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Equipping mining with the tools to minimise the biodiversity cost of decarbonisation

Environmental, Mineral exploration, Mining industry recognition, Mining services, Sustainable mining, Water management, , , , , , , , , , , , , , , , , , ,

As the race to net-zero intensifies, it is increasingly clear that the extractives industry has a crucial role to play supplying the raw minerals needed for decarbonisation. While navigating the balance between accessing new deposits and environmental sustainability is challenging, new methods of biodiversity monitoring offer a potential solution to minimise impacts on nature, Joe Huddart* says.

The race to net-zero is driving the fastest energy transition in history, and with the International Energy Agency (IEA) suggesting we will need to quadruple our mineral inputs by 2040 if we are to meet the goals of the Paris Agreement, there has been an emphasis on the need for the extractives industry to ensure they can meet this demand.

However, given that 20% of existing mines tracked by the MSCI ACWI Investable Market Index (IMI) are in biodiversity hotspots, accurately assessing and measuring the impact of existing and future mines on biodiversity and the environment is vital. The Earth’s biodiversity remains our greatest asset, not only acting as “our strongest natural defence against climate change” according to the UN, but also fundamental to our global economy. The World Economic Forum estimates that more than 50% of global GDP “is moderately or highly dependent on nature”.

Therefore, it is critical that risks to biodiversity are central to decision making in all sectors to drive a sustainable future in the race to net zero. Of course, this includes mining. A sector which has historically been seen as a driver of environmental degradation; destroying ecosystems within their immediate footprint while damaging communities and ecosystems beyond their area of influence via pollution and contamination.

However, coupling this expected sector growth with the fact that 20% of global mines tracked by the MSCI ACWI Investable Market Index (IMI) are located in biodiversity hotspots, accurately assessing and measuring the impact of mining operations on their surrounding environments is essential. The Earth’s biodiversity is our greatest asset, not only acting as “our strongest natural defence against climate change” according to the UN, but also fundamental to our global economy.

The World Economic Forum estimates that more than 50% of global GDP “is moderately or highly dependent on nature”. Therefore, it is critical that nature-based considerations are central to decision making in all sectors to drive a sustainable future in the race to net-zero. This includes mining, which has historically been seen as a driver of environmental degradation, while also posing health risks to communities and ecosystems exposed to the pollution it creates.

As biodiversity loss, externalities, material risks and dependencies on nature go mainstream, the importance of protecting biodiversity is reflected in the alphabet soup of frameworks that have been launched in recent years, including the Global Biodiversity Framework (GBF), Science Based Targets Networks (SBTN) and the recently announced Task-Force on Nature-related Financial Disclosure (TNFD). The latter being a nature equivalent to the earlier Taskforce on Carbon-related Financial Disclosures (TCFD) which is now incorporated into legal frameworks in many countries. The common goal of these frameworks and by those who have already adopted them, is to preserve biodiversity and establish the nature-positive practices necessary for a sustainable future. For business, there is a significant first-mover advantage for early adopters, as nature reporting mirrors the journey from voluntary to regulatory and compliance that carbon took. It is not just mining companies adopting these, but also financial institutions; with lenders, from institutional investors to banks, adopting these frameworks as prerequisites to mining customers accessing finance. This is similar to the earlier development banks biodiversity lender requirements, such as the IFC’s PS6 and EBRD’s PR6.

However, these biodiversity frameworks all acknowledge the complexity of reporting on nature impact. Compared with carbon emissions which are measured and widely traded as tonnes of CO2, the similar commodification of biodiversity is far more challenging. Biodiversity, loosely defined as the variety and number of plant and animal species in a given location, varies considerably across ecosystems. Developing standardised metrics that can be used to accurately measure, track, assess and report on biodiversity across ecosystems, from deserts to rainforests, to even coral reefs and the deep ocean, is therefore much more difficult.

While the frameworks provide businesses with a means to understand what they are required to monitor and how to disclose it within a standardised system, how to acquire the raw data needed to fulfil these requirements remains an elephant in the room. This is a shift away from species-specific monitoring of ‘trigger’ species – those that are particularly rare, threatened or indicators of ‘critical habitat’ – towards comprehensive, all-inclusive biodiversity baselining across taxonomic groups, from fungi to mammals, which comes with a range of issues and an expensive price tag.

