Report addresses investor concerns over mining

Six interventions are proposed to reshape the investor's role and support an environmentally and socially responsible mining sector.

The Landscape Report: The Role of Institutional Investors in Realising an Environmentally and Socially Responsible Mining Industry was produced by the Global Investor Commission on Mining 2030.

The six strategic objectives are to:

1. Align investor expectations of companies with global and mining industry standards.
2. Ensure demand-side companies align with these expectations and work towards circularity and traceability.
3. Encourage regulation to reinforce investor expectations.
4. Deliver fair, equitable and sustained benefits locally and nationally.
5. Identify and reduce mining-related conflict and its drivers.
6. Address historic legacies and create positive legacies for current operations.

The recommendations prioritise areas where investors have the greatest potential to make a positive impact at scale.

The sector's history in the environmental, social and governance (ESG) field seems to cause challenges for investors. Fredric Nyström, Head of Sustainability and Governance at Swedish investment firm, AP3, talks about how the report tackles this.

'Many investors are underweighted in mining because of the industry’s tough legacy around human rights abuses, and a whole spectrum of ESG issues. Yet this is the one sector where we truly need sustainable development and impactful engagement if the climate transition is going to be successful. Investors shouldn’t shy away from the sector just because it’s challenging.

'This report, and the future work of the Mining 2030 Commission, will support us and the rest of the investment community with a direction of travel to collectively address the sector’s systemic risks and opportunities.'

The Global Investor Commission on Mining 2030 was launched in 2022 and has gained the support of investors representing US$15 trillion in assets under management.

These investors include Allianz Investment Management, Brunel Pension Partnership, the Church of England Pensions Board, LGIM, Orion Resource Partners, Scottish Widows, Swedish National Pension Funds (AP1-4) Ninety-One and Royal London Asset Management.