ESG & Sustainability in your industry – S7Clear Immovable Driven

The Demands for Critical Minerals

S7Clear® — Sun, 12 Feb 2023 11:32:32 +0000

The mining industry is facing immense pressure to fulfill the rising demand for minerals, especially those crucial for clean energy technologies such as lithium, copper, nickel, cobalt, and rare earth elements. However, there is uncertainty about whether sufficient reserves and production capacity will be available to meet the future mineral demands for a greener economy.

This supply crunch has caused concern for countries reliant on imports, prompting manufacturers like Tesla to consider investing in mining to secure their own supplies of battery minerals. While there is a need for a significant increase in lithium and rare earth metal supply, it may be more challenging to keep up with the already massive production of copper and nickel, which are essential for electricity-related technologies and stainless steel.

Mining companies worldwide are aware of their crucial role in facilitating the green transition and are taking measures to reduce their carbon footprint while ensuring the availability of raw materials required for clean energy technologies such as lithium, copper, nickel, cobalt, and rare earth elements. However, despite the efforts, there is a looming shortfall in the supply of these critical minerals, and it’s uncertain whether there will be enough reserves and production capacity to meet future demands.

This supply crunch is causing anxiety for countries that rely on imports, and some manufacturers, including Tesla, are considering investing in mining to secure their supply of battery minerals. Although there is a need for a significant increase in the production of lithium and rare earth metals, the challenge lies in keeping up with the growing demand for copper and nickel, which are the foundation of electricity-related technologies and stainless steel and are already being produced on a massive scale.

Mining, like many industries, has suffered from a negative reputation due to its past crude and environmentally damaging practices. However, over the decades, the industry has undergone tremendous scrutiny, leading to a significant improvement in environmental, social, and governance performance compared to other sectors. Mining companies are investing in improving efficiency, transparency, and reducing their carbon footprint using technologies such as hydrogen-powered trucks, solar and wind installations, and carbon sequestration.

While sustainable mining is essential, there is still a need for continued exploration and development of critical mineral reserves, which requires collaboration between governments and the private sector. The advanced economies may have the financial capability to pay more to secure minerals, but to achieve net-zero and create a fairer and healthier world, clean, green technologies must be accessible to everyone.

As cities become more focused on pursuing greener technologies, they will increasingly consume minerals, and their extractive footprint will expand in size and range. Therefore, it is crucial to consider how cities consume minerals. Despite some metals being recycled, recycling of rare earth elements, which are used in small quantities, has been insufficient. Governments and local policies can help divert old electronics from landfills and establish infrastructure for recycling new waste streams such as spent EV batteries.

Planning decisions will also play a crucial role in the overall quantity of minerals required. For example, in the era of autonomous vehicles, a shift to shared mobility instead of individual car ownership could have significant consequences for resource use and congestion. In electric cities, designing energy-efficient buildings that use passive cooling could reduce the overall level of battery capacity required. It is essential to rethink life in cities to work within sustainable boundaries, rather than powering high-consumption lifestyles in a different way.

The choices that shape demand are becoming increasingly important in enabling broad adoption of green technologies. While the goal is to move towards a circular economy where needs are met through reusing and recycling, we are not there yet. Therefore, the mining industry will continue to play a crucial role in meeting our climate ambitions, as the supply of minerals is only half of the equation.

Montreal -The UN Biodiversity Conference creates a plan for the world to protect nature.

S7Clear® — Tue, 10 Jan 2023 11:30:11 +0000

In December of last year, nearly 200 nations gathered in Montreal and agreed on the Global Biodiversity Framework (GBF). The GBF sets a goal for the world to live in harmony with nature by 2050 and includes 23 targets to stop and reverse biodiversity loss by 2030. Although politicians and government officials were focused on finalizing the text, the conference was bustling with discussions, debates, and events. With over 10,000 delegates in attendance, it was truly a global conversation on the importance of protecting nature for future generations.

At this biodiversity COP, it was notable that businesses attended in significant numbers for the first time. It was inspiring to see businesses recognize their role in restoring nature alongside conservation NGOs, youth leaders, and local Indigenous groups. To adequately address the issue of biodiversity loss, a diverse range of stakeholders is needed. The final language in the targets reflects the importance of all stakeholders in achieving the overall goal of living in harmony with nature by 2050.

One standout aspect of the conference was the visibility and ambition of financial institutions. Many examples of private finance and blended funding models were presented in side-events throughout the weeks. This demonstrated that the shift towards nature-positive outcomes, known as “greening finance,” is already happening and can be scaled up with the right governance and frameworks. This achievement is key to mobilizing more investment from the financial sector and providing the necessary means of implementing the overall goals of the GBF.

