RNS Number : 9067V
16 December 2021
NEWS RELEASE, 16 DECEMBER 2021
Antofagasta releases 2021 Climate Change Report
Antofagasta (the "Company") today releases its 2021 Climate
Change Report, highlighting how the Company is fulfilling the
ambitions set out in its Climate Change Strategy. The Strategy,
which was approved in November 2020, is designed to help the
Company decarbonise and reach its net zero commitment by 2050,
while increasing the resilience of the Company's operations and
surrounding environments to climate change.
The Strategy is based on five key pillars:
1. developing climate change resilience,
2. reducing GHG emissions,
3. managing strategic resources,
4. managing the environment and biodiversity, and
5. integrating stakeholders.
Iv á n Arriagada, Antofagasta CEO commented: "Climate change is
one of the greatest challenges facing society and our company
today. As a copper producer, Antofagasta can address this challenge
both by decarbonising its operations and by responsibly and
sustainably providing a key commodity for the transition to a
"Our Climate Change Strategy is a dynamic strategy that we will
be adapting in line with changing climate scenarios, regulation and
scientific and technological advances, always with the aim of
boosting the company's resilience and competitiveness. This is, we
believe, the best way to fulfil our purpose of developing mining
for a better future."
Climate Change Report Highlights
-- Ambitious targets to reduce greenhouse gas (GHG) emissions:
in line with Chile's national commitment, Antofagasta aims to
achieve carbon neutrality by 2050, or sooner. These targets also
include a 30% reduction in Scope 1 and Scope 2 emissions by 2025,
compared to 2020.
-- Addressing water scarcity: working to decrease continental
water consumption by increasing the use of seawater in copper
production from 43% today to 90% by 2025.
-- Electromobility Plan: working to eliminate diesel entirely
from the Company's operations, replacing it with cleaner fuel such
-- Strengthening climate resilience: adopting the
recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), whilst also mitigating emerging climate risks
and taking advantage of the opportunities to decarbonise our
-- Leveraging every part of the Company: seeking to maximise
engagement and horizontal collaboration across multidisciplinary
areas and levels of the Company to drive better implementation,
monitoring and continuous improvement.
Pillar 1: Developing Climate Change Resilience
-- Building on the Company's climate scenario analysis, the
Company has developed a model that assesses climate risks and
opportunities across different future climate scenarios on an
ongoing basis. The potential magnitude of Antofagasta's exposure is
similar under both an extreme physical warming scenario and an
aggressive mitigation scenario.
-- The Company is in the process of finalising a Long-Term
Energy and Carbon Reduction Plan and has introduced an internal
carbon price to incentivise the allocation of capital to projects,
which will decarbonise its operations. The internal carbon price
has been used in the creation of the Company's 2022 budget and from
January 2022, will be used in the economic evaluation of supply
Pillar 2: Reducing GHG Emissions
-- In 2018, the Company set itself the target of reducing direct
(Scope 1) and indirect (Scope 2) GHG by 300,000 tonnes of CO2e by
2022. As of end-2020, the Company had more than met this target,
achieving a reduction of over 580,000 tonnes compared to the 2017
-- Therefore, in May 2021, the Company announced its aims to
reduce Scope 1 and 2 emissions by 30% by 2025 compared to 2020,
equivalent to a reduction of 730,000 tonnes of CO2e.
-- To address Scope 1 emissions, principally the result of the
use of diesel for mine haulage, the Company is:
o Partnering with the Hydra Consortium, to explore the use of
hydrogen in mine haulage trucks, as a replacement for diesel.
o Testing the effectiveness of injecting a small amount of
hydrogen into the diesel used by trucks to reduce emissions,
expecting to reduce fuel consumption by about 5%.
-- To address Scope 2 emissions, all of the Company's mining
operations are switching from conventional sources of power supply
- principally coal - to renewables by year end-2022.
-- To address Scope 3 emissions, the Company has agreed to
participate in evaluating the feasibility of HyEx, a project led by
energy multinational Engie and a Chilean explosives company, Enaex,
to produce green ammonia in northern Chile. This would, in turn, be
used to make ammonium nitrate, which is used for blasting in the
mining industry and could also potentially serve as fuel for trains
Pillar 3: Managing Strategic Resources
-- The Company has created a new Strategic Resources area to
provide centralised management of the Group's water and energy
resources, which includes:
o The continued reduction of the Company's use of continental
water in areas where water is scarce through initiatives such as
the Los Pelambres desalination plant and the reverse osmosis
drinking plant at Centinela.
o Transitioning the Company to a low-carbon or carbon-neutral
energy supply by focusing on renewable energy sources at the
Pillar 4: Managing the Environment and Biodiversity
-- The Company is exploring and innovating in nature-based
solutions for the capture of CO2, improvement of environmental
management and protection and care for biodiversity, as well as
addressing adaptation to both acute and chronic physical risks,
corresponding to the different climate change scenarios projected
by the Group.
-- The Company has applied a Biodiversity Standard, which seeks
to ensure a net zero loss of biodiversity and is aligned with the
ICMM's (International Council on Mining and Metals) position
statement on Mining and Protected Areas.
Pillar 5: Integrating Stakeholders
-- The Company is engaging different stakeholders in the design
and implementation of water management initiatives to ensure that
they benefit the surrounding communities and territories.
-- In terms of its supply chain, the Company is developing
programmes that help suppliers reduce and mitigate their own GHG
emissions. In addition, the Company has for the first time, has
included ESG criteria in its decision-making model with regards to
-- The Company is training employees and other stakeholders
about climate change to increase awareness and provide continuous
incentives to facilitate the Strategy's implementation and
The Company is continuing to strengthen its Climate Change
Strategy through a number of initiatives, including:
-- The creation of an Energy Policy, in line with the
requirements of Chile's new Energy Efficiency Law, a Water Policy
and an updated Biodiversity Standard.
-- The Company's 2021 Annual Report will disclose its performance against TCFD recommendations
-- The Company is also increasing the coverage of its GHG
emissions accounting to include a wider range of Scope 3 emissions
categories so that further upstream and downstream drivers of
emissions can be identified.
Progress on the Strategy's implementation is tracked through a
dashboard, which shows the advance of each pillar in general, and
of each area of action in particular, as well as details of the
related initiatives, including the deliverables and persons
responsible. In addition, renumeration arrangements are tied to the
effective implementation of the Company's business strategy,
including the Climate Change Strategy.
The report can be downloaded here .
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