Mining and Investors - Managing Business Risks
FairPensions and CAFOD have launched the Unearth Justice campaign to highlight their concerns in relation to the mining sector. Whilst CAFOD's concern is primarily an ethical one, focussed on whether mining groups gain local community support for projects, and/or adequately consider their potential environmental and social impacts, these issues also highlight a series of systemic material business risks.
The campaign will involve CAFOD and FairPensions contacting major UK pension funds and asset managers to ask whether the business risks that can stem from poor mining practices are being assessed and addressed to protect long term shareholder value.
FairPensions has agreed to liaise with pension funds and asset managers on CAFOD's behalf. We have prepared a short briefing, highlighting how CAFOD's concerns relate to the management of investor risk in mining, as well as a briefing from CAFOD addressing in more detail their interest in the sector.
View FairPensions' briefing here
View CAFOD's briefing here
CAFOD have emphasised to us that they are not anti-mining and are not advocating disinvestment, but are seeking assurance that pension funds and their fund managers are taking suitable steps to recognise and address risks through appropriate due diligence - and where necessary active engagement - to protect the long term interests of their beneficiaries.
We are therefore asking pension funds and fund managers to let us know what steps they are taking to assess and address the issues and risks identified in the attached briefings.
Please feel free to contact FairPensions or CAFOD should you have any questions or areas where you would like further clarification.