Can you tell us about the Global Alliance for Banking on Values? When and why was the alliance formed? How many members does it have today?

The Global Alliance for Banking on Values, or GABV for short, is a global movement of frontrunners in values-based banking. Our vision is centered on the idea of finance for both people and the planet—banking as a means to an end, rather than the end itself. The alliance was formed about 15 years ago by a group of leading sustainable banks from around the world. Today, we have 70 member banks globally, representing a very diverse movement that spans both the global North and South. While our members operate different banking models, they are all united by the same core principles and values. 

At the heart of our business model is a strong social and environmental focus. Our members are deeply grounded in the real economy, which means they have a unique understanding of the communities they serve and the risks and opportunities they face. They’ve also proven to be highly resilient during crises, are extremely transparent, and practice inclusive and diverse governance. All of these principles are deeply embedded in the culture and strategy of each member organization. 

Interestingly, our primary audience within these banks are the CEOs and non-executive directors of our member banks. They are the ones who ultimately shape the strategy and focus of an institution. The key question they face is whether their institution is primarily focused on profit and commercial success, or whether it also has a purpose. How do they balance these two dimensions? What guiding values drive their business decisions? These are the questions we encourage them to ask.

Values are a core part of your organization’s name and philosophy. What are the principles of values-based banking and why are they important?

Every bank, and really every business, operates on a set of values—whether they’re aware of it or not. The important question is: What values are driving the business? What is the purpose and intention behind their actions? Banks are not just neutral intermediaries, even though they might like to think they are. Every decision a bank makes has an impact on society, the environment, and all the stakeholders involved.

At the GABV, we acknowledge the immense responsibility that comes with being a bank. That’s why we encourage a reflected and intentional approach to banking. We ask ourselves—and we encourage our members to ask—the tough questions: What are the social, environmental, and economic challenges of the communities we serve? What can we do as a bank to address these challenges? What kind of change do we want to see in the world? And importantly, where do we draw the line to ensure we’re not harming the environment or creating inequity?

Conventional banks might ask similar questions, but they often arrive at different answers—answers that reflect their own values and what matters most to them.

How do you assess membership and ensure that your members are truly values-based?

We use a structured tool called the GABV Scorecard to evaluate where financial institutions are on their journey toward values-based banking. This Scorecard helps us assess new members and stay engaged with existing ones, though it can be applied to any financial institution. In values-based banking, there’s no absolute right or wrong. What we focus on is understanding how a bank reflects its values and integrates them into its daily operations. We want to see how they balance the social and environmental needs of the communities they serve with the need to remain financially resilient. The Scorecard takes a holistic approach, considering both quantitative metrics and qualitative aspects of the business model.

What are the themes or issues that are most interesting and relevant to your member banks right now?

Several themes are front and center for our member banks at the moment. Transformation is a big one—how to navigate and lead in a changing financial landscape. Impact measurement is also key; we’re all looking at how to quantify the positive impact we’re making. Social equity and inclusion are increasingly critical, as is biodiversity. And then there’s technology and AI—how these advancements play out within values-based banking is something we’re watching closely.

If you could wave a magic wand and change one thing about the financial system, what would it be and why?

If I had a magic wand, I’d focus on internalizing externalities—essentially making sure that the costs of negative impacts, like environmental damage, are borne by those who cause them, rather than society at large. This would go a long way in terms of making the financial system more inclusive and sustainable. I’d limit the profits that can be paid out to shareholders to ensure the stability and resilience of the system. And I would implement diversity requirements in terms of skills, gender, and other relevant criteria at the governance level within financial institutions. I’d like to see capital markets restructured so that impact and sustainability, rather than just risk and return, drive investment decisions. And I’d require financial institutions to report transparently and in a way that’s easy for shareholders and depositors to understand where their money is going and what impact it has.

What are some concrete actions you would like to see non-member banks in the industry at large take to be more values-based?

First, it’s crucial for non-member banks to recognize that impact and sustainability are not just side topics—they’re strategic priorities. These issues can’t be relegated to a CSR officer; they need to be an integral part of the strategy discussion at the board level. Tools like ESG, greenhouse gas accounting, and TCFD are useful, but what really matters are the conclusions the board draws from these instruments and how they shape corporate strategy.

