Finance for transition mineral mining is driving destruction and abuse, says report

"in the past decade, according to the research. But the institutions funding this extraction have dangerously weak environmental, social and governance (ESG) policies relating to mineral mining, the report says, with most lacking any meaningful safeguards for communities and ecosystems. Without urgent reform, finance will continue to reinforce an extractive, high-risk model that undermines both climate and nature goals, and tramples human rights, according to the report."

"Mauricio Angelo, the executive director of Mining Observatory, said: Mining is one of the main causes of the climate crisis and now presents itself as a central part of the solution to the problem in the energy transition without changing its exploration model and value chain worldwide. This is a glaring contradiction that can no longer be ignored by decision-makers."

Banks and investors poured hundreds of billions of dollars into companies mining minerals for solar panels, wind turbines, batteries, energy grids and electric vehicles between 2016 and 2024. Leading banks provided $493bn in loans and underwriting while investors held $289bn in bonds and shares. ESG policies across the top 30 financing institutions are dangerously weak and often lack safeguards for communities and ecosystems. Nearly 70% of transition mineral mines overlap Indigenous or peasant lands, and 71% are located in high-biodiversity regions already under climate and social stress. Continued finance of current extraction models will reinforce extractive, high-risk systems that harm nature and human rights.

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