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What the industry is saying:

“Even late Capitalism’s most unvarnished “Going up that ESG curve does cost money and I
practitioners have suddenly discovered the merits think we do need to realise that; it is not a one size
of a social conscience and now say they won’t fits all basket. Juniors still don’t have the cash or
invest in a business that doesn’t have a satisfactory the head count to be able to make the same moves
ESG rating. Mining companies have a moral that the mid-tiers do… and I think you’ll find juniors
obligation, as well as a commercial reason, to will continue to move up the curve but not nearly as
help develop economies and uplift people through fast as the mid-tiers.”
investment, skills transfer, opportunity creation Sally-Anne Layman, director at Perseus Mining,
and quality of life improvement.” Pilbara Minerals and Imdex
Mark Bristow, Barrick Gold

“We believe this is a ‘make or break’ moment
facing our industry and our business. How we
adapt, operationalise and integrate sustainability
will define successful mining companies for years
ahead.”
Bold Baatar, Rio Tinto

And, given their sophisticated reading tion that miners are
of marketing and communications, mil- preparing for the
lennials require more than motherhood trend, according to
statements about what companies are Blunt.
doing to prove their ESG credentials. “It was clear that
“We are seeing CEOs talking more people are talking
openly about what their companies are about ESG in a dif-
doing and the benefits they bring,” Ch- ferent way,” he said.
eveley said. “But, in doing that, they must “Mark Cutifani lead-
make absolutely sure they are doing the ing with ESG and “The UK-listed companies know inves-
right thing.” Bold Baatar [Rio Tinto] also having it right tors won’t invest without proof of ESG
Butler agreed that millennial investors at the heart of their presentation was re- credentials and the LSE is beginning to
would demand more clarity on the pur- vealing. Even Robert Friedland spent an mandate it,” he said. “What surprised me
pose of a company. hour on stage, all focused on ESG, and in Cape Town is the focus of private eq-
“The CEO needs to articulate the pur- he knows where the money is going. uity groups on ESG. One leading private
pose and direction of the company,” he “It is all tied back to the increasing pres- equity fund said they increasingly need-
said. “Companies have done a lot to en- sure on companies to have a purpose not ed to see a clear path to compilance with
hance disclosure but what is missing is limited to the generation of profits. They its ESG requirements before investing in
vision about mining’s role in the world 20 are being pushed by investors, custom- an unlisted business. That is a big shift
years from now.” ers and NGOs to be more explicit in the because historically private equity has
ESG factors have been at the heart of way they deliver value to stakeholders. not focused on that.
a new wave of shareholder activism with “It is now very clear that you won’t get “The LME has also started asking for
investors using their shareholding to in- the big funds investing in a company voluntary carbon footprint figures attrib-
fluence companies’ ESG performance, which doesn’t have an ESG record and utable to the metal traded back through
such as the pressure placed on Rio Tinto covers the basics consistent with bench- to original extraction and I think it will be
Ltd and BHP Ltd to distance themselves marking.” mandatory in years to come.”
from industry lobby groups which dispute The pace of this evolution could catch Blunt sympathises with juniors who are
climate change. Blunt said the practice, some companies out. The shifts may be struggling to keep up with the shifting
already common in the hydrocarbon sec- manageable for majors who can afford trends. He suggests using the global vol-
tor, was likely to increase in mining. to fund entire ESG departments and pro- untary principles as a good place to start
“In the oil and gas industry, groups duce glossy sustainability reports but for building a corporate ESG identity.
such as Follow This have been making smaller companies, the world of ethical “Juniors can’t skip ESG and there
themselves known at annual general investment and corporate purpose can is no shortcut so, they have to have
meetings, often diverting attention from seem alien after years of telling investors someone looking at the ESG factors in
other key strategic messages which they are doing everything to keep costs the business. The UN Guiding Princi-
boards wish to communicate. We antici- to a minimum. ples, for example, are a good frame-
pate that the mining industry will soon fol- Blunt said although juniors find it more work, it is then a question of working
low as a target,” he said. difficult to express their ESG credentials, out how relevant they are to the busi-
The Mining Indaba was a clear indica- it is increasingly vital they do. ness; a big part of it is information

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