“We cannot decarbonise without exploring, developing and exploiting existing and new mineral deposits, but we can minimise the impact this will have on biodiversity and nature”

To monitor species at the biological community resolution using conventional, observation-based methods is often prohibitively time-consuming, expensive and invasive or destructive. For instance, it is almost impossible to survey fishes at scale without using nets, which nearly always results in high mortality, with mortality often needed to identify collected specimens to species-level back in the laboratory. Even then, there is a very real chance many species are missed as nets will miss certain habitats and so datasets remain incomplete.

We also need to ask ourselves: if, during the limited time in which ecological teams are in the field, environmental teams can they reasonably be expected to encounter, detect and identify all the fauna and flora present in biological communities? This is challenging in some of the species-poor regions of the world, but near impossible in the richest, the biological hotspots where many mines will need to be located. Then there are the considerable health and safety risks of having such teams in the field for extended periods of time to contend with, too.

The rise of nature intelligence

Thankfully, the last few years has seen the emergence of innovations in ‘nature intelligence’ technology, such as environmental DNA (eDNA), which are equipping companies with the means to measure nature accurately and cost-efficiently on a scale never before seen.

All life on earth – from bacteria to blue whales – leaves tiny traces of DNA in its environment. eDNA technology allows us to sample the environment for these fragments of DNA to reveal a complete picture of the biodiversity of that ecosystem. eDNA surveys allow organisations to survey for and identify at-risk invasive or protected species, alongside wider biological groups, simultaneously. This establishes comprehensive biological baselines from which changes in biodiversity, good and bad, can be detected. This allows companies to link activities to impacts and so better understand biological risks, monitor progress and guide the implementation of effective management actions.

The emergence of innovations in ‘nature intelligence’ technology, such as environmental DNA, is equipping companies with the means to measure nature accurately and cost-efficiently on a scale never before seen

Combining eDNA surveying with other nature intelligence technologies that capture the complexities of nature, such as Earth observation/GIS, bioacoustics and drones, is proving a game-changer. The granular scale at which biodiversity can be repeatedly monitored and assessed is enabling companies to track, understand, report on and, above all, better manage their operations’ relationship with nature.

Moving the dial towards nature-positive in mining

As it ramps up operations while faced with increasingly sophisticated biodiversity regulations, the mining industry is in a difficult position. The Lassonde Curve, the time from discovery to commercial extraction, still takes some 16 years; closing this gap will be vital to meet decarbonisation goals. However, this should not result in the loosening of environmental standards or ‘red tape’ and so come at the expense of already beleaguered biodiversity and the environment. If anything, quite the opposite. In conjunction with nature reporting, the need to speed up mining developments should catalyse the adoption of increasingly sophisticated environmental management by the mining sector through the deployment of nature intelligence to improve the quality and scale of biodiversity data. This will not only demonstrate improved due diligence and ‘going the extra mile’ to produce better environmental impact assessments but enable regulators to make faster decisions.

Many companies, including Anglo American, Sínese and Rio Tinto have already found success using these technologies for different purposes to support their drive to nature-positivity.

For Anglo American, eDNA has transformed their biodiversity monitoring across the project cycle, and they have deployed the technology in 16 projects across 11 countries since 2020.

Warwick Mostert, Biodiversity Principal at Anglo American, believes eDNA monitoring has “huge applicability…[firstly] in the discovery and exploration phase, where knowledge is limited about the potential biodiversity risk in the area…[also] when a mine is in full operation, it will become a key part of the ongoing monitoring and evaluation in terms of biodiversity performance…[and] when we start to get to the point where an operation is coming to closure, it will allow us to make sure the work has been done and we can meet our objective of restoring an environment to better than its pre-mining state”.

The International Council on Mining and Metals (ICMM) has also noted the useful potential of the data that mining companies can generate, saying, “Mining companies can play a huge role in contributing biodiversity and environmental monitoring data in areas where such data has typically been scarce. Technologies like eDNA can also be used to unlock new pathways in democratising the collection of and access to data. More radical participation, transparency, openness and access to data is required to shift us towards a nature positive future. This should be at the core of both developing and implementing any corporate nature positive strategy.”

The mining industry has found itself at the nexus of two existential crises, climate and biodiversity. We cannot decarbonise without exploring, developing and exploiting existing and new mineral deposits, but we can minimise the impact this will have on biodiversity through nature intelligence. This will play a key part at all stages of the mining life cycle, ensuring mines can improve their management of biodiversity and that this can be reported efficiently in the incoming frameworks.

