Circular Economy

Minimize environmental and social harms in resource extraction

Resource extraction includes a range of activities, such as mining, drilling, quarrying, harvesting, fishing and logging. Unsustainable resource extraction can cause environmental damages such as water pollution, soil contamination, erosion and disruption of local ecosystems, as well as social damages such as worker injuries and health damage, human rights violations, use of child labor and persecution of local communities and Indigenous people. Global impacts of resource extraction and processing account for up to 40% of airborne particulate matter, causing health impacts. Resource extraction and processing impacts also account for more than 90% of water stress and land-use-related biodiversity loss.

Factors promoting harmful extractive practices include exploitative business conduct, lack of or poor implementation of proper regulations, government corruption benefiting some companies and elites only, misappropriation of public funds and illicit financial flows. These harms can be avoided with fair and effective regulation and due diligence to workers and local communities. However, poor resource governance, modern globalized supply chains and distant relationships between users and extractors of resources make these issues invisible to consumers and retailers.

Although there have been some efforts by the international community as well as national and local stakeholders, environmental and social harms in resource extraction remain a notable problem, and people continue to use more of Earth’s resources than can be regenerated.

To tackle these issues, more effective efforts should be taken to monitor these harms continuously; implement fair and effective regulations; help producers, retailers and consumers understand which products are sustainable and ethical; and take initiative to better leverage the buying power of governments. In these actions, not only extraction enterprises, but also producers, retailers and consumers using resources, are responsible and play important roles in selecting and sourcing proper resources.

Data Insights

Is the world making enough progress toward the most important outcomes?

Systems Change Lab assesses progress made across 8 outcome indicators. Click a chart to explore the data.

What factors may enable or prevent change?

Systems Change Lab identifies 9 enablers and barriers that may help spur or impede change. Click a chart to explore the data.

Progress toward targets

Systems Change Lab tracks progress made across 8 outcome indicators. outcome indicator. Explore the data and learn about key actions supporting systems change.

Degree to which human activities exceed what ecosystems can regenerate

The world’s ecological deficit has been increasing for decades, from 4.6 billion global hectares in 2000 to 8.5 billion global hectares in 2019. We need to reverse this trend promptly, bringing the deficit down to zero or lower.

If the global population’s ecological footprint — the land and ecological assets required to produce the natural resources it consumes — exceeds the global biocapacity, or the natural availability of these ecological assets, then the earth runs an ecological deficit. In other words, our demand for what Earth’s land and seas can provide — fruits and vegetables, meat, fish, wood, cotton and other ecosystem functions such as carbon dioxide absorption — exceeds what the global ecosystems can regenerate.

The world’s ecological deficit has been increasing for many decades. It was 4.6 billion global hectares in 2000 and nearly doubled to 8.5 billion global hectares in 2019. The world could sustainably support 12.0 billion global hectares of biocapacity in 2019 but was using 20.5 billion global hectares in total. We need to reverse this trend promptly, bringing the deficit down to zero or lower, meaning the world would use equal to or less than what global ecosystems can regenerate.

This indicator considers various types of human activities, not focusing solely on resource extraction activities but also activities discharging greenhouse gasses, for example. We do not know how much resource extraction activities specifically are contributing to the total ecological deficit. 

Tree cover loss caused by resource extraction and harvesting

Tree cover loss from extraction and harvesting increased from 11 million hectares (ha) in 2001 to 25 million ha in 2016, then the trend was reversed down to 17 million ha in 2022. This may show a positive change, but the 2022 value is still higher than any between 2001 and 2011.

The world is losing forests at an alarming rate, reducing carbon absorption capacity and leading to the loss of biodiversity and forest ecosystems. Halting deforestation has become a global priority, with countries committing to this goal under the 2021 Glasgow Leaders’ Declaration on Forests and Land Use, the 2014 New York Declaration on Forests and Sustainable Development Goal (SDG) 15.2. Despite these commitments, between 2004 and 2017, over 43 million hectares (ha) were lost, an area roughly the size of Sweden. The main drivers of these forest losses include wildfire, urbanization, shifting land use to agriculture, forestry for timber and wooden materials and large-scale production of other commodities, such as beef, soy and palm oil.

This indicator measures tree cover losses from large-scale commodity production, forestry and shifting agriculture. It includes both permanent losses in forests (deforestation) and losses in forests that are more temporary in nature, as both contribute to the climate and biodiversity crises.

Tree cover loss from extraction and harvesting increased from 11 million ha in 2001 to 25 million ha in 2016, and then the trend was reversed down to 17 million ha in 2022. This may show a positive change, but the 2022 value is still higher than any between 2001 and 2011 where the data exists. In order to bring down tree cover loss, the world will need to work to transform the commitments listed above into reality.

