Holistic Value Model for the mining industry

Important results from the project

The project has achieved its primary aim of developing a new type of financial decision-making model for projects in the mining industry where monetary values can be assigned to ESG factors, based on pilots, industry needs, and lessons learned from global benchmarking. Further important results include the validation of the approach as unique, as well as the significant interest and value that the industry and investment sector worldwide see in our approach, both today and in the future.

Expected long term effects

The project´s fundamental approach has been to incorporate cashflow-impacting ESG parameters, both risks and opportunities, in financial decision-making models. By creating this model, a range of long-term effects for the mining industry are enabled: • Improved financial performance by adding more relevant profitability impacting parameters directly decision-models • Enhanced investor attractiveness and increased access to capital • Strengthened social license to operate and talent attraction

Approach and implementation

The implementation began with a global benchmarking study to identify good examples and current knowledge gaps. Through industry workshops and bilateral meetings with the mining industry, financial sector, and stakeholders from academia and government agencies/NGOs, a model was developed and tested through pilot projects. The work has gone well, but it has taken more time than expected, primarily due to the rapid growth of the ESG area and related regulations during the project timeline.