A coalition of some of the world’s biggest investors with a cumulative asset portfolio of more than $15 trillion has issued recommendations to investors to help bring about “an environmentally and socially responsible mining industry”.
The report cited by Bloomberg and published by major investors, including California State Teachers’ Retirement System, Allianz Investment Management, Legal & General Group, Scottish Widows and Royal London Asset Management, says that investors would need to adopt a new approach to the mining sector if that industry is to meet the growing demand for minerals and metals needed for the green transition.
Adam Matthews, chair of the Commission on Mining and chief responsible investment officer at the Church of England Pensions Board, said in an interview that while mining is a systemically important sector, it’s historically been penalized by investors, especially those that track environmental, social and governance issues.
“We’ve got to lean into the [mining] sector in a much more intentional way than just simply managing it within our own individual portfolios, and recognizing that unless we do so it’s going to be hard for the sector to attract the long-term patient capital it’s going to need to meet future demand in the most responsible way,” Matthews said. “We’ve got to give the signals that there’s a long-term commitment from us.”
To do this, investors need to better understand the mining ecosystem and how they can influence it, the commission said. The group came up with six strategic objectives for its investor members, including developing a common set of expectations and advocating for better environmental performance.
Theodor Lisovoy, Managing Editor, Rough&Polished