Understanding the Kunming-Montreal Global Biodiversity Framework

Despite several secondary announcements made at the conference, the Framework itself was the most significant takeaway. It outlines the necessary steps for governments to translate into concrete actions. The framework sets goals and targets that clearly define the work ahead, who needs to be involved, what needs to change, and the types of actions required.

The targets include reversing harmful subsidies for nature (Target 18), additional finance to support transitional change and deliver the goals (Target 19), and two 30×30 targets for degraded ecosystems (Target 2) and effective conservation and management of ecosystems (of particular importance for biodiversity and ecosystem services). Inclusion and a rights-based approach are strongly emphasized across all targets.

The targets are categorized into three groups: reducing threats to biodiversity (Targets 1-8), meeting people’s needs through sustainable use and benefit-sharing (Targets 9-13), and tools and solutions for implementation and mainstreaming (Targets 14-23). These targets will be translated into country-level plans for biodiversity through strategies, policies, and legislation.

Although the specific impacts of each target or the GBF as a whole are not yet clear, the overarching path is evident. The goals include protecting larger areas for nature, restoring degraded ecosystems, shifting finance and subsidies towards nature-positive activities, and increasing scrutiny of businesses’ impact on nature. The implications for businesses will take some time to fully emerge.

A Target for Businesses

The Framework set a target specifically for businesses for the first time, with Target 15 requiring them to assess and disclose their nature-related risks, impacts, and dependencies across the value chain. While not yet a legal requirement, the launch of the Taskforce on Nature-related Financial Disclosures (TNFD) framework is anticipated to lead to several nations mandating nature-related reporting in the coming years, similar to the Task Force On Climate-related Financial Disclosures (TCFD). TNFD is currently co-funded by the UK Government, and at COP15, Germany committed €29 million for its implementation.

There are already commitments in place, such as President Biden’s pledge to protect 30% of the USA’s land and sea, and the European Union’s Corporate Sustainability Reporting Directive (CSRD), which will require disclosure similar to the TNFD.

The final three targets emphasize the need for inclusivity and diversity in protecting and restoring biodiversity, stressing that this will create the best solutions for people and the planet. Without halting biodiversity loss and restoring nature, meeting the social goals of the Sustainable Development Goals will not be possible, and vice versa.

For companies like S7Clear, actions will focus on integrating biodiversity into planning and development processes and environmental assessments (Target 14) and ensuring that large companies and financial institutions regularly monitor, assess, and transparently disclose their nature-related risks, dependencies, and impacts (Target 15).

Success in meeting the 23 targets by 2030 will determine the success of the GBF, and even small steps count towards achieving these goals. For example, the UK Business & Biodiversity Forum’s Nature Positive Pledge allows businesses to commit to becoming nature positive and contributing to the GBF goals. Working together with all stakeholders, including governments, local communities, Indigenous groups, and corporations, will be crucial to achieving these targets and protecting our natural ecosystems.

Achieving success in transitioning towards sustainability.

S7Clear® — Sun, 17 Jan 2021 11:33:23 +0000

In the upcoming decades, we must transform our economies to achieve our collective objective of limiting global warming to less than 2°C. The necessary steps are broadly understood, including the adoption of renewable energy for power grids, electrification of transportation and buildings, and implementation of smart and efficient energy use. Additionally, we need to transition to a circular economy that minimizes waste and reuses or recycles resources.

However, there is a significant challenge to this transition, as we require metals and minerals that are currently insufficient to meet the demands of green technologies. Mining is essential to extract these resources, yet the industry is often associated with negative perceptions of environmental damage and danger. Nonetheless, modern mining practices have evolved considerably, and the ability of the market to keep up with demand will have profound implications for economic policy.

The rise of electric vehicles is not the sole driver of global demand for minerals. Establishing an onshore wind plant requires nine times more mineral resources than a gas-fired power plant of equal capacity, and offshore wind requires even more. Solar photovoltaics also require double the weight of copper per megawatt of generation, as well as substantial amounts of silicon. As investment in renewable energy has increased since 2010, the average amount of minerals needed for new energy generation units has risen by 50%. Furthermore, the deployment of batteries on an unprecedented scale is necessary to store green energy and power smart cities’ devices. The International Energy Agency (IEA) predicts that meeting the Paris Agreement’s goal of limiting global warming to below 2°C would require a fourfold increase in clean energy technology’s mineral requirements by 2040. To achieve net-zero emissions globally by 2050, six times more mineral inputs will be necessary in 2040 than currently available.

To successfully transition towards sustainability, it is crucial to implement green technologies for decarbonizing the economy. The mining industry, as the primary producer of critical minerals, will play a vital role in the green transition, particularly as we move towards a more circular economy over the next decade. However, minerals are a finite resource, and this poses another limit on the planet’s ability to support us. Therefore, we need integrated and clear-sighted thinking to connect the dots between supply and demand as we navigate the challenges ahead.