City broker SP Angel has teamed up with Digbee to bring environmental, social and governance (ESG) accreditation to its mining clients.
Digbee’s online platform allows mining companies of all sizes to disclose their ESG activities, which are then analysed by an independent third party that assigns a score and delivers a qualitative ESG assessment.
SP Angel said: “We are rapidly approaching a point where a company’s ESG profile will not simply be a positive investment factor but will become a precondition to investment by many investment funds.”
The Digbee ESG tool is specifically designed to assist mining companies in meeting these new expectations and ensure directors meet their ESG compliance objectives.
As well as quantifying and scoring a company’s ESG profile, the tool will also highlight areas of improvement and positive performance from companies using the platform.
“Importantly, the process will enable investment funds to demonstrate the positive results of their investments to their underlying investors and stakeholders which can, in turn, lead to further funding,” the broker said.
“It is imperative that any ESG rating is seen to be credible. Digbee’s solution was developed to address this: it is mining specific, right sized and future looking, based on an independent assessment of a submission that is supported by evidence and approved by the company’s board of directors. It will also address investor frustration at a lack of comparable or meaningful data.”
John Meyer, mining analyst and a partner at SP Angel, said: “Working with Jamie Strauss and Digbee will help prepare our corporate clients for ESG-orientated investment.
“Mining, exploration, and development companies contribute much to local communities which combined with the potential benefits of increasingly sustainable operations is worthy of recognition. Quantifying the benefits, improvements and legacies of these operations should act a catalyst to further improvement to the benefit of all stakeholders.”
Strauss, who is the founder and chief executive of Digbee, said: “We are delighted with this joint initiative with SP Angel, the number one ranked advisor to the AIM mining sector.
“SP Angel has acknowledged the importance of presenting their corporate clients to institutional investors with credible ESG disclosure as an increasing prerequisite to encourage new investment. We look forward to working together to achieve a more sustainable mining industry that is recognised for its positive action.”