Modern Mining November 2021

Jayne Mammatt, ESG Africa leader for PwC Africa.

Garyn Rapson of Webber Wentzel.

them, a company is more likely to be in tune with its employee base, a broad range of stakeholders, and society. GloalData notes that early engagement with all stakeholders, including employees, shareholders and local communities is key for mining companies to excel at ESG. Investors have their say The PwC 2021 Global Investor ESG Survey captures the views of 325 investors from around the world, primarily active asset managers and analysts with investment firms, investment banks or brokerage firms. An additional 40 in-depth interviews were con- ducted globally with investors and analysts having more than a combined US$11,6-trillion assets under management. While most investors are likely to take action if companies are not doing enough to address ESG issues, most also say that they don’t want a com- pany’s action on ESG to significantly, if at all, impact their investment returns. The vast majority, 81%, said they would accept no more than one percentage point less in investment returns for pursuit of ESG goals; nearly half, (49%), were unwilling to accept any reduction in returns. James Chalmers, global assurance leader, PwC UK, says: “Our research shows investors are simulta- neously focused on short-term results as well as the longer-term societal issues that can create both risks and opportunities for their investments. It is clear that investors expect ESG to be an integral part of cor- porate strategy. That includes making expenditures to address ESG issues, while clearly communicating

Webber Wentzel’s Merlita Kennedy.

Tobia Serongoane of Webber Wentzel.

the rationale and benefits to the business strategy. If investors don’t see that commitment, they won’t hesitate to take action and that can include divesting their position in a company and taking their clients’ money elsewhere.” Reporting matters Investors increasingly want to hear more from com- panies about their ESG-related commitments – 83% surveyed by PwC said it is important that ESG report- ing provide detailed information about progress toward ESG goals. Greater engagement with investors, says PwC, is critical, along with transparent, trustworthy report- ing. It is concerning that only one third of investors surveyed, on average, think that the quality of ESG reporting they are seeing is good. Investors gain greater confidence in ESG reporting that has been assured – 79% of those surveyed by PwC said they place more trust in ESG information that has been assured, and 75% think it’s important that reported ESG-related metrics are independently assured. A consistent set of metrics for measuring ESG performance would be of significant benefit to investors, according to the PwC survey. Nearly three- quarters (74%) said their decision-making would be

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