Why ESG Matters for Mining Companies with Expert Seth Forman

ESG is becoming increasingly important for companies across all industries, and the mining sector is no exception.

Seth Forman, president of Socialsuite, explained why investors should care about ESG — which encompasses environmental, social and governance initiatives — and discussed what metrics companies in the resource sector can use in their reporting.

“The mining industry … has an incredible opportunity to change that mindset of skeptical investors and people that have negative views of the mining industry in general,” he told the Investing News Network.

Forman believes mining companies of all sizes should be considering ESG, and said that the best thing to do is get started.

“If you’re not thinking about sustainability and ESG, you potentially are missing out on 30 to 40 percent of the retail investors out there between the ages of 18 to 40, or 18 to 50, that deeply care about sustainability,” he said. “They want to understand how management teams — even if you’re just starting out as an explorer — are thinking about these risks, are thinking about how you’re planning to handle things likes wildfires and environmental issues, and social issues and local communities.”

Watch the interview above for more of Forman’s thoughts on what investors and companies need to know about ESG in the mining industry. You can also click the the timestamps below to view specific parts of the interview:

• 0:00 — Intro
• 0:31 — Seth and his work at SocialSuite
• 1:33 — Why should investors care about ESG?
• 7:56 — How to evaluate ESG reporting methods
• 11:56 — ESG unlocks retail, institutional capital
• 15:05 — Greenwashing and other ESG red flags
• 19:34 — The mining sector’s image problem
• 24:00 — Start ESG sooner than later
• 25:43 — Outro

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.