This report is the result of an extensive survey drawn from ICD Research‟s exclusive panel of leading mining and metal manufacturer and processor companies and suppliers. In an uncertain economic climate, and with a challenging period ahead, this report provides the reader with a definitive analysis of sustainability in relation to the mining industry, and discusses its implementation following the economic global crisis. Furthermore, this report not only grants access to the opinions and strategies of leading purchase decision makers and competitors, but also examines their actions surrounding sustainable procurement practices.

1 Table of Contents 2

List of tables 7

List of figures 10

2 Introduction 13

2.1 What is this report about? 13

2.2 Methodology 13

2.3 Profile of survey respondents 14

      2.3.1 Profile of buyer respondents 14

      2.3.2 Profile of supplier respondents 16

3 Executive Summary 18

      3.1.1 Sustainability management budgets of mining industry suppliers are expected to rise by 6.5% over the next year 18

      3.1.2 Suppliers intend to spend less than 10% of marketing budget on green initiatives 18

      3.1.3 Suppliers rely on „cost-benefit explanations‟, „educational messages‟, and „framing environmental product as a solution to customers‟ needs‟ to market their green credentials 18

      3.1.4 Supplier companies consider sustainability to be more important post-recession 19

      3.1.5 „Cost savings‟, „compliance with legislation‟ and „managing corporate reputation‟ are major contributing factors to the adoption of sustainable practices 19

      3.1.6 In comparison with emerging economies, demand for sustainable products and services is expected to be higher in developed economies 19

      3.1.7 Buyers predict considerable increase in profitability in the next two years due to the adoption of sustainability practices 20

      3.1.8 Customers are generally not willing to pay more for sustainable products and services 20

4 Sustainability in the Mining Industry 21

Key findings: 21

4.1 What sustainability means to the mining industry 22

      4.1.1 Buyer respondents 22

      4.1.2 Supplier respondents 25

      4.1.3 Sustainability - by company turnover 27

      4.1.4 Sustainability - by region 28

      4.1.5 Sustainability - by job level 30

4.2 Leaders of sustainability in the mining industry 32

      4.2.1 Buyer respondents 32

      4.2.2 Supplier respondents 33

      4.2.3 Leaders of sustainability - by region 34

      4.2.4 Leaders of sustainability in the mining industry - by company turnover 36

4.3 Implementation of sustainable practices in the mining industry 38

      4.3.1 Buyer respondents 38

      4.3.2 Supplier respondents 45

      4.3.3 Implementation of sustainable practices - by region 49

      4.3.4 Implementation of sustainable practices - by company turnover 50

4.4 The drivers of sustainability in the mining industry 52

      4.4.1 Drivers of sustainability - by region 57

      4.4.2 Drivers of sustainability - by company turnover 59

5 How the Economic Downturn has Affected Sustainability Initiatives 61

Key findings: 61

5.1 The importance of sustainability post-recession 62

      5.1.1 Buyer respondents 62

      5.1.2 Supplier respondents 65

      5.1.3 The importance of sustainability post-recession - by region 67

      5.1.4 The importance of sustainability post-recession - by company turnover 68

      5.1.5 The importance of sustainability post-recession - by job level 70

5.2 Post recession spending trends 72

      5.2.1 Buyer respondents 72

      5.2.2 Supplier respondents 74

      5.2.3 Post recession spending trends - by region 76

      5.2.4 Post recession spending trends - by company turnover 78

      5.2.5 Post recession spending trends - by employee size 80

5.3 Post recession modifications to sustainability initiatives 84

      5.3.1 Buyer respondents 84

      5.3.2 Supplier respondents 87

      5.3.3 Post recession modifications to sustainability initiatives - by region 88

      5.3.4 Post recession modifications to sustainability initiatives - by company turnover 89

5.4 Leading concerns in the effective implementation of sustainable practices 91

      5.4.1 Buyer respondents 91

      5.4.2 Supplier respondents 93

      5.4.3 Leading concerns in the effective implementation of sustainable practices - by region 97

      5.4.4 Leading concerns in the effective implementation of sustainable practices - by company turnover 99

6 Demand for Sustainability in 2010–12 102

Key findings: 102

6.1 How sustainability initiatives will impact future profitability 103

      6.1.1 Buyer respondents 103

      6.1.2 Supplier respondents 105

      6.1.3 Demand for sustainability - by region 106

      6.1.4 Demand for sustainability - by company turnover 107

      6.1.5 Demand for sustainability - by employee size 108

6.2 Customer demand for sustainable products and services: regional growth forecasts 109

      6.2.1 Buyer respondents 109

      6.2.2 Supplier respondents 114

6.3 Predictions of customer spend on sustainability 117

      6.3.1 Buyer respondents 117

      6.3.2 Supplier respondents 120

      6.3.3 Predicted customer spend on sustainability - by region 122

      6.3.4 Predicted customer spend on sustainability - by company turnover 123

      6.3.5 Predicted customer spend on sustainability - by job level 124

6.4 Customer acceptance of green initiatives 126

      6.4.1 Customer acceptance of green initiatives - by job level 127

6.5 Important attributes of sustainable development in the value chain 129

      6.5.1 Buyer respondents 129

      6.5.2 Supplier respondents 134

      6.5.3 Important attributes of sustainable development - by region 136

      6.5.4 Important attributes of sustainable development - by company turnover 137

7 Mining Industry Marketing Spend Activity 140

Key findings: 140

7.1 Annual marketing budgets: 2010–11 141

      7.1.1 Annual marketing budgets - by region 144

      7.1.2 Annual marketing budgets - by company turnover 146

7.2 Green marketing budgets in the mining industry 148

      7.2.1 Green marketing budget - by region 150

      7.2.2 Green marketing budget - by company turnover 152

      7.2.3 Green marketing budget - by annual marketing budget 153

      7.2.4 Green marketing budget - by senior level respondents 154

7.3 Key promotional channels 156

      7.3.1 Key promotional channels - by region 159

      7.3.2 Key promotional channels - by company turnover 161

      7.3.3 Key promotional channels - by decision-making authority 163

8 Mining Industry Green Marketing Dynamics 164

Key findings: 164

8.1 Green marketing vs. traditional marketing 165

      8.1.1 Green marketing vs. traditional marketing - by region 167

      8.1.2 Green marketing vs. traditional marketing - by company turnover 169

      8.1.3 Green marketing vs. traditional marketing - by job role 171

8.2 Major drivers of green marketing 172

      8.2.1 Major drivers of green marketing - by region 174

      8.2.2 Major drivers of green marketing - by company turnover 176

      8.2.3 Major drivers of green marketing - by employee size 178

      8.2.4 Major drivers of green marketing - by decision-making authority 180

8.3 Key steps of marketing green credentials 182

      8.3.1 Key steps of green marketing credentials - by region 184

      8.3.2 Key steps of green marketing credentials - by company turnover 186

      8.3.3 Key steps of green marketing credentials - by job role 188

9 Appendix 189

9.1 Full survey results: closed questions 189

9.2 Methodology 204

9.3 Contact us 205

9.4 About ICD Research 205

9.5 Disclaimer 205

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