Alpha Natural Resources tops list of controversial mining companies
Alpha Natural Resources, Newmont Mining and Glencore International have topped RepRisk‘s list of the 10 Most Controversial Mining Companies of 2011.
The list, benchmarked against the United Nations Global Compact (UNGC) Principles and other international standards, highlights the consequences of environmental, social and governance risks on the corporate reputation, access to capital and licensing.
RepRisk CEO Philipp Aeby said: “There has been a significant impact on companies’ reputations from negative stakeholder sentiment captured throughout 2011. This is made obvious by the fines paid by the industry, increasing regulation, and the risk of loss of license to operate faced by many of the firms mentioned. It demonstrates that it may be in these companies’ best interests to heed the warning signals and to proactively engage to address the environmental, social and governance (ESG) issues raised by various activist groups, employees, governments, shareholders and communities.”
Alpha Natural Resources rose to top the RepRisk Index (RRI), after its purchase of Massey Energy, which was fined$210 million after an accident at its Upper Big Branch mine in 2010 killed 29. Newmont Mining and Glencore International have both been both attracted criticism for their impact on local communities in South America and South Africa.
RepRisk added: “The RepRisk indexes (RRI) of Alpha Natural Resources, Vedanta, Rio Tinto, BHP Billiton and Glencore were all impacted by links with corruption, bribery, extortion and money laundering throughout the year. The RRI is used by the world’s leading financial institutions to manage financial, enterprise reputation and compliance risk.”