2
Industry compliance was determined by utilizing local
copper mines as case studies and measuring compliance by
examining yearly sustainability reports, ESG ratings, pro-
cesses for achieving ESG goals, and whether those goals
were met or not. Current practices of ESG risk analysis
were investigated to understand their risk mitigation pro-
cess and effectiveness. Furthermore, interviews were con-
ducted with mining professionals who develop and apply
ESG in their everyday tasks. The interviews presented a bet-
ter understanding of how ESG is incorporated in mining
settings, how feasible it is to enforce stricter standards, and
how they believe ESG is affecting their abilities to complete
their work. Lastly, based on all the information gathered,
conclusions were drawn about the effect of stricter ESG
standards on the future copper supply chain (its produc-
tion, projects, permitting, and more).
LITERATURE REVIEW
After identifying and reviewing gaps in the methodologies
used to examine the environmental impacts of the mineral
and metal supply chains, Lee et al (2020) concluded that
current methodologies are insufficient in encapsulating
environmental, social, and corporate governance supply
chain issues. The mining mineral and metal industry needs
to adopt or develop a consistent and universally accepted
ESG accounting framework. During policy development
and legislative action, transparency is needed to ensure risks
are properly being mitigated and given the appropriate
amount of resources and time (Lee et al, 2020). Similarly,
Giese et al (2019) presented a thematic research paper to
accurately explain and represent the correlation between
incorporating strong ESG frameworks and corporate finan-
cial performance. Giese et al (2019) concluded that com-
panies with strong ESG profiles were more competitive and
resourceful, produced a higher financial return, attracted
more investors, demonstrated above-average performance
in risk control, less frequently suffered from governance
issues, and were more compliant with federal standards.
Moreover, Valenta et al (2019) studied 308 of the
world’s largest undeveloped copper orebodies in order to
provide a supportive and potential profile of the world’s
future copper supply. It was found that the unlocking of
large quantities of orebodies based on metal prices will
require the development of a framework that will have the
capacity to handle costly and hazardous ESG impacts/risks.
In more depth, Kemp et al (2010) provided a better under-
standing of the connection between access to clean water
and natural rights to help companies respect individuals and
avoid social and environmental risks. Kemp et al (2010),
conducted 19 company examinations that showcased a
lack of integration of human rights in both technical water
management strategies and water-related community con-
tributions or investment strategies. The authors concluded
that industry in general tends to oversee the integration of
human rights in a social and community-sympathetic man-
ner. Their conclusions were supported by the analysis of the
19 ICMM member company sustainability reports where
most companies did not report any sort of human rights or
reporting was biased and selective.
In conclusion, all of the papers reviewed varied in ESG
and copper supply chain topics, but all determined the
impact of ESG and its role in the modernization of tra-
ditional practices or perspectives. This modernization will
benefit the copper supply chain and companies that success-
fully develop a concise and detailed regulatory framework
by reducing project risks, preventing irreversible damages,
and limiting time and money losses.
COPPER SUPPLY CHAIN
A supply chain is an interdependent network of individu-
als, organizations, resources, tasks, technology, and infor-
mation interacting to deliver an end product or service on
time and of quality to the customer. In more detail, the cop-
per supply chain is a series of steps, as shown in Figure 1,
used to represent all of the ideas, tasks, and stages needed
to initiate a copper extraction project to the reclamation
and monitoring of the mined land and the usage of copper
products. The copper supply chain can be broken down
into five main categories: Exploration and Prospecting,
Mine-site Design and Planning, Construction, Production,
and Closure and Reclamation (Hughes, 2021).
Exploration and Prospecting
The exploration and prospecting category is the initial stage
of the copper supply chain which involves geologists, geo-
chemists, public health experts, lawyers, consultants, and
other contributors who evaluate potential copper deposits,
land characteristics, resource availability, and legislation.
These scientists and legal advisers must map, sample, mea-
sure, and analyze surrounding soil, rock, water, air, ecol-
ogy, magnetic field radiation, electrical conductivity, ore,
ore grade, socio-economic effects, mineral rights, and more
(Hughes, 2021).