Share of overfishing

The share of overfishing increased from 8.5% in 1978 to 35% in 2019, posing a threat to fishery resources and calling for more stringent actions to combat overfishing.

Global fishery and aquaculture production reached a record 214 million tonnes in 2020. Per capita consumption of aquatic foods such as fish, seashells, crustaceans and molluscs has more than doubled since the 1960s. However, fishery resources are declining. Overfishing must be stopped immediately to maintain these resources and biodiversity.

The share of overfishing is increasing and grew from 8.5% in 1978 to 35% in 2019. Overfishing means fishing at biologically unsustainable levels; continuous overfishing will cause the extinction of fishery resources. More stringent actions to combat overfishing are necessary. In order to pass our fishery resources to future generations, the availability of sustainably-sourced fish needs to increase through the concerted actions of fisheries, retailers and consumers.

Water pollutants released from resource extraction

Resource extraction activities use a large amount of water, often leading to water pollution around these sites. No centralized and publicly available data is available on these pollutants.

Water pollution often occurs at and around resource extraction sites because extraction activities use a large amount of water. This pollution results from various causes, including discharge of toxic wastewater from the processing of mineral ores, toxic leakages from storage sites of residues of extracted ores, and acid mine drainage. Excavation of ores near the water table and sea floor can also directly contaminate water and groundwater.

The release of water pollutants should be monitored and regulated based on water quality standards to protect human health and ecosystems. Inspections and penalties levied by governments are also necessary to ensure accountability for this pollution.

No centralized and publicly available global data source for this indicator has been identified.

Eroded and contaminated soil caused by resource extraction

Soil erosion and contamination caused by the resource extraction process can have significant negative impacts on ecosystems and human health and should be monitored and regulated in order to protect people and the environment.

Excavation of the earth in resource extraction processes aggravates erosion by rainfall, runoff water or wind. This can have significant negative impacts on downstream ecosystems and human health. Discharge of wastewater and leakage of toxic substances into the ground cause soil contamination, which is difficult to remediate.

Soil erosion and contamination should be monitored and regulated to protect human health and ecosystems nearby. However, no centralized and publicly available global data source has been identified.

Violation of human rights caused by resource extraction

Though centralized data is limited, human rights violations related to resource extraction are a concerning challenge that we must address, especially regarding metals used for clean energy technologies, for which demand is increasing.

Human rights violations related to resource extraction remain a concerning challenge that we must address. For example, forced eviction or relocation are common features of mining operations. These impacts often fall disproportionately on Indigenous people, and even when the principles of free, prior and informed consent are applied, unfair contracts often lead to human rights issues in extracting practices.

Centralized data is limited, but the Transitions Minerals Tracker surveys publicly reported allegations of human rights abuses in the mining of six metals (lithium, copper, cobalt, zinc, manganese and nickel). These six metals are used for clean energy technologies, for which demand is projected to increase. The reported and tracked allegations also include attacks on human right defenders. The survey data shows 9-20 allegations annually between 2010 and 2014, but that number has grown since 2015 and ranged from 42-74 annually between 2015 and 2021.

The use of this data is a proxy because metal mining is not the only type of resource extraction that may lead to human rights violations. In addition, measuring allegations of human rights violations is different from measuring violations themselves. Not all violations are reported, and it could be that a change in the number of allegations reflects a change in the willingness and ability of people to report allegations rather than the prevalence of violations.

Number of fatal worker injuries in resource extraction sector

Safety and health in the workplace are vital components of decent work, and more effort to ensure workers’ protection as well as fair compensation for injuries, including non-fatal ones, is necessary.

Safety and health in the workplace are vital components of decent work. This indicator measures fatal injuries of workers in resource extraction sectors, which measures one part of the larger picture of the extent to which workers are protected from work-related hazards and risks.

The data shown in this indicator represents injuries in the primary resource extraction sector (agriculture, forestry, fishery, mining and quarrying) from 81 countries between 2010 and 2021, but it is missing data from various countries in each year. Since this data is incomplete, we cannot say for sure that we are headed in the right direction, but the total number of fatal injuries in 36 countries that had data for both 2010 and 2020 showed a decrease from 8,910 in 2010 to 6,468 in 2020. As a proxy, we calculated the number of fatal injuries per country, based on only the countries with data available, as shown in the graph. It shows that the average number of cases of fatal injuries per country peaked at 57 cases in 2015 and was on a declining trend by 2020.

Fatal injuries should be eradicated. More effort to ensure workers’ protection as well as fair compensation for injuries, including non-fatal ones, is necessary.

Child labor in resource extraction sector

Child labor remains a persistent problem in the world today: globally, 160 million children aged 5–17 years were engaged in child labor in 2020. However, comprehensive global data is limited.

