In the 12-year history of KPMG’s global mining risks and opportunities research, 2022 marks quite a moment. Every year, commodities risk has been at the top of the industry’s risk radar. But now, that has been displaced. So, what has overtaken it?
For an industry that inherently operates over the long-term, these shifts in a short space of time are striking. They underline the extent to which climate change related issues and Environmental, Social and Governance (ESG) more broadly are reframing corporate priorities in mining, as in almost every business sector.
10: Regulatory and compliance changes/burden
In a welcome move, the pandemic has disappeared from the top 10, after leaping in at number two last year.
Now it seems like the industry regards COVID-19 as something it can incorporate into business as usual as global demand for commodities to power the economic recovery builds.
09: Talent crisis
The ‘war on talent’ is a new entry in the top 10 rankings.
There is a sentiment that the mining industry needs a new wave of talent to fulfil a range of specialised and/or technology-centric roles.
08: Supply chain risks
Supply chain issues, the eighth top risk, have been driving a rise in the cost of materials and supplies, while economies globally are beginning to wrestle with inflationary pressures.
07: Permitting risk
Permitting risk has dropped one place but remains a key issue for the mining community.
06: Ability to access and replace reserves
The ability to access and replace reserves has jumped three places in the risk rankings.
05: Global trade conflict
KPMG’s research underlines how quickly political scenarios and risk landscapes can change in real time.
04: Political instability/Nationalisation
Political instability and nationalisation has jumped three places in the risk rankings.
03: Community relations and social license to operate
Up one place in this year’s risk rankings, community relations and social licensing are taking on greater importance.
02: Commodity price risk
Falling from top spot in last year’s rankings, commodity price risks nonetheless remain a primary issue for mining companies.
01: Environmental risks including new regulations
The non-stop rise of ESG is reflected in environmental risks jumping from fifth place to first in a year.