Central Asia is a prime example of the importance and necessity of investments that prioritize
environmental, social, and governance (ESG) criteria. In many cases, private sector companies focused on
achieving quick short-term profits overlook ecological and social considerations. However, this approach
can ultimately harm the success of the business venture, resulting not only in a loss of profits for the
company, but also negative impacts on local communities affected by project activities.
This paper, using Kyrgyzstan as a case study, will examine the relationship between mining investment,
ESG, and associated risks. Specifically, by analyzing Kyrgyzstan, it will demonstrate that until private
sectors adopt an ESG approach in politically challenging environments like Kyrgyzstan, the outcomes of
such investments will be negative for all parties involved.
Methodologically, this paper will build upon fieldwork conducted by a team from the University of Central
Asia and the University of Oxford in 15 mining-affected areas in Kyrgyzstan (Ala-Buka, Chatkal and Naryn
regions). These are the sites that have attracted large-scale Chinese mining investment and have seen
significant resistance from local communities, with one Chinese investor even having to fully terminate its
operations and abandon a gold mine.
By analyzing findings from 262 semi-structured interviews and focus groups with residents, local and
central government, civil society, and mining companies, the paper aims to explain how the root causes of
mining conflicts in Kyrgyzstan are linked directly to the lack of an ESG philosophy. Until companies
operating in the region prioritize environmental sustainability, social responsibility, and good governance
practices, it is unlikely that they will be able to acquire a "social license to operate."