Lastly, we have to remember that mines have a lifetime, and mine closure is a vital yet historically neglected stage in the life of mine cycle. Nature intelligence can assist here to ensure mines are demonstrably rehabilitated and handed back to communities in a decent biological condition that does not constitute an ongoing risk to humans, fauna and flora, but can actually benefit local communities and ecosystems. All biodiversity impacts are environmental impacts and – given our dependency on natural systems and ecological functions – all environmental impacts are ultimately social impacts. Nature intelligence will therefore ensure we embark on a mining trajectory that improves outcomes for both nature and society.

*Joe Huddart is Subject Matter Expert and Freshwater Ecologist at NatureMetrics

Orica addresses Scope 1, 2 and 3 emissions in latest GHG reduction pledge

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Orica has announced its ambition to achieve net zero emissions by 2050, covering Scope 1 and 2 greenhouse gas (GHG) emissions and its most “material” Scope 3 GHG emission sources.

The ambition builds on Orica’s previously announced medium-term target to reduce Scope 1 and 2 operational emissions by at least 40% by 2030.

To advance its net zero emissions ambition, Orica says it will:

  • Continue to reduce its operational footprint: prioritising Scope 1 and 2 operational emissions reductions by deploying tertiary catalyst abatement technology, sourcing renewable energy and optimising energy efficiency and industrial processes;
  • Collaborate with its suppliers: as new and emerging technologies scale and become commercial, partner with suppliers to source lower emissions intensity ammonium nitrate (AN) and ammonia to reduce Orica’s Scope 3 emissions, which account for approximately 70% of Orica’s total Scope 3 emissions;
  • Prioritise lower carbon solutions: developing lower carbon AN, as well as new products, services and technology offerings to help customers achieve their own sustainability goals; and
  • Report progress: transparently disclose performance consistent with the recommendations of the Task Force on Climate-Related Financial Disclosure.

Orica Managing Director and Chief Executive Officer, Sanjeev Gandhi, said: “Our ambition of net zero emissions by 2050 shows our commitment to playing a part in achieving the goals of the Paris Agreement. This is a strong signal that the decarbonisation of Orica will, and must, continue beyond 2030 and requires a collaborative approach across all of our stakeholders.

“We’re making solid progress having already achieved a 9% emissions reduction in financial year 2020 (to June 30, 2020) and further reductions this financial year. We’ve taken our 2030 medium-term target and extended our planning over the long term, developing a credible roadmap to support our ambition to achieve net zero emissions by 2050.

“Over the next decade, Orica is deploying tertiary catalyst abatement, prioritising renewable energy opportunities and supporting a trial of carbon capture utilisation and storage technology. Beyond 2030, how we achieve our ambition is dependent on effective global policy frameworks, supportive regulation and financial incentives, and access to new and emerging technologies operating at commercial scale.

“Orica is a company with a long history of technical innovation which is already helping our customers improve mine site safety, productivity and efficiency. We will apply the same approach by deploying low-emissions technologies to our major manufacturing sites and working with our global suppliers and stakeholders on reducing the footprint of our supply chain.”

Orica says it has already undertaken several initiatives to drive action towards its medium-term target and support its 2050 net zero emissions ambition.

In FY2020, Orica’s Bontang AN manufacturing facility in Indonesia recorded a 43% reduction in net emissions and its Kooragang Island nitrates manufacturing plant (pictured below) in Australia achieved a 6.3% reduction in net emissions, by replacing and improving the performance of selective catalyst abatement technologies, the company said.

In partnership with the Alberta Government this year, Orica’s Carseland AN manufacturing facility in Canada has commissioned tertiary catalyst abatement technology, reducing emissions by approximately 83,000 t/y of CO2e.

Orica has assigned approximately A$45 million ($33 million) over the next five years in capital to deploy similar tertiary abatement technology across its Australian AN sites, which, it says, could deliver an annual reduction of 750,000 t CO2e.

Orica will also support the construction of a mobile demonstration plant of carbon capture, utilisation and storage technology at its Kooragang Island manufacturing facility, led by Mineral Carbonation International, in partnership with the Australian Government and the University of Newcastle. The plant is scheduled to be built on Orica’s Kooragang Island site by the end of 2023 and have direct access to some 250,000 t of captured CO2 from Orica’s manufacturing operations.

