A commission of institutional investors, including the Church of England Pension Fund and the Council on Ethics for the Swedish National Pension Funds, has outlined recommendations for a more socially and environmentally responsible mining sector.

The recommendations were made by the Global Investor Commission on Mining 2030, a multi-stakeholder commission supported by global investors representing around USD 18trn of assets.

The 10-year vision for the mining industry, published just a week before the start of COP 30, is intended to offer a pathway for institutional investors to address topics in the mining sector that could slow the sector’s ability to meet the growing demand for metals and minerals required to deliver global clean energy and digital infrastructure.

In particular, the report stressed the need to consolidate market expectations of mining companies and the key role that users of mined products need to play to support responsible mining, outlining a variety of recommendations.  

Intended to support a vision of continuous improvement across the mining sector, there is an explicit focus on the role of investors and the principles needed to enable the finance sector to tackle short-termism and seize an opportunity to level the playing field for responsible mining operators, while also meeting the global mineral demand required to roll out the clean energy and digital infrastructure we need.

In particular, the group recommended creating an independent International Minerals Agency (IMA) to monitor global demand and supply of minerals, as well as ensuring that environmental, social and governance (ESG) and other data providers adopt more nuanced assessments in their frameworks and methodologies so that the mining industry is not by default ranked poorly relative to other industrial sectors.

It also encouraged broader support for market mechanisms that create incentives for companies to raise their standards whilst challenging ESG policies, filters and indices to not automatically penalise the mining sector and instead encourage miners that demonstrate credible improvement of practices.

Alongside this, the group called for a framework to assess the mining regulations of sovereign bond issuers and how countries are governing the mining industry and the risks and opportunities that may materialise from this.

It also emphasised the need to address an anticipated shortfall in financial provisioning for mine closure, as well as backing the creation of a Global Legacy Fund to tackle the social and environmental impacts of legacy mine sites.

Commission chair and Church of England Pension Board chief responsible investment officer, Adam Matthews, as well as other commission representatives, met with President Lula of Brazil and members of his cabinet on Thursday (30 October) as Brazil prepared to host the UN climate negotiations.

Further discussions are expected with both the Brazilian government and other governments on the measures outlined by the commission, which are open for consultation from today.

Commenting on the recommendations, Matthews stated: “From cobalt to copper, we’re going to need at least 30 million tonnes of new transition metals and minerals. 

"To meet future demand - and ensure a model of mining where sustainability risks such as health and safety, community engagement and environmental performance are managed to the highest global standards – investment alone is not enough. 

"A compelling vision and partnership are needed and a humble recognition that only by owning the challenges together will we enable the best model of mining to become the norm.

“The market is at an inflection point. We can choose to support a vision of responsible mining that addresses the industry’s systemic challenges which in turn would enable long-term value generation. Or we can allow the digital and clean energy system of tomorrow to be born of social discord and environmental breaches."

Adding to this, Sweden's AP3 head of sustainability and governance, Fredric Nyström, stressed that whilst investors want exposure to the mining sector’s growth, this can only be done where social and environmental risks are managed responsibly.

"The mining sector is fundamental to the global economy, and central to the energy transition.... Mines that build trust will deliver lasting value.

"A measure of success is how fairly benefits are shared and how openly companies engage with communities. With this vision, we are putting in place a path to make that happen, working with partners from across the mining value chain, and finding ways for investors to contribute to realising a socially and environmentally responsible mining”.

The commission also has backing from the USD 128trn global investor network, the Principles for Responsible Investment (PRI) and has received technical support from the United Nations Environment Programme.

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