SynopsisBHP and Rio Tinto, mining behemoths, are under growing investor scrutiny for their unmeasured Scope 3 greenhouse gas emissions. These emissions result from customers using their products, and they are significantly high due to steelmaking. A report from IEEFA evaluates the emissions targets of five major mining companies and highlights that some lag in adopting Scope 3 reduction goals, with Fortescue leading in ambition. As investors press for accountability, the pressure on these mining giants is mounting.Article:In the world of mining, the spotlight is increasingly focused on Scope 3 greenhouse gas emissions. For major players like BHP and Rio Tinto, this emissions category stems from customers using the products they extract. The challenge is that these emissions, heavily associated with steelmaking, often overshadow the more direct Scope 1 and 2 emissions generated by the companies themselves.As the world advances toward decarbonization, investors are increasingly calling for action on all fronts. It's no longer sufficient for companies to set targets for reducing their own emissions (Scopes 1 and 2) while leaving Scope 3 untouched.This report delves into the emissions targets, 2050 goals, and approaches of five large mining companies against the backdrop of a rapidly changing steel technology landscape. What emerges is a varied landscape of commitment and ambition:BHP and Rio Tinto: Despite the evident acceleration of steel technology transition, both companies lack measurable Scope emissions reduction targets.Vale: While it has a Scope 3 emissions target, some investors may find it inadequate.Fortescue: A standout in ambition, Fortescue aims for net zero Scope 3 emissions by 2040.Rio Tinto, Vale, and Anglo American: These companies do not include Scope 3 emissions in their 2050 net zero emissions goals.Investors, increasingly concerned about the environmental, social, and governance aspects of their portfolios, are applying pressure. Climate Action 100+, a global initiative, sets the expectation for companies to have short, medium, and long-term Scope 3 emissions targets in line with the 1.5°C pathway.Additionally, the Commonwealth Bank of Australia now requires companies relying heavily on the sale of oil, gas, or metallurgical coal to have transition plans covering Scope 3 emissions, signaling the growing importance of this metric.The transition away from coal-based steelmaking is accelerating, with technologies like green hydrogen and direct reduced iron (DRI) gaining momentum. The industry recognizes that it's time to take measurable action on Scope 3 emissions.Conclusion:Investors are no longer satisfied with surface-level commitments to emissions reduction. The mining giants, with their considerable Scope 3 emissions, face mounting pressure to set measurable targets in line with the global shift toward sustainable practices.
SynopsisBHP and Rio Tinto, mining behemoths, are under growing investor scrutiny for their unmeasured Scope 3 greenhouse gas emissions. These emissions result from customers using their products, and they are significantly high due to steelmaking. A report from IEEFA evaluates the emissions targets of five major mining companies and highlights that some lag in adopting Scope 3 reduction goals, with Fortescue leading in ambition. As investors press for accountability, the pressure on these mining giants is mounting.Article:In the world of mining, the spotlight is increasingly focused on Scope 3 greenhouse gas emissions. For major players like BHP and Rio Tinto, this emissions category stems from customers using the products they extract. The challenge is that these emissions, heavily associated with steelmaking, often overshadow the more direct Scope 1 and 2 emissions generated by the companies themselves.As the world advances toward decarbonization, investors are increasingly calling for action on all fronts. It's no longer sufficient for companies to set targets for reducing their own emissions (Scopes 1 and 2) while leaving Scope 3 untouched.This report delves into the emissions targets, 2050 goals, and approaches of five large mining companies against the backdrop of a rapidly changing steel technology landscape. What emerges is a varied landscape of commitment and ambition:BHP and Rio Tinto: Despite the evident acceleration of steel technology transition, both companies lack measurable Scope emissions reduction targets.Vale: While it has a Scope 3 emissions target, some investors may find it inadequate.Fortescue: A standout in ambition, Fortescue aims for net zero Scope 3 emissions by 2040.Rio Tinto, Vale, and Anglo American: These companies do not include Scope 3 emissions in their 2050 net zero emissions goals.Investors, increasingly concerned about the environmental, social, and governance aspects of their portfolios, are applying pressure. Climate Action 100+, a global initiative, sets the expectation for companies to have short, medium, and long-term Scope 3 emissions targets in line with the 1.5°C pathway.Additionally, the Commonwealth Bank of Australia now requires companies relying heavily on the sale of oil, gas, or metallurgical coal to have transition plans covering Scope 3 emissions, signaling the growing importance of this metric.The transition away from coal-based steelmaking is accelerating, with technologies like green hydrogen and direct reduced iron (DRI) gaining momentum. The industry recognizes that it's time to take measurable action on Scope 3 emissions.Conclusion:Investors are no longer satisfied with surface-level commitments to emissions reduction. The mining giants, with their considerable Scope 3 emissions, face mounting pressure to set measurable targets in line with the global shift toward sustainable practices.
