 My name is Andrea Lindblum and I will be moderating this event as Björn Ulalinea, who you will have been expecting, unfortunately fell sick and so we wish him a speedy recovery from here. Mining is a hot topic because the extraction of minerals and metals is so central to the low carbon transition that we have to succeed with to avoid catastrophic global warming. The needs and interests of local communities are concerned and discussed, but not necessarily addressed in the context of coal mine closures and a just transition away from fossil fuels. So mining comes up quite a lot in debates about climate mitigation. Today we want to focus on climate adaptation and on mining and the question of who among the actors in the mining sector perceives which risks from climate change, who is affected by which risks and who does what to adapt to these risks and who needs to do more and maybe better to ensure that local communities in mining regions don't get to bear the brunt of the impacts of climate risks nor that of adaptation responses. So stay tuned for presentations from and discussions with Anthony Bebington, International Program Director for Natural Resources and Climate Change at the Ford Foundation, Veronica Martinez, Lead Strategist for Innovation and Climate Change at the International Council on Mining and Metals and Krishna Maturi, Global Mining and Climate Advisory Lead in the Natural Resources and Infrastructure Department of the International Finance Corporation, IFC. Welcome to all of you. Anthony Veronica and Krishna will present on different aspects of this complex debate and you in the audience will have the opportunity to post questions in the Q&A function in the right hand side of your screen up there and just so everyone is aware, this webinar is recorded and it will be published on the MISTRA Geopolitics website. Let's hold our horses on these Q&A questions for now. We'll first hear from Maria Terias Gustafsson, Associate Professor at Stockholm University and Isabella Strindival, a Research Assistant also at Stockholm University whose report, Climate Risks and Community Resilience in the Mining Sector was funded by MISTRA Geopolitics, an SEI hosted research program. Welcome Maria Terias and Isabella and a very warm welcome to Anna George, Program Manager for Environmental Governance Programs at the Swedish Environmental Protection Agency, who I will now hand over to for welcoming remarks. Over to you, Anna. Thank you very much, Andrea. Good afternoon, good morning and good evening, depending on where you are. Thank you very much for inviting me today. The reason I'm here is because the study of climate risks and mining, which is in focus today, was originally initiated within the Environmental Governance Program, which is a global development program jointly implemented by the Swedish Environmental Protection Agency and UNDP and financed by SIDA. And the Environmental Governance Programme focuses on integrating human rights and the environment into the mining sector governance, which also has many relations to the issues that will be discussed today. So why the mining sector? Our society needs metals and minerals, as Andrea just mentioned, including for the technologies we need to power the green transition. But mining also has a big environmental and social footprint and it includes air, soil and water pollution, biodiversity loss and human rights impacts on health, livelihood and more. And many of these mines are in the developing countries with weak governance, fragility and conflict. And they are vulnerable to climate risks, such as rising water levels or lack of clean waters. And often is those already facing poverty, vulnerability and exclusion who suffer the negative impacts. As the invite to today's meeting says this situation is likely to be reinforced by climate change. And there is a need for discussing climate risks in relation to mining and also how stakeholders such as governments and private companies can act responsibly and how communities can increase the participation and influence. So I am really looking forward to the presentations and to this discussion today. And I now leave the floor to Maria Therese Gustasson. Thank you very much. Thank you very much Anna. I will now present our research. So currently the effects of climate change are being widely felt around the world. Increasingly private actors not just within the mining industry are seeking to adapt to the physical risk posed by climate change. From extractive industries we have recent disasters such as the collapse of the Bromadinjudem in 2019 and also the Norris Knickl oil spill from 2020. And this example serves as a reminder of the importance of adapting to critical infrastructure as extreme weather events become more frequent and severe. Private adaptation responses may have a significant impact both positive and negative on society. It is therefore important we argue to seek to understand how private companies choose to adapt to climate change. And in this presentation we will present our findings from research that we have carried out over the past two years. We have analyzed climate adaptation initiatives from the largest global mining companies and existing regulation of such initiatives. The overarching purpose is to identify governance gap and to reflect upon entry points for building community resilience in the context of mining and climate change. So climate change is are highly relevant for the mining sector. Mineral extraction is critical for the low carbon transition as Anna mentioned, but is also an important driver of deforestation and thus contributes to greenhouse gas emissions. But there is much less discussions about climate adaptation in the mining sector. Mining projects are at the same time very vulnerable to climate risk such as when we think about water scarcity or extreme weather events. Water is often a critical problem in the context of mining and often leads to conflicts between local communities and companies. Next slide. Many countries which are dependent on mining are also highly vulnerable to climate risk and this map shows how mining dependency intersects with climate vulnerability and mining dependency is represented by using the different patterns that are illustrated in the box to the left and climate vulnerabilities illustrated by the brown color. The cross pattern is the most mining dependent countries and the countries that are illustrated in dark brown are the most vulnerable to climate risks. And as illustrated by this