Mining Journal Intelligence (MJI) and Mining Magazine Intelligence recently unveiled the ESG Mining Company Index, which evaluates the sustainability performance of 61 of the world’s largest mining companies. This index looks at various aspects of Environmental, Social, and Governance (ESG) practices, including Carbon Emissions, Water, Land Disturbance, Safety, Diversity, and Social Investment.
According to the ESG Mining Company Index, the 61 companies emitted 230 million tonnes of CO2 equivalent in 2023, accounting for about 0.4% of global emissions. While this highlights the challenge of reducing emissions in the sector, there have been some improvements. For example, BHP managed to reduce emissions by 39.9% from 2021 to 2023 by focusing on renewable energy agreements.
One of the key challenges identified in the report is related to Scope 3 emissions, which are indirect emissions along the supply chain. Only 43 out of the 61 companies reported Scope 3 emissions, amounting to 4.7 billion tonnes in 2023. Inconsistent reporting standards and supplier data make it difficult to accurately measure these emissions, emphasizing the need for more robust reporting frameworks in the industry.
The ESG Mining Company Index also highlights the issue of gender diversity in the mining sector. While there has been progress in increasing female representation on boards, with an average of 31% of board seats held by women, there is still work to be done to improve gender diversity in the general workforce. In 2023, women made up only 17.4% of employees across these companies, indicating the need for greater efforts to boost female representation throughout the workforce.
Overall, the ESG Mining Company Index serves as a valuable benchmark for the mining industry, providing insights into both progress and ongoing challenges. As sustainability becomes a more pressing issue for the sector, this index can guide stakeholders towards a more sustainable and inclusive future.
For those interested in learning more, a free webinar recording is available at the provided link. For further information, you can contact Sam Williams, the Mining Journal Intelligence Editor, at the provided email address or phone number.
