South32, the diversified miner listed on the JSE, ALX, and London Stock Exchange, has set a new goal of net zero Scope 3 greenhouse gas emissions by 2050.
In its 2022 annual report released on Friday, the group said this year it developed its Climate Change Action Plan.
“The plan describes the actions we are taking to address the risks and opportunities which climate change presents, including producing the metals that support the transition to a low-carbon world, in a way that minimises our impact,” the group said.
Chief executive Graham Kerr said South32’s Climate Change Action Plan outlined the actions the company was taking to address specific risks and opportunities that climate change presents for its business.
“We understand the need for action on climate change, and we are responding by addressing our biggest challenges. We will continue to regularly review our approach to climate change, and we are committed to transparently reporting our progress,” said Kerr.
According to South32, it has set a medium-term target to halve its operational greenhouse gas (GHG) emissions (Scope 1 and 2) by 2035 and it was committed to achieving net zero operational GHG emissions by 2050.
“Recognising that we have a critical role to play in contributing to the decarbonisation of the value chain, in partnership with our customers and suppliers, has set a new goal of net zero Scope 3 greenhouse gas emissions by 2050,” it said.
The group said within 12 months of South32 being established, it had committed to supporting the objectives of the Paris Agreement and set a long-term goal to achieve net zero operational greenhouse gas emissions by 2050.
“Our first emissions reduction target was to keep our 2021 financial year Scope 1 greenhouse gas emissions below our 2015 financial year baseline, which we achieved. In the 2021 financial year, we stepped up our ambition by setting our medium-term target to halve our operational greenhouse gas emissions by 2035 from our 2021 financial year baseline,” the group said.
South32 said it recognised the impact its mining operations had on the environment due to the extractive nature of its activities and that the greenhouse gas emissions associated with its activities contribute to climate change.
“We also recognise the role our industry plays in providing the materials that are essential in the transition to a net zero global economy, and we want to be part of that solution. We acknowledge that we have potential vulnerabilities to the physical impacts of climate change and exposure to climate-related transition risk and nature-related risk,” the group said.
South32 said, consistent with its purpose, it would work to provide a just transition towards net zero in a way that supports our people, local communities, and other stakeholders.
BUSINESS REPORT