Could it be that Digbee”s ESG product could actually engineer a re-rating of the mining industry? – Proactive Investors USA & Canada
It seems a pretty far-fetched proposition, that a relatively low-cost stardization kit for ESG might actually trigger a sector-wide re-rating.
But consider this: the stalwarts in an industry that’s providing raw materials for the greening of the global economy – metals for solar panels, wind turbines electric cars – are currently trading on a cashflow per share multiple that’s worse than the tobacco industry’s. On that basis, a re-rating ought not to be out of the question – if the new pools of capital can be identified.
The elephant in the room is ESG, or environmental social governance, formerly known as corporate social responsibility.
How bad the mining sector really is at ESG is open to debate – after all, its activities have obliged it to engage with local communities since the dawn of time. But what is clear is that it needs to improve its perception further improve its actions. Given the nature of some recent high profile incidents – notably Rio Tinto’s (LON:RIO) dynamiting of ancient aboriginal grounds – it often seems like the bad reputation is well deserved.
So, what can mining companies do about this? – particularly the smaller companies that do have ongoing ESG programmes, but who need to demonstrate their efficacy to the wider world.
Digbee, which has hitherto been a company specialising in bespoke project-level research, believes it has the answer.
One major problem with mining industry ESG is there is no stardised disclosure process.. After all,