map we can see that many mining dependent countries are sensitive to climate risk. For instance countries in the Sahel region, Mozambique, Zimbabwe but also countries such as Peru. And this map indicates that an increasing demand for minerals and metals such as cobalt, lithium, oxyte may bring new challenges to countries which are already highly vulnerable to climate change. Next slide. So the purpose of our report is to generate policy-relevant knowledge about how climate risk are addressed by mining companies and provide for an overview of the existing regulations. And the overarching goal is to understand how community rights and needs could be better protected in mining regions that are exposed to climate risk. And for this purpose we analyzed how the largest 37 mining companies address climate risk and we carried out over 50 interviews with representatives of companies, state agencies and civil society actors. And we also analyzed how climate risks in the mining sector are regulated in countries such as Canada, Mongolia, Peru and South Africa. Next slide. So this table shows how mining companies have addressed climate risk. A little bit more than half of the companies in our sample have started to address climate risks. We distinguish between institutional, infrastructural and community-oriented responses. The institutional responses refer to the integration of climate risk in water governance and risk management frameworks. And this is the most common response. With adapting to technology and infrastructure through infrastructure responses is the second most common response. The least common response is the community-oriented responses, which refers to activities that primarily or partially aim at enhancing adaptive capacity of local communities. About 26% of the companies reported upon such initiatives. More generally our findings reveal that communities are generally not invited to participate in risk assessment and community vulnerability is rarely considered in companies risk management frameworks. So while only about half of the companies report on addressing climate risks most of these companies have taken a sort of technical approach to climate adaptation aiming to build business resilience but not but to to much less extent community resilience. The next slide. So we also looked at analyzed to what extent companies disclose information and involve local communities and engaged in multi-stakeholder initiatives focused on climate adaptation. And we found where we asked 61% disclose information towards investors and shareholders. Only 90% of the companies disclose share this information with state agencies and local communities according to their reporting. Companies generally stress that local communities do not understand highly technical climate risk. So it's perceived as a challenge to to to work more to engage in climate adaptation. And moreover climate risk often dealt with by engineers from the company's environmental units rather than community relationship teams. And the lack of involvement of local communities in the development of climate risk responses imply that company potentially overlook how their adaptation responses are impacting on upon local communities or how and how the adaptation responses could be designed in a way to to reduce trade-offs and and bring about more mutual benefits. So now I will pass the word to Isabella for the second half of the presentation. Thank you Manettis. We can change the slide please. So on this note we have also analyzed the extent to which climate is integrated in key mine governance instruments in Canada, Mongolia, Peru and South Africa. And we have focused on in particular four governance tools, environmental impact assessments, water use licenses, tailing standards and closure plans. Despite that known sustainability challenges may be greatly exacerbated by climate change. We find that in general there are few legal requirements to take climate action or climate risks into account in these governance tools. Conversely mining is rarely mentioned in adaptation policies such as national adaptation plans. This lack of policy integration means that there is limited information and institutional procedures for handling the combined effects of mining and climate risks. Next slide please. Despite the absence of legal requirements different types of guidance and voluntary standards have recently emerged. For example the Canadian Impact Assessment Act of 2019 requires considerations of how a proposed project will impact the country's commitment on climate change. The Peruvian Ministry of Environment has developed voluntary guidelines on integrating climate risks in the EIA process and there are progressive industry standards on mine closure, tailings management and water stewardship. However voluntary initiatives are likely to be selectively enforced by companies which may impact the effectiveness of enforcement and compliance. We see that the push for adaptation is largely driven by investors rather than civil society and governments which means that companies are more incentivized to cater to the investment community than local stakeholders which may come at the expense of local sustainability. In interviews company representatives often associate this lack of civil society pressure on climate adaptation with the limited knowledge on climate issues among local communities. Climate change is often measured and communicated using a very technical language in addition to being addressed by engineers rather than community relations personnel. This may further limit effective dialogue and participation on climate issues. Next slide. In response to the shortcomings of voluntary frameworks, a number of European countries have recently adopted mandatory due diligence legislation which built on the United Nations guiding principles on business and human rights or UNGPs for shorts. The UNGPs established that companies regardless of size and sector should carry out human rights due diligence in their value chain. This demand has however been modified in various ways in different legal frameworks across Europe. The UNGPs and much of recent legislation has been criticized for failing to incorporate environmental considerations and for taking a more traditional stance towards human rights. New laws that are being debated within both EU member states and at the EU level are increasingly integrating both human rights and environmental issues and these laws could contribute to integrate community rights in corporate