Mining
Panel Report
Sustainability in the Global Mining
Industry 2012–2013:
Market Trends and Opportunities, Profitability and
Budget Forecast, Mining Industry Procurement and
Marketing Initiatives
Reference code: MN1930PR
Published: December 2012
ICD Research
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London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
Website: www.icd-research.com
www.icd-research.com
TABLE OF CONTENTS
TABLE OF CONTENTS
1 Introduction ........................................................................................................................... 9
1.1 What is this report about? ................................................................................................................ 9
1.2 Definitions ........................................................................................................................................ 9
1.3 Methodology ...................................................................................................................................10
1.4 Profile of survey respondents ..........................................................................................................12
1.4.1 Profile of buyer respondents ..................................................................................................................... 12
1.4.2 Profile of supplier respondents ................................................................................................................. 13
2 Executive Summary ............................................................................................................ 15
3 Sustainability in the Mining Industry ................................................................................. 18
3.1.1 Perception of sustainability – buyers ........................................................................................................ 19
3.1.2 Perception of sustainability – suppliers .................................................................................................... 21
3.1.3 Perception of sustainability – region ......................................................................................................... 23
3.1.4 Perception of sustainability – turnover...................................................................................................... 25
3.2 Sustainability in Business Functions................................................................................................27
3.2.1 Sustainability in business functions – buyers ........................................................................................... 27
3.2.2 Sustainability in business functions – suppliers ....................................................................................... 30
3.2.3 Sustainability in business functions – region ............................................................................................ 32
3.2.4 Sustainability in business functions – turnover ......................................................................................... 33
3.3 Key drivers of Sustainability ............................................................................................................34
3.3.1 Key drivers of sustainability – buyers ....................................................................................................... 35
3.3.2 Key drivers of sustainability – suppliers.................................................................................................... 38
3.3.3 Key drivers of sustainability – region ........................................................................................................ 41
3.3.4 Key drivers of sustainability – turnover ..................................................................................................... 43
3.4 Key barriers to Sustainability ...........................................................................................................45
3.4.1 Key barriers to sustainability – buyers ...................................................................................................... 45
3.4.2 Key barriers to sustainability – suppliers .................................................................................................. 48
3.4.3 Key barriers to sustainability – region....................................................................................................... 50
3.4.4 Key barriers to sustainability – turnover ................................................................................................... 52
3.5 Key Markets for Growth...................................................................................................................54
3.5.1 Key markets for growth – buyers .............................................................................................................. 55
3.5.2 Key markets for growth – suppliers .......................................................................................................... 57
3.5.3 Key markets for growth – region ............................................................................................................... 59
3.5.4 Key markets for growth – turnover ........................................................................................................... 60
4 Implementation of Sustainability ....................................................................................... 61
4.1 Organizational Prerequisites for Sustainability ................................................................................62
4.1.1 Organizational prerequisites for sustainability – buyers ........................................................................... 62
Sustainability in the Mining Industry 2012–2013: Market Trends and Opportunities,
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Profitability and Budget Forecast, Mining Industry Procurement and Marketing Initiatives
© ICD Research. This product is licensed and is not to be photocopied Published: December 2012
TABLE OF CONTENTS
4.1.2 Organizational prerequisites for sustainability – suppliers ....................................................................... 64
4.1.3 Organizational prerequisites for sustainability – region ............................................................................ 66
4.1.4 Organizational prerequisites for sustainability – turnover......................................................................... 68
4.2 Environment Management and Bio-Diversity...................................................................................70
4.2.1 Environment management and bio-diversity– buyers .............................................................................. 70
4.2.2 Environment management and bio-diversity – Suppliers ......................................................................... 72
4.3 Sustainability Initiatives for Community Development .....................................................................74
4.3.1 Sustainability initiatives for community development – buyers ................................................................ 74
4.3.2 Sustainability initiatives for community development – suppliers ............................................................. 76
4.4 Key Energy Efficiency Measures .....................................................................................................78
4.4.1 Key energy efficiency measures – buyers ................................................................................................ 78
4.4.2 Key energy efficiency measures – suppliers ............................................................................................ 80
4.4.3 Key energy efficiency measures – region................................................................................................. 82
4.4.4 Key energy efficiency measures – turnover ............................................................................................. 83
4.5 Effective Monitoring Of Sustainability ..............................................................................................84
4.5.1 Effective monitoring of sustainability – buyers ......................................................................................... 84
4.5.2 Effective monitoring of sustainability – suppliers ...................................................................................... 86
4.5.3 Effective monitoring of sustainability – region .......................................................................................... 88
4.5.4 Effective monitoring of sustainability – turnover ....................................................................................... 89
5 Financial Implications of Sustainability ............................................................................ 90
5.1 Cost-Saving Expectations ...............................................................................................................91
5.1.1 Cost-saving expectations – buyers ........................................................................................................... 91
