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Marikana: Sustainable Mining's Above Ground Risks

September 2012

In August 2012, the platinum group metals mine, Marikana, was the scene of violent and fatal clashes that claimed at least 44 lives, with hundreds injured. What lessons does this complex situation have for sustainable investment and the full and forward appreciation of environmental, social and governance risks face when investing in minerals & mining companies in Africa today?

© 2012 Zapiro (All Rights Reserved)   Printed/Used with permission from www.zapiro.com 
Published in Sunday Times on 26 Aug 2012, 120826st - LONMIN mine tragedy: The Farlam Inquiry into the Truth  http://www.zapiro.com/cartoon/1078107-120826st#.UFo1EBhAwrx


  1. GIBS Forum Marikana  http://www.gibs.co.za/videos-and-audio.aspx?pid=76&stepid=2852&oid=94
  2. IFC + SinCo Sustainable Investment in Sub-Saharan Africa report, July 2011  http://www.sincosinco.com/siinssa.php   http://www.ifc.org/africa/sustainableinvesting 
  3. Eurosif 2010 European Market Study  http://www.eurosif.org/publications/sri_studies
  4. 2012 PRI Annual Report http://www.unpri.org/files/Annual%20report%202012.pdf
  5. HOW NOW, GREEN DOW: Is the Dow Jones Sustainability Index worth a damn? BY Grist 14 September 2009 7:12 AM http://www.grist.org/article/2009-09-14-dow-jones-sustainability-index-worth-a-damn/
  6. CDC Toolkit on ESG for Fund Managers www.cdcgroup.com/uploads/esgtoolkitintroduction.pdf and Actis ESG Code http://www.act.is/ActisPDFs/01271_Actis_ESG_Code.pdf
  7. Food and Beverages: Corporate Responsibility, Global Socially Responsible Investment, Equity Research, UBS Investment, 25 October 2005 
  8. Unburnable Carbon – Are the world’s financial markets carrying a carbon bubble? Carbon Tracker Initiative, Sep 2011 http://www.carbontracker.org/carbonbubble
  9. "Mainstreaming the Economics of Nature: A synthesis of the approach, conclusions and recommendations of TEEB" 20 October 2010 at the CBD COP10 meeting in Nagoya, Japan http://www.teebweb.org/LinkClick.aspx?fileticket=bYhDohL_TuM%3d&tabid=1278&mid=2357 and http://bit.ly/vIKfc7
  10. Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever, GMO Quarterly Newsletter April 2011 by Jeremy Grantham (see PDF below in TOOLBOX)
  11. CalPERS–Towards Sustainable Investment 2012 http://www.calpers.ca.gov/eip-docs/about/press/news/invest-corp/esg-report-2012.pdf
  12. DB Climate Change Advisors (DBCCA) June 2012 "Sustainable Investing: Establishing Long-Term Value and Performance" http://www.dbcca.com/dbcca/EN/_media/Sustainable_Investing_2012-Exec_Summ.pdf
  13. Evolutions in Sustainable Investing: Strategies, Funds and Thought Leadership Cary Krosinsky (ed.) (Wiley Finance, 2011)
  14. Afena Capital's second edition, Unpacking Jargon 2011, contains 106 new investment terms, bringing the total to 284. www.afenacapital.com/library/unpacking-jargon.html
  15. Johan Rockström at TED on Planetary Boundaries based on the papers Nature (doi:10.1038/461472a) and Ecology and Society. http://www.ted.com/talks/view/lang/en//id/945
  16. The Anthropocene: A man-made world | The Economist, 26 May 2011  http://www.economist.com/node/18741749
  17. Berkeley Earth Surface Temperature Study merged data set by combining 1.6 billion temperature reports from 16 preexisting data archives  http://berkeleyearth.org/results-summary/

