Investors should be weary of a newly proposed global mining standard
New analysis from Public Citizen and global organizations exposes the risks of a newly proposed global mining standard to investors.
By Chelsea Hodgkins
The International Energy Agency forecasts that demand for transition minerals could quadruple by 2040. While advancements in circular
economy systems mean new mining is not the only means to supply these minerals, the role of the mining sector remains ever present and growing. Tripling global renewable energy capacity and increasing transport electrification is a mineral-intensive effort.
Environmental stewardship and license to operate are mounting risks for the mining sector. Of particular concern are persistent allegations of human rights violations and negative environmental impacts by the sector, with more than 800 cases documented between 2010 and 2024. These impacts, when unaddressed, create financial risks for those investors with exposure to the sector.
Robust standards for the mining sector are vital to ensure sustainable returns on investment. In contrast, a draft new industry-led mining standard and certification scheme, the Consolidated Mining Standard Initiative (CMSI) falls far below existing standards, norms and current industry commitments, and risks setting the industry back years.
The proposed CMSI draft documents (Standard, Assurance Process, Claims Policy and Governance) represent considerable risk for investors, as detailed in the brief.
The brief ends with recommendations for investors.
Download the brief to read more.