Skip to main content
Marsh logo

Article

Building resilience: Navigating climate and sustainability risks for modern mining companies

11/14/2025 · 5 minute read

The mining industry sits at the heart of the global economy and is a foundational component of the energy transition, supplying the critical minerals needed for electronics, electric vehicles, and renewable energy systems. For North American miners, embedding resilience into every stage of their decades-long lifecycle is necessary to lead this global charge.

In today's challenging environment, blind spots are costly. Unplanned disruptions — whether stemming from climate-related events, equipment failures, cyberattacks, geopolitical shocks, or people risks — can halt production, undermine stakeholder confidence, and drive financial losses. Resilience is no longer merely a defensive stance; it is now a competitive advantage.

Understanding the climate risk landscape

The mining industry is uniquely vulnerable to the consequences of climate change due to its reliance on the natural environment and the long operational lifecycle of its projects. Risk managers and leaders must consider impacts extending decades into the future.

According to the 2025 Global Risks Report, extreme weather is the primary long-term risk over the next decade. As the planet warms, extreme weather events are likely to become more frequent and severe.

While climate risk focuses specifically on the consequences of adverse weather, rising temperatures, and the transition challenges related to decarbonization, mining companies must also address broader sustainability and governance risks. These encompass environmental concerns like pollution, water scarcity, and biodiversity loss, as well as the social and regulatory implications of these challenges.

RESILIENCE: THE NEW CURRENCY OF MINING LEADERSHIP

Access strategies to secure a stronger, more sustainable future for your organization.

Download our guide now

Key climate risks threatening mining operations

Depending on the location, commodity, and lifecycle phase, mining companies face a host of specific climate risks, including:
selected option

Extreme weather events — such as hurricanes, storms, wildfires, and flooding — can damage power generation facilities, processing plants, and transportation infrastructure like roads, railways, and ports. This damage disrupts production and supply chains, increasing costs and reducing operational efficiency. Additionally, warmer temperatures can decrease equipment efficiency and accelerate wear and tear.

Climate change alters precipitation patterns, exacerbating water scarcity, which inhibits water-dependent operations like cooling, crushing, milling ore, and dust mitigation. Reduced water efficiency can lead to production delays, increased costs, and potential reputational damage. Mining companies may find themselves in direct conflict with local communities for water resources as water stress rises globally.

Extreme heat poses significant risks to the physical safety and mental wellbeing of miners, potentially causing heat-related illnesses and decreased productivity. Natural disasters (including floods, hurricanes, and wildfires) can disrupt operations, placing workers at risk. If workers are displaced from remote mining communities, organizations may face workforce instability and climate-related psychological strain.

As governments implement policies to mitigate greenhouse gas (GHG) emissions, mines face regulatory shifts, including more rigid emission standards and carbon pricing. Public backlash if a mine is perceived as a significant GHG contributor can lead to a loss of social license to operate. Shareholders, investors, and insurers are also exerting stronger scrutiny, expecting disclosure on transition risks and corporate governance processes related to climate adaptation.

Five opportunities to build long-term resilience

Building resilience against climate change is crucial for maintaining the long-term viability of mining operations. By proactively addressing these challenges, organizations can better mitigate existing and emerging risks.

Mining leaders should focus on these five key strategies:

A comprehensive assessment of transition risks associated with the shift to a low-carbon economy can help your organization identify its top priorities in the years ahead. An analysis evaluates the potential financial and operational impacts on your organization’s assets, supply chain, and business model. This approach informs strategic decision-making to support regulatory compliance, uncover emerging business opportunities, and enhance organizational resilience against transition-related disruptions.

Leveraging climate projections and scenario analysis can help pinpoint the most vulnerable assets and evaluate climate exposure across various perils and timeframes. This detailed overview informs the development of adaptation strategies, such as investing in asset resilience and retrofitting physical assets, and implementing climate-resilient technologies.

The mining sector’s complex global network is highly susceptible to extreme weather events. Having a clear view of the entire supply chain, potentially through advanced technologies like IoT sensors and data analytics, can help leaders detect potential disruptions quickly and implement contingency plans.

Growing social and regulatory pressure requires mining organizations to reduce GHG emissions. By conducting comprehensive GHG accounting, organizations can align reporting with recognized frameworks and use carbon offsets to balance unavoidable emissions, enhancing both global contributions and individual competitiveness.

Equipping your workforce with the necessary skills and knowledge — including proper education around new technologies, safety protocols, and sustainable practices — can help mitigate workforce risk and foster a culture of responsibility and adaptability.

BLIND SPOTS ARE COSTLY

Explore actionable ways to build mining resilience across five key risks

Protect your operations from climate events, equipment failures, cyber threats, geopolitical pressures, and people risks.

Download the full report

Secure your future: Download the full report today

Resilience must be embraced as a strategic priority to secure a stronger, more sustainable future. By combining forward-looking strategies with data-driven decision-making, mining leaders can safeguard their operations and position themselves as indispensable players in the energy transition.

While climate and sustainability are critical challenges, modern mining companies face a wide, intricate web of risks. Resourcing for tomorrow: Building resilience for mining companies highlights five crucial risk areas with the greatest implications for miners today.

To learn how to build resilience against climate events, equipment failures, cyberattacks, geopolitical shocks, and people risks and fully understand their interconnected exposures, download the complete guide.

Download the full report to master the 5 critical risks for modern mining resilience.

Related insights

Report Key considerations for D&O: Uplisting to the US mining market

Report

Key Considerations for Directors & Officers: Uplisting to the US Mining Market

11/14/2025
Mining resilience guide Canada

Report

Mining resilience guide: Climate, equipment, cyber, geopolitical, and people risk management

11/14/2025
Space view of the world showing electromagnetic fields

Article

Protecting mining assets from geopolitical and supply chain disruptions

11/14/2025
Placeholder Image

Article

Fortifying your foundation: Addressing people risk and the talent gap in mining

11/14/2025
View more