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A coalition of major global investors has released a report calling for a new approach to the sector. The Global Investor Commission on Mining 2030, backed by institutions managing $15 trillion in assets, has outlined recommendations aimed at fostering an environmentally and socially responsible mining industry.
The report, published on Tuesday, emphasizes the crucial role of the mining sector in meeting the growing demand for minerals and metals essential for the green transition. As the world moves towards lower carbon technologies, the need for these raw materials is expected to surge. For instance, electric vehicles require six times more mineral inputs than conventional cars, and mineral demand for clean energy technologies is projected to nearly triple by 2030 to align with net-zero goals.
However, the mining industry’s history of environmental and social issues, including child labor and toxic waste management, has made it a challenging investment prospect. Adam Matthews, chair of the Commission and chief responsible investment officer at the Church of England Pensions Board, noted that many ESG-focused investors have been underweighting miners due to past scandals.
The commission proposes that investors take a more proactive approach to reshape the mining industry. This includes developing a common set of expectations, advocating for improved environmental performance, and providing long-term patient capital to meet future demand responsibly.
George Cheveley, a portfolio manager at Ninety One, stressed the importance of investor engagement, stating that divestment is not a solution and could impede progress on the energy transition. Fredric Nyström from Swedish pension fund AP3 highlighted that this initiative extends beyond mining companies to the entire supply chain of mineral-dependent industries.
The report’s recommendations are supported by major investors such as the California State Teachers’ Retirement System, Allianz Investment Management, Legal & General Group Plc’s asset management business, Scottish Widows, and Royal London Asset Management.
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