climate actions. Next slide. While community participation appears to be limited in existing corporate adaptation responses we find the most advanced initiatives in the context of water governance. For example there is an emerging trend of catchment water stewardship which is developed in collaboration with effective water users across the whole water catchments. This opens up for establishing dialogues among multiple stakeholders on climate related water risks. Participatory environmental monitoring where community members are involved in collecting information about their adjacent environments is also a potential tool for increasing the participation of local communities in climate risk initiatives. When such initiatives are designed and driven by community members they may serve as a valuable tool to foster trust and hence transparency and accountability and ultimately mitigate environmental degradation associated with mining. Next slide. So this brings us to the conclusions. Private adaptation is gaining traction in the mining industry and elsewhere. It is mainly driven by investor requirements whereas pressures from governments and civil society organizations are weak. Governments have a key role to play both to incentivize companies to prioritize climate action and to develop responses in collaboration with local stakeholders. It would be important to integrate climate considerations in key mine governance instruments that we have talked about. International organizations such as the UNFCCC and the UNDP can support the abilities of developing countries to improve upon climate adaptation governance and the EU plays an important role in improving corporate sustainability standards. For example, through mandatory due diligence requirements. Next slide. With that note, I would like to close this presentation and I look forward to the following upcoming speaker presentations and the following panel discussion. Thank you. Thank you so much Isabelas Rindavalle and to Maria Terias Gustavsson before you and while this presentation and your research I think sparks many questions. I would urge the audience that we have to put these questions in the Q&A function up there on the right hand side of your screen while and we'll end to get to these questions at the end of this webinar. In the last 15 minutes now we'd like to go straight to Anthony Bevington who will zero in on the question of what is required to avoid that mining affected communities bear a disproportionate burden in this context where climate risks and mining coincide. Over to you Anthony. Thank you and thanks for the invitation. Before starting to address this question I should make an important caveat. Although I grew up in a coal mining region I am not a community member and so most important would be to hear from a range of community members women men young old disabled able bodies indigenous non-indigenous town and dwelling rural dwelling regarding their views on the question. But with that noted I want to make five responses or five observations in response to the question that was posed to me. The first observation is that while there are different ways in which communities are burdened by the intersection of mining and climate risk I think it's helpful to distinguish two scenarios in which this occurs. One scenario is where the presence of mining will aggravate the impacts of climate change on communities whether by using water introducing new risks into the landscapes such as taming dams or by reducing community asset bases that could otherwise serve as resources for adaptation and resilience. A second scenario which may be co-present with the first is where communities are impacted by the mining of transition minerals needed to build decarbonized energy systems. In this scenario the climate related risks faced by communities become double they derive from risks of climate change in situ and also derive from climate change mitigation initiatives in other geographies usually for more privileged groups and more privileged places. In the worst version of this scenario communities are simply treated as sacrifice zones so that's an opening gambit observation. The second observation I'd like to make is the following. The question posed to me must immediately raise another question namely what is a proportionate burden? There is a presumption here that communities should bear any burden at all but why? Grounds have to be established to make that argument especially if those making this claim are not community members. We cannot assume that there is any such thing as a proportionate burden. Third and closely related to this second observation what would be the process for determining what a proportionate burden might be? Several months ago I was in a meeting on Just Transitions at which a senior executive of a global mining company asked out loud almost agonized out loud how do we get them to understand that the mining of critical minerals is essential and urgent? I would suggest that even if questions of urgency are indeed real a process for determining proportionate burden cannot be one in which the question asked is how can we get communities to understand? Asking the question that way does two things it casts communities as ignorant and unreasonable and second it departs from an asymmetric relationship in which imaginable persuasion is only running in one direction. It presumes from the outset that one party in the conversation is in the right and knows best and the other does not. So I want to suggest in my second observation sorry my third observation that while asymmetries in the relationships between mining companies and communities are never going to disappear arriving at a view on proportionate burden must involve discussions that are as symmetric as possible. Fourth observation one essential prerequisite for such symmetry is strong civic space. Yet civic space is under pressure. Civics 2021 State of the Civil Society report concludes that 87% of the world's population lives with severe restrictions on civic space. These restrictions limit the ability of communities, their leaders and their allies to assert their voice regarding what constitutes proportionate burden. While there are many dimensions and indicators of this reduced civic space let me note just two that are directly related to mining. The first is the use by mining companies and their allies of strategic litigation against public participation or slap suits. These lawsuits seek to silence voices and constrain public