Boards should spend as much time discussing values, purpose, and impact as they do on compliance and risk management. This isn’t just about making the organization more sustainable; it’s also about differentiation and strategic positioning—core tasks of any board. Along those lines, boards should regularly review whether they have the right mix of skills and the necessary diversity. The same goes for the leadership team, which needs to carry forward a values-based strategy and establish a culture that will ensure success.

Finally, I’d encourage any bank interested in learning more about values-based banking to reach out to us at the GABV. We’re always happy to engage and share our insights.

The post Interview of the month: Martin Rohner from Global Alliance for Banking on Values first appeared on Sustainable Finance Geneva.

To kick off, can you provide our readership with an overview of the Catalytic Finance Foundation and your mission?  

Catalytic Finance Foundation (formerly known as R20- regions of Climate Action) was founded in Geneva in 2011. It was initially created by Arnold Schwarzenegger, in close collaboration with UNDP, after his tenure as the Governor of the State of California to create a technical and financial ecosystem, acting in facilitating the identification, development, and financing of subnational sustainable infrastructure projects.

Initially, we started with project finance and managed to close a few transactions in energy and waste management. Reaching financial close always took longer than expected and we felt, that to have more impact, we needed to scale up and work deeper on the ecosystem. To do so we focused on creating new investment products dedicated to this type of infrastructure blending public and philanthropic capital with private capital. We also deployed Technical Assistance to support project sponsors in the development phase.

Today, we have become specialized in managing Technical Assistance Facilities to develop strong infrastructure project pipelines and accelerate the design and deployment of finance vehicles for sustainable infrastructure. We have a strong focus on developing and emerging economies.

Why do you focus specifically on sustainable infrastructure?

In a world grappling with climate change and environmental degradation, the need for sustainable infrastructure has become more critical than ever. Our definition of sustainable infrastructure encompasses various sectors such as energy, water, waste management, agriculture, and transportation. It involves integrating economic, social, and environmental considerations into the planning, design, construction, and operation phases of infrastructure projects.

Sustainable infrastructure projects not only address pressing environmental challenges but also have the potential to create positive social and economic impacts. By prioritizing inclusivity and community engagement, these projects can improve access to essential services, create employment opportunities, and enhance the quality of life for vulnerable populations. Also, sustainable infrastructure can foster local innovation and entrepreneurship, driving economic growth and resilience in the face of global uncertainties.

Can you elaborate on what blended finance is and how it can be used to develop sustainable infrastructure? 

We define catalytic finance as a type of financing that seeks priority to create positive social and environmental impacts in addition to generating financial returns.

In that sense, the term “catalytic” refers to the ability of the initial financing to attract additional investments, leading to a multiplier effect that creates even greater positive impacts. It is understood that without catalytic financing, a project may not be funded at all or in a different and less impactful way. At its core, catalytic finance is a response to the environmental and societal challenges facing society today.

Public fundings have always been used to subsidize and incentivize transformative infrastructure projects. However, traditionally this was done at the project level to reduce the specific risk of specific projects. In order to scale up, the blended models include public and philanthropic funds in the capital structures to de-risk whole portfolios and make sustainable infrastructure more attractive to private investors at scale.

We understand that the Catalytic Finance Foundation has always pursued sub-national climate solutions. What is meant by sub-national and why do you believe solutions at this level are important?  

Subnational is part of the UN Jargon and is meant as levels of administration within a country that are below the level of the central or national government, such as regions or cities. We initially focused on regions as Governor Schwarzenegger was responsible for signing into law groundbreaking legislation that translated the Kyoto Protocol into Californian law. This and other initiatives are what led President Obama to ask Governor Schwarzenegger to obtain similar commitments from thirty other US States. His success in implementing action at the subnational level, and his ability to demonstrate the potential to scale this impact by replication at this level is ultimately what gave us our focus.

Besides, according to UNDP, 70% of solutions to climate change need implementation at the subnational level but conventional climate finance has failed to catalyze the potential of mid-scale climate investments. The same study claims demonstrate that at least 105 of the 169 targets underlying the 17 SDGs will not be reached without subnational governments.

