Climate Action 100+ Releases First Net Zero Standard for Diversified Mining

Climate Action 100+, the world’s largest investor engagement initiative on climate change, has released its Net Zero Standard for Diversified Mining.

The first of its kind in this sector, the new standard aims to help investors assess the progress of diversified mining companies as they move towards net zero.

Mining companies have a critical role to play in the transition of the global economy, but it is not without significant transition risks.

The investor engagement group says it is vital that investors have robust tools to independently and consistently assess their transition plans, in order to understand their transition risk and support their engagement efforts.

Designed to complement the sector-neutral Climate Action 100+ Net Zero Company Benchmark, the standard will provide a transparent, systematic, and evidence-backed engagement tool, giving Climate Action 100+ signatories and the wider investor landscape the metrics most specific to this important, but complex, sector.

Separating the Greenwashers

The Net Zero Standard for Diversified Mining reflects the outcome of extensive consultation with investors, mining companies themselves, and other key stakeholders. A final consultation on a draft of the Standard was conducted May-June 2023 before the final release.

Rapid cuts in the consumption of coal, particularly thermal coal, are needed over the next decade to constrain emissions within a 1.5oC budget. Many CA100+ mining companies are already repositioning their businesses for the net zero transition.

While there are significant transition risks for many mining companies, the transition also creates opportunities for miners, with demand for key commodities needed for the roll-out of clean energy technologies forecast to grow significantly by 2030.

Meeting this demand requires urgent and significant investment. Investors therefore need frameworks – such as the new standard – that can interrogate the credibility of current company transition plans, track progress, and where plans are not forthcoming or are inadequate, inform engagement conversations.

Rebecca Mikula-Wright, Chief Executive Officer of AIGCC, said: “The world’s leading miners are already shifting their businesses to help the world decarbonise, but some are just making claims that aren’t backed by reality. This new standard will help investors and governments separate the greenwashers from the companies that will have sustainable businesses in a net zero world.”