ERM on executing the mining sector’s sustainability strategies

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With sustainability close to the number one topic shaping the business landscape, the mining industry faces perhaps more scrutiny today than ever before. From stakeholder engagement to employee welfare and the emissions generated from using mined commodities, there is a spectrum of issues on which mining companies are judged. Not just by traditional critics such as NGOs, but increasingly by policymakers, investors and consumers themselves.

As a result, mining companies are seeking the advice of consultants that live and breathe environmental, social and governance (ESG) issues to adapt to this evolving backdrop (see the mining consultants focus in IM October 2021 for more on this).

In this regard, they don’t come much bigger than ERM, which calls itself the largest global pure play sustainability consultancy. With a remit that goes into strategic, operational and tactical challenges, the company’s services have been in serious demand of late.

Louise Pearce, ERM Global Mining Lead; Jonathan Molyneux, ERM Mining ESG Strategy Lead; Peter Rawlings, Low Carbon Economy Transition Lead; and Geraint Bowden, Regional Client Director – Mining, were happy to go into some detail about how the company is serving the industry across multiple disciplines.

In demand

According to the four, there is increasing demand for services from miners interested in energy/battery minerals (lithium, cobalt, nickel, copper, platinum, palladium and rhodium (PGMs)) on the back of rising numbers of new mines coming onto the scene, “shorter supply chains to customers”, the perceived need to secure domestic supply of these minerals, and requirements of “evidence of responsibly-produced certifications from industry organisations such as the Initiative for Responsible Mining Assurance (IRMA)”.

Such trends have been underwritten by a shift in both the requirements and considerations around the extraction of these minerals, according to Molyneux.

“In the last five to seven years, the main ESG incentives for change have come from access to capital (ie investor ESG preferences, especially in relation to catastrophic incidents),” he said.

“Over the last three years, we have seen a strong rise in expectations from downstream customers, particularly leading brands.”

Jonathan Molyneux, ERM Mining ESG Strategy Lead

Automotive original equipment manufacturers like BMW and Daimler are placing sustainability at the centre of their brands, according to ERM. Their initial focus has been on ‘net-zero’ driving/electrification – and they have made progress on this with several major electric car launches. They then shifted to examining the carbon emissions and ESG, or responsible practices, of tier-one and tier-two component manufacturers. The last step has been a full analysis of the ESG credentials of input materials right back to source, ie the mine.

“We see a shift from the historic lens of customers managing supply risk by sourcing from organisations which ‘do little/no harm’ (eg human rights compliance, catastrophic incident avoidance) to supply partners that can contribute to the ‘do net good’ or ‘create value for all stakeholders’ (ie communities, workforce, nature positive),” Pearce said.

Such a shift has resulted in more clients considering “circular thinking” in their operational strategy, as well as carrying out risk reviews and transformation projects focused on a company’s social or cultural heritage. Tied to this, these same companies have been evaluating their water use, biodiversity requirements and, of course, decarbonisation efforts.

It is the latter on which the steel raw materials companies predominantly have been looking for advice, according to ERM.

The focus has been on ‘green’ iron ore, low-carbon steel and ‘circular’ steel, according to Molyneux and Bowden, with ERM providing input on how companies in this supply chain can integrate sustainability into their strategy and operations.

On the thermal coal side, meanwhile, it is a very different type of ERM service in demand: mine retirements, closure/local/regional regeneration transitions and responsible disposals.

Delivering on decarbonisation

The mining industry decarbonisation targets have come thick and fast in the last 18-24 months, with the latest announcement from the International Council on Mining and Metals (ICMM) seeing all 28 mining and metals members sign up to a goal of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner, in line with the ambitions of the Paris Agreement.

Many have gone further than Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company) emissions, looking at including Scope 3 (all other indirect emissions that occur in a company’s value chain) targets.

Fortescue Metals Group, this month, announced what it said is an industry-leading target to achieve net zero Scope 3 emissions by 2040, for example.

These are essential goals – and ones that all interested parties are calling for – in order to deliver on the Paris Agreement, yet many miners are not yet in the position to deliver on them, according to Pearce, Molyneux, Rawlings and Bowden.

“Miners need to look at decarbonisation at a holistic level across their operations and value chain, and cannot just delegate the net zero requirements to individual assets,” Rawlings said. “The solutions needed require investment and are often at a scale well beyond individual assets/sites.”

