Critical minerals: The cornerstone of a just transition

The global race to achieve net zero is accelerating, and at its heart lies a paradox: to decarbonise, we need more mining. Critical minerals such as lithium, cobalt, nickel, and rare earth elements are indispensable for clean energy technologies, from electric vehicle batteries to wind turbines and solar panels. The International Energy Agency projects that demand for these minerals will triple by 2030 and quadruple by 2040 to meet climate goals Without them, the transition to a low-carbon economy simply cannot happen.

However, how we source these minerals matters. A just transition is not only about reducing emissions; it’s about ensuring fairness, inclusivity, and respect for human rights. Mining development must avoid repeating the mistakes of the past, where resource extraction often came at the expense of communities, ecosystems, and Indigenous rights. Over 50% of energy transition metals are located on or near indigenous lands, making Free, Prior and Informed Consent (FPIC) a critical principle. Failure to uphold these rights risks social conflict, reputational damage, and project delays costs that ultimately affect investors and society alike.

Mining done right: Stakeholder inclusion and Indigenous rights 

As a commissioner for the Global Investor Commission on Mining 2030, I have helped shape principles that request mining companies engage meaningfully with affected stakeholders, respect cultural heritage, and share benefits equitably. The Mining 2030 Investor Expectations framework reflects these priorities, calling for companies to demonstrate robust human rights due diligence, transparent governance, and inclusive benefit-sharing mechanisms. It also stresses the need for trust, transparency, and accountability in corporate practices, foundations that ensure credibility and protect long-term value.

For Indigenous communities, mining projects have historically led to displacement, environmental degradation, and loss of livelihoods. International norms, such as the UN Declaration on the Rights of Indigenous Peoples, require FPIC, yet implementation remains inconsistent. Investors have a responsibility to ensure these standards are upheld, not only because it is the right thing to do, but because involving and respecting local communities mitigates financial and operational risks.

The investor imperative: Setting clear expectations 

Investors play a pivotal role in shaping the future of mining. Through stewardship and engagement, they can set clear expectations for companies across the value chain. This includes advocating for responsible practices at mine sites, supporting transparency in supply chains, and encouraging alignment with global best practice standards such as those developed by the Initiative for Responsible Mining Assurance (IRMA).

IRMA stands out as the most comprehensive and credible mining standard, built on equal governance among six stakeholder groups: mining companies, purchasers, NGOs, affected communities, organised labour, and investors. Its rigorous audit process provides unparalleled visibility into mine-level performance, covering everything from environmental stewardship to labour rights. As a finance sector representative on IRMA’s board, I see first hand how this multi-stakeholder model drives accountability and trust. Investors can leverage IRMA to better understand the risks in their portfolios and signal market demand for responsible mining.

Beyond direct ownership: Exposure through the value chain 

One misconception is that investors need to hold shares in mining companies to be exposed to mining risks. In reality, exposure is embedded throughout the supply chain. Technology giants, automotive manufacturers, and clean energy firms all rely on mined materials. From semiconductors to solar panels, critical minerals underpin the products and infrastructure of the modern economy. This means that even investors focused on sectors like tech or renewables have a stake in how minerals are sourced.

The Mining 2030 framework recognises this interconnectedness, setting expectations not only for mining companies but also for downstream purchasers. Investors should engage with these companies to ensure they are sourcing responsibly and supporting initiatives like IRMA. Doing so strengthens resilience across portfolios and contributes to systemic change.

Making it happen 

The path to net zero runs through the mining sector, but it must be paved with fairness and accountability. Investors have both the power and the responsibility to ensure that the extraction of critical minerals does not undermine the very goals it seeks to achieve. By supporting the Mining 2030 investor expectations, engaging across the value chain, and supporting credible standards such as IRMA, we can help deliver a transition that is not only green but also just.