Publication / 06 Dec 2004

Metal Mining: Between a Rock and a Hard Place

Trucost’s report analyses how the environmental performance of metal mining companies affect company valuations.

Trucost wanted to analyse the environmental impacts of metal mining companies and how these impacts affect each company’s valuation. The report examines the financial and environmental reporting of thirteen of the largest metal miners looking for discussion and disclosure of environmental issues.

In the absence of disclosed data, Trucost has estimated companies’ heavy metal emissions based on the mix of metals mined in order to produce comparable results. This analysis serves as an indicator for the vulnerability of companies to risks resulting from heavy metal emissions.

The findings are that relative company valuations are not well correlated with environmental disclosure and performance levels. Conversely, there is no evidence to substantiate the fear that transparency leads to an equity discount. Investors are not adequately informed about key risk areas, particularly heavy metal emissions and the management of tailings dams. Heavy metals pollution can cause conflict between the operator and local authorities, with significant repercussions for the companies’ licences to operate.

Trucost News / 26 Nov 2019 Trucost launches Physical Risk Analytics to help assess risks and opportunities from climate change

New dataset and analytics enables investors, companies and governments to weigh risk of companies’ assets from physical impacts of climate change

Read news
Publication / 25 Nov 2019 Understanding Climate Risk at the Asset Level: The Interplay of Transition and Physical Risks

How could the interplay between regulatory transitional risks and physical risks impact the performance of companies across sectors and geographies?

Read publication
26 November, 2019
Events Webinar: Developing SDG Analytics for Financial Portfolios

Your feedback is invited as we develop SDG Analytics for Financial Portfolios

Find out more