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

1.1 List of tables 6

1.2 List of figures 9

2 Introduction 12

2.1 What is this report about? 12

2.2 Methodology 13

2.3 Profile of survey respondents 13

      2.3.1 Profile of buyer respondents 14

      2.3.2 Profile of supplier respondents 16

3 Executive Summary 18

      3.1.1 Mining industry sustainability management budgets expected to rise by 7.7% over the next 12 months 18

      3.1.2 Buyers predict considerable increase in profitability in the next two years due to the adoption of sustainability practices 18

      3.1.3 Mining industry buyers consider ISO 14001 certification and recyclable products major criterion for supplier selection 18

      3.1.4 Buyers intend to invest 26% of procurement budgets on green initiatives 19

      3.1.5 Buyer companies consider sustainability more important post-recession 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 Customers are generally not willing to pay more for sustainable products and services 20

      3.1.8 „Cost savings‟, „compliance with legislation‟ and „managing corporate reputation‟ are major contributing factors to the adoption of sustainable practices 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 26

      4.1.3 Sustainability - by company turnover 28

      4.1.4 Sustainability - by region 30

      4.1.5 Sustainability - by job level 32

4.2 Leaders of sustainability in the mining industry 34

      4.2.1 Buyer respondents 34

      4.2.2 Supplier respondents 35

      4.2.3 Leaders of sustainability - by region 37

      4.2.4 Leaders of sustainability in the mining industry - by company turnover 39

4.3 Implementation of sustainable practices in the mining industry 41

      4.3.1 Buyer respondents 41

      4.3.2 Supplier respondents 48

      4.3.3 Implementation of sustainable practices - by region 51

      4.3.4 Implementation of sustainable practices - by company turnover 53

4.4 The drivers of sustainability in the mining industry 55

      4.4.1 Drivers of sustainability - by region 61

      4.4.2 Drivers of sustainability - by company turnover 63

5 How the Economic Downturn has Affected Sustainability Initiatives 65

Key findings: 65

5.1 The importance of sustainability post-recession 66

      5.1.1 Buyer respondents 66

      5.1.2 Supplier respondents 70

      5.1.3 The importance of sustainability post-recession - by region 72

      5.1.4 The importance of sustainability post-recession - by company turnover 74

      5.1.5 The importance of sustainability post-recession - by job level 76

5.2 Post recession spending trends 77

      5.2.1 Buyer respondents 77

      5.2.2 Supplier respondents 80

      5.2.3 Post recession spending trends - by region 82

      5.2.4 Post recession spending trends - by company turnover 84

      5.2.5 Post recession spending trends - by employee size 86

5.3 Post recession modifications to sustainability initiatives 89

      5.3.1 Buyer respondents 89

      5.3.2 Supplier respondents 92

      5.3.3 Post recession modifications to sustainability initiatives - by region 94

      5.3.4 Post recession modifications to sustainability initiatives - by company turnover 95

5.4 Leading concerns in the effective implementation of sustainable practices 97

      5.4.1 Buyer respondents 97

      5.4.2 Supplier respondents 100

      5.4.3 Leading concerns in the effective implementation of sustainable practices - by region 104

      5.4.4 Leading concerns in the effective implementation of sustainable practices - by company turnover 106

6 Demand for Sustainability in 2010–12 108

Key findings: 108

6.1 How sustainability initiatives will impact future profitability 109

      6.1.1 Buyer respondents 109

      6.1.2 Supplier respondents 111

      6.1.3 Demand for sustainability - by region 113

      6.1.4 Demand for sustainability - by company turnover 114

      6.1.5 Demand for sustainability - by employee size 115

6.2 Customer demand for sustainable products and services: regional growth forecasts 116

      6.2.1 Buyer respondents 116

      6.2.2 Supplier respondents 122

6.3 Predictions of customer spend on sustainability 125

      6.3.1 Buyer respondents 125

      6.3.2 Supplier respondents 129

      6.3.3 Predicted customer spend on sustainability - by region 131

      6.3.4 Predicted customer spend on sustainability - by company turnover 133

      6.3.5 Predicted customer spend on sustainability - by job level 134

6.4 Customer acceptance of green initiatives 135

      6.4.1 Customer acceptance of green initiatives - by job level 137

6.5 Important attributes of sustainable development in the value chain 138

      6.5.1 Buyer respondents 138

      6.5.2 Supplier respondents 144

      6.5.3 Important attributes of sustainable development - by region 146

      6.5.4 Important attributes of sustainable development - by company turnover 148

7 Mining Industry Sustainable Procurement Dynamics 150

Key findings: 150

7.1 Critical sustainability factors for supplier selection 151

      7.1.1 Critical sustainability factors for supplier selection - by region 157

      7.1.2 Critical sustainability factors for supplier selection - by company turnover 159

      7.1.3 Critical sustainability factors for supplier selection - by employee size 161

      7.1.4 Critical sustainability factors for supplier selection - by job level 163

7.2 Leading collaborators for achieving sustainable procurement 165

      7.2.1 Leading collaborators for achieving sustainable procurement - by region 170

      7.2.2 Leading collaborators for achieving sustainable procurement - by company turnover 172

7.3 Leading challenges in achieving sustainable procurement 173

      7.3.1 Leading challenges in achieving sustainable procurement - by region 176

      7.3.2 Leading challenges in achieving sustainable procurement - by company turnover 177

      7.3.3 Leading challenges in achieving sustainable procurement - by employee size 178

8 Mining Industry Buyer Spend Activity 181

Key findings: 181

8.1 Annual procurement budgets: 2010–11 182

      8.1.1 Annual procurement budgets - by region 187

      8.1.2 Annual procurement budgets - by company turnover 189

8.2 Sustainability budgets in the mining industry: 2010–11 191

      8.2.1 Sustainability budgets in the mining industry - by region 195

      8.2.2 Sustainability budgets in the mining industry - by company turnover 196

      8.2.3 Sustainability budgets in the mining industry - by procurement budget 197

      8.2.4 Sustainability budgets in the mining industry - by job level 198

8.3 Level of sustainable procurement by product and service category 201

      8.3.1 Level of sustainable procurement by product and service category - by region 207

      8.3.2 Level of sustainable procurement by product and service category - by company turnover 209

9 Appendix 211

9.1 Full survey results: closed questions 211

9.2 Methodology 231

9.3 Contact us 231

9.4 About ICD Research 231

9.5 Disclaimer 231

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