Resumen de Pricing ESG: How do sustainable mining practices affect mineral costs?
Industrial Minerals
There has also been a proliferation of NGO and industry-led initiatives, such as the International Finance Corporation’s (IFC) Performance Standards.One difficulty with non-mandatory standards is that, while industry leaders are habitually quick to sign up to ESG principles, smaller participants and competitors based in some jurisdictions where ESG is less of a prominent issue fail to follow suit, creating an uneven playing field. Weaknesses in supply chain transparency and integrity can give non-ethically sourced minerals and metals an advantage over sustainably produced products, if they can be offered more cheaply to buyers without disclosing details of production.But the clock is ticking for poor-ESG practices as scrutiny increases and more and consumers demand information on provenance and life cycles of certain materials. Concepts such as the World Bank’s Natural Capital Accounting framework are evolving as means of calculating the value of natural resources depleted through exploitation, to help companies work out how much corresponding investment needs to be made in human capital (such as education or health) or produced capital (such as infrastructure) to redress the balance.Resource cycles can make it difficult to deliver on promises, but every effort needs to be made to maintain community relations, regardless of which direction mineral prices move in.
