Global Compact: Economy Can’t Decarbonize Without Mining

Speaking with the Investing News Network at the International Mining and Resources Conference (IMARC) in Melbourne, Executive Director at Global Compact Network Australia Kylie Porter stressed the importance of the mining industry in the decarbonization of the global economy.

“We wouldn’t be able to decarbonize our economy without the mining industry,” she said, explaining that the industry has provided all the materials needed for renewables

Porter also talked about Global Compact Network Australia, explaining that it’s the Australian division of UN Global Compact, which seeks to advance corporate sustainability and the private sector’s contribution to sustainable development.

Global Compact Network Australia includes 176 companies, such as major miners like BHP (ASX:BHP,NYSE:BHP,LSE:BLT), Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO) and Fortescue Metals Group (ASX:FMG).

When asked about how the mining sector is faring overall in working towards Global Compact’s goals for sustainability, Porter said that there are clearly big shifts happening in the industry, with lots of good players out there, but there is more work to do.

“What we need is a fundamental shift, not only in the Australian economy, but more broadly away from fossil fuels,” she commented.

Porter said that with the rise of ESG (environmental, social, governance)-focused investing, companies need to be thinking more about their properties and whether they will be stuck with stranded assets in fossil fuels down the line.

“As for the poor-(performing) miners, they need to step up, otherwise they’re going to lose that investment, and they’re going to fold.”

Listen to the interview with Porter above for more of her thoughts on sustainability in the mining sector and how the sector is performing. You can also click here for our full IMARC playlist on YouTube.

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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.