PROGRESS REPORT 2021 INSIDE Survey trends and analysis Progress report 2021 Climate actions on the ground How Australia’s minerals are helping to build a sustainable future CLIMATE ACTION PLAN OBJECTIVES PROGRESS REPORT 2021 TECHNOLOGY TRANSPARENT KNOWLEDGE PATHWAYS to reduce REPORTING and SHARING and carbon emissions informed advocacy enhanced partnerships EMISSIONS REDUCTIONS KEY ACHIEVEMENTS 30% 18 7 ANNUAL ABATEMENT MCA MEMBERS TYPES OF ACTIVITIES 1. Average annual abatement Full members reporting to Identified to facilitate BASELINE CLIMATE RESPONSE established of potential of surveyed activities National Greenhouse and >100,000 tCO2 emissions relative to emissions Energy Reporting Scheme reductions per annum member actions, emissions, and abatement potential to monitor future progress MEMBER COMMITMENTS (% OF SURVEYED FY2020 EMISSIONS) 2. 20% 61% 100% TASKFORCE ON NET ZERO BY 2040 NET ZERO BY 2050 NET ZERO EMISSIONS CLIMATE-RELATED Emissions target of MCA’s Emissions target of MCA’s All MCA members support FINANCIAL DISCLOSURES NGERS reporting members NGERS reporting members the Paris Agreement (TCFD) recommendations supported by the MCA Board CLIMATE ACTION PLAN PROGRESS 3. FOUNDATIONAL 90% 67% 20 TECHNOLOGY YR 1 WORK STREAM FULL WORK STREAM MEASURES UNDERWAY ANALYSIS completed First year measures 67 per cent of the three-year Individual measures that in support of sectoral started and underway work stream commenced have commenced decarbonisation IDENTIFIED RISKS IDENTIFIED OPPORTUNITIES 1. Impact of government policy changes 1. New energy technologies 2. Changing stakeholder expectations 2. Greater operational resilience and performance 3. Market demands and fluctuations 3. Increased resource efficiencies MINERALS COUNCIL OF AUSTRALIA Phone. +61 2 6233 0600 Email. [email protected] Web. minerals.org.au PROGRESS REPORT 2021 The task of lowering mining emissions is underway as the industry looks towards net zero It is with pleasure I present this (NGERS) expressed an expectation The MCA is committed to helping report on the progress made in that their investments in abatement members achieve their environmental, implementing the MCA’s Climate projects could reduce annual social and governance ambitions. Action Plan over the past year. emissions by about 30 per cent. This includes our recent adoption of the Towards Sustainable Mining This report pulls together reported This abatement potential includes (TSM) initiative which aims to support emissions data for the first time and 39 diverse activities that commenced members managing key environmental establishes a baseline against which over the past 18 months ranging and social risks. The Climate Action future climate actions by the minerals from autonomous haulage and rail Plan was purposefully designed to sector can be measured and reported on. electrification to on-site renewable complement initiatives like TSM. power coupled with utility scale The MCA Climate Action Plan was battery storage, and fugitive I commend our member companies launched in June 2020 as a clear emissions abatement. for their vision in supporting the MCA commitment to do the work needed in the implementation of the Climate to achieve net zero emissions, to share Analysis of the most recent publicly Action Plan and TSM. knowledge and experience across the reported information shows that minerals industry and to build on the aggregate emissions of MCA members momentum already underway. have fallen. This has been despite increases in some other sectors of The plan consists of three overarching the economy. goals and 10 climate actions supported by 30 individual measures over a three- It is evident that the sector and year rolling work program. Collectively Australia continues to implement a Tania Constable the measures aim to assist all members technology-led transformation which Chief Executive Officer to implement their own independent in turn is minerals intensive in the Minerals Council of Australia short and longer-term climate responses manufacture of cleaner energy and low and enhance the sector’s capacity to emissions technologies. This inevitably transform to net zero emissions. increases the reliance on Australia’s key metals and minerals such as Despite the disruption of the lithium and copper. global pandemic, members have continued to act on the climate Importantly, the MCA Board has challenge and prepare appropriately also expressed its support for the for future carbon-related risks recommendations of the Taskforce on and opportunities. Climate-related Financial Disclosures. Major minerals industry emitters who report under the National Greenhouse Gas and Energy Reporting Scheme 3 Survey analysis ALL MCA MEMBERS SUPPORT CLIMATE DISCLOSURES ABATEMENT POTENTIAL THE PARIS