The mining industry is facing a shift in reporting requirements, including a stronger need to identify and evaluate climate-related risks and adaptation actions. For example, the Global Industry Standard on Tailings Management (GISTM), released in 2020, lists climate change projections and their associated uncertainty as an integral requirement of the tailings infrastructure knowledge base. In addition, the Climate Disclosure Standard from the International Sustainability Standards Board (ISSB) was modelled on recommendations made by the Task Force on Climate related Financial Disclosures (TCFD); these standards require companies to disclose significant and material sustainability risks and opportunities related to climate. The increasing need to understand and improve climate resilience across the industry is clear.
The first step in building this understanding is to compile and evaluate the potential changes in conditions caused by climate change. SRK has been developing climate forecasts internationally for over a decade and continues to improve its approach using the latest model projections. These results are translated into workable statistics and indicators that operators and decision-makers can integrate to infrastructure and systems. This leads to the next important step in enabling climate resilience: a climate change risk assessment.
SRK recently developed a climate change risk assessment framework for an international mining company. The framework, which follows ISO climate change standards along with jurisdictional guidance, is being applied across the company’s operations in Australia, South America and Africa. This work includes a detailed climate characterisation for each site and the development of indicators in order to relate climate change projections to the occurrence of potential physical hazards such as droughts, fires and floods. The risk assessment framework provides an
understanding of the range in conditions that may be expected in the near- to long-term future. Results inform miners of the effect of these projected changes on operations. Projections are developed in a consistent and transparent process that can be shared with stakeholders and investors.
Climate risks to infrastructure and processes are identified using standard consequence and likelihood tables; risks consider potential losses to the environment, human safety, reputation and costs. The risks are then ranked according to the owner’s risk tolerance and priorities. This risk assessment matrix enables mine operators to plan the future by making informed decisions that enhance their resilience to climate change and meet international standards and requirements.
