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Top gold sector investor demands more action on carbon emissions

Published 12/12/2019, 12:06 am
Updated 12/12/2019, 12:07 am
© Reuters.  Top gold sector investor demands more action on carbon emissions
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* Collecting data helps understanding of supply chain risk

* U.N. talks continue in Madrid on curbing emissions

* World Gold Council says 'direction of travel' is clear

By Barbara Lewis and Simon Jessop

LONDON, Dec 11 Reuters) - South Africa's biggest money manager has written to 22 gold mining companies asking them to disclose data on the emissions they cause, adding to pressure on the resources sector to tackle climate change.

Investec Asset Management, which manages around 111 billion pounds ($142 billion), including over $1 billion in gold assets, wants companies to disclose emissions data across their supply chain, a letter to one of the companies seen by Reuters showed.

Investec portfolio manager George Cheveley confirmed the request, saying Investec INLJ.J INVP.L had asked for data on gold because it had a "significant interest" in the companies.

"Also, we felt that the sector had been slow to publish data and there was a risk some companies believed scope 3 (emissions from the use of products) was not so relevant to gold," he said.

He declined to name the companies involved.

For an interactive version of the graphic, click here https://tmsnrt.rs/36sIMCe.

MADRID

With U.N. talks continuing in Madrid this week to bolster the 2015 Paris Agreement to curb global warming, Cheveley said he wanted a dialogue to increase gold companies' responsibility over their products beyond the mine gate. the gold sector has been plagued by concerns about the use of gold in fuelling conflict and laundering money. emissions can be a broader way to improve governance, transparency and reduce risk, responsible investment campaigners say.

"Pretty much all sectors will have to get to grips with the implications regarding scope 3," said John Mulligan, a director responsible for market relations, at industry body the World Gold Council.

Scope 3 emissions caused by the use of oil in transport and iron ore and coking coal to make steel are far greater than from the gold sector, although those industries say their products are vital to society.

The extractive industry began acknowledging responsibility for pollution beyond scope 1 and 2 emissions, which are generated by their own operations, when Royal Dutch Shell RDSa.L said it would set scope 3 targets a year ago. mining, the biggest of the listed companies, BHP BHP.AX BHPB.L , in July said it would set scope 3 goals. Vale VALE3.SA followed suit this month. No. 2 iron ore producer Rio Tinto RIO.L RIO.AX has yet to announce scope 3 commitments, saying in March it was "primarily the emissions of our customers, mainly steelmakers in China, over which we have very limited control". Rio spokesman said its position had not changed, but it is working on technology to reduce emissions.

For an interactive version of the graphic, click here https://tmsnrt.rs/35atm53.

https://tmsnrt.rs/38qJf9D Gold miners and Scope 3 emissions interactive

https://tmsnrt.rs/36sIMCe Gold sector ESG scores png

https://tmsnrt.rs/35hVxzm Gold sector ESG scores interactive

https://tmsnrt.rs/2Pd6uME CO2 emissions of leading miners png

https://tmsnrt.rs/2skOxTn CO2 emissions of leading miners interactive

https://tmsnrt.rs/35atm53

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by David Evans)

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