Bigger investment in mining needed to meet climate goals, says LGIM – by Neil Hume (Financial Times – April 5, 2022)

Fund manager points out that energy transition depends on surge in supply of key metals

The decarbonisation of the global economy is at risk unless greater amounts of capital are directed towards the mining industry, the UK’s biggest fund manager has warned.

At current levels of investment Legal & General Investment Management reckons the world will not be able to achieve the “huge increase” in supply of industrial metals needed to reach net zero emissions by 2050.

A report, drawn up by LGIM in collaboration with miner BHP, estimates that cumulative demand for copper will have to double over the next 30 years and quadruple for nickel to achieve the Paris agreement to limit global warming to 1.5C above pre-industrial levels.

“The challenge is simple: without a growing, responsibly run mining industry there will be no energy transition,” said Nick Stansbury, head of climate solutions at LGIM and co-author of the report. “Investors need to engage with the mining industry, not shut them out, if the industry is going to deliver the critical resources the world urgently needs.”

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