See the findings from Accenture’s survey of investor expectations that mining companies should understand when pursuing decarbonization initiatives. Learn more: https://accntu.re/3MkQAKS
3. Principal survey revelation:
Aggressive decarbonization is valued
by investors…
70%
cited aggressive
decarbonization as
a high or very high priority
in driving the allocation
of capital
59%
expect the mining
companies they invest
in to be market leaders
in aggressively pursuing
decarbonization
63%
would be willing to
divest or avoid investing
in mining companies that
are not pursuing sufficient
decarbonization activities
Source: Accenture Global Institutional Investor Study of ESG in Mining
4. …but investors’ underlying motivation
is mostly financial.
Increased market valuation and the rise in mining firms’ ability to attract green capital
are the most important reasons investors cited for requiring mining companies to pursue
decarbonization initiatives. The least important – climate change.
Source: Accenture Global Institutional Investor Study of ESG in Mining
38.5%
25.5%
16.0% 15.0% 15.0% 21.5%
33.5%
45.0%
48.5% 45.0% 43.0% 35.0%
Increase
in valuation
Rise of
green capital
Investor
demand
Fund
targets
Carbon
taxes
Impacts of
climate change
% investors rating “important” (4 out of 5)
% investors rating “very important” (5 out of 5)
5. 43.5% 49.0%
29.0% 25.0% 29.5% 23.0% 26.0% 23.0% 28.5% 22.0% 26.5% 23.5% 19.5% 20.5% 21.0%
40.0% 34.0%
45.0% 49.0% 42.0%
47.5% 43.5% 46.5% 41.0%
46.0% 41.5% 44.0%
44.5% 37.0% 35.0%
Investors cited improving financial performance and
strengthening the balance sheet as the most
important criteria in driving allocation of capital
– much higher than decarbonization.
Source: Accenture Global Institutional Investor Study of ESG in Mining
% investors rating “important” (4 out of 5)
% investors rating “very important” (5 out of 5)
6. Sustainability ranked second to last on
a list of initiatives that have the greatest
impact on a mining company’s value.
Source: Accenture Global Institutional Investor Study of ESG in Mining
71.0%
60.0%
50.5% 47.5% 45.5% 44.0% 43.5% 42.0% 39.0% 37.0%
28.5%
Emerging technologies Digital
trans-
formation
Conserving
cash
Research &
development
Mineral
exploration
Hedging-
prices &
foreign
exchange
Cyber-
security
Mergers &
acquisitions
Product
expansion
/new
development
Sustainability Employee
training
% investors indicating great impact on value
7. Mining companies should focus on
decarbonization initiatives that can
enhance shareholder value.
What does this mean for the mining industry?
8. Emerging
technologies (71%)
and digital
transformation (60%)
ranked highest
as initiatives having
the greatest impact
on a mining
company’s value.
Advanced technologies such as data
analytics, artificial intelligence (AI)
and blockchain will likely:
Drive operational efficiencies
that enhance revenues
and earnings
Be instrumental in achieving
decarbonization and reporting
on decarbonization
performance
Be well-received by investors,
as well as other stakeholders
Source: Accenture Global Institutional Investor Study of ESG in Mining
9. Mining companies should
focus decarbonization
initiatives on Scope 3
emissions.
What does this mean for the mining industry?
10. Scope 3 emissions
are the highest priority
decarbonization
concern for investors.
Low Scope 3 emissions, which
are created by the buyer of the
mine products, are seen as the
most important sustainability-
related attribute of mining firms
in driving significant valuation
premiums
for investors.
85% rate low Scope 3
emissions as “important”
or “very important”– ranking
higher than safety, diversity and
the elimination of
coal production.
Source: Accenture Global Institutional Investor Study of ESG in Mining
11. Scope 3 emissions outranked
Scope 1 and 2 emissions in importance
by a factor of nearly four.
Source: Accenture Global Institutional Investor Study of ESG in Mining
3.0%
30.0% 34.0%
24.5%
57.0% 52.0%
Scope 1 & 2 emissions Scope 3 emissions Scope 3 emissions,
only when far exceed Scope
1 & 2
% investors rating “important” (4 out of 5)
% investors rating “very important” (5 out of 5)