Sustainalytics report links sustainability and shareholder value for mining companies
(Toronto – July 28, 2011) – A new study by Sustainalytics finds strong links between sustainability performance and shareholder value for companies in the mining sector. Sustainability and Materiality in the Natural Resource Sector: Mining looks at whether environmental and social practices impact competitiveness for companies within the mining sector. The study finds that effective management in four key areas of sustainability was positively linked to shareholder value.
This is the first of three reports looking at the link between sustainability performance and business performance in the natural resource sector. Sustainalytics studied the influence of nine categories of environmental and social performance on eight drivers of business competitiveness relevant to the sector. Within the mining sector four areas of sustainability – society and community; employee relations; operations and climate change – were found to be the most material to mining companies’ financial performance.
Society and Community
- Issues in this area are strongly linked to access to natural resources, the political and regulatory environment and a company’s reputation.
- Responsible community relations are particularly important for mining companies operating in emerging markets with weaker regulatory environments and human right records.
Employee Relations
- Employee and labour relations are strongly linked to access to labour and operational efficiency
- Attracting enough new talent to meet anticipated production targets is a particular concern for the industry.
Environmental Operations (Tailings and Water Management)
- Sound management of environmental operations is strongly linked to a company’s ability to access natural resources.
- Some mining activities are quite water-intensive, raising concerns about the impact on water availability.
Climate Change
- Supply/ demand trends and operational efficiency are strongly linked to climate change.
- Climate change impacts are expected to have relevance for mining companies in the long term.
The report Sustainability and Materiality in the Natural Resources Sector: Mining can be found here.
Reports on the forestry and oil and gas sectors will be released in the upcoming months.
For more information on Sustainability and Materiality in the Natural Resources Sector, please visit our webpage.
About Sustainalytics
Sustainalytics is a global leader in sustainability research and analysis for investors and financial institutions. We provide a global perspective, underpinned by nearly 20 years of local experience and expertise in the responsible investment markets. Sustainalytics strives to continuously provide high-quality solutions and commits to remain responsive to the current and future needs of our clients. Sustainalytics is headquartered in Amsterdam and has offices in Boston, Frankfurt, Madrid, Paris, Timisoara and Toronto; and representatives in Brussels and Copenhagen.
For more information please contact:
Melissa Chase
Marketing Communications Coordinator
+1 416 861 04 03 ext 28
mchase@sustainalytics.com
Twitter: @Sustainalytics
