Environmental, social and governance (ESG) issues play an increasingly important role in investment decision-making. But there is growing concern among both companies and investors around the methodologies used to assess them.
In response, Critical Resource launched an initiative in December 2018 to develop new approaches to assessing ESG issues, specifically for the mining and energy sectors. The findings of this review are summarised in our draft white paper: A manifesto for better ESG data in the resource and energy sectors.
After a period of consultation with leading investors and industry executives we plan to publish the white paper at an event in Q3 2019.
How does the white paper contribute to the wider debate in this area?
Much has already been written about the flaws in existing ESG rating methodologies and how different standards might improve the approach. This initiative seeks to go beyond these debates, not by seeking to replace the ESG ratings, but by proposing alternative approaches for investors and companies who want to really understand a company’s risk profile, behaviour and impacts. It advocates for more in-depth and sector-specific analysis of ESG issues, relying on experienced analysts and independently verified information.
What was our research process?
As part of the research, we spoke to more than 20 leading investors and industry executives, including mining and energy-focused portfolio managers, leading SRI fund managers, private equity managers, company investor-relations executives and ESG professionals. The initiative draws on our experience of undertaking in-depth ESG assessments of more than 300+ resource projects over the past ten years, as well as consultations with a wide range of leading investors and industry executives.
How can I find out more?
We have recently completed an early draft white paper that summarises our findings and we are currently reviewing the document with a number of leading fund managers, industry executives and ESG professionals. If you would like to find out more or would be interested in reviewing an early draft of our white paper please contact firstname.lastname@example.org