Impacts of ESG on the Copper Supply Chain— The New Critical Mineral - SME Annual Meeting 2024

Copper, the newest addition to the critical mineral list, is an essential metal whose electrical and heat conductive properties label it as a vital mineral for the creation of renewable energy sources and the reduction of Greenhouse Gases (GHGs). However, despite copper’s leading role in the transition to sustainable energy and mining practices, the mining industry has faced various battles in the extraction of this valuable material. These challenges are based on mining’s negative reputation and extensive impact on the environment, nearby communities, and human rights. To ensure the survival of mining in the future and achieve mineral demands, an emerging topic that has initiated the revolution of the traditional sector into a more environment- friendly and transparent industry, is Environmental, Social, and corporate Governance (ESG). ESG has motivated companies to seek growth opportunities and standardize risk accountability and transparency based on its collective framework that creates, modifies, and implements local, national, and international standards. These standards focus on improving environmental, social, and governance issues faced by companies and their projects. ESG has served as a guideline that investors utilize to assess companies and promote sustainability, responsibility, and disclosure to create positive and balanced relationships with stakeholders and the environment. Nonetheless, concerns have been rising which state that ESG is negatively impacting the mining industry by targeting what fuels the industry and world: ore deposits and their resources. Therefore, this research focused on answering the following research questions: what are the impacts of ESG on the copper supply chain and how will stricter ESG standards affect future copper production?