IDEAS home Printed from https://ideas.repec.org/a/spr/minecn/v36y2023i2d10.1007_s13563-022-00358-8.html
   My bibliography  Save this article

Governance on lithium mining shareholdings: expanding Environment, Social and Governance (ESG) indicators to economic regulation and raw material politics

Author

Listed:
  • Emilio Soberón Bravo

    (University of Edinburgh)

Abstract

‘Environment, Social and Governance’ (ESG) considerations have received increasing attention as components that inform responsible investments in mining and global material supply. In ESG, governance variables have been mostly regarded as internal firm structures and broad national institutional strength, neglecting closer observations on economic regulation and national raw material politics. Improved governance data to support ESG evaluations should include historical and current relations between public governance bodies and private-sector firms. This paper examines the role of competition regulation agencies in weighing out and mediating relations between the State and multinational private-sector mining firms to unpack components that affect governance in mining. It does so by commenting on empirical data of the purchase held in 2018 of SQM shares—the world’s second largest lithium raw materials supplier—by Tianqi Lithium—one of the largest lithium materials producers in China. The paper discusses the place of equity markets in politics of nation-making and economic regulation in mining. It argues that beyond internal corporate structures, the governance criteria in the ESG profile of mining companies are largely affected by domestic economic regulation maturity, domestic political geography histories of private equity and imageries of corporate shares and natural resources. Furthermore, this paper argues that the effective governance of lithium supply in Chile is affected by political tensions between economic regulation and contractual regimes in mining.

