The global economy is at a critical crossroads.
Achieving net zero by 2050 will likely require active support from governments, investors, corporate organizations, and the able-bodied workforce. However, a study by Deloitte’s Center for Sustainable Progress also found that a quarter of the global workforce – approximately 800 million people – is vulnerable to climate extremes.
In contrast, coordinated efforts to mitigate climate change could create an additional 300 million jobs by 2050 and boost the economy by more than $43 trillion by 2070.
These figures underscore the urgency of climate action and a just energy transition. As suppliers of the raw materials needed to build sustainable infrastructure, low-carbon technologies and electrify transportation, mining and metals companies can play a central role in supporting the global economy.
In Deloitte Global Tracking the trends for 2023, we explore three key areas that mining and metals companies can focus on to achieve this.
Reflections on the value of nature
According to the World Economic Forum, half of the world’s gross domestic product (GDP) – about US$44 trillion – depends on nature. Without it, the other half of GDP could not be sustained. For example, the production of batteries requires natural resources such as metals.
Going forward, the mining and metals sector must integrate nature holistically into its environmental, social and governance goals, strategies, operations and project assessment. This can expand the pool of capital that companies have access to and change the narrative surrounding the industry, elevating it from a resource user to a resource steward.
Natural solutions are one way to achieve this. They aim to solve societal problems by preserving, protecting, managing and restoring natural ecosystems. For example, the De Beers Group is investing USD 2 million in Kelp Blue, a startup that grows and processes algae forests off the coast of Namibia to offset CO2 emissions.
Seeking value-based partnerships with indigenous communities is another way to go. This is likely to allow organizations to expand their knowledge of nature and reorient the trajectory of the industry towards restoration.
For example, in Ontario, Webequie First Nation and Marten Falls First Nation led the environmental assessment of a new road connecting the Ring of Fire mining area to the highway. While there remains a need to consult with all Indigenous nations affected by the project, this collaboration can help unlock the region’s mineral potential, provide economic benefits to local communities, and enhance environmental protection.