Climate Change and Mining: A Dilemma for the Industry?

by | 13. Oct 2023 - 11:14 | Finances

New EY report on risks in the mining industry.

Mining managers see so-called ESG factors as the most significant risk to their business, according to consultancy EY.  ESG stands for Environmental, Social, and Governance, criteria that address how environmental, sustainability, and social issues are considered in corporate governance. These include, among other things, the impact of mining projects on the local population and the environment, but also the avoidance of climate-damaging emissions. In general, climate change is a complex problem for the industry since, on the one hand, it extracts the necessary raw materials – including copper, but also rare earths – while at the same time, the impact of mining on the environment must be kept to a minimum. The geopolitical situation also poses a challenge as more and more taxes and restrictions are imposed on the industry. At the same time, government initiatives such as the Inflation Reduction Act in the USA offer new opportunities that must be exploited.

The entire report can be found here.

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