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Do current emission criteria for mining companies require more formulation?

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Emissions rise from the cooling towers of the Eskom-operated Matla Power Station in Kriel, Mpumalanga. Cosatu has proposed that the PIC debt to Eskom be converted to equity for the benefit of public servants. Picture: Waldo Swiegers / Bloomberg / Getty Images
Emissions rise from the cooling towers of the Eskom-operated Matla Power Station in Kriel, Mpumalanga. Cosatu has proposed that the PIC debt to Eskom be converted to equity for the benefit of public servants. Picture: Waldo Swiegers / Bloomberg / Getty Images

The investment focus on how mining companies interact with society has sharpened profoundly in the last three years; now, controlling emissions is as important a metric to fund managers as production. 

However, two UK fund managers are asking whether the current formulation that measures emissions specifically, the scope 1 to 3 standard, is entirely appropriate. In fact, the environmental, social and governance (ESG) movement as it currently exists has prototypic faults, they say.

“The way we’re doing ESG is we’re looking up every drain pipe in the company and trying to measure what’s coming out,” said Douglas Upton, an investment analyst and partner at Capital Group, a US fund manager with over $1tr under management.

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