Much of this decarbonisation effort mirrors other industries, with the use of alternative fuels for plant and equipment, accessing renewable electricity supplies, etc, they said.

Process-specific activities can present challenges and is where innovation is required.

“These hard to abate areas are where a lot of efforts are currently focused,” Rawlings said.

Tied into this discussion is the allowance and estimates made for carbon.

There has been anecdotal evidence of miners taking account of carbon in annual and technical reports – a recent standout example being OZ Minerals inclusion of a carbon price in determining the valuation of its Prominent Hill shaft expansion project in South Australia – but there is no current legislation in place.

“We are seeing a broad spectrum of price and sophistication (targeted audience, knowledge level), but it is an active board level discussion for most clients,” Bowden said on this subject. “Most clients view this as market-driven requirements as opposed to a voluntary disclosure.”

This has been driven, in part, from the recommendations of the Task Force on Climate-Related Financial Disclosures, which many miners – including all the majors – are aligning their reporting with.

Some clients are also looking into scenarios to work around carbon regimes such as the Carbon Border Adjustment Mechanism, which proposes a carbon-based levy on imports of specific products.

Having acquired several companies in recent months focused on the low carbon economy transition – such as E4tech, Element Energy and RCG – ERM feels best placed to provide the technical expertise and experience to deliver the sustainable energy solutions miners require to decarbonise their operations.

“With these companies, combined with ERM’s expertise, it means we can support clients on the decarbonisation journeys from the initial strategy and ambition development through to implementation and delivery of their roadmaps,” Rawlings said. “We can support clients from boots to boardroom as they assess decarbonisation options and technologies; help them understand the financial, policy and practical aspects linked to deployment of solutions; and access the financing necessary to support deployment.”

ESG dilemmas

There is more to this evolving backdrop than setting and meeting ambitious environmental goals, yet, in ERM’s experience, the advice provided by consultants – and requested by miners – has historically been focused on individual ESG domains.

“This has often been driven by their realisation that their (miner’s) in-house policies and standards require updating,” Pearce said.

Louise Pearce, ERM Global Mining Lead

A siloed or disaggregated approach to ESG strategy development often reduces risk, but rarely generates value for the enterprise at hand, according to Pearce.

“What we have learned is that in order for organisations to create value, they need to focus on value drivers for the corporation,” she said. “These value levers are typically influenced by an integrated suite of ESG dimensions. For example, this could be looking at carbon emissions, connected with water use and nature, connected with local socio-economic development.”

“Sustainability and ESG are about understanding the inter-relationships between our social, natural and economic environments over the longer term. It cannot be about addressing one topic at a time or responding to the loudest voices.”

This is where ERM’s ‘second-generation’ ESG advice, which is driven by data and opportunities to create value as well as manage risk, is fit for the task.

“We are also finding that, at its heart, the central issue to second-generation ESG performance delivery/improvement for our clients is not just the strategy, but a willingness of organisations to reflect on their core values, how these have driven their traditional approaches and decisions and how they will need to evolve these if they want to achieve a genuine brand and reputation for ESG and achieve impact on the value drivers they have selected,” she added.

Such thinking is proving definitive in ERM’s mining sector mergers and acquisition due diligence.

“We have multiple experiences where clients have asked us to carry out an ESG review of a target portfolio, only to find that there is too great a gap between the target’s ESG asset footprint to align them with the client’s standard – or, that the carbon, water, closure or tailings profile of the target carries a too high-risk profile,” Molyneux said.

This is presenting clients with a dilemma as they want to increase their exposure to certain minerals, but are, in some instances, finding M&A is a too high-risk route. At the same time, the lead time to find and develop their own new assets is longer than they would wish for building market share.

Such a market dynamic opens the door for juniors looking for assets early in their lifecycles, yet it places a high load on the management teams of these companies to think strategically about the ESG profile of the asset they are setting the foundations for to eventually appeal to a potential acquirer.

“This is, in itself, a dilemma because, typically, the cash scarcity at the junior stage leads management teams to focus on the immediate technical challenges, sometimes at the cost of also addressing the priority non-technical challenges,” Bowden said.

Those companies who can take a strategic view on the ESG requirements of the future – rooted in a deep understanding of how to deliver change on the ground – will be best placed in such a market, and ERM says it is on hand to provide the tools to develop such an appropriate approach.

