NOVEMBER 02 2021

NEWS RELEASE – Anglo American sets out global emissions ambitions for 2040

South Africa – Kumba Iron Ore – Board visit to Sishen Mine – Richard Price and Mark Cutifani

Anglo American plc (“Anglo American”) has today published its Climate Change Report 2021, ahead of its six-monthly sustainability performance update. The update will include Anglo American’s progress towards its target of carbon neutral operations and its ambition to halve indirect emissions in its value chain by 2040. 

Technology and digitisation, along with partnerships, are key to the global mining giant’s efforts to ensure sustainability in both its Scope 1 and 2 direct emissions and Scope 3 indirect emissions.

Anglo American Chief Executive, Mark Cutifani, said:

“We have long understood that our sustainability performance, our financial performance and our ability to deliver attractive returns over the long term are inextricably linked. Our strategic choices position us increasingly to supply many of the metals and minerals that are critical to enabling the technologies society needs to decarbonise energy and transport, but also to cater for the needs of an ever-growing global consumer population.

“With that responsibility, we recognise that our industry must continue to evolve. Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer greenhouse gas emissions. Our FutureSmart Mining™ programme, using technology to transform our safety and sustainability performance, has helped us make significant progress in recent years and we are accelerating our efforts. Building upon our commitment to carbon neutrality across our operations by 2040, we have today set our ambition to reduce our Scope 3 emissions by 50%, also by 2040.”

Scopes 1 and 2: carbon neutral by 2040

Anglo American’s most recent Climate Change Report, published today, sets out the progress the company is making towards its commitment made 12 months ago to deliver carbon neutral operations by 2040, having met 2020 GHG reduction target a year ahead of time. 

Its integrated FutureSmart Mining™ approach to driving sustainability outcomes through technology and digitalisation is central to the company’s plan and progress, as are the partnerships we are exploring to help catalyse the delivery of renewables infrastructure, for example, in South Africa. Last year, a little more than one third of the electricity Anglo American used globally was drawn from renewable sources. Having now secured 100% renewable electricity supply across our operations in Brazil, Chile and Peru, by 2023 it expects to be drawing 56% of its grid supply from renewables.

Another major step is to displace diesel usage in its mine truck fleet – accounting for 10-15% of Anglo American’s Scope 1 emissions. Its 2MW hydrogen fuel-cell and battery hybrid pilot truck is being assembled in South Africa and will generate more power than its diesel predecessor – a zero-emission truck capable of carrying a 290-tonne payload – a world first. Once fully tested, Anglo American intends to begin rolling out this technology across our global truck fleet starting in 2024 and this will follow typical truck refurbishment and replacement cycles. 

The group’s haul trucks contribute up to 80% of the diesel emissions at its sites and it expects to be taking the equivalent of more than half a million internal combustion cars off the road by switching trucks to hydrogen.

Scope 3: 50% reduction by 2040

Anglo American has continued to accelerate its decarbonisation initiatives and today has added an ambition to reduce its Scope 3 emissions by 50%, also by 2040. 

“Beyond the natural depletion of certain assets in our portfolio by 2040, we are working to reduce emissions in our supply chain and logistics, particularly in shipping, and working with customers and technology partners on low carbon steelmaking technologies.”

Just Transition: catalysing sustainable economies

Aligned with Anglo American’s Purpose, the company explained that it recognises its resilience to climate change was not enough and that it has a role in supporting host communities to thrive in the transition to a low carbon world.  

“We are continuing to explore what mining can do to help ensure a ‘Just Transition’ – one that considers the impacts of this change on employees and communities,” said the report.

“Anglo American’s concept of a regional renewable energy ecosystem for South Africa not only contributes towards decarbonising our own business but also serves as a catalyst to support South Africa’s overall decarbonisation journey and ambitions for a Just Transition. We believe that the provision of new sources of clean, reliable and affordable energy could provide a stimulus for wider socio-economic benefits for businesses and communities across South Africa – supporting long-term, sustainable economic growth in the country. 

“We also believe we can bring our experience of transition from our mine closure planning, working in partnership with organisations such as the Council for Inclusive Capitalism, to provide practical examples of what business can do to enable a Just Transition, also applying the principles of Anglo American’s own Collaborative Regional Development (CRD) programme.”

CRD is Anglo American’s innovative partnership model to catalyse scalable and sustainable development opportunities that are wholly independent of mining to regions around its operations, and is at the heart of its Sustainable Mining Plan. It is a model that the company is already using in the regions around operations in Botswana, Brazil, Chile, Peru, South Africa and the UK, bringing socio-economic resilience to communities and regions.

Mr Cutifani concluded: 

“Of course, a sustainable business is competitive, resilient and agile – it listens and responds through economic and social cycles – underpinned by non-negotiable values and guided by a clear purpose. We believe that we are doing all the right things to decarbonise our business and to work with partners to help decarbonise our value chains. Where we can accelerate towards our targets and ambitions, we will. Our approach reflects the simple fact that climate change is affecting us all and that navigating the transition is both a shared and urgent endeavour.”

– Ends –

Notes to editors:
Anglo American is a leading global mining company and our products are the essential ingredients in almost every aspect of modern life. Our portfolio of world-class competitive operations, with a broad range of future development options, provides many of the future-enabling metals and minerals for a cleaner, greener, more sustainable world and that meet the fast growing every day demands of billions of consumers. With our people at the heart of our business, we use innovative practices and the latest technologies to discover new resources and to mine, process, move and market our products to our customers – safely and sustainably.

As a responsible producer of diamonds (through De Beers), copper, platinum group metals, premium quality iron ore and metallurgical coal for steelmaking, and nickel – with crop nutrients in development – we are committed to being carbon neutral across our operations by 2040. More broadly, our Sustainable Mining Plan commits us to a series of stretching goals to ensure we work towards a healthy environment, creating thriving communities and building trust as a corporate leader. We work together with our business partners and diverse stakeholders to unlock enduring value from precious natural resources for the benefit of the communities and countries in which we operate, for society as a whole, and for our shareholders. Anglo American is re-imagining mining to improve people’s lives.

For media inquiries please contact:
Gillian Langmead at Langmead & Baker Ltd;
+260 979 060705;

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