World’s largest miners commit to net zero emissions by 2050

A group of the world’s biggest mining companies have pledged to reach net zero greenhouse gas emissions by 2050 or sooner, in line with the goals outlined in the Paris Agreement designed to combat global warming.

The International Council on Mining and Metals’ (ICMM) 28 company members include Rio Tinto (NYSE: RIO; LSE: RIO; ASX: RIO), BHP (NYSE: BHP; LSE: BHP; ASX: BHP), Barrick Gold (TSX; ABX; NYSE: GOLD), Vale (NYSE: VALE), Teck Resources (TSX: TECK.A/B; NYSE: TECK) and others, as well as 35 regional and commodities associations.

Together, ICMM members represent one third of the global mining metals industry, including more than 650 sites in over 50 countries.

“As the suppliers of the minerals and metals that are critical to decarbonization and sustainable development, we have a particular responsibility to minimize the impact of our operations on the environment,” said Rohitesh Dhawan, CEO of ICMM. “ICMM members’ collective commitment to net zero scope 1 and 2 GHG emissions by 2050 is a pivotal moment in our history.”

Although the commitment is limited to Scope 1 and Scope 2 emissions (direct emissions and indirect emissions associated with the purchase of electricity, heat or cooling), ICMM companies also pledged to accelerate action on Scope 3 targets (downstream emissions outside of the company’s control) “as soon as possible.”

Many of ICMM’s members have already laid out their plans to reach net zero emissions by 2050. While some company’s targets are more ambitious, (including Anglo American [LSE: AAL]) ICMM says individual members’ approach to setting and meeting targets will be consistent.

By the end of 2023, all ICMM members have committed to the following:

• Building clear pathways to achieving net zero Scope 1 and 2 GHG emissions by 2050 or sooner, through meaningful short and/or medium-term targets.
• Accelerating action on Scope 3 GHG emissions, which depends on the combined efforts of producers, suppliers and customers. ICMM members have agreed to take a leadership role to overcome these barriers and advance partnerships so that credible targets can be set and emissions across value chains can be reduced.
• Targets that cover all material sources of emissions, aligning to the GHG Protocol definition of organizational boundaries and materiality.
• Focusing on absolute reductions and not just intensity. Where intensity targets are used (for some operations they may be more appropriate in the short and medium term), companies will disclose the corresponding absolute increase or decrease in GHG emissions.
• Using robust target-setting methodologies that are aligned with the ambitions of the Paris Agreement and disclose in detail the assumptions that are used.
• Disclosing progress on Scopes 1, 2 and 3 openly and transparently on a yearly basis; obtaining external verification of company performance, and reporting in alignment with the recommendations of the Task Force on Climate-related Financial Disclosures.