Today, we are running two projects that are targeting specifically subnational climate solutions:

• The Subnational Climate Fund (SCF); a global blended finance initiative that aims to invest in and scale mid-sized (5 – 75 M $USD) subnational infrastructure projects in the fields of sustainable energy, waste and sanitation, regenerative agriculture and nature-based solutions in developing countries.
• Catalytic Cities, a program financed by Bloomberg Philanthropies, whose goal is to incubate new funds to facilitate the uptake of urban climate solutions, aligning with the goal of 1.5°C maximum global warming. At the moment, we are working on three blended finance solutions; port decarbonization, municipal solid waste management, and e-buses in Latin America.

What is one thing you would like to see from the broader financial community when it comes to engaging with blended finance solutions?

Thousands of high-merit subnational projects are bypassed by commercial financing because investors tend to prefer (perceived) safer investments. We believe catalytic finance will unlock capital from both public investors (MDBs, DFIs, Sovereign Funds …) and even more importantly, private investors (pension funds, insurance funds, family offices, private banks, philanthropies, high-net-worth individuals, and other institutional investors).

Convergence just reported that blended finance deals have reached a five-year high (following a 10-year low in 2022), with multilateral development banks (MBD) and development finance institutions (DFIs) leading the charge. A growing number of private investors have sustainable policies and targets and are more and more investing in those types of products delivering high impact. Unfortunately, “traditional money flows” only focus on risk-return ratios and are not yet actively looking at those products and we believe they are good investment opportunities on top of delivering a positive impact.

 We would like to see more private investors crowd in those new deals so that they would become a regular asset class.

We are inviting the broader financial community to learn about those models and are available to have open discussions to understand the barriers that remain today to create more impact.

The post Interview of the month – David Albertani from Catalytic Finance first appeared on Sustainable Finance Geneva.

Starting date: August 19th

Compensation: paid internship, exact offer dependent on the profile of the candidate

Overview

Sustainable Finance Geneva (SFG) is a pioneer association dedicated to promoting sustainable finance in the Swiss market. Established in 2008 in Geneva, Switzerland, we strive to be the trusted knowledge partner, committed to engaging with the financial industry, civil society, international organizations, and policy-makers to shape sustainable business practices and value creation.  SFG has over 375 individual members and over 45 institutional members including banks, asset managers, and asset owners.

SFG is looking for a Communications Intern to support in delivering the organization’s communication strategy and activities.

Duties, Responsibilities, and Output Expectations

Reporting to the SFG Community Manager, the intern will:

• Draft the monthly SFG newsletter. This includes liaising with various Geneva-based organizations to gather relevant content and ensuring it serves the interests of SFG’s community.
• Manage SFG’s website, updating it with the various activities the organization hosts monthly.
• Manage SFG’s social media to activate the community and relay information on the progress being made in the field of sustainable finance, particularly in Geneva.
• Support SFG with the preparation of various events.
• Draft and translate documents, presentations, and e-mails to support the activities of SFG.
• Conduct research and tracking of the latest developments related to sustainable finance to support communication tasks.
• Schedule meetings with partners/collaborators, prepare agendas, and record detailed notes and action items; ensure appropriate follow-up on tasks identified during partner meetings.
• Carry out any other ad hoc or administrative tasks, as may be required to support the organization.

Qualifications and Experience

• University degree (complete or in progress) in communications, finance, economics, international relations, development studies, political science, intergovernmental affairs, or a related field.
• No prior work experience is required.
• Speaks and writes clearly and effectively in both English and French. As SFG is a Geneva-based organization, strong command of French (both spoken and written) is mandatory.
• A strong ability to multitask and be conscientious and efficient in meeting commitments, observing deadlines, and achieving results. Takes ownership of all responsibilities and honors commitments.
• Teamwork skills and ability to collaborate and work with a wide range of individuals at varying levels of seniority and subject matters.
• Listens to others, correctly interprets messages from others and responds appropriately; asks questions to clarify and exhibits interest in having two-way communication; demonstrates openness in sharing information and keeping people informed.

To Apply

Please complete this application form (including submission of CV) by July 4th, 2024. 

The post SFG is Hiring: Communications Intern first appeared on Sustainable Finance Geneva.

