Net Zero Company Benchmark Update

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Investors and diversified mining companies join forces to develop a net zero standard for the sector in a world first

9th November 2021

Climate Action 100+ announces world-first collaboration with major diversified mining companies to progress decarbonisation

Climate Action 100+, the world’s largest investor engagement initiative on climate change, today has announced a world-first collaboration with eight major diversified mining companies to progress the decarbonisation agenda for the sector.

The initiative aims to set out a reliable standard for net zero for the mining sector which represents an estimated 4-7% of global emissions.[1]

Global mining companies including Anglo American, BHP, Glencore, Rio Tinto, South32, Teck Resources, Vale and Vedanta have joined a group of international investors in an initial roundtable discussion to begin work on the standard. The initiative is being co-led by the Australian and European Climate Action 100+ regional organisations and investors.

Climate Action 100+ investor signatories engage with ten diversified mining companies with a combined US$484 billion market capitalisation[2] across eight global markets.

The standard will align with the existing framework set out by the Climate Action 100+ Net Zero Company Benchmark and aims to address topics such as:

  • Green revenues for mining companies
  • Scope three emission targets and actions across commodity types
  • Target setting aligned with a 1.5°C trajectory for the sector
  • Capital allocation and investments in decarbonisation

In March 2021 these mining companies were benchmarked in the inaugural Climate Action 100+ Net Zero Company Benchmark assessments released publicly. The report found that while many companies had committed to net zero and other emissions reduction targets, few had concrete plans in place and none had capital expenditure plans aligned with net zero by 2050, a significant gap.

The first roundtable discussion took place on 9 November, with key representatives from diversified mining firms and key global investors. The roundtable will set out a planned program of work for the participants over the coming twelve months, highlight key opportunities and areas of focus, and take the initial steps forward to develop a paper on net zero standards for the sector.

About IGCC
The Investor Group on Climate Change (IGCC) is a collaboration of Australian and New Zealand investors focused on the impact that climate change has on the financial value of investments and the opportunities created by the transition to net zero emissions. IGCC represents institutional investors with total funds under management of over $2 trillion, and others in the investment community interested in the impact of climate change. IGCC members cover over 7.5 million people in Australia and New Zealand. For more information visit www.igcc.org.auand @IGCC_Update.

About IIGCC

The Institutional Investors Group on Climate Change (IIGCC), is the European membership body for investor collaboration on climate change and the voice of investors taking action for a prosperous, low-carbon future. IIGCC has more than 360 members, mainly pension funds and asset managers, across 22 countries, with over €49 trillion in assets under management. IIGCC works to support and help define the public policies, investment practices and corporate behaviours that address the long-term risks and opportunities associated with climate change. For more information visit www.iigcc.org and @iigccnews.

About Climate Action 100+

Climate Action 100+ is the world’s largest investor engagement initiative on climate change. It involves more than 615 investors, responsible for over $60 trillion in assets under management. Investors are focused on ensuring 167 of the biggest corporate greenhouse gas (GHG) emitters take the necessary actions to align their business strategies with the goals of the Paris Agreement. This includes improving corporate governance, reducing GHG emissions, and strengthening climate-related financial disclosures.

The 167 companies include the initial 100 ‘systemically important emitters’, identified with the highest combined direct and indirect GHG emissions, and additional companies selected by investors as critical to accelerating the net zero transition.

Launched in 2017, Climate Action 100+ is coordinated by five investor networks: Asia Investor Group on Climate Change (AIGCC); Ceres (Ceres); Investor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). These organisations, along with five investor representatives from AustralianSuper, California Public Employees’ Retirement System (CalPERS), Gam Investments, Ircantec, and Sumitomo Mitsui Trust Asset Management form the global Steering Committee for the initiative. Follow us on Twitter: @ActOnClimate100.

[1]https://www.mckinsey.com/business-functions/sustainability/our-insights/climate-risk-and-decarbonization-what-every-mining-ceo-needs-to-know

 [2] Bloomberg data accessed on 15 December 2020.