Balancing Growth with Sustainability Requires Bold Action and ESG Focus
The metals and mining sector, crucial for modern economies, faces a critical challenge: balancing growth with environmental sustainability. A new report by KPMG in India, titled “Time to Act Now – ESG in Metals and Mining,” highlights this urgency and offers a roadmap for achieving net zero emissions.
The report underscores the rising demand for metals in sectors like solar energy and electric vehicles. While this presents growth opportunities, it also necessitates stricter environmental practices.
The report emphasizes that achieving net zero doesn’t have to hinder growth. KPMG’s global survey of executives revealed that nearly 80% believe growth and decarbonization can coexist.
Bold Measures Needed for Net Zero
The report urges Indian mining companies to adopt bold measures to achieve net zero. This includes:
- Optimizing existing operations: Techniques to reduce emissions within current setups.
- Embracing disruptive technologies: New technologies and operating models for achieving net zero.
ESG is Key
KPMG emphasizes that companies prioritizing ESG (environmental, social, and governance) factors will benefit. Strong ESG practices can lead to:
- Improved access to capital: Investors increasingly favor companies with robust ESG credentials.
- Enhanced social license to operate: Demonstrating commitment to sustainability can strengthen community support for mining projects.
“Companies need to innovate out of this problem because business as usual is no longer an option,” said Namrata Rana, National Head – ESG, KPMG in India. The report suggests these levers for effective ESG strategies:
- Visibility and insights: Data-driven understanding of environmental impact.
- Net Zero portfolio: Developing a roadmap to achieve net zero emissions.
- Performance management and leadership: Setting clear ESG goals and holding leadership accountable.
- Green positioning and Green financing: Leveraging ESG credentials to attract investment for sustainable practices.
The KPMG report provides a clear message: the metals and mining sector in India must embrace bold action and prioritize ESG to ensure sustainable growth in a net zero future.