Suggested Citation

  • Emilio Soberón Bravo, 2023. "Governance on lithium mining shareholdings: expanding Environment, Social and Governance (ESG) indicators to economic regulation and raw material politics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(2), pages 333-347, June.
    • Handle: RePEc:spr:minecn:v:36:y:2023:i:2:d:10.1007_s13563-022-00358-8
    DOI: 10.1007/s13563-022-00358-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13563-022-00358-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13563-022-00358-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Michael L. Lemmon & Karl V. Lins, 2003. "Ownership Structure, Corporate Governance, and Firm Value: Evidence from the East Asian Financial Crisis," Journal of Finance, American Finance Association, vol. 58(4), pages 1445-1468, August.
    2. E. Petavratzi & D. Sanchez-Lopez & A. Hughes & J. Stacey & J. Ford & A. Butcher, 2022. "The impacts of environmental, social and governance (ESG) issues in achieving sustainable lithium supply in the Lithium Triangle," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(3), pages 673-699, December.
    3. Orihuela, José Carlos, 2013. "How do “Mineral-States” Learn? Path-Dependence, Networks, and Policy Change in the Development of Economic Institutions," World Development, Elsevier, vol. 43(C), pages 138-148.
    4. Liping Chen & Jie Yang & Wei Liu, 2015. "Global mining governance evaluation methods," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 28(3), pages 123-127, November.
    5. Evelyn Dietsche, 2019. "Balancing mining contracts and mining legislation: experiences and challenges," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(2), pages 153-169, July.
    6. Pedersen, Lasse Heje & Fitzgibbons, Shaun & Pomorski, Lukasz, 2021. "Responsible investing: The ESG-efficient frontier," Journal of Financial Economics, Elsevier, vol. 142(2), pages 572-597.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xueyan Dong & Jingyu Gao & Sunny Li Sun & Kangtao Ye, 2021. "Doing extreme by doing good," Asia Pacific Journal of Management, Springer, vol. 38(1), pages 291-315, March.
    2. Michalski, Lachlan & Low, Rand Kwong Yew, 2024. "Determinants of corporate credit ratings: Does ESG matter?," International Review of Financial Analysis, Elsevier, vol. 94(C).
    3. Naiwei Chen & Meiya Chang, 2013. "Financial Crisis and Corporate Liquidity: Implications for Emerging Markets," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 20(1), pages 1-30, March.
    4. Enikolopov, Ruben & Petrova, Maria & Stepanov, Sergey, 2014. "Firm value in crisis: Effects of firm-level transparency and country-level institutions," Journal of Banking & Finance, Elsevier, vol. 46(C), pages 72-84.
    5. Michela Scatigna & Dora Xia & Anna Zabai & Omar Zulaica, 2021. "Achievements and challenges in ESG markets," BIS Quarterly Review, Bank for International Settlements, December.
    6. Mohammad Ziaul Hoque & MD. Rabiul Islam & Mohammad Nurul Azam, 2013. "Board Committee Meetings and Firm Financial Performance: An Investigation of Australian Companies," International Review of Finance, International Review of Finance Ltd., vol. 13(4), pages 503-528, December.
    7. Cortez, Maria Céu & Andrade, Nuno & Silva, Florinda, 2022. "The environmental and financial performance of green energy investments: European evidence," Ecological Economics, Elsevier, vol. 197(C).
    8. Kato, Takao & Kim, Woochan & Lee, Ju Ho, 2007. "Executive compensation, firm performance, and Chaebols in Korea: Evidence from new panel data," Pacific-Basin Finance Journal, Elsevier, vol. 15(1), pages 36-55, January.
    9. Xueying Yuan & Lixia Shang & Jinhua Xu, 2024. "Green Financial Policy, Resource Allocation and Corporate Environmental Responsibility," Sustainability, MDPI, vol. 16(15), pages 1-29, July.
    10. Ciciretti, Rocco & Dalò, Ambrogio & Dam, Lammertjan, 2023. "The contributions of betas versus characteristics to the ESG premium," Journal of Empirical Finance, Elsevier, vol. 71(C), pages 104-124.
    11. Kirschenmann Karolin, 2022. "The EU Taxonomy’s (Potential) Effects on the Banking Sector and Bank Lending to Firms," The Economists' Voice, De Gruyter, vol. 19(2), pages 275-283, December.
    12. Péter Harbula, 2007. "The ownership Structure, Governance, and Performance of French Companies," Journal of Applied Corporate Finance, Morgan Stanley, vol. 19(1), pages 88-101, January.
    13. Giannetti, Mariassunta & Simonov, Andrei, 2003. "Which Investors Fear Expropriation? Evidence from Investors' Stock Picking," CEPR Discussion Papers 3843, C.E.P.R. Discussion Papers.
    14. Alice Medioli & Pier Luigi Marchini & Tatiana Mazza, 2024. "The impact of corruption and public governance quality on family firm business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 33(1), pages 55-69, January.
    15. Ferriani, Fabrizio, 2023. "Issuing bonds during the Covid-19 pandemic: Was there an ESG premium?," International Review of Financial Analysis, Elsevier, vol. 88(C).
    16. Teresa Chu & In-Mu Haw & Simon S. M. Ho & Xu Zhang, 2020. "Labor protection, ownership concentration, and cost of equity capital: international evidence," Review of Quantitative Finance and Accounting, Springer, vol. 54(4), pages 1351-1387, May.
    17. Döttling, Robin & Lam, Adrian, 2023. "Does Monetary Policy Shape the Path to Carbon Neutrality?," OSF Preprints kqdar, Center for Open Science.
    18. Unite, Angelo A. & Sullivan, Michael J. & Brookman, Jeffrey & Majadillas, Mary Anne & Taningco, Angelo, 2008. "Executive pay and firm performance in the Philippines," Pacific-Basin Finance Journal, Elsevier, vol. 16(5), pages 606-623, November.
    19. Jorge M. Uribe, 2023. ""Fiscal crises and climate change"," IREA Working Papers 202303, University of Barcelona, Research Institute of Applied Economics, revised Feb 2023.
    20. Wang, Xiaoming & Cao, Jerry & Liu, Qigui & Tang, Jinghua & Tian, Gary Gang, 2015. "Disproportionate ownership structure and IPO long-run performance of non-SOEs in China," China Economic Review, Elsevier, vol. 32(C), pages 27-42.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:minecn:v:36:y:2023:i:2:d:10.1007_s13563-022-00358-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.