Newmont launched its inaugural Climate Strategy Report in accordance with the Task Force on Climate-related Financial Disclosures in June.
The report outlines the company’s climate-related risks and opportunities, strategic planning, and pathways to achieving Newmont’s climate targets. It also looked at the technology necessary to transition to a low-carbon economy.
Some highlights of Newmont’s report:
- 2030 greenhouse emissions targets approved by the Science Based Target initiative (SBTi): To meet SBTi’s criteria in line with climate science, Newmont’s 2030 targets are set at 32% reduction for Scope 1 and Scope 2 emissions and 30% reduction for Scope 3 emissions, supporting the Paris Agreement. Newmont is one of only two gold mining companies globally and one of 12 companies on the S&P 500 to have climate targets approved by SBTi.
- Climate scenario analysis: Newmont developed three scenarios – considering both transitional and physical climate risks – to understand the potential impacts to its business, strategies and long-term financial resiliency. The scenarios include business as usual; planned energy transition during the 2020s; and delayed response to post-2030.
- Pathways to achieving 2030 targets and the 2050 ultimate goal of being carbon neutral: Includes projects necessary to achieve Scope 1 and 2 emissions reduction targets, including investing in energy optimization and power supply conversion. Additionally, the report details the collaboration and partnerships necessary to achieve the company’s Scope 3 emissions reduction target and the measures necessary to enhance climate change resiliency.
- Newmont’s Carbon Reduction Fund: In 2020, Newmont committed $500 million to support its climate targets. Over the next five years, the fund will support implementation of technologies, emissions reduction projects and other climate change initiatives as part of Newmont’s pathway to achieving the company’s 2030 targets, a foundation for the company’s 2050 ultimate goal of being carbon neutral.
“It is our firm belief that climate change is one of the greatest challenges of our time and that Newmont must be a catalyst for change,” Newmont’s President and CEO Tom Palmer said.
“It is our responsibility to operate our business in a sustainable way in order to generate long-term value whilst mitigating climate change’s effect on our operations. Today we send a clear signal that Newmont has moved beyond managing climate change as a sustainability issue to incorporating these risks and opportunities into our business strategy and business planning process.”