AGREEMENT and Share of NGERS reporting full Average annual abatement the transition to net zero emissions. members committed to working potential of surveyed activities In addition, the following NGERS towards aligning with the TCFD relative to emissions reporting full members have publicly stated a net zero emissions target date. By 2040 Anglo American By 2050 78% 30% BHP Downer EnergyAustralia Glencore Idemitsu Newcrest MCA Board supports the Sample abatement activities Newmont recommendations of identified by MCA members Rio Tinto the TCFD could reduce surveyed St Barbara emissions annually by 30% Establishing an emissions performance baseline MCA analysis of the Safeguard 0.6 per cent for the facilities reporting Scope 1 emissions fell by 1.7 per cent, Mechanism (SGM) scope 1 emissions in both periods. and scope 2 emissions were flat. This data for MCA members (minerals compares to a reduction of 2.6 per These reductions compare to the sector only) shows modest reductions cent for all NGERS reporting facilities in their aggregate scope 1 ‘reported SGM’s total scope 1 ‘reported covered’ economy-wide. covered’ emissions in the latest emissions growth of 4.1 per cent (raw It is important to note that the latest reporting period for FY2019. data) and 3.8 per cent for all facilities reporting in both periods. publicly available data in NGERS and For MCA members that were the SGM as used in the above analysis explicitly identified as a controlling The minerals sector continues a predates the commencement of the entity, aggregate emissions fell by strong record of compliance under MCA Climate Action Plan, as well as 2.8 per cent (raw data), compared to the SGM by consistently meeting member climate related investments a 3 per cent reduction for the facilities and beating its allowed aggregate made in the FY2021 period. reporting in both FY2018 and FY2019. emissions baseline. The types of individual activities When all MCA member minerals For the National Greenhouse and identified as facilitating emissions sites emissions including associated Energy Reporting Scheme (NGERS), reductions at scale (greater than joint ventures are added, aggregate total emissions (scope 1 and 2) of 100,000 tCO2 per annum) include: emissions fell by about a 4.2 per cent MCA members fell by 1.3 per cent in energy efficiency initiatives, renewable reduction (raw data) and by about the latest reporting period of FY2020. energy to replace current energy 4 PROGRESS REPORT 2021 39 ABATEMENT ACTIVITIES Sample of abatement activities identified by MCA members: AUTONOMOUS ARTIFICIAL WATER OPERATIONS INTELLIGENCE MANAGEMENT (Drilling, loading, (Analytics, machine (Treatment haulage) learning) technologies) FUEL SWITCHING DIGITISATION LOW CARBON (Hybrid diesel, (Data processing, ELECTRICITY out of diesel) interfaces) (Renewables, CCS, SMRs) ENERGY FUGITIVE EMISSIONS EFFICIENCY REDUCTION ORE PROCESSING (Lighting, motors, (Ventilation Air Methane, IMPROVEMENTS pumps, conveyors) CH4 capture and use) (Bulk processing efficiency) RENEWABLE ENERGY ELECTRIFICATION (Procurement, (Mine processes, HYDROGEN PPAs, on-site) transport) FUEL CELLS (Electricity, machinery) BATTERY TAILINGS STORAGE MANAGEMENT OTHER (Energy storage, (Emissions capture (RD&D, grade electric vehicles) and mineral carbonation) engineering) Member climate actions Risks and opportunities sources, divestment of high-emission Members are responding appropriately Surveyed members broadly business streams, additional flaring and positioning themselves to manage consider the most significant risks and gas capture equipment, flaring future climate challenges. to their organisation as categorised of underground emissions, ventilated by the TCFD to be policy (impact NGERS reporting full members were air methane (VAM) abatement, and of policy changes), reputational asked to identify statements applying funding medium-longer term carbon (changing customer or community to their organisation. It is clear the neutral outcomes. perceptions), and market (shifts in majority of members have announced supply and demand) related. The expected aggregate annual or are considering climate-related average abatement potential of positions including emissions reduction Significant opportunities are seen these projects alone is estimated targets for the period between now as new energy sources (transition to be over 30 per cent of surveyed and 2050 including net zero emissions, to renewables, nuclear, biofuels, and FY2020 emissions (N=15 representing and aligning corporate reporting with carbon capture and storage), greater 83 per cent of MCA members covered the recommendations of the TCFD. resilience (new production processes, by NGERS). and developing new products) and Other initiatives include comprehensive