Growing Recognition of Mining’s Strategic Importance
A coalition of global asset managers and pension funds managing more than $18 trillion in assets is warning that investors may be systematically underexposed to the mining industry. According to the Global Investor Commission on Mining 2030, this lack of exposure could pose long-term risks to portfolios, given the sector’s essential role in powering global decarbonization and economic growth.
Why the Mining Industry Is Being Rethought
For years, mining has been avoided by many sustainability-focused investors due to environmental and social concerns, such as pollution, waste management issues, and reports of poor labor practices. ESG restrictions have further limited investment in the sector. However, as the world accelerates toward renewable energy, the demand for critical minerals like copper, lithium, and nickel continues to surge. These resources are vital for building wind farms, solar panels, and electric vehicles, which are key to driving the green transition.
Adam Matthews, Chair of the Global Investor Commission on Mining 2030 and Chief Responsible Investment Officer at the Church of England Pensions Board, said investors must rethink their stance. “It’s a challenging sector, therefore it’s much easier to underweight, not lean in and often exclude,” he said. “We’re challenging the whole concept that mining is an industry that you shouldn’t be associated with. It’s quite the reverse: you should be.”
A Vision for Responsible and Sustainable Mining
Established in 2023 with support from the United Nations, the Commission on Mining 2030 aims to promote a more responsible, transparent, and investable mining sector. The initiative’s supporters include Legal & General Group, Royal London Asset Management, and PIMCO, all major players in the global investment community.
Ashley Hamilton Claxon, Head of Responsible Investment at Royal London Asset Management, emphasized that responsible mining is “essential to the low-carbon transition,” and that companies leading with integrity will deliver “long-term value for people and the planet.”
Unlocking Investment Opportunities in Mining
A core objective of the Commission is to help investors access new opportunities within the mining sector while maintaining responsible standards. Its ten-year vision outlines a framework to support the growing demand for minerals tied to clean energy, digital infrastructure, and agriculture.
The group also encourages ESG professionals to adopt more balanced assessment methods so that mining companies are not automatically rated poorly compared to other industrial sectors.
The Church of England Pensions Board, which currently allocates less than 1% of its portfolio to mining, plans to review its existing restrictions and consider increasing exposure to firms operating at the highest sustainability standards.
Key Recommendations for the Global Mining Sector
The Commission has proposed several steps to strengthen transparency and accountability across the industry, including:
- Creating an independent international minerals agency to track global supply and demand, monitor illicit mineral flows, and support stronger legislation.
- Developing a framework to evaluate mining governance among sovereign bond issuers, helping investors identify embedded risks and opportunities.
A delegation of investors recently presented these recommendations to Brazil’s President Luiz Inácio Lula da Silva ahead of the COP30 climate summit, where the proposals were reportedly well received.
The Bottom Line for Investors
As the world races to build the infrastructure needed for a low-carbon future, demand for responsibly sourced minerals will continue to rise. For investors, this shift presents both a challenge and a significant opportunity.
At Leading Investment Group, we believe that sectors such as mining, when approached with strong governance and sustainability principles, can play a pivotal role in supporting long-term, responsible growth.
