9 November 2021 – Climate Action 100+, the world’s largest investor engagement initiative on climate change, today has announced a world-first collaboration with eight major diversified mining companies to progress the decarbonisation agenda for the sector.
The initiative aims to set out a reliable standard for net zero for the mining sector which represents an estimated 4-7% of global emissions.
Global mining companies including Anglo American, BHP, Glencore, Rio Tinto, South32, Teck Resources, Vale and Vedanta have joined a group of international investors in an initial roundtable discussion to begin work on the standard. The initiative is being co-led by the Australian and European Climate Action 100+ regional organisations and investors.
Companies joining the roundtable represent 44 million metric tonnes of greenhouse gas emissions via their Australian operations in 2020, or around 8% of Australia‘s national emissions.
“It’s critical that investors and mining companies are on the same page in order to build the investment confidence needed in the transition to net zero emissions by 2050,” said Laura Hillis, Director of Corporate Engagement at the Investor Group on Climate Change.
“Mining is a particularly complex and critical sector for the transition to net zero as we are relying on these companies to provide the raw materials required for renewable energy technology, batteries and for other sustainable development outcomes. While there are many global frameworks and standards for the transition, none fully capture the complexity of the task for the mining sector so we hope this initiative will help to address these gaps.”
Climate Action 100+ investor signatories engage with ten diversified mining companies with a combined US$484 billion market capitalisation across eight global markets.
The standard will align with the existing framework set out by the Climate Action 100+ Net Zero Company Benchmark and aims to address topics such as:
- Green revenues for mining companies
- Scope three emission targets and actions across commodity types
- Target setting aligned with a 1.5°C trajectory for the sector
- Capital allocation and investments in decarbonisation
In March 2021 these mining companies were benchmarked in the inaugural Climate Action 100+ Net Zero Company Benchmark assessments released publicly. The report found that while many companies had committed to net zero and other targets, very few had concrete plans in place to get there and none had capital expenditure plans aligned with net zero by 2050, a significant gap to address.
The first roundtable discussion took place on 9 November, with key representatives from diversified mining firms and key global investors. The roundtable will set out a planned program of work for the participants over the coming twelve months, highlight key opportunities and areas of focus, and take the initial steps forward to develop a paper on net zero standards for the sector.