The Global Investor Commission on Mining 2030, an investor coalition with combined assets of more than $15trn, has identified six key priorities to reshape the role of investors in the mining sector.
This comes as the demand for minerals, essential to the renewable energy transition, is expected to triple by 2050. The goals of the Paris Climate Agreement are at risk if investors remain passive in engaging with the mining sector warned the the Commission's chair, Adam Matthews.
The mining industry underpins nearly half of the global economy, yet faces significant social and environmental challenges that threaten its ability to meet future demands.
The report highlights six critical interventions that investors must focus on to help transform the mining sector. These include enforcing best practice standards, promoting equitable benefits for mining communities, addressing conflict, and ensuring responsible mine closures.
Matthews, who is also the Chief Responsible Investment Officer for the Church of England Pensions Board, said: "As investors, we must take a strategic approach to reshaping our role with the mining sector. We need to work with the sector, governments, and key stakeholders to ensure long-term benefits for local communities, mitigate negative social and environmental impacts, and leave a positive legacy while meeting global demand responsibly."
Fredric Nyström, head of Sustainability and Governance at AP3, acknowledged that while investors have often been hesitant to engage with the mining sector due to its history of human rights abuses and environmental issues, sustainable development in mining is essential to achieving climate goals. "Investors shouldn’t shy away from the sector just because it’s challenging," Nyström said.
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Eva Cairns, head of Responsible Investment at Scottish Widows added: “Investors have a critical role to play in engaging the industry to tackle the social and environmental challenges it is associated with. It is fantastic to see this comprehensive report lay out the levers to do so.”
The Commission, which launched in 2022, includes a diverse group of stakeholders representing investors from firms like Allianz Investment Management, Brunel Pension Partnership, and Scottish Widows. Its work builds on the investor-led response to the 2019 Brumadinho disaster in Brazil, which led to the creation of the Global Industry Standard on Tailings Management.
The next steps for the Commission involve consulting stakeholders on practical implementation plans, with final recommendations expected by mid-2025. Investors hope that these efforts will not only support the energy transition but also ensure that mining operations are both environmentally and socially responsible.
