Off the Shelf (COTS) system that enables Resource Governance and Reporting across multiple clients, commodities, exchanges and codes, which is now a fundamental governance pillar of any publicly listed resource company.
Global Factors Driving Change and Industry Response to ESG
Much is at stake, as we, the inhabitants of planet earth, approach the final decade before the 17 Sustainable Development Goals set out by the United Nations General Assembly in 2015 are on the way to be realised until 2030. The international leaders are setting high ambitions for global prosperity and protection of our biological diversity and land resources to limit global warming. Progress towards these goals is well within our reach; however, a fundamental change in how natural resources are used around the world is essential to make headway.
The global resources industries are capital intensive, technologically dynamic as well as environmentally and socially progressive. According to the Minerals Council of Australia, the minerals industry largely contributes to the national income, investments, promotes exports, generates high-paying jobs and revenue for the government.
A report released by EY suggested that of all the primary risks that the metals and mining industry may face in 2019-20, license to operate tops the list followed by digital effectiveness, energy mix, future of workforce, disruptions, maximisation of portfolio returns, cyber security and others.
Rio Tinto’s Chief Executive Officer, Jean Sebastien-Jacques stated at the International Mining and Resources Conference that the resources industry must hold itself accountable for operating in a responsible way towards communities, customers, suppliers and governments.
K2fly Strongly Advocates GRI Reporting
According to K2fly, around half of Australia’s top fifty mining companies are developing and producing sustainability reports, with most of them being in the top 25 by market capitalisation. However, many businesses still find the task to be daunting.
The international independent standards organisation, Global Reporting Initiative (GRI), now in its 21st year, helps businesses, governments and other organizations to understand their impacts on issues such as climate change, human rights and corruption and; identify sustainability measures and communicate the material data to stakeholders. GRI’s framework categorises sustainability reporting into key indicators being economic, environment, social, society, product and responsibility.
As per the company, GRI Standards is the most robust of the many sustainability reporting frameworks available today.
K2fly’s Chief Commercial Officer, Nic Pollock believes that K2fly has responded to this issue of consistently collecting and reporting data over time, with its technology enabling capturing and publishing of data across stakeholder engagement, land access, environmental approvals, tenement management, community relations and performance as well as indigenous relations and cultural heritage.
K2fly is well on the path to attain Global Leadership in ESG, with major headways achieved in this regard, via rapid commercialisation and adoption of Infoscope and RCubed.
K2fly has a market capitalisation of around AUD 13.07 million with ~ 81.69 million shares outstanding. On 17 October 2019, the K2F stock was trading at AUD 0.160. K2F has delivered positive returns of 23.08% Year-to-date, and 6.67% in the last six months.
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