Time: 18:00 – 20:30 CET

Location: Restaurant de la Plage (75 Quai Gustave-Ador)

Registration

The post Summer Meet & Connect first appeared on Sustainable Finance Geneva.

SFG is hosting a joint event with the Global Impact Investing Network at our SFG office to better understand impact investing applications in listed equites. We hope to see you there!

When ? Thursday, June 13th 2024, 17h30-19h30

Where ? SFG Office, 50 Avenue de la Praille, 1227 Carouge

Please RSVP here

About the event

About Sean Gilbert

Sean Gilbert is the Chief Investor Network Officer at the Global Impact Investing Network (GIIN), overseeing membership. Before this role, he led the NDC Partnership at the World Resources Institute, supporting countries in meeting climate and development goals. With over twenty years of experience in sustainability within the private sector and non-profits, Sean has previously directed Sustainability Advisory Services at KPMG in China, co-drafted a green finance reform report for China, and played a key role in developing the widely used sustainability reporting standards at the Global Reporting Initiative. He began his career as a market research consultant in Asia for the chemical and environmental technology sectors.

About GIIN 

The post Global Impact Investing Network – Impact Investing in listed equities first appeared on Sustainable Finance Geneva.

Tuesday, May 28, 2024 from 17h at 60 Rte des Acacias 1227 Les Acacias

The AG will be followed by a discussion and debate on: Scaling Impact

We will then share a moment of celebration over a cocktail.

We look forward to seeing many of you on the 28th.

Schedule 

17:00 – WELCOME

17:30 – GENERAL ASSEMBLY

1. Approval of the Agenda
2. Approval of the Minutes from the 2023 General Assembly
3. Report from the Comité Stratégique & Surveillance (CS&S)
   1. Discussion and vote
4. 2023 Accounts
   1. Report from the Treasurer
   2. Report from the Auditory
   3. Discussion and vote
5. Election of the membres of the CSS and nomination of the President
   1. Presentation of candidates
   2. Discussion and vote
6. Nomination of the Controlling Body

Anyone wishing to apply to the Comité Stratégie & Surveillance is invited to indicate their motivation and interest to Marie-Laure Schaufelberger at info@sfgeneva.org by Max 14th, 2024 for review by the current CSS.

18:00 – DEBATE – Scaling Impact

19:00 – COCKTAIL

RSVP by May 24th 2024 by clicking here

The post SFG – 2024 GENERAL ASSEMBLY first appeared on Sustainable Finance Geneva.

The post Interview of the Month – Gerrit Sindermann from the Green Fintech Network first appeared on Sustainable Finance Geneva.

Gold has been used since prehistoric times and was one of the first metals to be transformed by humans, mainly because it was found as nuggets or particles in the river and stream beds. Throughout history, gold has been treasured for its natural beauty and radiance. For centuries it has been a universal symbol of wealth and power. Today gold is known as a “safe haven” investment by the financial industry, and therefore continues to be a powerful magnet, attracting the attention of activists and financial specialists alike. 

Gold mining is a global industry with operations on every continent except Antarctica.  Gold is extracted from mines of widely varying types and scale, there are three main types: 

1. Large-scale mining (LSM) is extremely capital-intensive, requiring high levels of mechanisation and expertise. The life cycle of a LSM gold mine is long. Before any gold can be extracted, significant exploration and development needs to take place. On average, it takes between 10-20 years before a mine is ready to produce material that can be refined.  
2. Artisanal and small-scale mining (ASM) is practiced in many forms and contexts and provides livelihoods for 80 % of the workforce employed globally in the extractive industry (20 million miners in gold alone). Producing nearly 20% of the world’s gold, these miners often do not have access to other viable alternatives for earning a living. ASM is often poorly supervised by local authorities, due to an absence of regulatory frameworks, a lack of enforcement capacity, or corruption. ASM mining often occurs in locations where there is no LSM presence.  
3. Recycled gold represents an important part of the market, accounting for around 30% of total supply over the past 20 years. The gold-recycling industry has two distinct segments:  jewellery, which accounts for roughly 90 percent of recycled gold, and industrial recycling, which accounts for the rest. Gold is one of the most sought after of all recycled precious metals due to its value. Today, there is a growing volume of gold re-entering the market from recycling of electrical and electronic equipment (e-waste).  

