Increasingly stringent regulations regarding sustainable business — from the European Green Claims Directive and Australia's Environmental Claims Code, to the recently adopted changes to Canada's Competition Act — point to a clear global trend of strengthening oversight of the environmental and social aspects of business. In an increasingly complex regulatory framework, Serbia is still trying to find a balance between compliance with EU regulations and attracting foreign investors. Ecology is always a good marketing story, and a very different situation is often hidden behind the nice numbers. Statistics show that the costs of environmental business are increasing, that beautiful marketing stories are often just a letter on paper and that there are fewer and fewer companies for which environmental protection is a strategic commitment.
MARKETING, BUT ALSO POSITIVE EXAMPLES
The mining sector accounts for about 7% of total global carbon dioxide emissions, which makes it a significant factor in the fight against climate change. Although major companies such as Anglo American and BHP often highlight their environmental initiatives – such as switching to renewable energy sources – independent analysis points to a significant gap between promotion and actual results. According to data from RepRisk agency, around a quarter of environmental claims in the mining industry are exaggerated, while concrete negative impacts on the environment are often ignored. The Climate Council of Australia further warns that, despite the marketing emphasis on activities such as reforestation, many companies are still actively exploiting sensitive ecosystems, thereby undermining their own sustainability claims.
In Serbia, where mining occupies an important position in the economy but at the same time struggles with the reputation of being the main polluter of the environment, companies are under special pressure to show responsibility towards the environment. Investments in the green transition in our country exceeded 2024 million dollars in 500, and a large number of foreign investors see this type of investment as a perfect way to fulfill their obligations, but at the same time to get closer to the local population. As part of these efforts, the Canadian company Dundee Precious Metals is reducing the need for large-scale mining through the introduction of VI technologies, and China's Serbia Zijin Copper is introducing purification technologies that have reduced the concentration of heavy metals in Borska river by about 98% compared to 2018.
THE MARKET, INVESTMENTS AND ECONOMY
Despite increasingly strict regulatory frameworks, global research indicates a worrying increase in ecomanipulation (greenwashing) in the natural resources sector. According to the Global ESG Monitor 2024 report, the number of serious cases of eco-manipulation increased by 30% between June 2023 and June 2024, with Latin America standing out, where as much as 70% of those cases are related to the activities of private mining companies. Although some countries have started to implement legal mechanisms to combat false sustainability claims, many countries still lack effective tools to check and sanction such practices, which leaves room for abuse and undermines public trust.
The reason for the frequent examples of eco-manipulation lies in the fact that mining companies all over the world are recording a drop in profitability. According to data published by Statista, the total revenue of the world's 40 largest mining companies will decrease from approximately USD 943 billion in 2022 to an estimated USD 792 billion in 2024. In addition, the net profit margin of these companies fell from 24% to 11% during the same period.
This trend is partly a consequence of the growing costs of compliance with environmental standards, but also the growing number of lawsuits related to eco-manipulation. In such an environment, companies increasingly resort to marketing strategies that serve to respect form and tick off items on the list, while real change remains limited and mostly insufficient to produce any results.
Although eco-manipulation is recognized as a serious problem, there are also positive examples of companies introducing more transparent and responsible practices. Globally, some mines in Africa and Asia have started implementing technologies to reduce emissions and pollution, and such projects can serve as an example of good practice. This year, China recorded a drop in emissions for the first time despite rising electricity consumption. CO₂ emissions in China fell by 1,6% in the first quarter of 2025 compared to the previous year, while they are down 1% year-on-year. This confirms that the stabilization and reduction of emissions can be the result of technological advances and not only of slowed economic growth. Investments in closed-loop water use systems, air quality monitoring and reforestation of exploited areas are becoming more common - but it remains crucial that such steps are not used solely as promotional tools, but as part of a long-term sustainability strategy.
LANDMARK - EUROPEAN STANDARDS
The fight against eco-manipulation in Serbia, as well as globally, requires the establishment of stricter regulatory frameworks and independent mechanisms for checking the environmental claims made by companies in all sectors in their annual reports. European standards, which imply detailed documentation and transparency of sustainable practices, can serve as a reference point for domestic legislators and supervisory institutions. Although civil society in Serbia already plays a significant role in exposing manipulative practices, a systemic approach is needed that includes stronger institutional support, improvement of legal frameworks and wider public education on mechanisms for recognizing and reporting misleading data.
In a context of accelerating regulatory change and rising public expectations, the mining industry faces a clear challenge: aligning ambitious marketing messages with real, measurable results. In the years to come, the relationship between declared goals and concrete performance in the field of environmental protection will be a key indicator of the credibility of both global and domestic actors in the natural resources sector. Sustainable development in mining will not only depend on technical innovation and investment, but also on the trust that is built through transparency, accountability and a true commitment to environmental protection.
