The International Council on Mining and Metals (ICMM ) announced on Wednesday the publication of its guidance to support mining companies to set impactful short-medium and long-term targets for reducing their Scope 3 emissions.
The Scope 3 Emissions Target Setting Guidance underscores the importance of transparency and engagement with suppliers, customers, investors and regulators in setting targets to help accelerate emissions reduction throughout the value chain, ICMM said in a statement.
In 2021, ICMM members committed to achieve net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner, in line with the ambitions of the Paris Agreement. They also committed to report on Scope 3 emissions and set reduction targets by the end of 2023.
Scope 3 emissions are a critical area of focus for the mining and metals industry, representing up to 95% of a company’s total emissions, compared to 75% across other sectors, the Council said, citing a study by Mining Technology.
In September 2023, ICMM published Scope 3 Emissions Accounting and Reporting Guidance, establishing a standardized framework for mining and metals companies to calculate and disclose their value chain emissions. This new target setting guidance builds on these accounting and reporting principles.
According to ICMM, this guidance defines target-setting principles tailored to the specific considerations of the mining and metals sector, and is drawn from current EU, US, UK, Canadian and Australian regulatory frameworks, as well as guidance from the United Nations’ High Level Expert Group on Net Zero Emissions Commitments of Non-State Entities.
Acknowledging the inherent differences in commodities and value chains, rather than endorsing a specific methodology, it provides mining and metals-specific context around commonly used approaches, ICMM added.
The guidance establishes a robust framework that sets out leading practice across four maturity stages, with each stage outlining minimum expectations across five key dimensions: accounting and reporting, identification of emissions ‘hotspots’, business integration and alignment, assessment of decarbonization pathways and organizational governance.
“As the discussions at COP28 have made clear, each sector bears the responsibility to understand its part in the broader system and extend beyond immediate boundaries to unearth solutions to stubborn sources of emissions. As the base products in almost every industry – from renewable energy and sustainable transport, to construction and tech – metals and minerals are critical to advancing the Sustainable Development Goals and meeting the goals of the Paris Agreement,” ICMM chief executive officer Rohitesh Dhawan said in a statement.
“At Antofagasta, our commitment to addressing climate change permeates every aspect of our strategy and decision-making. The introduction of ICMM’s Scope 3 Emissions Target Setting Guidance is an important step in enhancing transparency and catalyzing collaborative efforts across the industry to curb these emissions,” Iván Arriagada, member of ICMM’s Council Climate Change Advisory Group, and CEO of Antofagasta plc, added.
Find ICMM’s Scope 3 Emissions Target Setting Guidance here.