While the world is in a race towards reaching net zero by 2050, we already know mining will continue or even increase in the coming decades, as the green energy sector will need metals and other elements for their production of sustainable energy and plants. So, if mining does not stop, how will the sector deal with their enlarged operational risks in increasingly volatile environments?
With the growing scarcity and potential depletion of natural resources, as well as conflicts over their use, profound environmental and social issues arise. Within mining, large infrastructural and energy projects there is always social disruption. Development projects do not easily coincide with populated surroundings. Conflicts will increase as resource-rich zones overlap with indigenous held territories; this basically means that getting the metals out will mean territories will be invaded. News reports from all over the world constantly report on new cases of social disruption that lead to unrest, and, consequently, tremendous losses for all parties involved.
Meanwhile, investors are moving their portfolios away from non-sustainable investments, and are pressuring companies to limit negative impacts. Companies face serious challenges to maximize profit whilst becoming more responsible global citizens. The new-age impact investor wants ESG-proof investments pressuring companies to dedicate larger parts of their budget to sustainability measures.
These global, national and regional specific pressures combined cause a serious threat to any large-scale project. If you do not permanently manage your (stakeholder) relations and understand your environment, you will be out of the game before you know it. Companies are starting to make the change. In the last 10 years alone the budget for sustainability within the 10 top-mining companies increased by 900% (to USD 20 billion a year). However, we believe these spendings are merely ’band aids’, not providing enough insights for continuous guarantee of a social license to operate for your operation.
What if you can de-risk your operation?
What if you can predict, and mitigate, your next conflict before it erupts into a burning platform?
And what if, this can be done without affecting your profits?