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Miner BHP Group’s CEO on Thursday called for the introduction of a “small set of common standards” against which the mining industry can measure performance and access capital.
“Opening a mine, done well, creates sustainable wealth and jobs…But of course this must be done with least possible impact to the environment,” BHP CEO Mike Henry said, speaking at the IEA critical minerals & clean energy summit in Paris.
“We also have too many standards for the same ESG (Environmental, Social, and Governance) dimensions, leading to confusion and dissipated effort,” he added.
The mining industry is a key focus for policymakers and investors because it provides the critical raw materials needed for electric vehicles and renewable energy infrastructure, but is also responsible for up to 7% of greenhouse-gas (GHG) global emissions.
As in most industries, mining companies have set targets to decarbonise, aiming to reach net zero by 2040 and 2050, but they say it is difficult to account for the whole supply chain, as metals are used across many different industries that serve customers across various geographies.
This is partly blamed on a lack consistent data to measure emissions.
“Governments must provide predictability and stability to attract capital at lowest possible cost and as quickly as possible,” Henry said.
“This means stable fiscal settings, streamlined planning and permitting processes and harmonised standards,” he added.
(By Clara Denina; Editing by Jane Merriman)
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