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Responsible global mining gets a USD11-trillion boost

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The role of investors is critical to how the mining sector can meet future demand sustainability and responsibly. Image credit: Leon Louw for WhyAfrica

Responsible global mining gets a USD11-trillion boost

In November the Global Investor Commission on Mining 2030 announced USD11-trillion initial investor support. Members of the Commission include representatives from across the global mining sector.

The Global Investor Commission on Mining 2030, a collaborative investor-led initiative, announced that it has already received the support of 82 investors with over USD11-trillion in assets under management for its mission to develop a vision for a socially and environmentally responsible mining sector by 2030.

Some of the world’s leading Asset Owners and Fund Managers have come together to support the Global Investor Commission on Mining 2030, also known as the Mining 2030 Commission, including Dutch fund APG-AM (USD589-billion), Canadian fund CDPQ (USD309-billion), US fund CalSTRS (USD307-billion), UK fund Scottish Widows (USD206-billion), UK fund USS (USD109-billion), as well as managers LGIM (USD1.47-trillion), Abrdn (USD467-billion), AVIVA (USD270-billion), South African manager Ninety One (USD175-billion) and the Australian Council for Superannuation Investors (ACSI – whose members have USD1-tillion in AUM).

Members of the Mining 2030 Commission are to meet monthly, and the 24 Commissioners represent a broad cross-section of geographies and mining stakeholders.

Advised by the United Nations Environment Programme (UNEP) and backed by the Principles for Responsible Investment (PRI), the membership of the Mining 2030 Commission includes representatives from communities, intergovernmental organisations, civil society, academia, law, unions, the mining industry, banking, insurance and investors amongst others.

Developing a future vision (Responsible global mining gets a USD11-trillion boost)  

With a broad spectrum of stakeholder membership, Commissioners from organisations range from the European Bank for Reconstruction and Development (EBRD), ING Bank, mining company Newmont, the Indigenous People’s Advisory Forum (IPAF), IndustriALL Global Union, London Stock Exchange Group (LSEG) and the Brumadinho community.

As Commissioners they will contribute to the development of a vision for the future of mining that will specifically consider how investors value, invest and steward the sector to meet future demand in a socially and environmentally responsible manner.

According to Adam Matthews, Chair of the Global Investor Commission on Mining 2030 and Chief Responsible Investment Officer of the Church of England Pensions Board the Mining 2030 Commission presents a unique opportunity to step back and consider how investors value, steward and invest for the long-term in a sector whose time horizons are multi-decadal and often at odds with short term investment pressure.

“Twinned with this will be a consideration of the role of investors in supporting the alignment and consolidation of best practice standards on the key issues that challenge the sector as well as the role of addressing existing and future conflict that can be caused or exacerbated by extraction.”

Angélica Amanda Andrade, Member of the community of Brumadinho and Mining 2030 Commissioner says: “Hailing from Brumadinho and having personally experienced the devastating impacts of a tailings failure, I understand the critical need for robust, transparent, and effective communication in mining operations.

“This Commission represents an important step in ensuring that the voices of all stakeholders, especially those directly affected by mining activities, are heard and valued. As we embrace the energy transition, it is imperative that we do so with a keen awareness that further social or environmental harm is unacceptable; and that communities need to be considered not solely as beneficiaries but as active partners both in terms of disaster prevention and benefit sharing.

“I am hopeful that through our collective efforts and interdisciplinary knowledge coming together, we can pave the way for safer, more sustainable mining practices that prioritize the well-being of communities and the environment, alongside shared value.”

Role of investors critical (Responsible global mining gets a USD11-trillion boost)  

Barend Petersen, Commission Deputy Chair and Representative of the Archbishop of Cape Town, says that if mining is to provide what society needs into the future then we need to reflect if we are enabling it to do so to the highest standards.

“The role of investors is critical to how the sector can meet future demand sustainability and responsibly. We need to think long term and the Commission presents an opportunity to do so,” says Petersen.

According to Ed John, Executive Manager, Stewardship, Australian Council of Superannuation Investors (ACSI) the Global Investor Commission can play a critical role improving adoption of operating standards in the mining sector by bringing together industry, investors, civil society groups among other stakeholders to establish consensus around best-practice standards.

“Improving the social license and reducing the environmental impact of the sector will be key to its long-term success.

“There is an opportunity for the Global Investor Commission on Mining 2030 to drive consistent best-practice standards for the sector. Bringing together the best ideas from industry experts across the globe, as well as learning from past failures, provides a powerful platform for change,” says Petersen.

 Increase in sustainably mined minerals needed (Responsible global mining gets a USD11-trillion boost)  

George Cheveley, Portfolio Manager, Ninety One says that mining has never been an easy industry.

“However, if the energy transition is going to be successful, a significant increase in the supply of sustainably mined minerals is required.

“Ninety One believes that only by engaging with the mining industry on multiple levels will we ensure that these minerals can be accessed whilst taking into account the many different stakeholders.

“This Commission is an important part of that engagement, representing many stakeholders and improving understanding on all sides of the challenges that need to be faced.”

Peter Kindt, Global Sustainability Lead, ING Wholesale Banking Sectors adds: We recognise the business activities of our clients, both in retail and in wholesale banking, can have a significant influence on communities and the environment.

“For us, this means making the right choices in how, where and with whom we do business – and crucially, being transparent about the underlying principles that guide our daily business decisions.

“Our metals and mining clients face an increasing challenge in meeting expanding needs for mining products while safeguarding human rights and minimising negative impact on the environment.

“Meeting this challenge means that environmental and social impacts associated with the sector are carefully managed. We thus welcome the mission of the Global Investor Committee on Mining 2030 with input from all stakeholder groups.”

Understand future supply and demand (Responsible global mining gets a USD11-trillion boost)  

The Mining 2030 Commission builds on the experience of the investor-led response following the 2019 Brumadinho disaster which contributed to the creation of a Global Industry Standard on Tailings Management, and the effort to establish an independent Global Tailings Management Institute to oversee the audit and implementation of the standard.

The Mining 2030 Commission also issued an invitation to stakeholders from across the mining sector to contribute evidence to a landscape research project commencing in November 2023, with a deadline for submissions of 20th December 2023. The study seeks to understand future supply and demand and key challenges that could prevent demand from being met. For details of this research project please visit: https://mining2030.org/call-for-evidence-landscape-study/

Responsible global mining gets a USD11-trillion boost

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Responsible global mining gets a USD11-trillion boost

 

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