Cement Energy Environment

16 It is an optional reporting category that allows for the treatment of all other indirect emissions • Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of products and services, etc. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Scope 3: Other Indirect GHG Emissions: Mining, being the starting point, in the supply chain for much of the global economy, decarbonizing in this sector will be critical in meeting global emissions targets. In the mining process, the energy transition increases demand for a number of clean energy raw materials. The mining sector has a great role to play in hitting the target of substantial decarburization across the global economy. As per the studies carried out by McKinsey & Co, it is evaluated that ‘’mining’’ is responsible for 4% to 7% of global greenhouse gas emissions in terms of the sector’s Scope 1 and Scope 2 emissions. If we include Scope 3 emissions, then it links the sector to around 28% of global emissions. Furthermore, we cannot ignore that the mining companies are vulnerable to both societal pressure and policy changes. Simultaneously, these companies have to produce minerals economically, there is possibility Mining companies across the globe are working to slash greenhouse gas emissions, but many of the largest mining giants, are yet to align their goals with international targets to reach net-zero emissions by 2050. Several big mining companies have installed their own sustainability committees, signaling that mining is joining the wave of corporate sustainability reporting and activity, which includes, reporting emissions and understanding decarburization pathways are the first steps. NET ZERO Mining approach: Understanding contribution of mining International efforts towards Net-Zero mining as demand rises for clean energy raw materials of exploiting easy to reach minerals, as compared to remote and inaccessible mineral and ore bodies. Emissions Gap Report 2019 (EGR-2019) of the United Nations Environment Program(UNEP) mentions that G20 countries are accountable for 78% of the total greenhouse gas (GHG) emissions as of November 2019. It is established that the G20 nations have a greater role in determining the extent to which the 2030 emission gaps can be closed. The EGR-2019 report further mentions that the needs phase out of coal-fired power plants alone has annual GHG reduction potential of 4 Gigatonnes of CO 2 by 2050, just this would be about 13.1% of 2010 total emission levels. Thus, the Coal mining, associated with coal based power generation and transmission industries are part of this category which are ramping up global temperatures by release of GHGs. S&P Global Market Intelligence reached out to 30 mining companies ranking among the world’s largest by market capitalization, while just eight have committed to reaching net-zero emissions by 2050 or sooner, or already tout carbon neutrality. Many of the remaining companies have set less ambitious targets, are updating goals, or have different climate-related aims.’ Institution name Market cap Climate goal Existing net-zero target BHP Group Diversified metals and mining 116.1 BHP has committed to reaching net-zero emissions by 2050. Rio Tinto Diversified metals and mining 95.2 Rio Tinto has committed to reaching net-zero emissions by 2050. Vale S.A. Steel 52.4 Vale has committed to reaching net-zero Scope 1 and Scope 2 emissions by 2050 and announced ambitions to reduce Scope 3 emissions. Fortescue Metals Group Ltd. Steel 29.4 Fortescue has committed to reaching net-zero emissions by 2040.