Understanding and responding to the human cost of the green energy transition
- 12 July 2023 (15 min read)
Key points:
- The transition to a low-carbon world has become a political and public priority, putting pressure on all economic players to turn greener and requiring the massive expansion of renewable energy
- The necessary development of solar panels and wind turbines as well as the lithium-ion batteries used in electric vehicles and consumer electronics, relies on so-called ‘critical’ minerals such as copper, lithium, nickel, and cobalt
- With demand accelerating, the intensified mining of these minerals is set to exacerbate environmental and social concerns, in a sector historically plagued by accusations of abusive or unsustainable practises
- This paper highlights how transition minerals differ from fossil fuels, and explores the collateral effects on workers, communities and the environment, issues that will need to be addressed by responsible investors concerned that efforts to support the transition do not create new harms
- This paper looks closely at child labour in cobalt extraction to highlight how reputational and regulatory risks can be dispersed, undetected, across the many sectors relying on rechargeable batteries
- We believe responsible investors can help collaborative efforts to drive more sustainable practices and sourcing policies, both in the extractives industry and along the supply chain
Disclaimer
The information on this website is intended for investors domiciled in Switzerland.
AXA Investment Managers Switzerland Ltd (AXA IM) is not liable for unauthorised use of the website.
This website is for advertising and informational purpose only. The published information and expression of opinions are provided for personal use only. The information, data, figures, opinions, statements, analyses, forecasts, simulations, concepts and other data provided by AXA IM in this document are based on our knowledge and experience at the time of preparation and are subject to change without notice.
AXA IM excludes any warranty (explicit or implicit) for the accuracy, completeness and up-to-dateness of the published information and expressions of opinion. In particular, AXA IM is not obliged to remove information that is no longer up to date or to expressly mark it a such. To the extent that the data contained in this document originates from third parties, AXA IM is not responsible for the accuracy, completeness, up-to-dateness and appropriateness of such data, even if only such data is used that is deemed to be reliable.
The information on the website of AXA IM does not constitute a decision aid for economic, legal, tax or other advisory questions, nor may investment or other decisions be made solely on the basis of this information. Before any investment decision is made, detailed advice should be obtained that is geared to the client's situation.
Past performance or returns are neither a guarantee nor an indicator of the future performance or investment returns. The value and return on an investment is not guaranteed. It can rise and fall and investors may even incur a total loss.
AXA Investment Managers Switzerland Ltd.