5.1.2 Cost-saving expectations – suppliers ....................................................................................................... 92
5.1.3 Cost-saving expectations – region ........................................................................................................... 94
5.1.4 Cost-saving expectations – turnover ........................................................................................................ 95
5.2 Impact of Sustainability on Profits ...................................................................................................96
5.2.1 Impact of sustainability on profits – buyers............................................................................................... 96
5.2.2 Impact of sustainability on profits – suppliers ........................................................................................... 99
5.2.3 Impact of sustainability on profits – region ............................................................................................. 101
5.2.4 Impact of sustainability on profits – turnover .......................................................................................... 103
5.3 Planned Change in Sustainability Budgets ....................................................................................104
5.3.1 Planned change in sustainability budgets – buyers ............................................................................... 104
5.3.2 Planned change in sustainability budgets – suppliers ............................................................................ 107
5.3.3 Planned change in sustainability budgets – region ................................................................................ 109
5.3.4 Planned change in sustainability budgets – turnover ............................................................................. 110
6 Sustainable Procurement ................................................................................................. 111
6.1 Critical Factors for Supplier Selection............................................................................................112
6.1.1 Critical factors for supplier selection – buyers ........................................................................................ 112
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Profitability and Budget Forecast, Mining Industry Procurement and Marketing Initiatives
© ICD Research. This product is licensed and is not to be photocopied Published: December 2012
TABLE OF CONTENTS
6.1.2 Critical factors for supplier selection – region ......................................................................................... 114
6.1.3 Critical factors for supplier selection – turnover...................................................................................... 115
6.1.4 Critical factors for supplier selection – senior level respondents............................................................ 116
6.2 Level of Supplier Engagement ......................................................................................................117
6.2.1 Level of supplier engagement – region .................................................................................................. 119
6.2.2 Level of supplier engagement – turnover ............................................................................................... 120
6.3 Expenditure on Sustainable Procurement .....................................................................................121
6.3.1 Expenditure on Sustainable Procurement – region ................................................................................ 122
6.3.2 Expenditure on Sustainable Procurement – turnover ............................................................................. 123
6.4 Attributes of Green Procurement ...................................................................................................124
6.4.1 Attributes of green procurement – buyers .............................................................................................. 124
6.4.2 Attributes of green procurement – region ............................................................................................... 126
6.4.3 Attributes of green procurement – turnover ............................................................................................ 127
6.5 Procurement of Sustainable Products and Services ......................................................................128
6.5.1 Procurement of sustainable products and services – buyers ................................................................. 128
6.5.2 Procurement of sustainable products and services – region ................................................................. 131
6.5.3 Procurement of sustainable products and services – turnover .............................................................. 132
7 Marketing Green Initiatives .............................................................................................. 133
7.1 Drivers of Green Marketing ...........................................................................................................134
7.1.1 Drivers of green marketing – region ....................................................................................................... 136
7.1.2 Drivers of green marketing – turnover .................................................................................................... 138
7.2 Marketing of Green Credentials.....................................................................................................140
7.2.1 Marketing of green credentials – region ................................................................................................. 143
7.2.2 Marketing of green credentials – turnover .............................................................................................. 144
7.3 Effective Channels of Promotion ...................................................................................................145
7.3.1 Effective channels of promotion – region ............................................................................................... 148
7.3.2 Effective channels of promotion – turnover ............................................................................................ 149
8 Appendix ............................................................................................................................ 151
8.1 Full survey results .........................................................................................................................151
8.2 Methodology .................................................................................................................................171
8.3 Contact us .....................................................................................................................................171
8.4 About ICD Research .....................................................................................................................171
8.5 Disclaimer .....................................................................................................................................171
Sustainability in the Mining Industry 2012–2013: Market Trends and Opportunities,
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Profitability and Budget Forecast, Mining Industry Procurement and Marketing Initiatives
© ICD Research. This product is licensed and is not to be photocopied Published: December 2012
TABLE OF CONTENTS
LIST OF FIGURES
Figure 1: Perception of Sustainability: Buyers (%), 2012–2013 ........................................................................................................................... 21
Figure 2: Perception of Sustainability: Suppliers (%), 2012–2013 ....................................................................................................................... 22
Figure 3: Perception of Sustainability: Region (%), 2012–2013........................................................................................................................... 24
Figure 4: Perception of Sustainability: Turnover (%), 2012–2013........................................................................................................................ 26
Figure 5: Sustainability in Business Functions: Buyers, 2012–2013 .................................................................................................................... 29
Figure 6: Sustainability in Business Functions: Suppliers, 2012–2013 ................................................................................................................ 31
Figure 7: Sustainability in Business Functions: Region, 2012–2013.................................................................................................................... 32
Figure 8: Sustainability in Business Functions: Turnover, 2012–2013................................................................................................................. 33
