Australasian Centre for Corporate Responsibility (ACCR) ’s Post

This is an extremely important piece of analysis, because it demonstrates how much it matters that companies with most of their emissions in scope 3 paint a clear, accurate and specific picture of their transition plans. Which BHP do not do.......and in fact are proposing new coal projects that'll be pumping out coal until 2116. Not exactly a sign of confidence in their own claims to be ambitious leaders in green steel......

"Some shareholders question whether BHP’s updated plan — reliant on carbon capture technologies — goes far enough to decarbonise steelmaking and lead the industry on climate action. Naomi Hogan described the $75 million allocated to these programs over the next five years as “insufficient,” especially when compared to Rio Tintoʼs commitment to spend $ 100 million on new technologies in the coming year alone. Hogan also argued that BHP, as the worldʼs third-largest iron ore producer and a signicant player in metallurgical coal mining, should show more leadership in helping its steelmaking customers decarbonise — particularly as their emissions represent 81% of BHPʼs Scope 3 total. A key concern for the ACCR is BHPʼs reliance on CCUS, which could extend the use of metallurgical coal and reduce reliance on alternatives like hydrogen direct reduction — an approach that requires higher-purity iron ore. An ACCR analysis, released last Friday, argued that relying on CCUS and blast furnaces overstates the decarbonisation potential of the technology and underplays the risks, introducing long-term uncertainty around BHPʼs ability to meet its Scope 3 targets." via Capital Brief https://lnkd.in/gEJ5UVTA Link to ACCR BHP CTAP analysis: https://lnkd.in/gxGjv56r.

New data suggests that Queensland’s Bowen Basin is Australia’s top methane-emitting hotspot. The region is home to major coal and gas fields - including BHP’s metallurgical coal mines. Concerningly, BHP’s 2024 Climate Transition Action Plan (CTAP) fails to sufficiently address methane emissions from its coal operations. This magnifies the issue of the CTAP’s overall lack of metallurgical coal disclosure. BHP plans to mine metallurgical coal for many decades, including potentially until 2116. Investors require clarity both on the extent and intensity of the methane emissions from the company’s metallurgical coal sites, and how it plans to address and reduce these emissions.

💥Following engagement with ACCR and other investors, Rio Tinto has committed to significantly enhancing its disclosures prior to the 2025 AGM, including its forward capital expenditure on steel decarbonisation, known milestones, timelines and potential abatement opportunities. Scope 3 emissions, predominantly from steel making, account for more than 95% of the total emissions footprint of iron ore miners, posing significant business risks in a decarbonising global economy. Rio’s investors will now be ahead of the curve and gain strategic insights into how the company is planning to tackle this challenge, which is an important first step to helping ensure capital is being allocated towards the best opportunities. “The transition towards a greener mining sector is a long haul, but Rio Tinto's new announcement shows that constructive dialogue and active ownership produce results." Rasmus Bessing, co-CIO and head of ESG investments at PFA

Lead investors, Fidelity International’s Daniela Jaramillo, Head of Sustainable Investing – Australia, and ACSI’s Ed John, Executive Manager of Stewardship: “Steel is one of the hardest sectors to abate and will require meaningful coordination between the steel and iron ore sector. As the Australian co-lead investors for Rio Tinto for Climate Action 100+ we welcome the company’s commitment to boost disclosure of efforts to decarbonise the iron ore and steel sector. “We see these commitments as an important step to give long-term investors greater visibility of how Rio Tinto is future-proofing its business and where necessary investments are being made. This is why this has been one of the key priorities in our engagement with Rio in the last few years.” “Increased transparency is key to enable coordination between the iron ore and steel sectors, and will provide greater insight into the progress being made in decarbonising the whole sector. We look forward to continuing to see accelerated progress towards the reduction of their scope 3 emissions.” https://lnkd.in/dw8r-GFE Investor Group on Climate Change (IGCC) #climateaction100+

Perth! - Our Resource Division, Mines and Environment, is thrilled to announce the upcoming Net Zero Conference on August 22nd, followed by a breakfast session on August 23rd. We are honoured to have the opening guest speaker, Hon Reece Whitby, Western Australian Minister for Energy, Environment and Climate Action, to present at this significant event. This conference will cover essential topics such as mining, decarbonisation, energy, ESG, and climate change, making it a must-attend event on our home ground in Perth. Industry leaders, including Rio Tinto, will discuss the critical issue of decarbonising steelmaking—a process responsible for approximately 8% of global CO2 emissions. Reducing emissions from steel production can have a substantial impact on global emission reductions. Stay updated and connected with professionals from various fields. Learn about the latest sustainable mining practices and innovations. Engage with experts and thought leaders driving the transition to net zero. Participate in panel discussions and gain insights into cutting-edge sustainable mining practices. Register now to secure your spot and contribute to the dialogue on sustainable mining practices and innovations. See here for more https://lnkd.in/gYquNy9E #decarbonisation #esg #mining #environment #climatechange #miningandenergy #environmentalists #environmental

Australia's mandatory climate disclosure standards represent a new era in financial reporting. Companies falling under Group 1 of the upcoming AASB climate disclosure standards are now facing increased pressure to comply. Our latest report provides an analysis of more than 120 of Australia’s energy and mining companies and assesses their readiness for mandatory climate disclosures. Currently less than 10% of companies in Australia's mining and energy sectors meet these requirements. Download the report to see which firms are disclosing well, where others are falling short and what steps can be taken for credible disclosure: https://ow.ly/BkZr50RGs6N Jamie Ayers Linda Cardillo Anne Bailey Toby Barrett #ClimateDisclosure #FinancialReporting #Decarbonisation

#spoileralert Significant underperformance by iron ore, coal, lithium, gold, and zinc producers in disclosing #climatetransitionplans. This is significant not just for those companies which will quickly need to get up to speed to #crediblycomply, but for investors, lenders and insurers which will need to make decisions in line with their #netzero strategy and portfolio targets. This report builds on last month's analysis of 100+ financial services companies' readiness for new #AASB mandatory #climatedisclosures by Australian Government. Drop myself or one of the team a line if you want to understand how companies are performing.

If you ever wanted an example of greenwashing... The first deep coal mine to be planned in Cumbria, for over 30 years, has just been blocked / over ruled by the UK high courts, as although the mine claimed to be "net zero" via carbon off setting, the mining company had forgotten to declare that the coal it produced and subsequently burnt for energy, would produce 220 million tonnes of CO2 during its mining lifetime. An easy enough thing to forget i suppose, or maybe forgotten on purpose😶. But in fairness, is this the difference between an LCA looking at cradle to gate, or cradle to grave data (?) You decide ! https://lnkd.in/e7BEzkv3.