Major miners back Scope 3 rethink

Major miners such as BHP, Rio Tinto, Fortescue, Anglo American, and South32 have shown support for the Science-Based Targets initiative’s (SBTi) decision to review its framework for managing Scope 3 emissions.

Scope 3 emissions, which are generated along the supply and value chains outside of a company’s direct operations, represent a significant challenge for the mining and metals industry, often accounting for emissions up to 20 times higher than direct operational emissions.

In a discussion paper, the SBTi acknowledged the difficulties companies face in addressing these emissions.

“Several challenges persist in effectively setting and implementing Scope 3 targets,” the SBTi paper said.

The paper also highlights issues such as limitations in greenhouse gas (GHG) accounting, data gaps, and the difficulty of influencing emissions that lie outside a business’ control.

The iron ore industry’s customers, steel mills, account for seven per cent of global greenhouse gas emissions and tend to be around 100 times higher than the iron ore industry’s Scope 1 and 2 emissions.

Reducing these emissions relies on technological innovations, such as low-carbon steel, and supportive policies, which are largely beyond the operational control of mining companies.

“Scope 3 emissions are different, arising from suppliers and customers, and require a different approach due to issues of control and current lack of technological or economic pathways,” the industry statement said.

The miners also called for recognition of decarbonisation initiatives in value chains, including investments in technologies like green hydrogen and partnerships with downstream industries.

“Efforts to reduce Scope 3 emissions through vertical integration or more processing … could lead, in the short term, to an increase in Scope 1 and 2 emissions,” the industry statement said.

The mining sector commended the SBTi’s recognition of these complexities, describing its review as “a good first step” toward developing effective strategies to reduce global emissions in hard-to-abate industries.

The companies reaffirmed their commitment to managing their own emissions while supporting customers in decarbonisation efforts.

“The mining and metals industry is already voluntarily addressing its Scope 1 and 2 emissions and investing in potential solutions for its customers to address Scope 3 emissions,” the major miners said.

“We warmly welcome the SBTi’s decision to explore more effective approaches towards Scope 3 and hope that its approach becomes a widespread and meaningful framework for heavy industry decarbonisation.”