A report on transitional mineral mining financing leads to environmental destruction on a large scale and human rights violations, according to a report.
Banks and investors tampered hundreds of billions of dollars in companies that minimize minerals to manufacture solar panels, wind turbines, batteries, power networks and electric cars in the past decade, according to the research.
But the institutions that finance this extraction have environmental, social and governance policies (ESG) “dangerously weak” related to mineral mining, with no useful guarantees for ecosystems and regulations.
“Without urgent reform, funding will continue to enhance an extractive and highly dangerous model that undermines both climate and nature goals, and revolves around human rights,” according to the report.
“Mining is one of the main causes of the climate crisis and now presents itself as an essential part of the solution to the problem in the transmission of energy without changing the exploration model and the value chain around the world. This is a blatant contradiction that he can no longer ignore by decision -makers,” said Morrison Angelo, Executive Director of the Mining Observatory.
The research was conducted by the Forestry and Finance Alliance, an initiative that funds the companies participating in a group of industries that affect tropical forests and societies that depend on in Southeast Asia, Central and West Africa and parts of South America.
According to the report, the leading banks poured $ 493 billion (369 billion pounds) in loans and subscription to transitional metal mining companies between 2016 and 2024, while investors carry 289 billion dollars (216 billion pounds) in bonds and shares.
But ESG policies held in 30 major institutions devoted to financing for projects were weak, which led to the development of approximately 70 % of transitional metal mines interfering with the lands of indigenous population or peasants, and 71 % were already in high -diversity areas under the climate and social tension.
Depending on the status studies of Australia, Brazil, Indonesia and the Democratic Republic of the Congo, the report links transitional mineral mining to the removal of forests, pollution, the violations of the rights of the indigenous population, insecure action practices, new coal factories, deadly and catastrophic collapses of hardness backgrounds, and the destruction of the ecosystem.
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With four fifths of investments in miners coming from institutions in the United States, Australia, the United Kingdom, Japan and Brazil, the report calls on governments to “include justice and environmental protection in financial organization”, imposing companies ’transparency and accountability, and enhancing compulsory attention on environmental and human rights issues.
It also calls on financial institutions to reform their approach to financing miners, specifically that they should include respect for human rights and international law in their policies, and to exclude companies related to the removal of forests and rights.
“A fair transition needs financing that no longer rewards bad behavior and companies’ escape, “said Stephanie Doulan, a forest activist in the forest network.