(Lead photo credit: @Talaat Bakri, ERM)

BHP, JFE Steel to scrutinise Australian steel raw materials emissions in latest study

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BHP has signed a memorandum of understanding (MoU) with leading Japanese steel producer, JFE Steel, to jointly study technologies and pathways capable of making material reductions to greenhouse gas emissions from the integrated steelmaking process.

BHP is prepared to invest up to $15 million over the five-year partnership, which, it says, builds on the strong history of technical research and collaboration between the two companies.

The company’s investment will be funded under its $400 million Climate Investment Program, set up in 2019 to coordinate and prioritise projects, partnerships, R&D and venture investments to reduce Scope 1, 2 and 3 emissions, invest in offsets and support development of technologies with the highest potential to impact change.

The JFE-BHP partnership will focus on the role of Australian raw materials to help to increase efficiency and reduce emissions from the blast furnace and direct reduced iron (DRI) steelmaking routes, it said. The partnership intends to study the properties of raw materials, with focus on specific areas such as iron ore pre-treatment, use of enhanced iron ore lump, high quality coke and DRI, required to decrease iron and steelmaking emissions and support a transition to a low carbon future. Throughout the collaboration, the two companies will also share knowledge on reducing carbon emissions across the steel value chain.

This JFE-BHP partnership follows other BHP investments to support the reduction of value chain emissions, including up to $35 million for the collaboration with China’s largest steelmaker, China Baowu, and awarding BHP’s first LNG-fuelled Newcastlemax bulk carriers contract, with the aim to reduce CO2-e emissions by 30% per voyage.

BHP’s Chief Commercial Officer, Vandita Pant, said: “This partnership with JFE demonstrates a joint commitment to make our activities more sustainable through collaboration and technological improvement. This work will support and help progress Japan’s carbon neutral ambitions by 2050.”

As outlined in BHP’s decarbonisation framework, the steel industry is expected to move through stages of optimisation and transition for the existing integrated steelmaking route before reaching an end state of low or no carbon intensity.

“Our investments are focused on actions that can create real change, and we continue to take positive steps on our climate agenda and in collaborating with others to help reduce emissions in line with the Paris Agreement goals,” Pant said.

JFE’s President and Chief Executive Officer, Yoshihisa Kitano, said: “We understand that raw material processing technology is extremely important in the research and development towards carbon neutrality. We have a long history working closely together with BHP collaborating to study raw material utilisation technology and mine development. It is very significant for us to be able to work together with BHP towards reduction of CO2 emissions, which is an extremely important agenda for the steel making sector.”

Newmont aims for net zero carbon emissions by 2030

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Newmont has announced what, it says, are “industry-leading climate targets” to reduce its greenhouse gas (GHG) emissions by 30%, with an ultimate goal of achieving net zero carbon emissions by 2050.

The new 2030 target builds upon Newmont’s existing GHG emissions reductions target of 16.5% over five years, concluding in 2020.

“At Newmont, we hold ourselves to high standards – from the way in which we govern our business, to how we manage relationships with our stakeholders, to our environmental stewardship and safety practices,” Tom Palmer, President and CEO of Newmont, said. “We fundamentally understand the human contribution to climate change and understand we reap what we sow. It is our responsibility to take care of the resources provided to us.

“We take these climate change commitments seriously, and make them because our relationship with the planet is absolute. We want a world that is not just sustainable, but thriving for generations to come.”

Using science-based criteria, Newmont has set climate targets for 2021-2030 for its operating sites, including a renewable energy target. The science-based criteria align with Science-Based Targets Initiative criteria and assists Newmont in developing specific emissions reduction pathways and meeting the Paris Agreement objective of being well below 2°C global temperature change, the miner says.

To achieve these aims, the company will implement a new energy and climate investment standard, to be combined with its existing investment standards including shadow carbon pricing, in order to further inform its capital investment process, it said.

“This new investment standard will ensure that the 2030 reduction targets are embedded into investment decisions for projects such as fleet vehicles, production equipment, on-site renewable power generation and energy efficiency,” the company said. “Additionally, the company will engage its partners and joint ventures in an effort to align joint venture operations targets and supply chain related emissions with Newmont’s targets.”

Mining is an energy intensive business, with 88% of Newmont’s energy used for mining and milling generated from carbon-based fuels, it said. As the company looks to reduce emissions and move to a low carbon economy, it will use a strategic approach to portfolio development, energy sourcing, fleet and equipment investment, as well as land use planning to achieve its targets.

