Corruption Risks and ESG Screening of Mining Investments

June 2021

Investors are increasingly vigilant about the environmental, social and governance (ESG) performance of mining investments.

Corruption affects many mineral-rich countries and this has a real impact on ESG outcomes, especially for communities affected by mining.

Investors need to make corruption risk management and responsible business conduct an expectation of the mining companies they invest in. This is especially critical because of increasing demand for investment in high-risk and emerging markets to source the minerals and metals required for the energy transition. This briefing paper details three key areas investors that need to consider as part of due diligence on mining investments – country risks, licensing risks and company risks.