We recognise global climate change science, as laid out by the Intergovernmental Panel on Climate Change. Find out how we are responding to the shift to a lower-carbon economy.
Why this matters
As a major producer of energy products, we will continue to help meet the world’s energy needs – supporting global development and socio-economic progress.
Yet the transition to a low-carbon economy will bring both regulatory changes and developments in renewable technology – creating both risks and opportunities for our business.
Our approach
We actively engage with policy-makers on regulatory changes arising from global climate change efforts – such as the COP21 commitments agreed in the Paris agreement.
We support the development of green technology and renewable energy sources by supplying copper, cobalt and nickel for use in engines and batteries which will power the electric vehicle revolution.
Energy is also one of our highest production costs – so we seek ways to improve our own energy efficiency and reduce our greenhouse gas (GHG) emissions.
5%
minimum target for reducing our carbon emission intensity by 2020, on 2016 levels
Climate change disclosure
At our 2016 annual general meeting, our shareholders approved the ‘Aiming for A’ initiative. Among other things, this initiative assesses how prepared a company is for 2035 and beyond, using CDP performance as a starting point.
We openly disclose our carbon and energy footprint. We report carbon dioxide emissions in line with the Greenhouse Gas Protocol.
Understanding the impact of climate change
Our progress
As part of our commitment to the ‘Aiming for A’ initiative, we have set up an internal, cross-commodity working group, led by our Chairman, to deliver our climate change commitments.
So far we have worked to:
- Improve understanding of our current and future footprint – breaking down energy and GHG forecasts by asset
- Test resilience against carbon policy scenarios, as part of our business planning
- Understand risks and opportunities
- Set GHG targets
- Take part in public policy discussions on carbon and energy.
We continue to create bespoke energy plans for each asset, to improve energy efficiency
Renewable energy
In 2017, we implemented a number of carbon reduction projects. These included an energy and carbon reduction project at our South African, ferroalloys Boshoek Smelter, which generates electricity from waste gases. The initial findings from the pilot study suggest that Boshoek could reduce its Scope 2 emissions each year by 8% or 60,000 tonnes of GHG.
6,250 tonnes
of GHG emissions reduced with our Raglan Mine wind turbine
Other projects include constructing a second wind turbine at our Raglan Mine in Canada, which is on track to generate electricity in September 2018. It joins the original turbine erected in 2014. In 2017, the existing turbine saved 2.2 million litres of diesel, a reduction of 6,250 tonnes of GHG emissions – the equivalent of taking 1,350 vehicles off the road.
Adapting to climate change
We regularly review our exposure to actual and potential risks arising from climate change, such as changing weather patterns.
For example, melting permafrost could affect the way we work at our assets in northern Canada and we review controls that aim to ensure waste ore is stored safely.
Changing weather conditions could also affect water availability; this is taken into account when assessing assets with high water-related risks.
Principles we follow
Principle 7: Businesses should support a precautionary approach to environmental challenges
Principle 8: Businesses should undertake initiatives to promote greater environmental responsibility
Principle 9: Business should encourage the development and diffusion of environmentally friendly technologies
Principle 6: Pursue continual improvement in environmental performance issues, such as water stewardship, energy use and climate change
Next steps
We will undertake climate change risk assessments at our top value assets, while continuing our work with the ICMM to further develop our industry’s response to climate change. We will also continue to promote best practice sharing and innovative approaches for carbon reduction opportunities at our carbon intensive operations.
