Lack of finance could constrain mining amid ESG concerns, IMF says

Insufficient financing for metals and mining investment due to growing investor focus on environmental, social and governance (ESG) considerations could constrain production and add to potential supply-chain bottlenecks, according to analysts at the International Monetary Fund (IMF).

ESG concerns arise because mining involves environmental impacts and fuels global warming, albeit at a fraction of coal and gas generation, the IMF said.
In response, miners are trying to reduce their carbon footprint, indicating they are catching up with other sectors to become more attractive to global investors seeking to build more responsible portfolios, it noted.
“Commitment to better environmental scores could help unlock more green financing for mining firms,” the IMF said.

“This is supported by our analysis of...

Published

Andrea Hotter

December 08, 2021

21:10 GMT

New York