The Council of Ethics of the Swedish National Pension Funds, together with the Church of England Pensions Board, has committed to further interventions to drive change in the mining sector on tailings dams and improve safety levels.

The board acknowledged that there has been "considerable progress" on safety issues since the Brumadinho tailings dam disaster in 2019, such as the development of a new Global Industry Standard on Tailings Management, which was released in August 2020.

However, it clarified that further steps are still needed, confirming that, going forward, it will expect companies to confirm that they will adopt the Global Industry Standard and disclose a timeline for their intended compliance.

The board, together with the Council on Ethics of the Swedish National Pensions Funds, will also convene a high-level meeting of asset owners and key fund managers to develop a 2030 Investor Agenda for the mining sector.

This will look to address systemic issues, including tailings waste, climate change, a just transition related to automation, supply chains, child labour, critical mineral supply, pipeline of future mining leaders.

It will also consider how investors can consolidate disclosure requests and independent site level monitoring as well as drive systemic change to support best practice as a minimum standard.

In addition to this, the investors have committed to the launch of an independent Global Institute by the end of 2021, dependent on the feasibility and scoping work commissioned by UNEP, the Church of England Pensions Board and the Swedish Council on Ethics.

The group has also announced plans for the creation of an independent advisory group to determine a second disclosure request to be made in 2021, and the creation of an Expert Working Group to determine the feasibility of global 24/7 tailings monitoring hub.

Council on Ethics of the Swedish National Pension Funds secretary general and co-chair of the mining & Tailings Safety Initiative, John Howchin, said: “We have demonstrated how investors can drive genuine change in a sector that is vital to society and the low-carbon transition.

“There is a partnership to be developed with asset owners that establishes an agenda of change that will ensure this sector is not undermined by repeated incidents.

“We repeatedly acknowledge the good practice that exists and the efforts of many in the sector to the highest standards however, each incident undermines societies’ as well as investors’ confidence.

“It is incumbent on us as long-term institutional investors to both be at the table and outline an agenda for change that addresses the many systemic issues that continually undermine it.”

In addition, Church of England Pensions Board director of ethics and engagement and Mining & Tailings Safety Initiative co-chair, Adam Matthews, commented: “Society demands the products of mining but is often far removed from the reality when it is done badly or goes wrong.

“Good practice exists in mining and the new Global Industry Standard on Tailings is the start of driving the sector-wide change needed on this specific issue.

“Whilst significant progress has been made, there remains a pressing need for investors to continue to work with industry on tailings and several other issues that challenge the sectors social licence to operate.

“Ultimately we want this sector to flourish and on this second anniversary of the Brumadinho disaster, we are committing to not only address the issue of tailings waste and storage but ensure this disaster is the catalyst for a reformed mining sector on a range of systemic issues.”

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