A key part of Newmont’s accountability in reaching these targets will be reporting via The Climate-Related Financial Disclosures (TCFD) guidelines. In 2021, the company will issue its first annual TCFD report. The TCFD report will detail Newmont’s governance, strategy and portfolio resilience to a range of climate scenarios. The TCFD report will also track Newmont’s annual progress toward implementing its 2030 strategy, meeting its 2030 targets and executing emissions reduction projects across its global portfolio.

BHP weighs trolley assist and IPCC as part of decarbonisation efforts

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BHP has provided an update on its progress on climate action, new climate commitments and how it integrates climate change into corporate strategy and portfolio decisions in a new report.

The company’s climate change approach focuses on reducing operational greenhouse gas emissions, investing in low emissions technologies, promoting product stewardship, managing climate-related risk and opportunity, and partnering with others to enhance the global policy and market response, it says.

“BHP supports the aim of the Paris Agreement to limit global warming to well below 2°C above pre-industrial levels, and pursue efforts to limit warming to 1.5°C,” the company clarified.

It explained: “BHP has been active in addressing climate risks for more than two decades, and has already established its long-term goal of achieving net zero operational (Scope 1 and 2) emissions by 2050 and its short-term target of maintaining operational emissions at or below financial year (FY) 2017 levels by FY2022, using carbon offsets as required.”

In the past year, BHP has made progress on this aim, announcing that the Escondida and Spence copper mines in Chile will move to 100% renewable energy by the mid-2020s, and, last week, awarding new renewable energy contracts for its Queensland coal assets, and the world’s first LNG-fuelled Newcastlemax bulk carrier tender.

BHP’s climate change briefing and 2020 climate change report outline how the company will accelerate its own actions and help others to do the same, it said. Today’s update sets out:

  • A medium-term target to reduce operational greenhouse gas emissions by at least 30% from adjusted FY2020 levels by FY2030;
  • Scope 3 actions to contribute to decarbonisation in its value chain. This includes supporting the steelmaking industry to develop technologies and pathways capable of 30% emissions intensity reduction with widespread adoption expected post-2030 and, in terms of transportation, supporting emissions intensity reduction of 40% in BHP-chartered shipping of products;
  • Strengthened linking of executive remuneration to delivery of BHP’s climate plan; and
  • Insight into the performance of BHP’s portfolio in a transition to a 1.5°C scenario.

The report also outlined some examples of emission reduction projects the miner is considering, which will be weighed as part of the maintenance capital category of its capital allocation framework. This includes solar power installations; alternative material movement technologies such as overland conveyors and in-pit crush and convey solutions; and trolley assist to displace diesel for haul trucks.

The company expanded on this in its report: “The path to electrification of mining equipment will likely include solutions such as trolley assist, in-pit crush and convey, overland conveyors and battery solutions.

“Diesel displacement represents a higher risk, higher capital step towards decarbonisation, so a phased approach to execution is proposed with particular emphasis on Minerals Americas-operated assets that are further advanced on the decarbonisation journey. Taking a transitional approach to electrification provides flexibility to allow for the potential for rapid development of emerging technologies and to resolve the complexities of integrating these technologies into existing operations.

“During FY2021, we will seek to collaborate further with International Council on Mining and Metals members, industry and original equipment manufacturers to progress research and development to reduce costs and assess any potential impacts from electrified mining equipment solutions to replace current diesel options.”

BHP Chief Executive Officer, Mike Henry, said of the report: “I’m pleased today to show how we are accelerating our own actions and helping others to do the same in addressing climate change. We see ourselves as accountable to take action. We recognise that our investors, our people and the communities and nations who host our operations or buy our products have increasing expectations of us – and are responsive to these.

“Our approach to climate change is defined by a number of key requirements. Our actions must be of substance. They must be real, tangible actions to drive emissions down. We must focus on what we can control inside our business, and work with others to help them reduce emissions from the things that they control. To create long-term value and returns over generations, we must continue to generate value and returns within the strong portfolio we have today, while shaping our portfolio over time to benefit from the megatrends playing out in the world including decarbonisation and electrification.

“Our portfolio is well positioned to support the transition to a lower carbon world aligned with the Paris Agreement. Our commodities are essential for global economic growth and the world’s ability to transition to and thrive in a low carbon future. Climate change action makes good economic sense for BHP and enables us to create further value.”

