ICMM publishes guidance to improve the mining, metals industry’s disclosure of Scope 3 emissions

ICMM CEO Rohitesh Dhawan

ICMM CEO Rohitesh Dhawan

7th September 2023

By: Creamer Media Reporter


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To download a copy of the ICMM's Scope 3 Emissions Accounting and Reporting Guidance, click here  (4.87 MB)

Global metals and mining industry body the ICMM has published a 'Scope 3 Emissions Accounting and Reporting Guidance', which provides a standardised framework for mining and metals companies to calculate and disclose their value chain emissions.

With this document, the ICMM aims to improve transparency and accelerate collaborative action with suppliers and customers on reducing these emissions.

ICMM members, which account for a third of the global industry, have committed to reaching net-zero Scope 1 and 2 greenhouse-gas (GHG) emissions by 2050 at the latest. They have also committed to support other entities in their value chains to decarbonise and, as such, have committed to report on their Scope 3 emissions by the end of this year.

Scope 3 emissions are those created in the value chain of a company. These emissions are produced by suppliers and through the processing and use of mining and metals products by industrial customers, the ICMM explains.

It points out that Scope 3 emissions represent a significant portion – between 75% and 95% – of any mining company's overall emissions.

"As minerals and metals are the foundation of so many industries, this creates a particularly complex profile of Scope 3 emissions for the mining and metals sector, with significant variance across commodities and geographies. The guidance helps companies to understand their unique emissions profiles and identify ‘hot spots’ where they can target efforts in partnership with suppliers and customers to achieve meaningful emission reductions," the organisation states.

It adds that the guidance sets clear parameters for calculating emissions across the 15 categories of Scope 3 emissions as set out in the GHG Protocol Scope 3 Standard created by the World Resources Institute and the World Business Council for Sustainable Development.

The guidance also supports companies in applying the protocol’s principles of relevance, completeness, transparency, accuracy and consistency.

“The goals of the Paris Agreement depend on a massive increase in the use of low-carbon technologies and the essential minerals that enable them. But production of these materials is not without its own carbon footprint. Since all action on Scope 3 emissions depends on good-quality calculations and reporting, this needs special focus for the mining and metals industry.

“ICMM members – who represent one-third of the industry – have embraced their role in supporting customers and suppliers with their own efforts to decarbonise. And, while transparency and action begin with us, the urgent progress required will need collaboration at a scale we’ve never seen before. We hope that ICMM’s Scope 3 Emissions Accounting and Reporting Guidance drives partnerships that can significantly reduce value chain emissions in line with global climate goals,” comments ICMM CEO Rohitesh Dhawan.

Rio Tinto CE and ICMM Climate Change Advisory Group chairperson Jakob Stausholm adds that the guidance will help to improve the understanding of mining and metals companies’ Scope 3 emissions profiles, as well as provide opportunities to accelerate emissions reduction.

“Each company is on their own Scope 3 journey and so the guidance recognises that a ‘one-size-fits-all’ approach does not work in the accounting and reporting of Scope 3 emissions, and that there is a need to accommodate different levels of calculation and reporting maturity across the industry.

"This guidance can be used by any mining operation, regardless of commodity or geography, and so we call on all companies to adopt its use in their own accounting and reporting of Scope 3 emissions to help improve alignment in disclosures across the industry,” he says.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



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