Operational decarbonisation – pathways to net zero

We have sought to address climate risks and have set public greenhouse gas (GHG) emissions reduction targets since the 1990s. Our climate change approach is focused on reducing operational greenhouse gas emissions, investing in low emissions technologies, supporting emissions reductions in our value chain, managing climate-related threats and opportunities and partnering with others to enhance the global policy and market response.

In support of this approach, we have set the following targets and goal in relation to our operational GHG emissions (Scope 1 and Scope 2 from our operated assets):

• Short-term: Maintain our total operational emissions at or below FY2017 levels¹ by FY2022, while we continue to grow our business
• Medium-term: Reduce operational emissions by at least 30 percent from FY2020 levels² by FY2030
• Long-term: Achieve net zero operational emissions by 2050

In the past year, some important steps have been taken in support of these decarbonisation targets and our long-term goal.

Powering our operated assets with renewable energy

Coal

In FY2021, we signed an agreement to meet approximately half of our electricity needs from low-emission sources across our Queensland Coal mines, including solar and wind. The agreement will support the development of new solar and wind farms in Queensland – the Western Downs Green Power Hub, which are expected to be completed in late 2022, and Karara Wind Farm, which is expected to be completed in early 2023.

Nickel

In FY2021, we also signed an agreement for Merredin Solar Farm to provide up to 50 per cent of our electricity needs at the Nickel West Kwinana Refinery.

Copper

Our Escondida and Spence copper mines in Chile have begun their expected transition to 100 per cent renewable energy by the mid-2020s , based on four renewable power purchase contracts established in FY2020 .

Electric vehicle trial with Toyota

In January 2021, we announced a partnership with Toyota Australia for a new Electric Light Vehicle (ELV) trial at our Nickel West operations in Australia. Under the partnership, a Toyota LandCruiser 70 has been converted from diesel to fully electric via onboard battery power. It is expected to fulfil several roles at site, operating in above ground and underground settings.

This trial builds on other trials currently underway at Olympic Dam in South Australia and Broadmeadow in Queensland. In May 2021, we also came together with Rio Tinto and Vale to launch a global challenge for technology innovators across multiple industries to develop new concepts and solutions for large-scale haul truck electrification systems aimed at significantly cutting emissions from surface mining. 

1 FY2017 baseline will be adjusted for any material acquisitions and divestments based on GHG emissions at the time of the transaction. Carbon offsets will be used as required. 

2 FY2020 baseline will be adjusted for any material acquisitions and divestments based on GHG emissions at the time of the transaction. Carbon offsets will be used as required.