Miningmx

Environmental, Social and Governance (ESG) investing is now the fastest growing category for active fund managers. Some very large fund management groups are now refusing to invest is some types of mining companies, such as coal producers, because of their environmental impact. However, if this type of decision making spreads to other mining categories, in the longer run, this might damage investment performance. More likely in our view is that investors will demand to know which are the most suitable investments within a peer group, probably measured on several key ESG metrics.

In this new report, we have attempted to make those key, “apple versus apple”, ESG comparisons for the companies that we currently follow. With public disclosure of some metrics missing entirely or at best confusing to understand, this has not been an easy report to compile. We certainly do not think this analysis is complete, but rather the start of a journey to a better understanding of these companies from an ESG point of view. (Some academic studies have shown a link between share price performance and leading ESG metrics.) And as with all peer group reports, we certainly do not make any conclusions, but instead highlight the “right” questions to ask of these companies.