The metals and mining industry’s roadmap to net zero, ET EnergyWorld

New Delhi: Amidst growing demands for sustainable development, a recent report underscores the critical role of the metals and mining industry in advancing global economies while pointing out the urgent need for Environmental, Social, and Governance (ESG) integration.

The report, titled “Time to act now – ESG in Metals and Mining,” by the KPMG stresses the urgency of integrating ESG and sustainability measures to ensure the sector’s alignment with global net zero aspirations.

As the demand for metals and minerals sees an unprecedented rise, driven by the rapid modernization of developing countries and the expansion of green technologies, the report underscores the sector’s dual challenge and opportunity. Despite its high carbon and energy footprint, the metals and mining industry is poised to play a pivotal role in the transition towards a sustainable future, provided it embraces comprehensive ESG and decarbonization strategies.

Amit Bhargava, KPMG in India’s National Leader for Metals and Mining, emphasizes the sector’s enhanced relevance, especially in India. “The global consensus that there is minimal tradeoff between ESG and growth presents an opportunity for the metals and mining sector to adopt disruptive measures and institutionalize ESG practices,” Bhargava stated, signaling the imperative for immediate action.

The report also sheds light on a global survey conducted by KPMG International, involving more than 400 C-suite executives and board members, which revealed a strong optimism towards achieving net zero in the sector without compromising on growth. This insight underscores the feasibility of sustainable practices coexisting with economic expansion.

Furthermore, Namrata Rana, KPMG in India’s National Head of ESG, highlights the complexity of navigating the sector’s future. “The demand for metals must be balanced with the urgent need for a green and clean future. Innovation is key, as traditional business models become obsolete,” Rana pointed out, advocating for a radical transformation in how the sector operates.

KPMG’s report presents a clear roadmap for the metals and mining industry to achieve its net zero targets, emphasizing the need for bold decarbonization initiatives and the adoption of disruptive technologies. As ESG considerations gain precedence among investors and consumers alike, the report concludes that institutionalizing these practices is not only essential for environmental stewardship but also for securing competitive advantage and ensuring long-term sustainability.

  • Published On Mar 19, 2024 at 01:15 PM IST

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