Released March 21, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Swiss mining giant Glencore (Baar, Switzerland) said Wednesday it was introducing new interim targets for greenhouse gas reductions, adding it was downgrading the importance of coal in its portfolio.
The company introduced its Climate Action Transition Plan (CATP), covering an operational two-year period ending in 2026. Under the plan, Glencore is committed to cutting its overall emissions by 15% by 2026 and 50% by 2035.
The CATP, however, introduces a new interim goal of a 25% reduction in carbon dioxide-equivalent emissions from its industrial assets by the end of 2030.
"We are on track to meet our 2026, 2030 and 2035 emissions reduction targets, all of which are measured against a restated 2019 baseline," Chief Executive Officer Gary Nagle said in a statement.
A study published in the journal Nature finds that primary mineral and metal production accounted for about 10% of the total global energy-related greenhouse gas emissions in 2018, before the COVID-19 pandemic.
For just copper mining, the study showed the fuel and electricity consumption are on a remarkable rise because of a decline in quality-grade ore.
Glencore claims that it's playing a supporting role in the energy transition, touting a focus on recycled commodities that provide the backbone for so-called transition technologies, such as the batteries that drive many electric vehicles today.
On the broader path to a low-carbon economy, Glencore said many of the circumstances, such as geopolitical trends and technological innovation, are beyond its control.
"We continue to identify and deliver cost-effective emissions reduction opportunities for our Scope 1 and 2 emissions," the company said. "Whilst our Scope 1 and 2 industrial emissions reflect a small proportion of our overall emissions footprint, these factors are within our control and we are developing solutions to address them, such as electrification and alternative fuel, as well as strengthening our own monitoring capabilities."
Scope 1 emissions relate to the emissions from sources the company controls directly, such as fossil fuels used in a corporate fleet. Scope 2 emissions come from indirect sources of energy, such as the emissions from electricity taken from the grid.
Scope 3 emissions are largely out of a company's control as it relates largely to the consumption of products along the value chain.
In the energy sector, Shell plc (NYSE:SHEL) (London, England) in an update to its climate goals said that reducing net carbon intensity requires actions from both Shell itself and its consumer base.
"While we can encourage the uptake of low-carbon products and solutions, we cannot control the final choices customers make," the company said. For more information, see March 15, 2024, article - Shell Modifies Climate Goals.
Glencore, meanwhile, set a goal of cutting Scope 3 industrial emissions by 50% by the end of 2035, relative to a 2019 base level. Total emissions, however, increased by nearly 10% last year compared with 2022 levels.
That said, the company said it is on pace to meet its objectives. And while the company remains heavily invested in coal assets, it did say it would phase down its thermal coal operations, "while also allocating capital to grow our transition-enabling commodities business, and evolving our understanding and assessment of the climate-related risks and opportunities that our business faces."
Glencore produced around 113 million tons of coal last year and much of that was sent to markets in China and India.
"Although decarbonization is underway in these markets, their scale, existing infrastructure, and cost factors mean coal is expected to continue to play a role in meeting their energy needs into the long term," the company said.
Glencore nevertheless said it expects coal-fired electricity to drop from around 30% of the total global market share to somewhere between 4% and 17% by the mid-2030s.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company introduced its Climate Action Transition Plan (CATP), covering an operational two-year period ending in 2026. Under the plan, Glencore is committed to cutting its overall emissions by 15% by 2026 and 50% by 2035.
The CATP, however, introduces a new interim goal of a 25% reduction in carbon dioxide-equivalent emissions from its industrial assets by the end of 2030.
"We are on track to meet our 2026, 2030 and 2035 emissions reduction targets, all of which are measured against a restated 2019 baseline," Chief Executive Officer Gary Nagle said in a statement.
A study published in the journal Nature finds that primary mineral and metal production accounted for about 10% of the total global energy-related greenhouse gas emissions in 2018, before the COVID-19 pandemic.
For just copper mining, the study showed the fuel and electricity consumption are on a remarkable rise because of a decline in quality-grade ore.
Glencore claims that it's playing a supporting role in the energy transition, touting a focus on recycled commodities that provide the backbone for so-called transition technologies, such as the batteries that drive many electric vehicles today.
On the broader path to a low-carbon economy, Glencore said many of the circumstances, such as geopolitical trends and technological innovation, are beyond its control.
"We continue to identify and deliver cost-effective emissions reduction opportunities for our Scope 1 and 2 emissions," the company said. "Whilst our Scope 1 and 2 industrial emissions reflect a small proportion of our overall emissions footprint, these factors are within our control and we are developing solutions to address them, such as electrification and alternative fuel, as well as strengthening our own monitoring capabilities."
Scope 1 emissions relate to the emissions from sources the company controls directly, such as fossil fuels used in a corporate fleet. Scope 2 emissions come from indirect sources of energy, such as the emissions from electricity taken from the grid.
Scope 3 emissions are largely out of a company's control as it relates largely to the consumption of products along the value chain.
In the energy sector, Shell plc (NYSE:SHEL) (London, England) in an update to its climate goals said that reducing net carbon intensity requires actions from both Shell itself and its consumer base.
"While we can encourage the uptake of low-carbon products and solutions, we cannot control the final choices customers make," the company said. For more information, see March 15, 2024, article - Shell Modifies Climate Goals.
Glencore, meanwhile, set a goal of cutting Scope 3 industrial emissions by 50% by the end of 2035, relative to a 2019 base level. Total emissions, however, increased by nearly 10% last year compared with 2022 levels.
That said, the company said it is on pace to meet its objectives. And while the company remains heavily invested in coal assets, it did say it would phase down its thermal coal operations, "while also allocating capital to grow our transition-enabling commodities business, and evolving our understanding and assessment of the climate-related risks and opportunities that our business faces."
Glencore produced around 113 million tons of coal last year and much of that was sent to markets in China and India.
"Although decarbonization is underway in these markets, their scale, existing infrastructure, and cost factors mean coal is expected to continue to play a role in meeting their energy needs into the long term," the company said.
Glencore nevertheless said it expects coal-fired electricity to drop from around 30% of the total global market share to somewhere between 4% and 17% by the mid-2030s.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
