Mining sector having difficulty meeting decarbonization targets

A lack of consistent and transparent data to measure emissions along the supply chain of mining companies is hindering efforts to monitor and meet decarbonization targets within the sector. Mining is a critical industry for supplying the raw materials needed for electric vehicles and renewable energy infrastructure, yet it also contributes to 4% to 7% of global greenhouse gas emissions.

The challenge lies in the complexity of the supply chain. Mining companies produce metals used in various industries, serving customers across different regions, making it difficult to track emissions across the entire value chain. This issue is further complicated by varying levels of transparency from suppliers.

To address this problem, the International Council on Mining and Metals (ICMM), which includes approximately 25 mining companies, has published guidance for mining companies on how to account for and report their Scope 3 emissions. Scope 3 emissions are indirect emissions, such as those originating from third-party suppliers. This guidance aims to create a consistent reporting framework and help companies better account for their emissions.

Many mining companies have set decarbonization targets with the goal of achieving net-zero emissions by 2040 or 2050. However, some are facing challenges in meeting these targets. For example, Rio Tinto, the world’s second-largest mining company, announced in July that it might miss its 2025 target unless it resorts to purchasing carbon offsets.

Investors are increasingly looking for mining companies to align their targets with net-zero goals across all scopes of emissions (Scope 1, 2, and 3) and to set clear short, medium, and long-term targets to demonstrate their commitment to reducing emissions. The challenge for the mining industry lies in ensuring the entire supply chain adheres to these goals, as emissions reductions depend on actions taken by suppliers and partners throughout the value chain.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Beijing’s political decisions hurting China’s economic potential

The situation in China has sparked what many experts call the “China conundrum” — a perplexing scenario where a nation aspiring to be the world’s dominant economic power is seemingly taking actions that undermine that potential. China’s recent economic moves appear counterintuitive for a country seeking continual economic growth.

China’s Tsingshan starts commercial production at Indonesia nickel refinery

Chinese nickel producer Tsingshan Group has reportedly commenced commercial production of refined nickel at its plant in Morowali, Indonesia. The facility, which boasts a planned annual capacity of 50,000 metric tons, is said to have started commercial production last week, according to sources familiar with the matter. However, the sources chose to remain anonymous as they are not authorized to speak to the media.

Chinese battery maker Gotion taking 25% stake in Slovakia’s Inobat

Chinese battery manufacturer Gotion High Tech is acquiring a 25% stake in Slovak battery firm Inobat, marking the first investment by a Chinese battery maker in a European start-up. The deal is part of the two firms’ ongoing collaboration, announced earlier this year, to explore joint ventures to develop batteries for electric vehicles (EVs) and energy storage. While the financial details of the transaction remain undisclosed, the partnership is expected to help Inobat speed up its path to mass production of EV batteries.

Stay informed

error: Content is protected !!