Child labor remains a persistent problem in the world today. Globally, 160 million children aged 5–17 years were engaged in child labor in 2020, accounting for 1 in 10 of all children worldwide. Aside from basic human rights concerns, negative consequences of child labor include not only lack of primary education, but also long-term low income and loss of the opportunity to get a job, in addition to the permanent physical harm that results from heavy child labor. This all creates lifelong poverty and suffering. In many cases, child labor occurs when families are already facing poverty or financial difficulties and children need to work for their families’ livelihoods. Poverty is a significant driver of child labor and needs to be addressed, in addition to specific regulations to prohibit child labor.

The data on child labor is limited. The data shown here is from agriculture, but ideally there would also be data from other resource extraction sectors, including mining and quarrying, which expose children to serious health risks. The number of children engaged in child labor in agriculture slightly increased from 108 million in 2016 to 112 million in 2020. It is necessary to reverse this trend and monitor other resource extraction sectors.

Enablers and barriers

We also monitor change by tracking a critical set of 9 enablers and barriers enabler or barrier that can help spur or impede change. Explore the data and learn about key actions supporting systems change.

Number of countries with sustainable public procurement policies

Public procurement policy uses the buying power of governments to generate demand for sustainably sourced products; 49 countries had sustainable public procurement policies in 2022.

Public procurement policy uses the buying power of governments to generate demand for sustainably sourced products, and in doing so helps increase their market share. It can help to avoid environmental and social harms in resource extraction and harvesting using this buying power. Sustainable Development Goal (SDG) indicator 12.7.1 measures sustainable public procurement policies in terms of the following three aspects: the existence of the sustainable public procurement action plans, legislation and/or regulatory requirements; the efforts undertaken by countries to support the policy implementation; and the results achieved.

In 2022, 49 countries had sustainable public procurement policies for at least one type of product or material, but more countries should follow. The level of implementation of sustainable public procurement policies differed between countries: 10 countries are at a low maturity level of implementation, 18 countries are at a medium-low level and 20 are at a medium-high level. One country (United States) is at a high level. Even countries introducing sustainable public procurement policy still have room for improvement. The creation of a central dataset that can distinguish harms in the resource extraction stage and other stages is another challenge in the push for impactful policymaking and implementation. 

Number of countries regulating deforestation-free products

Data is unavailable on governments with requirements for deforestation-free products, but more countries should adopt effective regulations or policies on products to halt deforestation.

Deforestation is one of the most significant harms to the environment that continues to grow.

At the end of 2020, the European Union (EU) adopted a deforestation regulation (EUDR) policy, requiring that seven commodities — cattle, cocoa, coffee, oil palm, rubber, soya and wood — and their derived products in the EU market be “deforestation-free” and implemented the regulation in 2023 To show that products are deforestation-free, operators and traders must submit a due diligence statement to their competent authority, for example. More countries should adopt an effective regulation or policy on products to halt deforestation. Data is unavailable to determine whether other governments have requirements for deforestation-free products.

Number of certificates tracking sustainable forestry products from origin to final products

In 2000, there were 299 certificates delivering information about environmental and social harms caused by forestry products; this number increased rapidly to 66,670 in 2023.

Certification delivers information about environmental and social harms caused by a product or company and helps purchasers to distinguish good and bad products in the market. To prevent loss of forests, it is necessary for forestry companies to conduct sustainable forest management. Woods taken by a forestry company should also be treated, used and distributed in a sustainable and responsible manner without causing environmental and social harms, and the wood products should be separated from other forestry products through the supply chain. In this regard, it is important to track products from the forest to the final product, and chain-of-custody certificates can deliver such information. This indicator measures the number of sustainable forest chain-of-custody certificates in the world.

There were 299 such certificates in 2000, and the number increased rapidly to 66,670 in 2023. Currently, more than 400 million hectares of forest in the world are under sustainable forest management; however, the area still only accounts for approximately 10% of the global forest area.

Number of certificates tracking sustainable fishery and aquaculture products from origin to final products

In 2022, 19% of all wild marine catch received sustainable fisheries certificates from the Marine Stewardship Council.

To prevent loss of fishery resources and produce healthy fish and shellfish, sustainable management in the fishery and aquaculture industry, as well as distribution of these products without mixing with other less sustainable products, is necessary. In this regard, chain-of-custody certificates are important because they help consumers to distinguish good and bad products in the market. This indicator measures the number of sustainable fishery chain-of-custody certificates in the world, including sustainable aquaculture.

The number is increasing, from around 900 in 2009 to approximately 9,000 in 2023. In 2022, 19% of all wild marine catch received sustainable fisheries certificates from the Marine Stewardship Council.

Average score of mining companies on environmental and social metrics

The average score of community well-being, working conditions and environmental responsibility from 2018 to 2022 was relatively unchanged, hovering between 23% and 26%.

