ESG and share performance of the company
Currently, share prices of the mining companies that are not ESG-compliant are not going down, but the industry can witness a downward trend in coming years. It is expected that the companies that don't embrace ESG will become un-investible by mainstream institutional groups.
This could help cleaner companies with positive ESG scores to have a lower intrinsic risk and get the advantage from a lower capital cost, as the world is advancing to attain carbon neutrality in coming decades.
Bottom Line
With more learned and environmentally cautious investors, ethical investing has become very popular nowadays. A higher ESG performance can significantly increase green investment in mining companies.