debate. Between 2015 and 2021 the Business and Human Rights Resource Center a grantee of four foundation identified 355 cases brought by business actors that bear the hallmarks of slap suits. Fully 108 of those cases were related to mining. A second indicator of this closing civic space is the killing of environmental defenders. The global witness figure that on average four environmental defenders are killed each week merits repeating again and often because it's simply appalling. Many of these defenders have been killed in the context of mining disputes and many many more endure intimidation. The implication is that getting to symmetric agreement on proportionate burden requires the protection and the enhancement of civic space. Mining companies should either defer from operating in environments of acutely constrained civic space or maybe constrained civic space at all and or should use their voice and their resources to protect and strengthen civic space. This is not to ask companies to be political it is merely to ask them to be human. And my fifth and closing observation is that approaching a view on proportionate burden should be done with a recognition of historical context in two senses that I want to note here. First is history in place in which it is recognized that new burdens may well compound prior historically accumulated burdens. That history of burdens might be so great as to suggest that no new burden could ever be considered proportionate. And second is to recognize the colonial nature of mining. The bulk of contemporary mining is caught up in colonial relationships and is interpreted by many communities through the lens of having been perpetually colonized. To keep ever present the recognition that mining is colonial is of course not in and of itself a solution. It is however a disposition that will have enormous bearing or should have enormous bearing on any ideas of proportionality of burden. So thanks very much thank you for the invitation. Thank you so much indeed Anthony and thank you for for bringing in this historical perspective and widen our focus a little bit from the here and now. You mentioned asymmetries and the relationships between mines and communities and the need for more symmetric discussions not only but also about climate risks and risk management. So who would have to do what to contribute to more symmetric relationships and maybe with a with a view to to the clock? Who is that one actor that would have to do something to ensure that mining affected communities don't get to bear the brunt of both climate risks and mining? I mean holding in on what that one just one actor is tricky but I mean in a general sense I would say that the answer to that question is not what locally you might say in England it's not rocket science. I think we know this we know it from prior experience so the sorts of things that would be needed are free prior and informed consent processes, general guarantees of rights that go beyond free prior and informed consent, much more durable and demanding standards of benefit sharing that are not simply as forms of compensation the forms of sharing the benefits that flow from the subsoil and forms of legislation that would regulate all that and that would also protect communities and populations that live in areas that are particularly vulnerable to climate change. In some sense you might argue that the legislation in El Salvador is a case of that. So within that group of four and I maybe would mention another couple after that there are clear roles for government and clear roles for companies but I think at the core and this came up in the presentation that was made of the study at the core of that is the well I think two things were at the core one is the part p and i part of f pic the prior and informed so the presentation talks a lot about how mining companies see communities as ill informed inadequately informed and poor mining companies that complicates their work but I think the implication is there is an awful lot of work that needs to be done prior well prior in providing information that's intelligible and accessible to communities to be able to make their own calculations of proportionate burden. The other thing that I emphasize is benefit sharing I think and this becomes both a national and a multilateral set of obligations that the benefit sharing question between climate vulnerable communities and mining is in some sense particularly when you take the historical context into consideration is in some sense a microversion of the broader argument about loss and damage and so at that at that level multilateral commitments to loss and damage also become important and then there's a whole set of roles for civil society organizations also to helping on issues of prior and prior information on providing support on how to negotiate some providing legal support but I've had too many active I've done more than one actor already so I'll stop and we're a little bit running over time and just a brief explanation for those that are not familiar with this term loss and damage is actually a sort of one one very contentious topic of negotiations under the UN framework Conventional Climate Change where the question really is of whether developed countries come up with a new and additional money for those communities that face losses and damages from climate impacts that they have not been able and that they could not adapt to anymore so where money for climate adaptation really is not good enough or is too late let's not dwell on this we now go to Veronica Martinez speaking for the International Council on Mining and Metals to address the question of how private adaptation initiatives can be designed to bring mutual co-benefits to corporations and to communities like over to you Veronica thanks thanks Andrea I'll try to answer these questions I don't think I have a full answer but thanks for inviting me and really happy to be here next slide please thank you and next one yeah I just wanted to to start my presentation we're a really quick and brief introduction of ICMM because maybe some people in the audience are not aware of our existence so we are the International Council on Mining and Metals and we bring together 267 mining companies that represent around a third of the global metals and mining you know market we are a leadership organization and we are we our objective is to promote responsibly responsible mining responsibly produce minerals and metals that can help and support you know a safe just and