Gold and mineral producer Newmont Corporation today announced a $3 billion sustainability-linked credit facility.
The company claims that the facility will generate pricing adjustments based on environmental, social and governance (ESG) performance.
According to Tom Palmer, President and CEO of Newmont, “By aligning our financial performance and our ESG performance, we are holding ourselves accountable to delivering on our purpose to create value and improve lives through responsible and sustainable mining.”
When it comes to meeting the commitments to the Paris Agreement and delivering on sustainability outcomes, the mining industry is a critical sector to bring on the journey. From lithium batteries in electric vehicles to copper used in wind turbines and solar panels, rare earths and critical minerals are key ingredients to the electrification of the future.
Nic Pollock, Chief Commercial Officer at K2Fly, a SaaS platform that assists companies in the mining sector to better manage their ESG obligations, spoke to Boardroom.Media on the sustainable finance series, Pay It Forward.
“We simply cannot deliver a sustainable future without mining,” says Pollock.
“Quite reasonably, there’s increasing expectations of all companies but we see especially when it comes to mining and resources companies that possibly haven’t done the best job, they are under a lot of scrutiny, but there’s nothing wrong with high expectations and that’s coming from a generational change.”
Newmont’s credit facility will measure sustainability performance through ratings provided by S&P Global and MSCI, and is one of the first of its kind in the mining industry.
Michael Salvatico, Head of ESG Business Development at Trucost, part of S&P Global spoke on Boardroom.Media’s sustainable corporates series, Impact Pioneers. S&P Global claims that its Sustainable Development Goals framework helps to guide companies in aligning their business activities to the UN SDGs and improve sustainability across the entire supply chain.
“What investors and stakeholders value is when the organisation is reviewed through a framework that provides some standardisation and some consistency across the measures that they show for SDG alignment,” says Salvatico.
“Better yet if it’s a data driven approach.”
Newmont’s credit facility is set to expire in March 2026 as an extension of the credit facility delivered in 2019.