TOOLBOX


Readings

G4-Exposure-Draft copy.pdf G4-Exposure-Draft copy.pdf
Size : 3074.209 Kb
Type : pdf
ESG-Europe_UBS_analyser_18MAY2010 copy.pdf ESG-Europe_UBS_analyser_18MAY2010 copy.pdf
Size : 424.956 Kb
Type : pdf

ADDITIONAL READINGS & MATERIALS


  1. ‘CLIMATE CHANGE IS JUST GETTING WORSE AND WORSE…’ Posted by Yale University Press London on September 6, 2012 http://yalebooks.wordpress.com/2012/09/06/climate-change-is-just-getting-worse-and-worse/
  2. CFA Institute Centre for Financial Market Integrity, July 2008  
    1. Environmental, Social, and Governance Factors at Listed Companies: A Manual for Investors (PDF)  http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2008.n2.1
    2. The Corporate Governance of Listed Companies: A Manual for Investors (PDF)  http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2009.n12.1
  3. Final version DVFA EFFAS KPIs for ESG 3.0 http://www.effas-esg.com/wp-content/uploads/2011/07/KPIs_for_ESG_3_0_Final.pdf
  4. Environmental, Social and Governance (ESG) indicators in annual reports - An introduction to current frameworks http://www.fee.be/publications/default.asp?library_ref=4&content_ref=1392
  5. Mainstream or Daydream: The Future of Responsible Investment, S.
    Lydenberg and G.M. Sinclair, The Journal of Corporate Citizenship
    Issue 33, April 2009 ; issN 1470-5001, p. 47-67
    http://www.greenleaf-publishing.com/jcc
  6. What Matters in Corporate Governance? By Lucian Bebchuk, Alma Cohen,
    and Allen Ferrell, The Review of Financial Studies, 22:2, 2009,
    783-827. http://www.rfs.oxfordjournals.org/cgi/content/full/22/2/783
  7. Assessing and Unlocking the Value of Emerging Markets Sustainability Indices (July 2011)  http://www.ifc.org
  8. Future of Investing  http://www.ft.com/indepth/future-of-investing
  9. FT Special Reports Long-term investment http://www.ft.com/intl/pp/longterm
  10. Financial Valuation Tool (FV Tool) for Extractive Industries  http://commdev.org/section/tools/fv_tool
  11. Community Investment Quality Assessment Tool  http://commdev.org/content/document/detail/2778/
  12. Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business in Emerging Markets   http://bit.ly/Q7N30x
  13. From Words to Action: The Stakeholder Engagement Manual  http://commdev.org/content/document/detail/942/
  14. Corporate Governance Disclosure in Emerging Markets: Statistical analysis of legal requirements and company practices, February 2012   http://unctad.org/en/docs/diaeed2011d3_en.pdf
  15. Investing In Socially Responsible Companies Is A Must For Public
    Pension Funds – Because There Is No Better Alternative, S. Prakash
    Sethi, Journal Of Business Ethics 56: 99–129, 2005
  16. A.T. Kearney, Inc, titled Green Winners: The Performance of Sustainability - focused Companies in  the Financial Crisis http://www.atkearney.com/index.php/News-media/companies-with-a-commitment-to-sustainability-tend-to-outperform-their-peers-during-the-financial-crisis.html
  17. Aswath Damodaran on Applying the Tools of Corporate Valuation, Peter M.J. Gross CFA Blog, 20 August 2012  http://annual.cfainstitute.org/2012/08/20/aswath-damodaran-on-applying-the-tools-of-corporate-valuation/

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"Great class to get an overall view on how to appreciate the complexity of factoring in ESG matters in the investment process.
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“It was a great pleasure being taught by Graham as part of the UniGe Certificate in Advanced Studies in Corporate Social Responsibility programme. Graham came across as deeply knowledgeable in sustainable investment. He taught us complex notions through easy-to-grasp analogies. He was persistent in getting us to understand the logic of and system behind sustainable investment. He used plenty of real-life examples. He had a great sense of humour. His class was an eye-opener in sustainable investment and sustainability for me.”    -  Executive Education student, Geneva, Switzerland





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