PART I
THE COMPANIES
1.
Basic materials
This sector comprises companies that are involved in utilising natural
resources and commodities through extraction/mining, refining and
processing materials. These metals and minerals and other essential
commodities are important in the development of essential goods and
services required for a transition to a low-carbon economy.
Basic materials can cover the following activities:
exploration, production and distribution of energy resources, such as
natural gas, and fossil fuels, such as oil and coal
mining of minerals and metals, including gold, copper and ores
manufacturing and distribution of chemicals and chemical products
logging and manufacturing of materials from forestry, such as paper
manufacturing
production of construction materials, including steel, cement and
bricks.
On the face of it, this sector may not look like a good fit for a responsible
investing portfolio; however, lithium mining provides just one example of
an essential component in the race to decarbonisation and the electrification
of everything. Lithium is used in batteries required to run electric vehicles
as well as battery storage for renewable energy sources and other consumer
electronics such as smartphones, laptops and digital cameras. It is also used
in medical devices, and in aircraft and satellites. Australia is one of the
world's leading lithium producers and demand for lithium is expected to
remain elevated given its contribution to the clean energy transition. This is
an example of how nuanced responsible investing can be. There are trade
offs that have to be considered.
The demand for materials to support decarbonisation goes beyond lithium
to include copper, nickel, chromium, zinc and other rare earth minerals.
English
Russian
French
Spanish
Portuguese
Deutsch
Turkish
Dutch
Italiano
Arabic
Romaian
Greek
