Engaging Local Communities
The Community Relations Material ESG Issue (MEI) focuses on company engagement with local communities, including indigenous peoples, covering development, participation, and impact mitigation.
Community and indigenous opposition has been decisive in halting major projects, such as the Keystone XL pipeline in the US and the Pascua-Lama gold mine in Chile. In Brazil, tailings spills have devastated entire communities, leading to significant compensation and restoration obligations. With diverse regional needs, including land, biodiversity, and water, companies are under mounting pressure to balance environmental stewardship with economic growth and community well-being.
Morningstar Sustainalytics' Evaluation Method
Morningstar Sustainalytics’ ESG Risk Ratings assess companies' total risk exposure and the extent to which it's managed. A wider gap between exposure and management signifies higher unmanaged risk levels for a company.