Once extracted, the gold enters a long process of commercialisation, export, refining, and manufacturing before it reaches its final consumer. The illustration below features these different stages of the value chain:   

The Swiss Better Gold Association plays a pivotal role in fostering responsible supply chains. Why is it critical for Switzerland to ensure responsible gold sourcing, and what measures does this entail? Can gold be produced responsibly?  

Since its inception, the Swiss Better Gold Association defined its focus and objectives on supporting responsible ASM production and facilitating access of ASM miners to global markets.  

ASM is often associated with a range of social and environmental issues including conflict, child labour and mercury pollution.  Commonly practiced informally, miners’ labour rights are not respected, and their working conditions are rudimentary (to say the least).  

As an industry association, Swiss Better Gold brings together various businesses active in the gold sector, including refiners, jewellers, watchmakers, and financial institutions. Swiss Better Gold was created to tackle the issues faced by artisanal and small-scale mining producers and to provide a market solution to social and environmental issues associated with ASM.  

To reach our objectives, the association partners with the Swiss State Secretariat for Economic Affairs (SECO) in implementing our Swiss Better Gold Initiative in gold-producing countries.  Our activities help mining communities to improve their technical, organisational, social, and environmental practices. The Swiss Better Gold Initiative is also engaged with the governments of these countries on the formalisation of the AGSM sector. 

Could you highlight the Swiss Better Gold Association’s main initiatives to address poor working and living conditions in artisanal and small-scale gold mining communities? 

Since its inception in 2013, the Swiss Better Gold Initiative has worked with nearly 130 mines in Peru, Colombia and Bolivia, impacting the lives of more than 60,000 miners directly.  

During this period, we were able to support dozens of ASM producers to establish direct supply chains and to achieve tangible social and environmental improvements. 

Our approach is based on building proximity and constant presence on the ground. We count on a multidisciplinary country team of 10 people in Peru and 10 more people in Colombia. These teams provide much-needed technical assistance to ASM producers including providing mining advisory, and social, environmental, or managerial support in improving daily practices.   

When producers reach full compliance with our criteria, they access the Swiss Better Gold impact premium, which further supports these ASM communities in implementing effective social and environmental programs.  

To date, the Swiss Better Gold has facilitated the export of 17 tons of responsible ASM gold and has reinvested about $6.6 million USD of impact premium in about 20 projects on-the-ground. 

Some concrete examples: 1. a mining cooperative in Peru eliminated 56 kg of mercury per year thanks to our technical assistance; 2. we provided market access to 1’300 artisanal gold panners, 51% of whom are women, by grouping them into a more scalable supply chain; and 3. we co-constructed a small school where 100% of children of an isolated community can access education. You can find more examples on our website and in our Impact Report. 

Continuous improvement is a core principle of Swiss Better Gold. Can you elaborate on the Swiss Better Gold Improvement Escalator and how artisanal and small-scale gold miners can demonstrate compliance? 

Our approach is focused on continuous improvement; we also call it an escalator approach. Our criteria are defined by our members (watchmakers, refiners, banks) and were first defined in 2016.  

The simple (and not so simple) question we asked our members was: what precisely should ASM producers be doing in order to make you feel comfortable in buying this gold?  

This is how we defined our step 1 (basic) and step 2 (full compliance) criteria (see illustration).  

In terms of the process, we have a team of local experts (metallurgists, legal advisers, social and environmental professionals), who assess the status of ASM producers, identify gaps between the current situation and where we would like to see these producers and, finally, propose a Continuous Improvement Plans to close each gap and reach full compliance with the criteria. 

We we say “basic” it means a legally recognised entity has been created (or at least is in the process of formalisation) and that there is a commitment (in writing) for continuous improvement within a given time frame (we usually give 24 months). If nothing happens in that given time, the mining operation is removed from the Swiss Better Gold program. 

How can investors enhance their due diligence practices when investing in gold, particularly concerning sustainability and ethical considerations? 

This is a very good and timely question. Last March, lawmakers in the European Parliament approved a series of rules aimed at protecting consumers from greenwashing, or misleading environmental claims by companies.  It requires companies to submit product marketing claims such as “biodegradable” or “less polluting” for verification before being allowed to use them. This means that businesses need to substantiate and verify their sustainability / green / ethical claims.  