Figure 9: Key Drivers of Sustainability: Buyers vs. Suppliers (%), 2012–2013 .................................................................................................... 34
Figure 10: Key Drivers of Sustainability: Buyers (%), 2012–2013 ....................................................................................................................... 37
Figure 11: Key Drivers of Sustainability: Suppliers (%), 2012–2013 .................................................................................................................... 40
Figure 12: Key Drivers of Sustainability: Region (%), 2012–2013 ....................................................................................................................... 42
Figure 13: Key Drivers of Sustainability: Turnover (%), 2012–2013 .................................................................................................................... 44
Figure 14: Key Barriers to Sustainability: Buyers (%), 2012–2013 ...................................................................................................................... 47
Figure 15: Key Barriers to Sustainability: Suppliers (%), 2012–2013................................................................................................................... 49
Figure 16: Key Barriers to Sustainability: Region (%), 2012–2013 ...................................................................................................................... 51
Figure 17: Key Barriers to Sustainability: Turnover (%), 2012–2013 ................................................................................................................... 53
Figure 18: Top Five Markets for Growth: Mining Industry, 2012 .......................................................................................................................... 54
Figure 19: Key Markets for Growth: Buyers (%), 2012–2013 .............................................................................................................................. 56
Figure 20: Key Markets for Growth: Suppliers (%), 2012–2013........................................................................................................................... 58
Figure 21: Key Markets for Growth: Region (%), 2012–2013 .............................................................................................................................. 59
Figure 22: Key Markets for Growth: Turnover (%), 2012–2013 ........................................................................................................................... 60
Figure 23: Organizational Prerequisites for Sustainability: Buyers (%), 2012–2013 ............................................................................................ 64
Figure 24: Organizational Prerequisites for Sustainability: Suppliers (%), 2012–2013......................................................................................... 65
Figure 25: Organizational Prerequisites for Sustainability: Region (%), 2012–2013 ............................................................................................ 67
Figure 26: Organizational Prerequisites for Sustainability: Turnover (%), 2012–2013 ......................................................................................... 69
Figure 27: Environment Management and Bio-diversity: Buyers (%), 2012–2013 ............................................................................................... 72
Figure 28: Environment Management and Bio-diversity: Suppliers (%), 2012–2013 ........................................................................................... 73
Figure 29: Initiatives for Community Development: Buyers (%), 2012–2013 ....................................................................................................... 75
Figure 30: Initiatives for Community Development: Suppliers (%), 2012–2013 ................................................................................................... 77
Figure 31: Key Energy Efficiency Measures: Buyers (%), 2012–2013................................................................................................................. 80
Figure 32: Key Energy Efficiency Measures: Suppliers (%), 2012–2013 ............................................................................................................. 81
Figure 33: Key Energy Efficiency Measures: Region (%), 2012–2013 ................................................................................................................ 82
Figure 34: Key Energy Efficiency Measures: Turnover (%), 2012–2013.............................................................................................................. 83
Figure 35: Effective Monitoring of Sustainability: Buyers (%), 2012–2013 ........................................................................................................... 86
Figure 36: Effective Monitoring of Sustainability: Suppliers (%), 2012–2013 ....................................................................................................... 87
Figure 37: Effective Monitoring of Sustainability: Region (%), 2012–2013........................................................................................................... 88
Figure 38: Effective Monitoring of Sustainability: Turnover (%), 2012–2013 ........................................................................................................ 89
Figure 39: Cost-saving Expectations: Buyers (%), 2012–2013............................................................................................................................ 92
Figure 40: Cost-saving Expectations: Suppliers (%), 2012–2013 ........................................................................................................................ 93
Figure 41: Cost-saving Expectations: Region (%), 2012–2013 ........................................................................................................................... 94
Figure 42: Cost-saving Expectations: Turnover (%), 2012–2013 ........................................................................................................................ 95
Figure 43: Impact of Sustainability on Profits of Buyers (%), 2012–2013 ............................................................................................................ 98
Figure 44: Impact of Sustainability on Profits of Suppliers (%), 2012–2013........................................................................................................101
Figure 45: Impact of Sustainability on Profits of Region (%), 2012–2013 ...........................................................................................................102
Figure 46: Impact of Sustainability on Profits of Turnover (%), 2012–2013 ........................................................................................................103
Figure 47: Planned Change in Sustainability Budgets: Buyers (%), 2010–2012 .................................................................................................106
Figure 48: Planned Change in Sustainability Budgets: Suppliers (%), 2010–2012 .............................................................................................108
Figure 49: Planned Change in Sustainability Budgets: Region (%), 2012–2013.................................................................................................109
Figure 50: Planned Change in Sustainability Budgets: Turnover (%), 2012–2013 ..............................................................................................110
Figure 51: Critical Factors for Supplier Selection: Buyers (%), 2012 ..................................................................................................................113
Figure 52: Critical Factors for Supplier Selection: Region (%), 2012 ..................................................................................................................114
Figure 53: Critical Factors for Supplier Selection: Turnover (%), 2012 ...............................................................................................................115
Figure 54: Critical Factors for Supplier Selection: Senior Level Respondents (%), 2012 ....................................................................................116
Figure 55: Level of Supplier Engagement: Buyers (%), 2012–2013 ...................................................................................................................118
Figure 56: Level of Supplier Engagement: Region (%), 2012–2013 ...................................................................................................................119
Figure 57: Level of Supplier Engagement: Turnover (%), 2012–2013 ................................................................................................................120
Sustainability in the Mining Industry 2012–2013: Market Trends and Opportunities,
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Profitability and Budget Forecast, Mining Industry Procurement and Marketing Initiatives
© ICD Research. This product is licensed and is not to be photocopied Published: December 2012
TABLE OF