Mining companies gearing up for the green economy are starting to score in terms of access to capital and are now focused on mineral product acceptability and differentiation. Many are aligning with selected responsible-sourcing standards and preparing for validation of performance at an asset level to provide business stakeholders with more confidence in their environmental, social and governance (ESG) performance and to prove the sustainability credentials of their products.
Engineering is key to reducing carbon footprint, surface footprint, emissions, discharges, energy use and waste. It is also key to increasing resource efficiency, preparing for climate change and closure. To add value in the green economy, engineering must offer more than this. Engineering needs to be fully tuned in to relevant sustainability principles, driven by multidisciplinary collaboration and underpinned by accountability for impacts on people and the environment.
The benefits of incorporating engineering sustainability into mining transcend the actual mining operations; they now extend to investor portfolios and downstream supply chains. This can be illustrated with reference to carbon footprint. When a mine reduces its carbon footprint, the benefits extend to equity investors who are decarbonising their portfolios – investors are progressively committing to net zero portfolio emissions by 2050 or sooner. Lowering the carbon footprint of the mine also reduces the embedded carbon in mineral products, which is helpful to downstream manufacturers who are decarbonising manufactured goods. The proposed EU Batteries Regulation is one of many initiatives galvanising action on this front. Under this regulation, both batteries and the sources of battery minerals will have to be green. The proposed regulation includes obligations on carbon footprint accounting that encompasses material extraction.