sustainable world you can see the logos of our company member company there on screen and in addition to these companies you know probably as Maria Therese was mentioning that you interview the 37 largest mining companies in the world probably a lot of them are here and in addition to these companies we also have over 35 national commodity association as members and they help us to expand the outreach of our work and we believe and we are as a leadership organization that we are hoping to achieve of course a positive impact of the industry to enhance the contribution of the mining and metals companies to support sustainable development we have a set of mining principles a set of performance expectations and quite several long lists of commitments that our member companies need to conform with in order to be part of ICMM and all of these commitments are around responsible mining from you know governance transparency health and safety human rights etc. Next slide please we have 12 areas of focus and also when I was listening to the previous speakers I was thinking that and this is part of our new strategy the new strategy for the next three years of ICMM but also is how we can overcome silos right so how we make you know engineers talking to community practitioners that you know they are the ones engaging with host communities etc and we are facing that challenge internally at ICMM as well on how we can you know connect projects and programs much better so you see here on screen that we have well four big areas and 12 projects and we're trying to we're working on that as speak to make it as interconnected as possible so of course one big area is climate and environmental resilience where we're covering there are a lot of the topics that you have mentioned around water stewardship biodiversity etc then we have social and of course climate and climate mitigation and that social performance where we have you know diversity inclusion we have an initiative that I'm going to be mentioning a little bit later around skills for the future something that Anthony was mentioning as well in part as part of the just transition governance transparency a lot of you know how my companies are responding to standards our you know standards and you know external standards to support transparency and accountability and finally which probably is more my area you know climate and innovation but how we can create new product processes and approaches or not only you know the innovation that you know technology innovation etc but all the social innovation that can as significant enable significant progress in all of them I mean the challenges that sector is facing so I'll just go quickly like kind of do a deep dive on what we're doing on the next slide on the climate project so of course our focus on the climate project of ICMM is mitigation as you were saying you know priority and probably because it's a more understood area and there's more kind of clear pathways for implementation on how the industry reduces GHT emissions alone its value chain and not by far saying that this is kind of the low hanging fruits or that there is any quick green on mitigation because there are many many challenges that companies are facing but probably that's why where you know the traction comes from and then we have adaptation so how the industry builds short and long-term operational business resilience supporting host communities and disclosure so how the industry disclosures climate related information in a standardized way so all these three areas are summarized in our climate change position statement that we launched back in October 2021 in this climate change position statement we have of course a net zero commitment where all member companies are committing to net zero but also I think there are a few other commitments are quite relevant for this discussion so for example Marie Therese was or Isabella sorry I don't remember who was where you were mentioning about the standards or for example TCFT or volunteer right you know and and with this commitment for example all of our member companies have committed to report against TCFT so we're trying to make that space for in making things volunteer a little bit narrower for companies so all of them are and that of course will force company almost half of members are already reported against TCFT but it's bringing up to speed you know those that are a little bit behind and make them of course and when you go into the TCFT structure of course you will need to assess climate risks and opportunities and not only physical risks but also transition risks that for the mining sector I think they're far particular so in this process and we have started you know developing and tools and resources to support our member companies on the adaptation bit because of course it's a little bit more uncertain understanding the impacts of climate change you really need to get into the climate scenarios the modeling and that could be a little bit tricky right so next slide please so we have developed some resources are just a few examples in in I think it was late 2019 early 2022 2020 sorry we released a report on adapting to climate change building resilience in the mining metals industry and you know the mining industry has you know it's very very well positioned in terms of risk management and and risk assessment but this was the objective of this report was to bring on the climate you know lens into the risk management so at this report is available maybe I can put then on the chat afterwards the link to access to this report but it's based on the experiences of kind of our members because you know let's be real a lot of mining companies are already facing the physical impacts of climate change so we are trying to promote of course a proactive approach but you know to be completely honest there's a lot of reactive you know measures being built right now and other experts you know providing you know an overview on how this changing climate could impact the sector and identifying ways that mining companies can integrate climate change into risk management processes and you know it lays out a little bit of a process how you to build climate resilience understanding that this is an iterative project because of the course there's a lot of a lot of uncertainties and also the mic tool is a tool that it's available for our members because when we're thinking okay what are the impacts in 2050 of climate change so in 30 etc then you need to get into you know climate scenarios