Environmental, social and corporate governance (ESG) is no longer a niche concern in the natural resources sector.
Corporate governance and community issues have typically dominated the sustainability and ethical criteria of mining companies and their investors. But more recently, the focus has shifted.
Environmental factors, particularly decarbonization, have come to the fore amid increasingly stringent regulation and intensifying consumer pressure to reduce greenhouse gas emissions.
Think of 16-year old Swedish student-turned-activist Greta Thunberg addressing the United Nations, climate change strikes around the world, and activists from environmental group Extinction Rebellion gluing themselves to trains and to the entrance of the London Stock Exchange.
It was impossible to attend key major international conferences in 2019 without hearing industry executives discuss ESG issues.
For metals and mining firms, this has meant added pressure to increase transparency in a plethora of metrics including carbon emissions, waste and dust management, and water usage.
It has also led to a shake-up in the product mix of major producers as well as a...