Implementation Gaps and Rising Climate Risks Shape Asia’s Critical Minerals Sector

Singapore (June 17, 2026) – ISS STOXX, a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities and risk, today announced the publication of a new report from the ISS STOXX Research Institute, Stewardship in the Critical Minerals Value Chain: Assessing Sustainability Performance and Risks in Asia, developed in collaboration with the Asia Investor Group on Climate Change (AIGCC), the leading network of investors in Asia focusing on risks and opportunities in climate and nature.

The report examines sustainability performance, nature-related dependencies, and climate risk exposure across the critical minerals mining sector in Asia, providing investors with a structured assessment of risk and stewardship priorities as demand for these materials accelerates in support of the global energy transition.

“Critical minerals are indispensable to the global energy transition, yet their extraction is associated with a complex set of sustainability risks,” said Mirtha Kastrapeli, Managing Director and Global Head of the ISS STOXX Research Institute. “The report provides a framework for investors to identify vulnerabilities in their portfolios and prioritise engagement where it can have the greatest impact.”

“Nature-related and escalating physical climate risks are becoming increasingly material to investors, particularly in sectors that are critical to the energy transition. Investors are looking beyond policy commitments to understand how sustainability risks are being managed in practice. This report helps investors assess operational performance, identify areas of vulnerability and use stewardship to support stronger risk management and long-term portfolio resilience,” said Rebecca Mikula-Wright, CEO, AIGCC.

Key findings from the report include:

• Gap between policy and operational implementation: While most of the 14 mining operators assessed have established environmental and social policies, performance varies significantly in practice. Several mining operators demonstrate limited due diligence processes and weak execution, highlighting a persistent gap between high-level commitments and on-the-ground implementation that may expose investors to operational and reputational risk.
• Significant dependence on ecosystem services creates financial exposure: Mining operations in the region rely heavily on natural systems, with 63 percent of revenue linked to regulation and maintenance of ecosystem services, particularly water-related functions.  This dependence, combined with environmental pressures such as land use change and pollution, creates material risk to operational continuity, cost structures, and long-term asset value.
• Rising physical climate risks across mining assets: Analysis of 297 mining assets across Asia indicates that exposure to water stress and extreme heat is expected to increase, with a growing number of mines facing medium and high water stress risk over time.
• Elevated labour and supply chain risks remain material: All 14 mining operators assessed are exposed to high location-based modern slavery risk, and 7 out of 14 exhibit high supply chain risk, underscoring structural vulnerabilities across sourcing, labour practices, and oversight mechanisms. These risks may translate into regulatory scrutiny, legal exposure, and reputational impacts for companies and investors.
• Uneven performance across key sustainability areas: While 10 mining operators are classified as leaders in community engagement, performance is more limited in areas such as site closure planning, emergency preparedness, and climate strategy. Overall, the assessment highlights a consistent pattern: policy adoption is widespread, but operationalisation and strategic planning vary significantly.

To download a copy of the full report, please click here. 

About ISS STOXX Research Institute
The ISS STOXX Research Institute draws on unique and proprietary data, paired with advanced concepts and objective analysis, to deliver actionable insights that help capital market participants navigate risks and identify opportunities.

About ISS STOXX 
ISS STOXX provides actionable insights through its comprehensive product offerings, proven expertise, and high-quality data that capital market participants around the world can use to inform their decision-making. Across indices, investment stewardship, corporate governance, sustainability, and fund intelligence, institutional investors and companies rely on us to help them manage investments, strengthen their governance practices, and bring new products to market. ISS STOXX, which is owned by Deutsche Börse Group, employs approximately 4,000 professionals operating across 34 locations in 20 countries. ISS STOXX’s clients include many of the world’s leading institutional investors and corporate issuers who turn to ISS STOXX for its objective and varied offerings.