climate models and to be honest mining companies you know they don't have the capacity you know the internal capacity to to really get into this so what we did here was build a georeference platform that integrates a lot of the available climate models so now mining companies get in there so it's kind of a one-stop shop really for that first early assessment on what are the climate risks in that particular area so you could put the coordinates of a specific asset and it will give you kind of the physical risks and the physical threats to that operation so it could be water you know scarcity scarcity water abundance you know more you know more the higher frequency of extreme weather events etc so these are a little bit kind of the tools that we are we have been developing over the past few years to support mining companies to really understand what they need to do to adapt to this changing climate considering all the levels of intensity that there is but also how we can bring this understanding into host communities as well so my final slide and I will go very lightly on this because of course it is outside a little bit of my skills but I think it was really important to mention and as Anthony was mentioning these two scenarios and that host communities can be faced to this or can fit into these two scenarios of you know the physical risk and also the transition risks of climate so we have an initiative called skills for our common future that aims to support community resilience through skills delivery and partnership so of course this initiative is not only focused on climate because if we're thinking about the future there are a lot of other trends that can impact you know the community for example digitalization automation and how this impacts you know the future of you know host communities of mining sector. Usually at ICMM we work with commitments or goals that can you know inspire our members to you know get action moving so that we have a social goal in this case is that all of our member companies committed to work collaborative over you know this is a kind of a long-term goal to build skills for communities to fully participate in the economy of the future so this means and this initiative is actually led by you know community practitioners people that have a lot of strong experience on community so I'm going to wrap it up there because I know we're a little bit behind on schedule but happy to follow up later on Q&A. Thank you so much Veronica and as we are a little bit behind schedule hopefully you would have a fairly brief answer to what unfortunately is still quite an open question but on your slide there that showed mitigation adaptation of course you know you have mitigation right up top and then adaptation sort of follows and I'd like to understand a little bit better what maybe then the the the biggest challenge is with mining companies focusing more on adaptation and resilience and in particular not just business resilience but community resilience. Yeah I think I think I don't have a kind of a direct answer to that because I think it's still an ongoing challenge so I would love to say that we have found a way to do this but but we are really aware that this is an area where we need to do more and actually it's part of our commitments in the climate change position statement to engage with host communities to understand and help them to prepare better for those physical risks of climate change but I think there are quite a few examples already that mining companies are already doing this so for example in my home country in Chile mining companies are already incorporating host communities when thinking about for example desalination water plants to include the needs of you know communities into you know because water scarcity is one of the biggest you know impacts in that area and there are other examples in other regions of the world of course but how we can do this more of at that scale and not isolated examples so we're working there but really I think the past few years have been really about how to understand those impacts so it's not only that you get this reactive approach oh this is an impact this was an extreme storm etc and how we we can create resilience based on that but also how we can be a little bit more proactive and that that's why we have developed these sort of tools but I think it's still an ongoing challenge we are as I said as part of the skills for common future initiative we're trying to connect those two kind of the more technical bit about you know the impact the models etc but also with a community bit so hopefully you know and this interconnection and overcoming the silos will show it results in in a couple of years thank you so much Veronica now we will go straight to Krishna Maturi from the International Finance Corporation IFC who answers the question of what role international financial institutions can play in promoting community resilience in the context of climate change Krishna thank you Andrea and thanks everybody for for being here and it's a great honor so to directly answer your your question a huge role as enablers of private sector financial institutions have a critical role to play in ensuring companies are contributing positively to climate action and are becoming themselves becoming agents of change so creating strong incentives to develop and implement ambitious and robust sustainability strategies is a good place to start so what does it mean in practice especially for carbon intensive sectors up and down the mining value chain for instance mining energy transport rapid decarbonization plans to align with 1.5 degree scenarios building community resilience through their operations and just transitions to a low carbon economy low carbon future would be would be would be good strategies to to begin with so as the financial institutions we have we have to make sure that they have robust targets plans to get to their targets and financial incentives to get to get to meet those targets so next slide please I'm going to introduce a program that you may or may not be aware of it's a World Bank Group Y program it's called climate smart mining through climate smart mining it was born out of a report that was published in 2017 how that focused on looking at the how low carbon economy is going to be mineral mineral intensive and followed by a report in 2020 looking at the emission intensity of these low carbon metals the metals and minerals that are applicable for low carbon economy so next slide please