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dc.contributor.advisorMiller, Hugh B.
dc.contributor.authorJones, Sarah L.
dc.date.accessioned2023-12-11T22:32:49Z
dc.date.available2023-12-11T22:32:49Z
dc.date.issued2023
dc.identifierJones_mines_0052E_12720.pdf
dc.identifierT 9641
dc.identifier.urihttps://hdl.handle.net/11124/178664
dc.descriptionIncludes bibliographical references.
dc.description2023 Summer.
dc.description.abstractIt is believed by some that environmental, social, and governance (ESG) has become a vital determinant of a mining company’s market value, in addition to the traditional metrics of production, country risk, deposit characteristics, and corporate management. Institutional investment firms, like BlackRock, invest trillions of dollars annually through mutual funds and exchange-traded funds to promote sustainable development by analyzing a company’s positive ESG metrics to support their investment decisions (BlackRock, 2018). Therefore, mining companies must maintain positive ESG performance to access critical institutional funding to continue operations or expand their investment portfolios. Pursuing positive ESG initiatives, like reducing emissions or providing community support, comes at a cost to the firm. Mining companies must determine if the benefit of improved access to funding or any potential increase in market capitalization outweighs the cost of implementing ESG. This thesis aims to determine if six of the largest gold mining companies in the U.S. and Canada have received short- and long-term financial benefits from implementing ESG practices. The short-term impact is evaluated using an event study approach and finds the market has been unresponsive to positive or negative ESG performance information. Regression analysis determined that ESG ratings do not correlate to a firm’s long-term financial performance. ESG ratings are meant to assess the potential financial risks to investors from environmental, social, and internal governance practices that may impact a firm’s reputation or financial profitability. Measuring ESG performance is a qualitative assessment of data gathered through interviews and questionnaires to the firm by an ESG rating analyst or through self-assessment and disclosures using prescribed guidelines. Third-party ESG scores may be subjective as each analyst may change the weight of ESG criteria, and the data used is not always verified or reliable (Lovas, 2021). Unfortunately, the lack of consistency between ESG rating methodologies, metrics, data, and weightings causes confusion and often challenges and frustrates investors (Lovas, 2021). This thesis addresses the lack of universal ESG metrics for the mining industry by recommending new quantitative criteria for evaluating ESG initiatives from a technical perspective. For instance, measuring the environmental risk should consider a firm’s efforts towards biodiversity offsets, energy efficiency, limiting land disturbances, and proper tailings management are all critical risks associated with mining.
dc.format.mediumborn digital
dc.format.mediumdoctoral dissertations
dc.languageEnglish
dc.language.isoeng
dc.publisherColorado School of Mines. Arthur Lakes Library
dc.relation.ispartof2023 - Mines Theses & Dissertations
dc.rightsCopyright of the original work is retained by the author.
dc.subjectESG
dc.subjectESG ratings
dc.subjectevent study
dc.subjectfinancial analysis of ESG
dc.subjectmining
dc.subjectsustainability
dc.titleProposed methodology to quantify ESG metrics to better explain the impact on market value: a case study of gold mining, A
dc.typeText
dc.date.updated2023-11-30T05:09:38Z
dc.contributor.committeememberDagdelen, Kadri
dc.contributor.committeememberSpiller, D. Erik
dc.contributor.committeememberEggert, Roderick G.
dc.contributor.committeememberWoodson, Sandra
thesis.degree.nameDoctor of Philosophy (Ph.D.)
thesis.degree.levelDoctoral
thesis.degree.disciplineMining Engineering
thesis.degree.grantorColorado School of Mines


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