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A new report by Barclays indicates that mining companies could experience a 25% drop in earnings over the next five years due to nature degradation. The stress test analyzed 250 mines linked to 30 companies and approximately 9,000 European power facilities.
The report, titled Navigating Nature Risk: Applying the TNFD’s LEAP Framework, highlights transition risks, such as higher water prices and stricter pollution regulations, as significant threats to miners. In contrast, power companies may see a smaller earnings decline of around 10%, primarily attributed to physical risks like droughts and floods.
Barclays noted that biodiversity loss and ecosystem degradation are emerging as systemic financial risks, with three-quarters of mining assets overlapping sensitive locations, especially in water-stressed countries like Australia, South Africa, and Chile. The World Economic Forum estimates that nature-positive practices could save or generate over $430 billion across the mining sector by 2030.
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