Is the Mining Industry REALLY Close to Going Green? Think Again!

LONDON, Sept 7 - Achieving carbon reduction goals in the mining industry faces challenges due to inconsistent data across its supply chain, said industry leaders and investors this Thursday.

The mining sector is in the limelight for both policymakers and investors. While it provides essential materials for electric cars and renewable energy systems, it's also linked to 4% to 7% of global greenhouse-gas emissions.

Virginia Dundas, interim head of sustainability at Orsted, the globe's top offshore wind farm creator, noticed varying transparency levels from metal suppliers essential for constructing turbines.

Dundas, during her speech at the Reuters IMPACT event in London, remarked, "Our team is exploring varied avenues to source materials and implementing pilot projects to trace their origins. However, tracking some suppliers remains a challenge."

Given the diverse application of metals across numerous sectors catering to global clientele, pinpointing emissions throughout the entire supply chain for mining firms is no small feat.

Addressing the gaps in data, the International Council on Mining and Metals, which represents about 25 mining giants, unveiled a new guideline on Thursday. This framework advises mining firms on recording and reporting their indirect, or Scope 3, emissions. CEO Rohitesh Dhawan mentioned at the conference that the aim is to create uniform reporting standards.

For clarity, Scope 1 denotes direct company emissions, Scope 2 signifies indirect emissions from procured energy, and Scope 3 encompasses all other indirect emissions, such as those from third-party vendors.

Ambitious carbon neutral goals by 2040 to 2050 are on the cards for many mining firms, but not without challenges. For instance, Rio Tinto, the world's runner-up in mining, disclosed in July that meeting its 2025 goal would mean resorting to purchasing carbon offsets.

Adam Matthews, the primary responsible investment officer at the Church of England Pensions Board, emphasized, "Releasing Scope 3 data is a start. However, investors are keen to see firms' goals resonate with net zero objectives across all scopes. Establishing short to long-term targets is pivotal to affirm the company's commitment."

For real-time updates from the Road to COP Stage, visit the Reuters IMPACT news site

Source : Reuters (Reporting by Clara Denina)