Epiroc looks to halve CO2 emissions from customers’ use of equipment

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Epiroc has launched new sustainability goals for 2030 that, it says, further advance the group’s ambitions on issues such as climate change and diversity.

Sustainability is already integrated in Epiroc’s business operations and, this year, the group has established long-term sustainability goals that support the Paris Agreement and the UN 2030 Agenda for Sustainable Development, it said.

The new sustainability goals for the next decade include halving CO2 emissions from operations, transport and major suppliers, as well as from customers’ use of Epiroc equipment.

Helena Hedblom, Epiroc’s President and CEO, said: “Since the majority of the CO2 emissions occur in the use phase of our products, it is crucial that we not only limit our own emissions in operations and transport but also take on the greater challenge to reduce the emissions when the products are in use. We are working together with our customers to reduce the impact on climate.”

Epiroc says it is continuously innovating to make its equipment as climate-friendly and safe as possible.

Its new generation of battery-electric mining machines, which is generating strong interest from customers globally, is one example. Epiroc’s package of digital solutions, 6th Sense, including automation, also goes a long way to reduce customers’ environmental impact as well as to improve health and safety conditions, it added.

“With the new sustainability goals for 2030 we are taking our ambitions in this area to a new level,” Hedblom adds. “Epiroc is proud to help making the mining and infrastructure industries as sustainable as possible.”

Other examples of Epiroc’s new goals for 2030 include doubling the number of women in operational roles, substantially reducing work-related injuries, and further strengthening the group’s commitment to the company’s Code of Conduct.

Metso’s GHG targets recognised as ‘science-based’

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Metso’s greenhouse gas (GHG) emission targets have won the approval of the Science Based Targets initiative (SBTi), demonstrating the mining equipment and service provider is doing its fair share in trying to achieve the global climate change goals as set out in the 2015 Paris Agreement.

The GHG targets are part of Metso’s Climate Program and, the company says, are applicable to all relevant emission sources: production, procurement, inbound and outbound transportation as well as the use of Metso’s products.

The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature. The initiative aims at promoting science-based target setting and driving down GHG emissions.

The initiative is tied to the 2015 Paris Agreement, which saw 195 of the world’s governments commit to prevent dangerous climate change by limiting global warming to below 2°C.

Metso says it is one of the few corporations in its field to join SBTi in the efforts to prevent global warming.

As a scope 1 and 2 GHG target, Metso has committed to a 25% reduction in carbon emissions in production by 2030. This is achievable by investing in renewable energy and improving the energy efficiency of the production processes, the company said.

“Metso demands sustainability not only of its own production, but also 30% of its suppliers in terms of spend are required to set science-based emission targets by 2024,” the company said.

By streamlining transportation routes and optimising warehouse locations, Metso aims for a 20% reduction in transportation emissions by 2025 (scope 3 GHG emissions target).

Through extensive research and development work, Metso has been able to significantly reduce the energy consumption in customer processes, it said. To continue this development, the company is aiming for a 10% reduction in GHG emissions in the most “energy-intensive customer processes” using Metso products by 2025.

“This is further reinforced by the demanding energy-efficiency targets in all Metso R&D projects. As supportive actions, Metso will also offset flight emissions by 100% by 2021 and continue to find new ways to decrease emissions, for example, in offices,” it said.

Metso President and CEO, Pekka Vauramo, said: “We are extremely happy about the ratification of our science-based CO2 emissions targets.

“Our Climate Program is an important step in our goal of reducing greenhouse gas emissions. It is also an essential element in Metso being a responsible and trusted partner to our customers. We aim to improve our customers’ productivity in a sustainable manner, and we involve all our stakeholders in reaching this goal.”

For Metso, Scope 1 emissions are generated from fuels used in production, Scope 2 emissions are generated from the purchased energy and Scope 3 emissions are generated from transportation, procurement, travelling and product use, it said.

In 2018, Metso’s emissions clocked in at over 1 Mt of CO2, including 655,732 t from purchased goods and services, 136,968 t related to production, 161,629 t in “upstream” transportation, 77,821 t in “downstream” transportation and 22,256 t in business flights.

At the same time, the emissions saved in Metso product use in 2018 amounted to more than 1.07 Mt of CO2 through its energy-efficient grinding solutions HRC™, Vertimill® and SMD (stirred media detritor).