Our updated approach for assessing mining company transition plans

The mining and diversified metals sector is an essential part of the energy transition. In order to support its transition plans, we want companies within the sector to meet our minimum expectations.

Since we published our initial expectations for company transition plans in 2022, we have further developed our approach across sectors of the economy that are especially subject to climate-related risks and opportunities[1] and key to achieving net-zero emissions by 2050. This includes the mining and diversified metals sector since it produces both critical minerals for the transition, and materials subject to potential demand shifts within the transition.

Without the critical minerals that mining companies produce, the transition will not happen. As such, it’s essential that long-term, responsible investors, such as LGIM, support these companies as they decarbonise. In order for us to do so, however, they must meet our minimum expectations, included within our updated assessment framework. Companies that put transition plans to a vote which do not meet our expectations will not receive our support.