Ultimately, we consider LHR’s core business as being dedicated to meeting the growing needs of society’s transition to a low-carbon economy by supporting the production of sustainably mined materials.
LHR believes that strong corporate governance, including the assessment of environmental and social factors, is vital to maintaining a social license to operate in the mining and metals sector and to creating long-term value.
Our commitment to ESG stems from the LHR principals’ long history in the mining sector as operators and investors in mining projects and forms an integral part of our ethos and culture. Having developed, built and run mines, LHR principals have first-hand experience of the positive impact that mining projects can have on the communities in which they operate and on the achievement of their business case.
We do not view ESG as a marketing tool to raise capital or promote LHR or its portfolio companies. Rather, our interest in ESG issues and sustainability is deeply rooted in our recognition of the importance of sustainably mined materials to the world’s future and relates entirely to the impact of these factors on the our investments and targeted return profiles.
As a result, ESG and sustainability considerations are intended to be incorporated as a material part of our investment selection process and as part of our ongoing stewardship once we have made an investment.
Companies have responsibilities beyond just their employees and shareholders. Society needs us to act with a greater involvement, purpose, coherence, and sense of ethics and of community in the problems that concern us all.
Richard Crookes at #UnitingBusiness & CEOs Taking Action, a UN Covid-19 Response Initiative
