Give2Asia IMPACT INVESTING (PDF) 2022/Q1 - Page 9

New research indicates that major FTSE 350 companies are increasingly linking remuneration policies and practices to environmental, social and governance (ESG) indicators, addressing investor concerns surrounding ESG indicators.

China's Hedgemoney in Rare Earths Production Worldwide

Boards Increasingly Linking Remuneration Packages to Environmental Goals

Production as share of global output by country, 2021

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*Long-term incentive plan. Data based on ESG targets disclosed in 2020 pay plans published in corporate annual reports. Environmental includes issues such as decarbonization, energy reduction and plastic reduction. Social includes issues such as diversity, employee engagement and safety. Governance includes issues such as risk. Sources: London Business School; PricewaterhouseCoopers. As of 3/18/21.

The Ukraine crisis has shown just how dangerous it is for Western economies to become dependent on a spole supplier for a mineral resource. In this case, it has been Russia and natural gas. However, there is another dependence that sooner or later the Western world must wean itself off – China and rare earth elements (REEs). Western economies are set to remain heavily dependent on China for the refining of REEs for the next decade, but their reliance on it for the mining of the metals is expected to fall as new mines become operational in other parts of the world.

Source: Statista