Investors often create barriers to sustainable mining – finds industry survey
A survey commissioned by the Global Investor Commission on Mining 2030 underlines the influence and importance of the finance sector.
A large majority of mining sector respondents (81%) are clear that investor support is important, or very important, for the adoption of higher sustainability standards by their companies.
But over half (53%) warn that investors can sometimes, or frequently, create barriers to this goal.
When asked what miners would like to see from investors - an overwhelming majority of sector respondents ask for investor consensus on expectations when it comes to sustainability performance.
Mining respondents also want to see rewards for those with high sustainability standards - such as access to lower cost of capital.
One challenge highlighted is the 'short termism' that can work against companies seeking to introduce more sustainable practices. Perceived obstacles include prioritisation of returns over sustainability considerations, rigidity of frameworks and not reflecting high sustainability standards in the share price.
Other items the mining sector would like to see from the finance sector is for it to engage with regulators and standard setters to ensure a ‘level playing field’ on sustainability; to link access to lower-cost capital with sustainability outcomes; and to pay more attention to community development impacts.
Launched in 2022, the Global Investor Commission on Mining 2030 is a multistakeholder investor-led initiative that includes representatives from a broad cross-section of geographies and mining stakeholder groups. It aims to define a vision for a socially and environmentally responsible mining sector overall by 2030, and to develop a consensus about the role of finance in realising this vision.
It will publish its vision and recommendations for the sector in November 2025.
Investor supporters include Brunel Pension Partnership, the Church of England Pensions Board, KLP, LGIM, Orion Resource Partners, Pimco, Regnan, Swedish National Pension Funds (AP1-4) NinetyOne and Royal London Asset Management.
