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UPDATE 1-Varied ESG targets of big mining companies

Published 30/04/2021, 06:20 pm
© Reuters.
RIO
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AAL
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BHPB
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GLEN
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VALE3
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(Updates with detail)

April 30 (Reuters) - With mining responsible for an estimated 4-7% of greenhouse gas (GHG) emissions globally, the sector is under pressure from environmental activists and shareholders and faces the possible withdrawal of financing and insurance for mines viewed as contributing to climate change.

Glencore GLEN.L plans to become a net-zero emission company by 2050, including emissions from the use of the products it sells.

Rivals such as Anglo American AAL.L , BHP BHPB.L , Rio Tinto RIO.L and Vale SA VALE3.SA have set similar GHG reduction targets.

However, such plans are difficult to compare due to a varied mix of commodities produced and the challenge of tracking customers' emissions.

The table below shows details by company (in alphabetical order):

Targets

Scope 1,2 emissions

Scope 3

Community

Risk Mgmt

Human Rights Governance Anglo

Reduce GHG emissions by

Exit from

Targets on

No fatality target American 30% by 2030 vs 2016 and

thermal coal to education,

from 2 in 2020.

achieve net zero by 2040; help reduce

health and

Part of payouts of

Reduce the abstraction of Scope 3 by

job creation annual bonus and

freshwater in water

c.25%.

aligned with LTIP (long-term

scarce regions by 50% by

UN

incentives

2030 vs 2016;

Sustainable plan)depend on ESG

Development and SHE (safety,

Goals. Human health &

Rights

environment)

Spin-off of South Africa

approach set measures.

thermal coal ops in 2021.

by Social

Way

management

system.

BHP

Reduce operational GHG

2030 goal to

Will invest Zero fatality

emissions by at

support 40%

at least 1% target (achieved

least 30% by 2030 vs

emissions

of pre-tax

in 2019 and 2020);

2020;

reduction

profits to

Part of CEO

Reach net zero emissions intensity for

support UN

payouts of annual

by 2050.

BHP-chartered

Sustainable bonus depends on

shipping.

Development ESG measures.

30% emissions

Goals;

intensity

Regional

reduction in

Indigenous

integrated steel People Plans

making, adoption to be

expected post

developed by

2030.

June 2022.

Glencore Reduce GHG emissions by

Same as Scope 1 Targets not No fatality target

40% by 2035 vs 2019

and 2; ex

to cause,

from 8 in 2020;

levels and achieve net

3rd-party

contribute

Part of CEO

zero by end of 2050;

commodities

to incidents payouts of LTIP

Managed depletion of coal bought and sold resulting in (long-term

mines by mid-2040s.

via trading arm. severe human incentives

Assess water-related

rights

plan)depends on

risks of all managed

impacts.

ESG performance.

operations located in

water-stressed regions

by 2023.

Newmont

30% reduction of combined 15% reduction of Adheres to

ESG metrics of

emissions by 2030; net

emissions by

the UN

safety and

zero carbon emissions by 2030.

Guiding

sustainability

2050.

Principles

represent 30% of

on Business the target bonus

and Human

opportunity for

Rights

named executive

Reporting

officers.

Framework.

Rio Tinto Reduce absolute emissions Reduce

Aims to

Zero fatality

by 15% and emissions

steelmaking

capture and target (achieved

intensity by 30% by 2030 carbon intensity manage

in 2020 and 2019);

vs 2018;

by 30% from 2030 community

15% of executives'

Reach net zero emissions and

complaints

annual bonuses

across operations by

carbon-neutral

and reduce

linked to ESG

2050.I

steelmaking by

repeat and

metrics.

2050;

significant

Reach net-zero

ones each

emissions from

year;

shipping

To provide

products by

remediation

2050.

when causes

or

contributes

to human

rights harm.

Vale

Reduce GHG emissions by

Reduce 15% net

Committed to Targets no

33% by 2030 vs 2017 and

emissions by

remedying

high-potential

achieve carbon neutrality 2035.

adverse

injuries by 2025;

by 2050.

impacts on

Linked 2030 Scope

human rights 1 and 2 targets to

that it has variable pay of

caused or

all employees.

contributed

to.

NOTE: 1) Scope 1 refers to emissions from a company's direct operations, such as emissions from fuel consumed by haul trucks at mine sites.

2) Scope 2 are emissions from the power a company uses for its operations, such as gas-powered electricity bought from the grid and used at mine sites.

3) Scope 3 includes emissions from customers using products sold by a mining company, such as coal burned at power stations, or processing iron ore to steel.

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