Hydropower

Climate change

Net zero emissions from our operations by 2050

15

%

Reduction by 2025

50

%

Reduction by 2030

Net zero

By 2050

2025 Climate Action Plan

(this is now integrated within our 2024 annual report)

2025 Climate Action Plan
PDF
12.15 MB
Scope 1, 2 and 3 Emissions Calculation and Climate Methodology 2024
PDF
2.03 MB
Industry Association Disclosure 2024
PDF
1.65 MB
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Decarbonisation progress update

We have a clear plan on decarbonisation, we are taking action and we are creating value in the way we are approaching the energy transition and path to net zero. While we still have a long way to go, our momentum is building.

Find out more about our decarbonisation progress in 2024.

Climate briefing papers

We engage with investor and civil society organisations on our approach to climate advocacy to support the decarbonisation of our operations. To support this approach, and in line with our commitment to transparency, we are publishing a series of briefing papers on our key emission sources, efforts to decarbonise specific assets and how policy-settings can support our Scope 1 and 2 emissions reduction targets which are aligned with the goal of limiting global warming to 1.5°C. Additionally, the briefing papers now address our Scope 3 emissions in the steel value chain.

Decarbonising our minerals processing 2023
Decarbonising our minerals processing 2023
PDF
891 KB
Decarbonising our minerals processing 2023 [FR]
PDF
902 KB
Decarbonising our Australian alumina refineries 2023
PDF
2.42 MB
Transitioning our diesel fleet 2024
PDF
1.32 MB
Decarbonising the steel value chain 2024
PDF
1.47 MB

1. Accelerate the decarbonisation of our operations

Due to the scale of our mining operations and processing activities we have significant Scope 1 and 2 emissions. And we know we must address this with urgency to be part of the solution. Between now and 2030, we must switch to renewables at scale and at pace, electrify everything we can, work across our entire value chain, accelerate the development of new technology, and address emissions related to process heat at our alumina refineries and minerals processing operations.

Our goals

To strengthen our alignment with the Paris Agreement and our long-term commitment of achieving net zero emissions by 2050:

  • We aim to reduce our Scope 1 and 2 emissions by 15% by 2025 and by 50% by 2030
  • We estimate that we will invest $5–6 billion in decarbonisation projects, predominantly in the second half of the decade

Actions we’re taking to Scope 1 and 2 targets

In 2023 we continued to progress our 6 abatement programs focused on the decarbonisation challenge across our business: repowering our Pacific Aluminium operations, renewables, aluminium anodes – ELYSISTM, alumina process heat, minerals processing and diesel transition.

By 2025 we expect to have made financial commitments to abatement projects that will achieve more than 15% of Group emissions. However, our actual emissions abatement will lag this.

We are also increasing our investment in our Nature-based Solutions team and now expect high integrity offsets to play a greater role in our decarbonisation strategy.

Why these actions are important

In contrast to many of our peers, about 80% of our emissions are driven by processing and producing metals and minerals, which are high temperature, hard-to-abate activities. The remaining 20% are from our mining operations.

Our 6 abatement programs are focused on the most significant sources of our Scope 1 and 2 emissions: electricity at 41% (purchased and generated), carbon anodes in aluminium smelting and reductants in titanium dioxide furnaces at 21%, fossil fuels for heat at our processing plants and alumina refineries at 20%, and diesel consumption in our mining equipment and rail fleet at 13%.

2. Develop products and technologies that help our customers decarbonise

We need to tackle our Scope 3 emissions, as we fully appreciate that to thrive in the long term we need to be part of net zero value chains. We are working closely with our customers and others to develop more secure and sustainable value chains and accelerate the development of cleaner production pathways for our products.

Our goals

To work with our customers to tackle full value chain emissions:

  • We will increase research and development of cleaner products
  • We will partner with our customers to help them meet their Scope 1 and 2 emissions goals

Actions we’re taking to tackle Scope 3 emissions

Our approach to addressing Scope 3 emissions is to engage with our customers on climate change and work with them to develop and scale up technologies to decarbonise steel and aluminium production.

Why these actions are important

We have limited control over our Scope 3 emissions, as these come primarily from our customers in Asia while processing our iron ore into steel and bauxite into aluminium. While we have a key role to play, we do not set an overall Scope 3 emissions target as we have limited ability to directly influence the production processes of our customers – or theirs. In addition, because we do not extract fossil fuels, we do not have the option to reduce our Scope 3 emissions by shifting our portfolio away from fossil fuels.

The best way we can tackle Scope 3 emissions is to work through partnerships – with customers, governments, universities and others – to develop the technologies needed to produce low-carbon metals and minerals and help shape demand for low carbon metals and minerals.

3. Grow production of materials enabling the energy transition

The energy transition will create significant additional demand for our commodities, including copper, lithium and aluminium. We aim to grow in these commodities as well as in the production of high-quality iron ore. This iron ore will support the production of low-carbon steel required for infrastructure for the energy transition and ongoing urbanisation.

Our goals

To capture new growth opportunities in materials with strong low carbon transition-related demand:

  • Our ambition is to increase disciplined capital growth of up to $3.0 billion annually by 2024 to 2025
  • We will seek to grow further in copper and battery materials and bring additional tonnes of high-grade iron ore and low-carbon aluminium to market

Actions we’re taking

We are developing a pipeline of growth options leveraged towards the energy transition while maintaining our absolute commitment to capital discipline.

Why these actions are important

Meeting the incremental demand of the energy transition, and ensuring local supplies of critical minerals globally, deepens our relevance to the world and ensures our long-term profitability.

Climate change feature stories

Low-carbon windfarm

7 things the world will need for a low-carbon future

Wind, sun and water – what else do you need to make renewable energy work?
Dave and solar panels, Kennecott operations

Turning slime into solar panels

Our Kennecott copper mine is extracting a rare, valuable metal from waste
Electric car near a body of water

Creating a sustainable supply of minerals for a decarbonised future

The role of technological breakthroughs and the circular economy
Gudai-Darri solar farm, Pilbara

Harnessing renewables to decarbonise the Pilbara

Sun and wind will power one of the world's largest microgrids
Yarwun Alumina Refinery from the air

Could hydrogen help reduce emissions in the aluminium industry?

A new pilot program will help us find out
Birds on a sandbar

Exploring nature-based solutions to climate change

Investing in conservation will accelerate decarbonisation
Straw biomass

A new way to decarbonise steelmaking

Tackling a global challenge
Elysis aluminium

Carbon-free aluminium smelting is a step closer

Revolutionising the way aluminium is made
Close-up of chain links

How can mining companies contribute to sustainable supply chains?

Partnering with customers and suppliers to tackle industry challenges

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