Anglo American updates on sustainability progress, carbon neutrality
Anglo American presents its regular sustainability performance update, including progressing towards carbon neutral operations, creating thriving communities, and building a safe, inclusive and diverse workplace culture.
Duncan Wanblad, Chief Executive of Anglo American, said: “Addressing climate change is an increasingly urgent challenge for all businesses. With our diversified product portfolio, we are well-placed to responsibly deliver many of the critical metals and minerals the world requires to transition to a cleaner, greener world. Our commitment to being part of the solution begins in our own business by meeting our carbon neutrality goals, while recognising that partnerships are vital to deliver our shared endeavour of a low carbon future.
“Everyone needs to play their part, from governments and businesses, to civil society and individuals. It is essential we also support skills and jobs and help catalyse new economic activity because this transition must include all of society – it must be ‘Just’. Through our Collaborative Regional Development approach, we act as a development partner to help improve lives by catalysing thriving communities with diversified economies that endure and prosper well beyond our presence.”
CARBON NEUTRAL OPERATIONS BY 2040
Anglo American is progressing towards its ambition to become carbon neutral across our operations by 2040. At the end of 2022, our Scope 1 and 2 emissions were 21% below the peak levels of 2019. This significant reduction reflects our transition to 100% renewable electricity supply across our South America operations, with Australia to follow in 2025. In southern Africa, now our largest source of Scope 2 emissions, we have partnered with EDF Renewables to develop 3-5 GW of clean generation capacity over the next decade.
While Scope 3 emissions reduction is largely dependent on the decarbonisation of our value chains and the steel industry in particular, which represents the significant majority of our footprint, we are progressing on our target to halve these emissions by 2040. With this in mind, we are working with several prominent steelmaking customers to help develop cleaner steelmaking technologies. We are also cutting carbon emissions in our shipping activities through the introduction of our 10-strong LNG dual-fuelled “Ubuntu” shipping fleet over the course of 2023 and 2024, with two capesize vessels already in service and offering up to a 35% emissions reduction compared to conventional fuel.
Thriving communities through local procurement and livelihoods programmes
Anglo American’s Sustainable Mining Plan commits us to supporting three jobs offsite for every job in our operations by 2025, increasing to five offsite jobs by 2030, with our focus on local procurement and our Collaborative Regional Development (CRD) approach playing a major role. Through CRD, we are making further investments with our partners in agriculture, agro-processing, municipal capacity-building, and education, catalysing diversification within local economies and helping to ensure the positive impacts of our operations are felt beyond the life of mine. By the end of 2022, we had supported 115,000 jobs through local procurement and socio-economic development programmes since the launch of our Sustainable Mining Plan in 2018, supporting 1.8 offsite jobs for every onsite job in relevant countries.
Building a safe, inclusive and diverse workplace culture
Anglo American promotes a safe, inclusive and diverse environment where every colleague is valued and respected for who they are and has the opportunity to fulfil their potential. We go beyond physical safety by helping to create an environment of psychological safety. In November, as part of our Living with Dignity programme, we launched our first Living with Dignity hub in South Africa. The Hub is an independently managed facility that provides victims of gender-based violence, bullying, harassment and victimisation (whether in the workplace or at home in the form of domestic violence) an independent reporting channel, as well as expert psycho-social and legal support.
In 2022, we embarked on accreditation with the Fair Wage Network and we are proud to have been awarded status as a committed global living wage employer in January 2023. Anglo American is the first mining company to reach this milestone. Beyond the mining sector, Anglo American is the third company in the world to be Living Wage globally accredited by the Fair Wage Network.
