In the year 2050, the world has successfully reduced carbon emissions, with the contribution of efforts of mining and metal industry players who achieved their targets in greenhouse gas (GHG) reduction. Through project-specific approaches, these companies assessed their carbon footprints, identified emissions hotspots, developed tangible net-zero roadmaps and invest in low-carbon technologies leading to improved energy efficiency, the use of greener energy sources that reduce reliance on fossil fuels, reduction of fugitive emissions and consideration of carbon offsetting initiatives for the residual emissions difficult to eliminate. This monumental achievement has also allowed the world to meet the Paris Agreement target of limiting global warming to 1.5°C. However, numerous challenges lie ahead in realising this vision.
Climate change is the primary challenge of our era, with various stakeholders demanding an accelerated energy transition and assessment of the climate change transition risks for companies’ activities. Carbon-intensive industries, including mining and metals, are adopting ambitious net-zero targets to drive reduced emissions and greener, more sustainable operations. Achieving net zero requires comprehensive efforts to measure and reduce emissions across all three emission scope categories defined by the Greenhouse Gas Protocol. For the mining industry and its supply chain, this poses significant challenges.
Today, up to 7 percent of GHG emissions globally emanate from mining activities worldwide, while 28 percent of Scope 3 GHG emissions are from downstream and 0.5% from fully electric mining equipment. The World Meteorological Organization predicts a 66% likelihood that the annual average near-surface global temperature between 2023 and 2027 will be more than 1.5°C above pre-industrial levels for at least one year. In addition, there is a 98% likelihood that at least one of the next five years, and the five-year period as a whole, will be the warmest on record. Global warming increases operational and financial risks for mining companies such as drought altering the supply of water to mining sites, increase of sea-level rise can impact transportation infrastructures, extreme heat weather causes a threat to workers’ health, sometimes their lives and productivity.
While the challenges are daunting, at Bureau Veritas, we also know that there are opportunities to explore. This is why platforms like the recent Junior Mining Indaba are important as far as providing an excellent opportunity for stakeholders, including junior producers, investors, government officials, and industry experts, to engage in meaningful discussions regarding decarbonisation and sustainable mining practices. Junior mining in South Africa includes exploration companies and mid-tier producers, operating in sectors like industrial minerals, diamonds, platinum, coal, and more. The emergence of smaller companies and early-stage exploration entities represents a dynamic force within the mining industry. They can play a key role in the development of a sustainable mining industry as they are often innovative and develop greenfield projects. Incorporating corporate social responsibility can ultimately generate economical value such as reduce some risks, increase resiliency, access to more funding and an improved social acceptance of projects within local communities.
Climate change is a real challenge for the industry and taking action is as crucial as discussing the challenges and opportunities. Mining companies need to conduct comprehensive assessments of their carbon footprint, measuring emissions data at a granular level. Such evaluations are essential in determining a starting point for improvement, identifying emissions hotspots, and measuring progress after implementing corrective actions. In addition, data from various sources and areas should be consolidated to ensure accuracy and reliability.
This is why Bureau Veritas has developed an integrated, five-step Achieving Net Zero solution. This solution enables us to partner with mining and metals companies to reduce their emissions across all three scopes, helping them to accelerate their transition to net zero, providing an initial, targeted approach to minimising emissions, while preparing for Scope 3 improvements and communication to stakeholders.
The year 2050 holds the promise of a world successfully meeting its net-zero goals, with mining and metal industries playing a significant role in achieving this milestone. By embracing ambitious targets, implementing concrete action plans, the industry can pave the way for a greener and more sustainable future for all. By collaboratively working towards net zero, we can create a better world for generations to come.
