🌱 What role do social licenses play?
Mining companies — and energy or electronics producers further down the supply chain — should be conscious of the social license needed for mining operations. In the context of mining, it is always good to remember that the expectations and standards placed on companies are often far greater under the “social license to operate” than they are under the law. To safeguard their social license, companies should, therefore, take steps to — for example — set up better company policies, collaborate with producers and other stakeholders, and shift over to using circular business models.[i]
🌱 Is there a business imperative?
It is worth noting that “[d]eveloping and implementing good corporate standards on responsible mining is not only good from a corporate citizenship perspective but also increasingly a business imperative”. The failure to properly address environmental and social issues “can have dire financial consequences for the companies involved”. The fact that many “financial services (investors, banks, insurers, etc.) are monitoring […] companies’ track records on economic, environmental, social and governance issues” demonstrates the overall business significance.[ii]
🌱 What role do partnerships play?
Across the board, “multi-stakeholder partnerships and the involvement of all stakeholder groups at national, sub-national and regional levels” are key. Multi-stakeholder partnerships can, notably, “make supply chains more sustainable” and make it possible to extract raw materials for the energy transition “in a socially and environmentally friendly manner”.[iii] By building “partnerships with government and civil society, mining companies can [also] ensure that benefits of mining extend beyond the life of the mine itself”. This, in turn, can help to assure that “the mining industry has a positive impact on the natural environment, climate change, and social capital”.[iv]
🌱 What are the benefits and risks?
Companies willing to commit to the UN Sustainable Development Goals (SDGs) are expected to “benefit from improved relationships with governments and communities, as well as better access to financial resources”. On the flipside, the failure “to engage meaningfully with the SDGs will put [companies’] operations at risk in the short and long term”.[v] In line with this there is “a growing awareness among companies that they need to act fast to demonstrate they have embedded sustainability as a business model”. Failure to do so can be a risk for “commercial and financial opportunities”.[vi]
This post has been adapted from a newsletter written by Krisna Baghouzian and Christine Nikander. The newsletter titled “How does critical raw material mining impact river biodiversity?” was originally published in “The E-Waste Newsletter”.
[i] See our past newsletter: https://www.theewastecolumn.com/post/how-does-the-mining-of-critical-raw-materials-impact-forests-and-their-biodiversity (27.02.2025).
[ii] Responsible Mining Foundation and Columbia Center on Sustainable Investment, Mining and the SDGs: a 2020 status update. https://www.responsibleminingfoundation.org/app/uploads/RMF_CCSI_Mining_and_SDGs_EN_Sept2020.pdf (27.02.2025).
[iii] German Federal Ministry for Economic Cooperation and Development, The UN Sustainable Development Goals and Mining in the Andean countries – How does it fit together? https://rue.bmz.de/rue-en/releases/forum-nachhaltiger-bergbau-79418 (26.08.2024). See also: https://www.theewastecolumn.com/post/how-does-the-mining-of-critical-raw-materials-impact-forests-and-their-biodiversity (27.02.2025).
[iv] Columbia Center on Sustainable Investment, Mining and the Sustainable Development Goals. https://ccsi.columbia.edu/content/mining-and-sustainable-development-goals (26.08.2024). See also: https://www.theewastecolumn.com/post/how-does-the-mining-of-critical-raw-materials-impact-forests-and-their-biodiversity (27.02.2025).
[v] Columbia Center on Sustainable Investment, Mining and the Sustainable Development Goals. https://ccsi.columbia.edu/content/mining-and-sustainable-development-goals (26.08.2024). See also: https://www.theewastecolumn.com/post/how-does-the-mining-of-critical-raw-materials-impact-forests-and-their-biodiversity (27.02.2025).
[vi] Responsible Mining Foundation and Columbia Center on Sustainable Investment, Mining and the SDGs: a 2020 status update. https://www.responsibleminingfoundation.org/app/uploads/RMF_CCSI_Mining_and_SDGs_EN_Sept2020.pdf (27.02.2025).