Historically, mining may not be the first industry many investors think of when considering an investment based on environmental, social and governance (ESG) factors, but there appears to be a revolution underway that is creating a fundamental shift in the actions, and therefore ESG credentials, of mining companies. Over recent years, this shift has attracted the attention of both specialist ESG funds and alternate forms of capital who are keen to demonstrate their ethical standards for investing.
In a world that is rapidly migrating towards green living, and where the global population is increasingly focused on the social sustainability aspect of ESG rather than just environmental, the industry is being transformed in an effort to clean up its sometimes-troubled reputation.
Innovation and a conscious focus on ESG has allowed mining companies to become more efficient, cleaner, socially responsible and therefore sustainable. Although ESG has been a buzzword in mining for the last couple of years, it is the environmental aspect that had gained the largest focus. The emergence of coronavirus and the impact on the global population seems to have refocused the implementation of ESG on all three components, which results in a more holistic outcome.