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Mining ESG 2022 in review
2022 was an eventful year for ESG in the mining industry. As the world faced a series of interconnected challenges, a 'polycrisis', ESG assets continued to grow, with the majority of institutional investors in the US and Europe planning to increase their ESG allocations. But with so much upheaval, it can be difficult to spot the trends and anticipate what lies ahead for mining companies on their ESG journeys. So to help you catch up on the industry’s emerging and evolving ESG trends, Sympact compiled our Mining ESG 2022 in Review report, summarizing our top highlights and new sector-relevant guidance across a range of core industry ESG topics that are likely to drive stakeholder decision-making, industry risk and YOUR business decisions in the year ahead. Download your complimentary copy of the full report here or check out our topic-specific mini-reports below!
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Mining ESG Spotlight on Climate Change
The repercussion of extreme weather events in 2022 ensured that climate change discussions remained centre stage across the globe. The latest report from the United Nations Intergovernmental Panel on Climate Change (IPCC) confirmed a stark ‘now or never’ scenario if the world is to stave off a climate disaster. Investor emphasis on corporate disclosure of climate-related financial information continued to grow, and numerous jurisdictions legislated or proposed mandatory disclosure. Against the backdrop of growing criticism over unsubstantiated climate goals, “green hushing” began to grow. Learn more by checking out the full topic mini-report here.
Mining ESG Spotlight on Human Rights
New research in 2022 revealed that mining companies continue to fall short in their performance across a range of human rights topics, particularly within their broader value chains. Reports found that the industry’s efforts to address gender imbalances in particular remain limited to head offices, while a Western Australia parliamentary inquiry into industry sexual harassment revealed widespread and “generally accepted” sexual harassment and misconduct. Meanwhile, mandatory human rights due diligence is on the rise, new human rights legislation was introduced or passed in numerous jurisdictions and rights-related community opposition and litigation is growing. Learn more by checking out the full topic mini-report here.
Mining ESG Spotlight on Indigenous Peoples & Rights
2022 saw growing calls and government action to further the implementation of the UN Declaration on the Rights of Indigenous Peoples (UNDRIP) and the principle of Free, Prior and Informed Consent (FPIC), including embedding Indigenous values and consultation into environmental assessments, project development, and monitoring activities. Headlines highlighted Indigenous communities opposing mining operations, especially in Latin America, and a viral new study led by the University of Queensland calculated that 54% of mining projects are located on or near Indigenous Peoples’ lands, drawing even greater attention to the industry’s growing risk related to the rights of Indigenous Peoples. Learn more by checking out the full topic mini-report here.
Mining ESG Spotlight on Tailings Management
Over the course of 2022, six major tailings dam failures were documented, with several resulting in loss of life, and all causing significant and longlasting environmental impacts. Rates of serious tailings failures are climbing rather than declining. Impacted communities, investors, and other stakeholders are coming together to raise the bar on technical and social expectations, including through alignment with the Global Industry Standard on Tailings Management (GISTM). Litigation covering past failures, including in overseas courts, has also been on the rise. Meanwhile, mining circularity efforts are focusing on tailings reprocessing, and new research is exploring the carbon capture potential of tailings. Learn more by checking out the full topic mini-report here.
Mining ESG Spotlight on Investor Landscape
2022 was turbulent year for the ESG investment landscape. While the 2022 proxy season saw a record number of shareholder ESG resolutions, there was also a notable emergence of anti-ESG proposals. Growing uncertainty in international markets and rising energy prices contributed to declines in sustainable bond trends and ESG investing interest. Despite these pressures, the push for ESG has continued in the mining industry, including through shareholder activism on topics like gender diversity and climate change. Learn more by checking out the full topic mini-report here.
Mining ESG Spotlight on Regulatory Landscape
2022 brought a seismic shift to the ESG world with broad action from regulators across the globe. Several jurisdictions, began developing climate-related disclosure requirements, some of which were met with resistance. An anti-ESG movement emerged and quickly spread across the US, while at the same time, ESG litigation has been on the rise globally. The finance world was rocked by greenwashing allegations, while in the mining world, the SEC targeted Vale referencing tailings-related content published within its sustainability reports. Regulators also continued to focus on gender diversity, with EU legislation targeting gender pay gaps. Learn more by checking out the full topic mini-report here.
Mining ESG Spotlight on Voluntary Reporting Standards
In the world of voluntary sustainability reporting standards, the long-awaited International Sustainability Standards Board (ISSB) became the focus of great interest in 2022. Meanwhile, the Global Reporting Initiative (GRI) raised the bar with its new Universal Standards and new SDG guidance published with the UN Global Compact (UNGC). ICMM launched its new Performance Expectations and a new framework for consistent social and economic contribution reporting in the mining industry. Performance data shows that while the number of companies reporting on their ESG performance is growing, ESG reporting continues to lag in quality. Learn more by checking out the full topic mini-report here.
Mining ESG Spotlight on Biodiversity & Natural Capital
Biodiversity and natural capital received increasing attention throughout 2022, as the link between biodiversity and climate change was acknowledged at COP27 and more companies began to call for greater action to preserve biodiversity. COP15 ended with a historic declaration to halt biodiversity loss by protecting 30% of the planet by 2030. The Taskforce on Nature-related Financial Disclosures (TNFD) released its beta framework and announced plans to launch formally in 2023. Learn more by checking out the full topic mini-report here.
