Gold Fields plans to work with its suppliers to jointly combat the effects of climate change through the reduction of scope 3 carbon emissions.
The SA-based global gold producer already has a comprehensive road map across its operations in SA, West Africa, Australia and Americas to cut its scope 1 and 2 emissions by a net 30% by 2030 from a 2016 base.
Climate change has become a global imperative, sending energy intensive users like miners scrambling to find environmentally sustainable solutions. Investors, lenders and shareholders also are increasingly becoming vocal against the use of environmentally polluting fossil fuels.
Gold Fields on Monday announced a 2030 target to reduce scope 3 carbon emissions by a net 10% from the 2022 baseline.
The gold miner determined the scope 3 target after spending 18 months working with key suppliers to its mines to establish a baseline of its emissions profile. The baseline study determined that Gold Fields’ total 2022 scope 3 emissions amounted to 980 kiloton (kt) CO2 equivalent, 36% of its total 2022 emissions.
The 36% level is an increase from the 25% reported previously and is based on the Greenhouse Gas Protocol and a new methodology by the International Council of Mining and Metals, launched in September.
Unlike scope 1 and 2 emissions, over which companies have considerable control, scope 3 emissions are generated outside their control.
The study found that the company’s most significant upstream contributors to scope 3 emissions were suppliers of fuels, mining services, cement and explosives.
Gold Fields said it would intensify its engagement with the majority of its suppliers to reassess its decarbonisation progress, status, and targets in 2025.
“We will be working with our suppliers to ensure that we jointly address our climate change impacts and actively engage those suppliers who have not yet committed to emission reductions,” interim Martin Preece said in a statement.
Other strategies include switching to greener products, moving to greener suppliers and making emission reductions part of the company’s procurement criteria, Preece added.
Gold Fields’ current 10% reduction target means that the company has to cut about 100kt CO2 equivalent from its 2022 scope 3 emission baseline of 980kt CO2 equivalent by 2030.
In contrast, its scope 1 and 2 reduction commitments are against a 2016 baseline, when the company launched its climate change strategy.
“Thanks to our considerable investments in renewable energy, which now accounts for approximately 17% of our electricity mix, we are making good progress in reducing our scope 1 and 2 emissions,” Preece said.
“In 2023, we are on track to further reduce these emissions compared to 2022, which will also assist in reducing our scope 3 emissions.”
The bulk of Gold Fields’ current greenhouse emissions emanate from electricity usage. More than half of the emissions are scope 2 emissions, with South Deep the highest emitter, deriving most of its electricity from coal-based power supplied by Eskom.
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