Investors need to ensure the reliability of business’ claims with substantiated evidence collected through enhanced and continued due diligence (DD) exercises. When it comes to gold, the result of DD should ensure that it complies with sanctions, anti-money laundering and corruption laws, is not involved in child or forced labour, and does not cause environmental degradation. Undertaking these verifications is constant and quite intensive work, and this is why companies might choose to partner with specialist development organisations that undertake efforts to combat the above listed issues in supply chains.  

Members of the Swiss Better Gold Association benefit from our framework, knowledge, and expertise throughout the due diligence process and can benefit from the results of our field work with ASM producers. You can find more about our work and achievements in this field on our website.

The post Interview of the month: Diana Culillas from Swiss Better Gold Association first appeared on Sustainable Finance Geneva.

And the problem persists in our own backyard.  Switzerland continues to fall short in advancing gender equality and faces persistent challenges in key areas. Female representation in executive roles remains stagnant at 14% from 2021 to 2022, contrasting sharply with Sweden’s 27%. Similarly, female representation in senior management stands at only 23%, unchanged since 2021, lagging behind countries like the UK with 31%.  In addition, and worryingly, Switzerland fell from the top 10 on the Global Gender Gap Index in 2020 to 21st place in 2022.

This is why SFG made Gender a key impact theme in 2021 and, in 2023, agreed to take on the chairperson role on the FC4S Gender Working Group. The Financial Centers for Sustainability (FC4S) is an international coalition of 40 financial hubs united in their efforts to advance the objectives outlined in the 2030 Agenda and the Paris Agreement. The goal of the Gender Working Group is to promote gender equality within the financial centers through awareness raising, education, and catalytic actions.  In 2023 the Working Group launched two fantastic resources – a framework and a practical guide – and in honor of IWD2024, we wanted to spotlight those today:

FC4S Gender Charter

In September, the Gender Charter was adopted and endorsed by 21 members, at the FC4S Annual General Meeting. The charter is meant to serve as a framework to build an inclusive financial ecosystem that incorporates gender considerations into all aspects of decision-making, from investments to operations, strategies and management, products, services, and customer engagement. Read more here

FC4S Gender Booklet

In December, the FC4S Gender Working Group launched a Gender Booklet at COP28 in Dubai on Finance Day. The Gender Booklet is an extension of the Charter and serves as a comprehensive guide. It guides Financial Centres in applying the principles delineated in the Charter, furnishing them with specific actions, practical resources, and case studies. This collaboratively developed handbook serves as a valuable asset, fostering the advancement of Financial Centres in their pursuit of gender equality. Read more here

The post Spotlight on SFG’s Gender Activities with FC4S first appeared on Sustainable Finance Geneva.

The GRI recently launched its new mining sector reporting standard, why did you choose to focus on this sector?

The Sector Standards, which are the newest addition to the GRI Standards family, were introduced to increase quality, completeness, and consistency of reporting by companies in a sector. The first sectors to tackle were determined by the extent and severity of impacts – currently we have standards covering oil, gas and coal; agriculture, aquaculture and fishing; and mining.

While GRI reporting has been embraced by many leading mining organizations – with over two-thirds of the largest mining companies in the world using GRI to report sustainability information, the quality of reporting by the sector is widely considered inadequate and not up to stakeholder expectations. Especially the practice of aggregating information to company level has been identified by investors, academia, civil society and many others as not sufficient level of detail to reflect on key local impacts.

The importance of the sector managing its impacts well is also growing, with mining being at the intersection of the many crises the world faces: climate change, biodiversity loss, conflict, and inequality. Failure to manage impacts could have profound implications for clean energy transitions, fuel biodiversity loss, and jeopardize the wellbeing and rights of people affected by mining.

What kind of companies does this standard target?  Or put another way, how do you define the mining sector?

GRI 14 covers organizations involved in exploration, extraction, and primary processing of all types of minerals, metallic and non-metallic, except for oil, gas, and coal – as these already have existing Sector Standards. The scope also includes organizations that undertake supporting activities for mining, such as transport and storage, when integrated into the mining organization’s core operations, as well as suppliers of specialized products and services to mining organizations.

