GlobalData offers a comprehensive analysis of Antofagasta, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of climate change and associated ESG keywords, GlobalData delivers valuable information on Antofagasta‘s ESG performance. GlobalData’s company profile on Antofagasta offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.
Antofagasta, a mining company, is committed to reducing emission and has made significant progress in reducing its greenhouse gas (GHG) emissions. In 2021, the organization set ambitious targets, aiming for a 30% reduction in both direct and indirect emissions (Scopes 1 and 2) by 2025, compared to the 2020 baseline, equivalent to a reduction of 730,000 tCO2e. The overarching objective is to achieve carbon neutrality by 2050 or earlier, contingent on technological advancements. As of April 2022, the entirety of their electricity consumption has transitioned to renewable energy-based supply contracts, leading to a reduction in Scope 2 emissions and the early accomplishment of the 30% reduction commitment. The company has taken steps to reduce its emissions, including sourcing power from renewable sources for all mining operations since April 2022. This switch is estimated to result in a reduction of close to 900,000 tonnes of CO2 equivalent compared to 2021. In 2022, the company reported 1,113,581 tCO2e for Scope 1 emissions, while Scope 2 emissions totaled 960,650 tCO2e (location-based) and 95,236 tCO2e (market-based). The emission intensity, measured as tCO2e/tCu6 was 3.00 location based and 1.75 market based.
Antofagasta has integrated the identification and management of climate change risks into its risk management processes. The company has identified and implemented action plans to manage both physical and transition risks associated with climate change. These risks have been integrated into the company's key risk matrix, allowing for comprehensive monitoring and review.
In terms of emission reduction, Antofagasta has already achieved significant milestones. The company's mining operations now have power supply contracts from renewable sources, resulting in a substantial reduction in emissions. Additionally, the company has invested in circular economy initiatives and waste conversion projects to minimize resource consumption and prevent value loss. Antofagasta has also launched a Circular Economy Strategy that will be implemented in 2023.
Antofagasta is committed to addressing its Scope 3 emissions, which are indirect emissions generated by upstream and downstream processes that the company does not control or own. The company is working with other industry players to develop a common standard for measuring and reporting Scope 3 emissions. Antofagasta aims to set specific reduction targets for Scope 3 emissions in the near future. In 2022, the company conducted a preliminary assessment of the 2021 Scope 3 emissions, revealing that nearly 60% originated from purchased goods and services. A primary emphasis during the year involved enhancing the ESG performance of suppliers. The company reinforced ESG criteria in tenders for contracts exceeding $10 million, established sustainability targets for suppliers, and achieved notable advancements in quantifying Scope 3 GHG emissions.
Overall, Antofagasta is making significant progress in reducing its GHG emissions and has already achieved its 30% reduction target ahead of schedule. The company's commitment to renewable energy, circular economy initiatives, and collaboration with industry partners demonstrates its dedication to achieving environmentally friendly future.