and climate smart mining initiative is governed by four building blocks of verticals that look at climate mitigation climate resilience circular economy and creating markets market opportunities in in the critical mineral space so what does this do I mean beyond the definition that you're looking at the screen what we do in this space is both IFC and World Bank World Bank for World Bank operations we try to create knowledge and analytical products that can be used within these four building blocks with the cross cutting themes as gender and innovation being being the themes to create knowledge and analytical products to be used in our lending operations as well as investments and and advisory products and the technical assistance so IFC which is an institution that I'm part of we are currently involved in two initiatives that I'd like to share with you in in climate mitigation climate resilience both intersecting with each other or intertwine with each other next slide please um this is the initiative that is about to be released very soon and the teaser is coming out in the mining mining in daba next week um and with this we're focused on creating net zero net zero transition roadmaps for copper nickel valley chains primary we chose these minerals primarily because because the role that they play in the energy transition copper nickel are the most cross-cutting critical minerals of the of the entire low-carb carbon economy and part of the 18 minerals that are identified as critical for for low carbon future so while total mining sector accounts for close to 10 percent of global emissions we see significant demand in growing for copper and nickel and emissions intensity also growing up going up so a lot of companies have a lot of mining companies have committed to net zero going net zero by 2050 or earlier so with this work what we are trying to do is help mining companies create robust targets and not only give them a technology roadmap but but also the enabling environment roadmap which involves regulation um ESG considerations just transition plans land use impacts of various technologies as well as collaborative initiatives that are required to meet the goals and finally to identify the right financial products and and incentives to uh to enable that transition to to get to uh to get to their targets so as an example i'm going to show you in the next slide um that uh we do have the technologies right now available to meet to to mitigate 90 percent of the emissions um in next slide please um and up in the value chain uh close to 90 percent and this looks at uh uh techno economic analysis of various technologies available right now in short medium and long term uh based on affordability availability and accessibility of various technologies now not all these technologies have similar or same ESG impact just impact on on on on communities land use impact etc so this is where the roadmap will look at various impacts of these different technologies and both positives and negatives and uh help create robust roadmap for uh roadmaps for the mining companies and i'm happy to expand on the net zero roadmap work later or i'm happy to share that when it comes out next week or in the weeks following next week but i'll introduce another project that we're uh closely involved in uh in the next slide which is looking at community climate resilience in critical mineral water change which is which follows the the work of the net zero roadmaps so the way we look at both the work streams is at two coin two sides of the same coin which is climate mitigation climate adaptation but intertwining each other at various various points so through this work we are looking at the aspects that Veronica and uh and Anthony mentioned which is to really help companies diagnose climate risk uh properly companies are really good at identifying hazards and and uh and uh and um and identifying uh impact to hazards but not so great at understanding the underlying vulnerabilities so with this work we are going to help guide the companies to create robust risk management systems to understand the underlying vulnerabilities uh in the host communities through their operations and the second would be for uh to enable companies to create resilience roadmaps to build better adaptive capacity um in in the company operations and the front land communities and the third goal is to help them set targets resilience targets measurable targets that are based uh science-based and um and help them adopt those targets and uh and invest in those targets and this is where the as a financial institution institution we can help them invest in these interventions resilience interventions all all along the way and next uh next slide which is going to be my last slide is those are just two projects that we're involved in but um IFC has uh in recent years has developed a very climate focused um uh practice through our sustainable d-linked financing platform where we create incentives for uh companies not just mining sector but all in infrastructure uh sectors um companies in infrastructure sectors to um to create robust sustainability strategies as I mentioned in the beginning of my presentation and what that involves is decarbonisation pathways, resilience roadmaps and just transition plans now uh in practice how does it look like so they would have to bench baseline their current emissions baseline their current resilience plans where they look where they stand at with local communities and uh they have to benchmark with peers and industry um and currently and also for the future and in the end they have to set themselves robust targets to achieve uh to achieve to meet the roadmap plans and finally we help them with incentives such as interest rate you know increases or decreasing interest rates as you know etc etc so um I'm going to stop there and uh I give you a lot so I'll let you respond to that thank you so much Krishna for for letting us in there on on how the IFC works to enhance risk management and build resilience inside mining companies and within the the local communities and some of the words that you mentioned there are guidance and advice and roadmaps and I maybe that those are like the the carrots right at the disposal of international financial institutions such as yours you call them incentives and I was just wondering a little bit about you know what the sticks could be and is that you know would that be disclosure requirements and really then where you see the role of institutions like yours um