Environmental, social and governance (ESG) issues are increasingly finding their way on the radar of internal and external stakeholders. ESG can be transformative for many industries, especially for those that have a significant direct impact on all three areas of ESG as the mining and metals sector does.
Having a license to operate held its top position in the annual EY Top 10 business risks facing mining and metals ranking this year. Shareholders and investors are driving many mining companies to reshape their portfolios, review supply chain and lower their carbon footprint. ESG is increasingly seen as a source of value creation, putting companies under pressure to invest in proper processes, measurement and reporting to address concerns and comply with regulations.
As the sector struggles to access new sources of investor capital to transition back to a growth agenda, companies need to look at how to effectively and efficiently manage ESG outcomes.