Metal processing, commodity trading are excluded and will be covered by further Sector Standards.

What sustainability topics are covered within the standard?  Are there some topics that are particularly unique to mining?

The standard addresses a comprehensive range of issues, listing 25 topics as likely to be material for most companies in the sector. They are roughly divided into five main groups: environmental issues, local community impacts, workers, transparency over payments and ethical business practices, and a few cross-cutting topics.

The environmental issues feature topics like climate change and GHG emissions, biodiversity, air emissions, waste and tailings management, and water. For local communities, economic contributions such as employment, procurement, community investments are covered, as well as social impacts on health and well-being. Topics also include specific impacts related to land rights and resettlement, rights of Indigenous Peoples and issues related to security personnel.

The worker topics include health and safety, training, wages, benefits, and diversity, alongside other fundamental rights at work, such as child and forced labor, discrimination, and freedom of association and collective bargaining.

The standard also has a cluster of financial transparency topics, building on GRI Topic Standards on tax, anti-corruption and public policy, but supplemented with disclosures from the EITI 2023 Standard, including on beneficial ownership, contract transparency, and project-level reporting of financial flows.

Finally, a few topics that cross-cut many dimensions of sustainability: critical incident management, closure and rehabilitation, and conflict-affected and high-risk areas. These all have potential to have serious impacts on communities, the environment, and workers. I should also mention gender which runs as a common theme across throughout the standard, with expectations for gender-specific management approaches and disaggregation of data per gender in various topics.

One topic included in the list is completely new to the GRI system and is quite unique to mining, which is artisanal and small-scale mining (ASM). The framing of the topic is on the interactions of large-scale mining organizations with ASM, which are often informal operations but important sources of income for many rural communities, especially in lower-income countries. Due to the frequency of these interactions, ASM is seen as an important stakeholder group for larger mines, and expectations are rising for large-scale organizations to manage these relationships well. Companies are also expected to mitigate negative economic or human rights impacts that might occur from the interactions, and in some cases even support ASM operators in improving their activities and help them formalize.

Mining companies can also be involved with negative impacts from ASM such as mercury pollution or child labor through their business relationships – meaning, if they purchase minerals from ASM, which is by some accounts expected to increase in the future.

Linking to one of SFG’s key impact themes, peace, does this standard have additional reporting requirements for companies operating in conflict-affected or fragile settings?

The standard lists a dedicated topic for operating in conflict-affected and high-risk areas, where there is a higher risk of human rights abuses, such as forced labor, child labor, sexual violence, and other violations of international humanitarian law. The expectation is that operating in these situations – or sourcing from organizations located in areas affected by conflict – requires enhanced due diligence. The topic puts a spotlight on the efforts companies undertake to identify red flags and potential risks, and enquires about adherence to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

How will this standard be helpful to investors?

Investors are increasingly interested in information detailing the impacts of mining companies on the external world – not only how sustainability issues might affect the company’s prospects.

As we know, there is a major need for investments targeting climate solutions, many of which rely on minerals and metals. Investors know that the sector has traditionally been plagued with human rights violations, corruption, and environmental issues, and there is a certain nervousness about fast-tracking critical minerals projects without fully understanding the impacts down the line. As Adam Matthews, Chair of the Global Investor Commission on Mining 2030 pointed out during the launch of the GRI Mining Standard, investors need to have assurance that companies across jurisdictions are operating according to the same standards, and to assurance that they are supporting the companies that are adhering to the best possible standards, especially in the light of the low-carbon transition.

Investors have leverage with companies and can trigger improvements towards common global sustainability goals, but they need better and more granular data in order to fully understand the impacts and compare across companies, mine sites, and commodities.

We hope that investors will embrace this standard as the baseline for transparency for mining companies, to engage on the themes and topics and urge more disclosure, which will help direct efforts towards a more sustainable and accountable mining sector.

Download the standard: https://www.globalreporting.org/standards/standards-development/sector-standard-for-mining/

The post Interview of the Month: Noora Puro on GRI’s new mining standard (GRI14) first appeared on Sustainable Finance Geneva.