Speaking to Kitco News, the executive stressed that companies involved in ESGs are aligning with investors’ increased demand and attention to the sector. He pointed out that mining companies that are not ESG compliant are already feeling the heat, with their stocks currently trading on the downside. Strauss further projected that in the next 12 to 18 months, the stocks would suffer the real effect of being non-ESG friendly. However, he pointed out that some change is happening with companies listening and restructuring strategies. He notes that ESG strategies are becoming more integrated between finance and the companies themselves.
Attracting new pool of investors
According to Strauss, companies need to focus on sustainability reports that are becoming more common for firms of all sizes. However, he warned that for companies to attract new capital pools, the need to encourage more third-party assessment to the reports. According Strauss: Furthermore, Strauss singled out the mining industry as having a poor reputation other than oil and gas for ESG compliance. He also advised companies yet to adopt ESG over the fear of cost, noting that the initiative should not incur extra expenditure. Strauss acknowledged that the cost element is essential, but the efficiencies with ESGs are worth it. Strauss singled out benefits like reducing energy and improving relationships with local stakeholders. Related video: Do investors really care about ESG?
