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24-052
Impacts of ESG on the Copper Supply Chain—
The New Critical Mineral
Casandra Gamez Gonzales
The University of Arizona, Tucson, AZ
Angelina Anani
The University of Arizona, Tucson, AZ
INTRODUCTION
Copper, the newest addition to the critical mineral list,
is an essential metal whose electrical and heat conduc-
tive properties label it as a vital mineral for the creation of
renewable energy sources and the reduction of Greenhouse
Gases (GHGs). However, despite copper’s leading role in
the transition to sustainable energy and mining practices,
the mining industry has faced various battles in the extrac-
tion of this valuable material. These challenges are based
on mining’s negative reputation and extensive impact on
the environment, nearby communities, and human rights.
To ensure the survival of mining in the future and achieve
mineral demands, an emerging topic that has initiated the
revolution of the traditional sector into a more environ-
ment-friendly and transparent industry, is Environmental,
Social, and corporate Governance (ESG).
ESG has motivated companies to seek growth opportu-
nities and standardize risk accountability and transparency
based on its collective framework that creates, modifies,
and implements local, national, and international stan-
dards. These standards focus on improving environmental,
social, and governance issues faced by companies and their
projects. ESG has served as a guideline that investors utilize
to assess companies and promote sustainability, responsibil-
ity, and disclosure to create positive and balanced relation-
ships with stakeholders and the environment. Nonetheless,
concerns have been rising which state that ESG is negatively
impacting the mining industry by targeting what fuels
the industry and world: ore deposits and their resources.
Therefore, this research focused on answering the follow-
ing research questions: what are the impacts of ESG on the
copper supply chain and how will stricter ESG standards
affect future copper production?
METHODOLOGIES
We commenced this study by understanding ESG, its
emergence, and its role across industries including mining.
Then, a literature review was conducted to establish a base-
line for the research by understanding what questions have
already been answered and what gaps have been left. Third,
we dissected the copper supply chain to showcase the stages
needed from the identification of an ore deposit to the recy-
cling of the goods produced from the copper mined.
The next stage connected the copper supply chain to
ESG and determined ESG’s impact on the copper supply
chain stages. The connection was developed by collecting
and analyzing current local, national, and international
environmental, social, and governance standards and pair-
ing them up with a copper supply chain stage. Once paired,
the effect of the standard was determined by looking at risk
mitigation, project improvements, number of injuries/
fatalities, community acceptance, etc.
24-052
Impacts of ESG on the Copper Supply Chain—
The New Critical Mineral
Casandra Gamez Gonzales
The University of Arizona, Tucson, AZ
Angelina Anani
The University of Arizona, Tucson, AZ
INTRODUCTION
Copper, the newest addition to the critical mineral list,
is an essential metal whose electrical and heat conduc-
tive properties label it as a vital mineral for the creation of
renewable energy sources and the reduction of Greenhouse
Gases (GHGs). However, despite copper’s leading role in
the transition to sustainable energy and mining practices,
the mining industry has faced various battles in the extrac-
tion of this valuable material. These challenges are based
on mining’s negative reputation and extensive impact on
the environment, nearby communities, and human rights.
To ensure the survival of mining in the future and achieve
mineral demands, an emerging topic that has initiated the
revolution of the traditional sector into a more environ-
ment-friendly and transparent industry, is Environmental,
Social, and corporate Governance (ESG).
ESG has motivated companies to seek growth opportu-
nities and standardize risk accountability and transparency
based on its collective framework that creates, modifies,
and implements local, national, and international stan-
dards. These standards focus on improving environmental,
social, and governance issues faced by companies and their
projects. ESG has served as a guideline that investors utilize
to assess companies and promote sustainability, responsibil-
ity, and disclosure to create positive and balanced relation-
ships with stakeholders and the environment. Nonetheless,
concerns have been rising which state that ESG is negatively
impacting the mining industry by targeting what fuels
the industry and world: ore deposits and their resources.
Therefore, this research focused on answering the follow-
ing research questions: what are the impacts of ESG on the
copper supply chain and how will stricter ESG standards
affect future copper production?
METHODOLOGIES
We commenced this study by understanding ESG, its
emergence, and its role across industries including mining.
Then, a literature review was conducted to establish a base-
line for the research by understanding what questions have
already been answered and what gaps have been left. Third,
we dissected the copper supply chain to showcase the stages
needed from the identification of an ore deposit to the recy-
cling of the goods produced from the copper mined.
The next stage connected the copper supply chain to
ESG and determined ESG’s impact on the copper supply
chain stages. The connection was developed by collecting
and analyzing current local, national, and international
environmental, social, and governance standards and pair-
ing them up with a copper supply chain stage. Once paired,
the effect of the standard was determined by looking at risk
mitigation, project improvements, number of injuries/
fatalities, community acceptance, etc.