ESGs are the new lens in which investors assess the sustainability of mining projects. The link between finance and ESGs is key for companies to understand as they impact decision-making around company decisions and play a role in raising funding. 

On 11 April, the Australia-Mongolia Extractives Program Phase 2 (AMEP 2) and PwC Mongolia presented the Environment (E), Social (S) and Governance (G) ESG’s for a Sustainable Extractives Sector in Mongolia event and training workshop. Industry participants learned about the growing importance of ESGs, and was introduced to key concepts, legal and voluntary frameworks, as well as reporting initiatives. International guest speakers from PWC Kazakhstan and Peru discussed case studies and best practices. The European Bank for Reconstruction and Development (EBRD) and the Mongolian National Mining Association also spoke to ESG applications and frameworks. AMEP 2 presented an overview of its’ sector wide ESG rapid assessment and engage industry participants in a training on the newly designed Extractive Sector ESG Toolkit.

AMEP 2 through its 2022-2023 activity “Supporting Mongolia’s Mining Companies to Improve their Understanding of ESG and Raise Responsible Finance” aims to create awareness around ESGs and their growing importance amongst national and international mining companies in Mongolia, as well as financial and regulatory bodies. Furthermore, this activity aims to strengthen Mongolia’s extractive sector investment environment through the encouragement of a responsible mining sector.

AMEP 2 is funded by Australia’s Department of Foreign Affairs and Australia Aid.  The program’s Phase 1 was implemented in 2015 and was followed by a Phase 2 in 2019. Adam Smith International is implementing the program. AMEP 2 will operate until March 2024.