is that more wielding the carrot or the stick uh we see the best possible way to effect change is is is the carrot approach whereas there's certainly a role to role for uh for the stick stick approach particularly through regulations intense regulations which we also help uh guide create um helping the governments local governments and local regulators regulators for instance um we work closely with mining communities and you know wherever multiple mining companies are present Mongolia is a great example that was brought up before in uh in the in the report um we helped uh convene local stakeholders the governments and uh and multiple mining companies to create to look at water issues there Mongolia is a water intensive region in the South Gobi region specifically and we helped companies or we helped companies build capacity to translate that information to to to the communities whereas we helped the the local governments create structures and standards for local local communities as well as companies to be able to understand the water water data as well as the importance of sharing data and having an open dialogue between the communities and companies um we also have a program that focused on disclosure development where we enable companies to to create open data plans and a lot of community members to participate in data gathering as well as to look at their practices and lastly another program that I would like to share two programs actually I'd like to share one is not for mining which is hydro communities beneficiary um Anthony brought this up and we uh my team sustainable infrastructure team specifically specialties in beneficiary and shakeholder and make engagement programs um in all infrastructure specifically also mining and we helped a lot of hydro power projects in uh hydro power developers in in Nepal to create beneficiary programs that meet the local shared requirements for the community for for the government in in in hydro sector and the last program I'd like to share is is the one that we are involved in in in Peru where we helped the mining company to help be part of a part of a local economic economic development called this shared value platform where the revenues generated by the mining companies will be managed properly by the local government also meets the needs of the community both climate impacts to address some of the climate impacts but also broader community impacts there so um yeah thank you so much Krishna and and we have one question here from the audience from Daniel Fjellborg at Luleo University which goes also a little bit to the maybe to this stick question or to the question of who has leverage and this is a question to Maria Therese um you mentioned that company action is driven largely by investors but what and or who drives the investors and whether the interviews um have given any indications on this marietta is would you like to take this question um thank you very much Daniel for your question um I think that from our what we find in our study is that investors are very concerned about the physical climate risk for the mining industry that they they really see that the there are extreme weather events there are water scarcity that pose a severe risk for the companies that's what we find but I think that also like what what we have seen in the mining industry and and also in your own research that social conflicts and and protests play a very important role in incentivizing companies to change their behavior in producing institutional reform and also influencing investors like in the case that Krishna was talking about in Mongolia there IFC's strict demands on on Rio Tinto to deal with the water scarcity was preceded by community mobilizations that put that made it more less necessary to to deal with this situation and that also created the situation where there was a very strict governmental regulations I think that there could be these kind of impacts also on civil society mobilization but what I see as a problem in this case quite severe problem is that there is in contrast to we know that there is a lot of social conflict in the mining industry is also almost um yeah so there is a lot of social conflict in the in the mining industry in general but in on this topic on on climate risk when we ask companies to what extent they they see that there is questions or demand from local communities related to climate impact there is very little discussions within civil society and I think that there there is a risk that this kind of topic is defined in by voluntary standards it's also defined in multilateral spaces where there is an urgency to solve this low carbon transition which could create the risk for this sort of sacrifice zone such toner we're mentioning because and I think that therefore we need to talk much more about adaptation because we need to shift the focus because and not only talk about mitigation because we miss an important part of the impacts on the ground that certain populations will will have to pay this proponent burden of of of this transition if we do not talk more about the adaptation I think that that that's important to to really shift focus to to ensure sort of just transition or or make sure yeah okay thank you very much thank you very much Maria Therese and at two minutes to 1500 it is time to close this webinar thank you so much to our panelists to you in the audience for your interest your participation in this conversation on what might be a fairly new certainly very interesting topic thank you Maria Therese and Isabella for your report which was not only interesting it's also a really good read so I can warmly recommend it you can find that report on the MISTRA geopolitics website where you will also be able to find the recording of this webinar I think we can take away from the discussion that the private sector is taking responses to climate risks that they are so far fairly focused on the risks to their business and maybe less on the risks that might result impact communities that there is a need to build community resilience and that other actors might have to come in there that the business and the private sector is not the only one that can manage and address these risks and build community resilience that there is room for for governments on different levels for international institutions and also for civil society thank you so much for attending this webinar 1500 on the dot and thank you very much goodbye from us at Stockholm Environment Institute and from me Andrea Lindblom