Various actions are necessary to prevent environmental and social harms in the mining sector. These include putting forward principles of responsible/sustainable mining, an assessment methodology, standards on tailing management and more. This indicator uses three subcategories — community well-being, working conditions and environmental responsibility — from the Responsible Mining Index (RMI), which covers the 30-40 largest mining companies in the world, operating more than 700 sites in over 40 producing countries.

The average score of community well-being, working conditions and environmental responsibility from 2018 to 2022 was relatively unchanged, hovering between 23% and 26%, although relatively large improvements were observed for companies with previously low performance between 2020 and 2022. More efforts to avoid environmental and social harms are necessary in the sector. 

Resource Governance Index of mining countries

To prevent various harms to people and the environment in the resource extraction phase, appropriate governance is necessary.

To prevent various harms in the resource extraction phase, appropriate governance is necessary. If resource governance is poor, a country has almost no framework to ensure resource extraction benefits society and extraction activities are highly likely to benefit companies and elites only. An index was developed by the Natural Resource Governance Institute (NRGI) to monitor resource governance for both mining and oil and gas producing countries. This indicator focuses on mining.

Average country scores of the Resource Governance Index of mining countries increased from 48 out of 100 in 2017 (with 34 countries in the sample) to 61 out of 100 in 2021 (with 12 countries in the sample). Given that many countries with data in 2017 lacked data in 2021, it is unknown whether global resource governance for mining is improving or worsening. In addition, even the countries with data available are only evaluated on one mineral (for instance, gold in Colombia and copper in the Democratic Republic of the Congo). Improvements in accountability and data accessibility are crucial to reduce harms in resource extraction.

Resource Governance Index of countries producing oil and gas

Resource governance in oil and gas production is crucial to reducing both human and environmental damages from the fossil fuel industry.

Local impacts of the extraction of oil and gas have long been a major area of contention between companies, affected populations and governments. Resource governance in producing oil and gas is crucial to reducing both human and environmental damages from the fossil fuel industry. If resource governance is poor, companies and elites, rather than communities, may reap the benefits, with worse outcomes for society and the environment.

Average country scores of the Resource Governance Index of oil and gas producing countries increased from 47 out of 100 in 2017 (with a sample of 55 countries) to 59 out of 100 in 2021 (with a sample of 13 countries). Because of the decrease of countries in the sample, it is unknown whether global resource governance for oil and gas is improving. 

Share of companies that have a grievance mechanism

A grievance mechanism, a formal complaint process for those being negatively affected by certain business activities and operations, provides an “access to remedy” deemed important by the United Nations.

Damages tend to be hidden and suppressed, especially when affected persons are in a weak position. For example, workers who are in debt or cannot change their job are more vulnerable to exploitation by employers. Workers cannot sue their employers, fearing retaliation, though their damages should be disclosed and addressed. A grievance mechanism is a formal complaint process that can be used by individuals, workers, communities and/or civil society that are being negatively affected by certain business activities and operations. This kind of “access to remedy” is deemed important by the United Nations.

This indicator aims to measure the share of resource extraction companies, as well as companies on subsequent supply chains, that have a grievance mechanism. However, no centralized or publicly available data source has been identified. 

Legal security of Indigenous and community lands

It is important to track the legal security of Indigenous and community lands in order to protect their customary and community land rights.

Resource extraction can lead to deprivation of lands from Indigenous people and communities without their free, prior and informed consent. Indigenous peoples and communities have been losing their land to governments and corporations that promote resource extraction for their own economic benefits. It is important to track the legal security of Indigenous and community lands in order to protect their customary and community land rights.

The average indicator score, which ranges from 1 (worst) to 4 (best), of 152 countries in 2016 was 2.8. This indicates that countries’ legal frameworks’ management of this issue ranged from “partially with limited progress” to “significant progress.” Data before and after 2016 are not available. More data is necessary to better understand this indicator and enhance accountability.

Data Challenges

There are two large data-related challenges pertaining to this shift. One is a lack of widely accepted criteria at the global level to determine what constitutes environmental and social harms in the context of resource extraction and harvesting. Setting such criteria requires identifying what harms are significant and relevant to a wide range of activities of resource extraction, as well as determining and often quantifying the level of resource governance so as to avoid the harms of concern practically. An International Resource Panel report, “Mineral Resource Governance in the 21st Century,” and a scientific paper reviewing 25 sustainability certification programs were a good starting point for us to select indicators in this shift. Still, what exactly qualifies as sustainable and responsible manners of resource extraction remains a topic for further research.

The other challenge is to obtain the data that links environmental and social harms with resource-related activities. These harms usually occur far away from producers, retailers and consumers. Moreover, it is difficult to track such linkages on a country-by-country basis because these are linked along supply chains. Concerted actions to overcome this challenge are necessary.

Actions to measure the state and performance of resource governance are also important, requiring budget and effort as well as collaboration with the resource extraction sector.

Photo credits

Photo by Shane McLendon