• News
  • Entertainment
  • Sports
  • Politics
  • Education
  • Business
  • Tech
  • Health
  • Gossips
  • World
  • Lifestyle
  • Biafra
  • Religion
Chrysora Media
  • News
  • Entertainment
  • Sports
  • Politics
  • Education
  • Business
  • Tech
  • Health
  • Gossips
  • World
  • Lifestyle
  • Biafra
  • Religion
No Result
View All Result
  • News
  • Entertainment
  • Sports
  • Politics
  • Education
  • Business
  • Tech
  • Health
  • Gossips
  • World
  • Lifestyle
  • Biafra
  • Religion
No Result
View All Result
Chrysora Media
No Result
View All Result
Home News

2020 will likely be a turning point for sustainable finance in Africa’s mining sector

admin by admin
February 6, 2020
in News
0
Spread the love

Nigel Beck, Head: Sustainable Finance and Mark Buncombe, Head: Mining and Metals for Standard Bank Group

As corporates proactively implement measures to operate more responsibly and improve their Environmental, Social and Governance (ESG) performance, 2020 is shaping up to be a watershed year for sustainable finance in Africa.

2020 will likely be a turning point for sustainable finance in Africa’s mining sector


The continent’s mining sector is likely to be among the adopters of sustainable finance products, particularly as mining groups and their supply chains seek to demonstrate their positive societal and environmental impacts – and secure their social licenses to operate for the long-term.
In fact, pursuing ESG policies and responding to the challenges of climate change are both seen as more important priority areas than growth for the global mining and metals sector this year, according to law firm White & Case’s latest annual survey. Less than 9% of respondents are pursuing growth as their leading goal for 2020.
While the sustainable finance market has started to gain serious traction in developed economies, it remains in its infancy in Africa, with only a few notable deals having been executed. Among those being East Africa’s first ever green bond, issued in late 2019 by Acorn Group for the purposes of developing environmentally friendly student accommodation in Nairobi.
But a step change in activity in coming months is anticipated. Standard Bank’s sustainable finance unit has seen a surge in interest from all sectors, including mining, and that momentum is expected to continue as investors demand action and transparency and corporates globally take more responsibility for uplifting and safeguarding society. The sharp rise in interest, points to pent-up demand for sustainable finance solutions in Africa.
These unique funding solutions will play an important role in helping Africa’s mining industry to overcome common challenges – such as energy supply, water treatment, environmental protection and mine rehabilitation, impending carbon taxes, community development, health and safety, and resilient infrastructure development.
Local miners are considering funding instruments such as social bonds to develop employee housing and infrastructure, or green bonds and loans to fund water treatment plants and renewable energy units.
These projects are not nice-to-haves – they are crucial for the sustainability of the industry. Consider how dependent mines are on water – a resource that is highly sensitive to climate change – and the urgency of such initiatives become clear.
According to EY’s 2020 report on the biggest risks and opportunities across the industry, ‘license to operate’ remains the most significant risk to the sector. Reducing the industry’s carbon footprint ranks fourth, while the need for innovation – to ensure access to energy and infrastructure, and to improve water management, among other needs – also features as a prominent theme.
And as regulatory requirements tighten and investor demands increase, corporates that avoid ESG issues face material risks. KPMG warned in a 2019 report that companies that fail to act could in time find it difficult to access capital. Furthermore, their stock valuations could be affected by their lack of ESG transparency, potential regulatory action, and weaker long-term performances.
Those that do take action have an opportunity to improve their ESG ratings, which in turn can lower their cost of capital. As such, sustainable finance not only enables future-proofing initiatives, but it also makes commercial sense.
There is a growing body of evidence that a stronger commitment to ESG issues is linked to a company’s outperformance over the long term, partly because operational risks are reduced.
As enablers of trade and investment, banks have an important role in encouraging the shift, which also needs to happen in the short-term supply and trade finance arena. This is why Standard Bank has been working with the International Chamber of Commerce’s Banking Commission to develop a framework that helps banks to develop sustainable trade finance practices.
Globally, the sustainable finance market is expanding at a rapid pace.
According to Bloomberg data, 2019 was a record year for sustainable debt issuances, with transactions worth at least $380 billion. This is an increase of 46.2% from 2018, with European governments and corporates driving much of the demand.
Green bonds remain the most popular form of sustainable financing product, although sustainability loans, green loans, social bonds and sustainability bonds are all garnering more attention.
This comes amid an increasing focus on ESG issues, particularly as institutions move to win back the trust of the societies in which they operate.


With confidence in governments low in many instances, the public is looking to the corporate world for solutions to societal problems. Those companies that fail to position themselves accordingly – by basing their decisions on long-term sustainability rather than short-term considerations – risk falling behind.
Like its peers, the mining industry has some way to go to change perceptions about its impact on the environment. Nevertheless, it is worth noting that the sector is playing an important role in the transition to a lower-carbon economy.
Platinum group metals and other metals such as manganese, cobalt and copper, for instance, are key components of electric vehicles and batteries.
And as mines become more sustainable, their products will contribute to the development of sustainable cities.
Sustainable finance will catalyse the transformation.

ALSO READ:  Judicial Workers Call Off Strike

Related

Previous Post

I’ve kept my promise to end Boko Haram, says Buhari

Next Post

Man who killed his girlfriend in Bauchi over phone call claims he stabbed her in self defence

admin

admin

Next Post

Man who killed his girlfriend in Bauchi over phone call claims he stabbed her in self defence

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Recent Posts

  • President Buhari Suspends 5% Tax Levy On Telecom Sector
  • My Suspension By Ayu Last Kick Of A Dead Horse — Fayose
  • Watch moment Ayo Fayose And Oseni Rufai Clashed On Arise TV
  • Police Bust Syndicate Kidnapping Children In Niger, Arrest Three Suspects
  • Polls: Anti-tinubu Protesters Ground Abuja, Demand Interim Govt, Fresh Polls

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019

Categories

  • Biafra
  • Business
  • Education
  • Entertainment
  • Gossips
  • Health
  • Lifestyle
  • News
  • Politics
  • Religion
  • Sports
  • Tech
  • World
Chrysora Media

Chrysora.com.ng is a solely independent news organization owned by Obiagwu Chrys Munachim

We are non-partisan.

We are proud of what we report here because we don’t attach any political, religious, or any form of criticisms to our reports

We aim at bringing to your door step undiluted and uncompromising news, accurate and verifiable.

Chrysora.com.ng reaches an influential audience of approximately two million readers each month in many countries and territories.

We attend to varieties of individuals regardless of the class.

Follow Us

Browse by Category

  • Biafra
  • Business
  • Education
  • Entertainment
  • Gossips
  • Health
  • Lifestyle
  • News
  • Politics
  • Religion
  • Sports
  • Tech
  • World

Recent News

President Buhari Suspends 5% Tax Levy On Telecom Sector

President Buhari Suspends 5% Tax Levy On Telecom Sector

March 23, 2023
My Suspension By Ayu Last Kick Of A Dead Horse — Fayose

My Suspension By Ayu Last Kick Of A Dead Horse — Fayose

March 23, 2023
  • About
  • Contact
  • Advertise
  • Privacy Policy
  • Home

© 2022 Chrysora.com.ng - Designed by Freedom Isaac.

No Result
View All Result
  • News
  • Entertainment
  • Sports
  • Politics
  • Education
  • Business
  • Tech
  • Health
  • Gossips
  • World
  • Lifestyle
  • Biafra
  • Religion

© 2022 Chrysora.com.ng - Designed by Freedom Isaac.