Trusted ESG and sustainability advice for boardrooms
SFA (Oxford) works closely with multi-commodity value chain players to understand how materially significant ESG issues can be integrated into their wider company strategy. Understanding the long-term implications of ESG criteria for our clients is critical in mitigating 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 future value to help receive preferential green finance rates. A risk for companies failing to improve 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 which successfully integrate their sector-specific material ESG 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
Water use and recycling rates.
Rock waste and tailings impact.
Nitrous and sulphur dioxide emissions.
Health and safety.
Supply chain practices.
Transparency and compliance.
Other ESG consulting solutions
Explore other sustainability services for green investors.
SFA's benchmarking of PGM and Battery Raw Material producers on critical ESG factors generates high-resolution insights for sustainability-conscious investors.
SFA's analysis of environmental footprints from recycled material in terms of GHGs, waste generation and processing is helping future PGM recycling investments.
SFA evaluates the long and complex life cycle analysis of battery metals and materials to improve the recycling opportunities available for market stakeholders.
SFA supports investors finance new projects and opportunities through analysing clean energy investment targets and portfolios to reach their sustainability goals.
SFA assists clients in capital-intensive industries to optimise assets and energy processes to reduce their environmental footprint to achieve higher returns.
With the energy transition well underway, SFA helps energy-intensive industries with energy storage assessments to reduce their reliance on the grid.
SFA delivers detailed insights into climate change policies and sustainability targets to support industry stakeholders sustainability targets and market impacts.
SFA provides institutional investors and industrial players with sustainability and energy insights to enhance their pathway to net-zero strategies.
SFA executes scenario analysis to evaluate the impact of ESG development and clean energy to meet sustainability goals and optimise investment returns.
SFA supports mobility companies with their strategies providing global or local industry context, benchmarking competitors and identifying new opportunities.
SFA can help you analyse the rise of electric vehicle charging, grid development and clean energy to enhance your sustainable transport and air pollution strategies.
SFA evaluates mine-to-market carbon reduction opportunities for producers to OEMs by tracking product carbon footprints and process emissions.
SFA can help you unlock a green carbon price premium and identify new opportunities by assisting your transition away from high emissions-intensive processes.
The SFA team has completed many labour workforce projects analysing demographic trends and forecasting future labour requirements.
SFA’s regional industry ESG assessments analyse and peer-review your competitors to help discover the environmental leaders, and sector underperformers to measure future value opportunities.
SFA can help industrial clients accelerate investments into low carbon energy sources with in-depth research into carbon trading systems and credit mechanisms to help offset and reduce their carbon emissions.
SFA's insights of CCUS evaluates opportunities and technology risks for circular-economy players seeking to optimise their clean energy transition and long-term sustainability goals.