This category deals with the following stages: research,
ore research and exploration, feasibility study phase 1,
preparation of geological documentation, preparation of
deposit exploration, exploration of deposit, and feasibility
study phase 2. Each of these stages is used to fulfill the pur-
pose of this category which is to ensure the company can
Industry compliance was determined by utilizing local
copper mines as case studies and measuring compliance by
examining yearly sustainability reports, ESG ratings, pro-
cesses for achieving ESG goals, and whether those goals
were met or not. Current practices of ESG risk analysis
were investigated to understand their risk mitigation pro-
cess and effectiveness. Furthermore, interviews were con-
ducted with mining professionals who develop and apply
ESG in their everyday tasks. The interviews presented a bet-
ter understanding of how ESG is incorporated in mining
settings, how feasible it is to enforce stricter standards, and
how they believe ESG is affecting their abilities to complete
their work. Lastly, based on all the information gathered,
conclusions were drawn about the effect of stricter ESG
standards on the future copper supply chain (its produc-
tion, projects, permitting, and more).
LITERATURE REVIEW
After identifying and reviewing gaps in the methodologies
used to examine the environmental impacts of the mineral
and metal supply chains, Lee et al (2020) concluded that
current methodologies are insufficient in encapsulating
environmental, social, and corporate governance supply
chain issues. The mining mineral and metal industry needs
to adopt or develop a consistent and universally accepted
ESG accounting framework. During policy development
and legislative action, transparency is needed to ensure risks
are properly being mitigated and given the appropriate
amount of resources and time (Lee et al, 2020). Similarly,
Giese et al (2019) presented a thematic research paper to
accurately explain and represent the correlation between
incorporating strong ESG frameworks and corporate finan-
cial performance. Giese et al (2019) concluded that com-
panies with strong ESG profiles were more competitive and
resourceful, produced a higher financial return, attracted
more investors, demonstrated above-average performance
in risk control, less frequently suffered from governance
issues, and were more compliant with federal standards.
Moreover, Valenta et al (2019) studied 308 of the
world’s largest undeveloped copper orebodies in order to
provide a supportive and potential profile of the world’s
future copper supply. It was found that the unlocking of
large quantities of orebodies based on metal prices will
require the development of a framework that will have the
capacity to handle costly and hazardous ESG impacts/risks.
In more depth, Kemp et al (2010) provided a better under-
standing of the connection between access to clean water
and natural rights to help companies respect individuals and
avoid social and environmental risks. Kemp et al (2010),
conducted 19 company examinations that showcased a
lack of integration of human rights in both technical water
management strategies and water-related community con-
tributions or investment strategies. The authors concluded
that industry in general tends to oversee the integration of
human rights in a social and community-sympathetic man-
ner. Their conclusions were supported by the analysis of the
19 ICMM member company sustainability reports where
most companies did not report any sort of human rights or
reporting was biased and selective.
In conclusion, all of the papers reviewed varied in ESG
and copper supply chain topics, but all determined the
impact of ESG and its role in the modernization of tra-
ditional practices or perspectives. This modernization will
benefit the copper supply chain and companies that success-
fully develop a concise and detailed regulatory framework
by reducing project risks, preventing irreversible damages,
and limiting time and money losses.
COPPER SUPPLY CHAIN
A supply chain is an interdependent network of individu-
als, organizations, resources, tasks, technology, and infor-
mation interacting to deliver an end product or service on
time and of quality to the customer. In more detail, the cop-
per supply chain is a series of steps, as shown in Figure 1,
used to represent all of the ideas, tasks, and stages needed
to initiate a copper extraction project to the reclamation
and monitoring of the mined land and the usage of copper
products. The copper supply chain can be broken down
into five main categories: Exploration and Prospecting,
Mine-site Design and Planning, Construction, Production,
and Closure and Reclamation (Hughes, 2021).
Exploration and Prospecting
The exploration and prospecting category is the initial stage
of the copper supply chain which involves geologists, geo-
chemists, public health experts, lawyers, consultants, and
other contributors who evaluate potential copper deposits,
land characteristics, resource availability, and legislation.
These scientists and legal advisers must map, sample, mea-
sure, and analyze surrounding soil, rock, water, air, ecol-
ogy, magnetic field radiation, electrical conductivity, ore,
ore grade, socio-economic effects, mineral rights, and more
(Hughes, 2021).
This category deals with the following stages: research,
ore research and exploration, feasibility study phase 1,
preparation of geological documentation, preparation of
deposit exploration, exploration of deposit, and feasibility
study phase 2. Each of these stages is used to fulfill the pur-
pose of this category which is to ensure the company can