Trusted ESG advice for Boardrooms
SFA (Oxford) works closely with multi-commodity value chain players to understand how materially significant environmental, social and governance issues can be integrated into their wider company strategy. Understanding the long-term implications of ESG criteria for our clients is critical in mitigating the regulatory, technological and licence to operate risks. As global investment trends increasingly push companies to re-evaluate their ESG strategies, let SFA help you to remain competitive and capitalise on the rapid growth of sustainable market funds, as investors and regulators demand greater levels of transparency and reporting to meet intergovernmental climate change and decarbonisation goals.
Enhancing outperformance with ESG
Analysis of company outperformance due to ESG factors reveals an alternative solution to unlocking the future value to help receive preferential green finance rates. The risk of companies not improving their ESG credentials is value destruction, in addition to missing out on the potential upsides. Additionally, rigorous, academic studies have demonstrated the outperformance of companies who successfully integrate their sector-specific material environmental, social and governance risks into thoughtful company strategy.
However, not all spending on sustainable initiatives is the same. Some initiatives produce material, value-adding impacts whilst others create little value or, at worst, simply raise operational costs. The core factor determining whether ESG initiatives drive company outperformance is the initiative materiality to a specific sustainability issue. Companies with good ratings on material sustainability issues significantly outperform those with poor rankings on these issues.
At a local level, countries have subscribed to numerous international initiatives such as the UN Paris Agreement and the UN Sustainable Development Goals. As a heavy industry, mining and natural resource management play a key role in attaining these national goals, and so, the sector is under increased scrutiny to play its role in providing the critical metals which are key to a sustainable and green future. Studies have also shown that company performance from ESG initiatives can be predicted by public information, and from the information reported in company sustainability reports, interviews and surveys within organisations.
Below shows a range of ESG issues we currently monitor to assist corporate strategies.
Energy use (electricity and fuel).
Scope 1, 2 and 3 greenhouse gas emissions.
Water use and recycling rates.
Rock waste and tailings impact.
Nitrous and sulphur dioxide emissions.
Health and safety.
Supply chain practices.
Transparency and compliance.
ESG contextualisation and benchmarking relative to the lithium industry
Identifying ESG outperformance
SFA (Oxford) was tasked to assess the environmental footprints and selected ESG criteria of the lithium peer group to evaluate peer-group outperformance across brine and hard rock lithium producers. Environmental factors such as energy usage, plants emissions, water use and recycling rates were all considered to assist in evaluating competitor decarbonisation and emission strategies.
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Other consulting solutions
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SFA's benchmarking of battery metal producers on material ESG factors generates high-resolution insights for sustainability-conscious investors.
SFA evaluates the long and complex life cycle analysis of battery metals and materials to improve the recycling opportunities available for market stakeholders.
Working with clients and third parties, SFA has a long track record of providing technical due diligence and financial modelling support to secure future funding.
Clients have used SFA to provide the analytical link with banks and financial institutions to support investment decision making and provide robust market support.
SFA has supported numerous client listings by providing an independent view of the lithium, nickel and cobalt markets to help secure capital from potential investors.
SFA's battery metals benchmarking is unrivalled, providing you with a detailed understanding of which assets are outperforming and those most at risk.
SFA is a trusted advisor to boardrooms and senior management to major stakeholders and provides regular assistance to strategy and planning efforts.
SFA provides accurate short- to long-term metal price forecasts to support your business plans and contract negotiations, backed by our extensive market research.
SFA has extensive experience assessing clients battery metal processing facilities and offtake options and supply chain offtake due diligence.
SFA regularly supports clients on roadshows to assist on capital raisings and converse with fund managers, institutional investors and family wealth offices.
The SFA team is constantly providing rich insights for its clients on structural events moving the battery metals markets and battery technology substitution.
SFA delivers detailed insights into market risks of automotive technologies for light-duty, heavy-duty, off-road and fuel cell vehicles to meet emission targets.
The pressure for renewable energy generation will require intermittent chemical energy storage solutions to support international climate change objectives.
With charging infrastructure lagging behind EV sales, SFA is on hand to help determine which localised markets will support battery electric vehicles.
The rapid rise in electric vehicles means the recycling market needs to prepare for processing the growth in the supply of nickel, lithium and cobalt.
SFA evaluates the strategic opportunities of other strategic battery materials such as manganese, vanadium, copper, graphite, silica, and rare earth elements.
SFA analyses the emergence of the new and competing cathode, anode and electrolyte technologies, market adoption and the fall-out this has on battery materials.