Changing climate triggers risk and investment issues for mining industry

This report shows how important it is for the mining sector to plan for a changing climate

According to an acclimatise report, backed by IBM, over 80% of global mining companies surveyed claim their physical assets would be affected by extreme weather events, yet only 13% report taking action to protect their assets that are critical to business success, attracting financial investment and the safety of employees.

The report findings highlight the critical choices mining companies now face to help prepare their business for anticipated additional costs and challenges created by a changing climate. The challenges facing mining enterprises today are pushing leaders to adapt the traditional ways of thinking about their business to discover and explore new practices that will improve the business of mining.

Without building adaptation measures into their business plans, climatic risks could impact upon a company’s financial and operational performance, potentially increasing operational and capital expenditure. This is particularly true for mining companies where long-term investment decisions have to be made. However only 3% of companies surveyed provided evidence that they mainstream adaptation into decision making, highlighting the need for more mining companies to consider action.

“This report shows how important it is for the mining sector to plan for a changing climate,” said Paul Simpson, Chief Operating Officer, Carbon Disclosure Project. “Issues such as operating cost, community impact and reputational risks will impact if not managed effectively. As a result, investors want to know how mining companies are dealing with these risks and planning for them in the future. This report helps answer those questions.”