Sustainability
as-a-service’ (LaaS) to its commercial and public sector customers. Under such a contract, the company installs, operates and maintains the lighting systems while the customers pay a monthly service fee. Previously, everything had been designed with a linear business model in mind. “If people in those industries and across industries hadn’t got together to understand the minimum conditions that they all needed to agree on for the new business model to reach scale, it would always have remained niche,” Spano says. Similarly, when Tesla started talking about electric vehicles 20 years ago, there were questions about range and charging infrastructure. Even earlier, thousands of kilometres of roads were required to make fuel cars a more useful alternative to good old-fashioned equine horsepower. “All of these concepts required engagement with various companies and governments to drive to a new standard,” Spano stresses. ICMM’s collaborative initiative on ‘Cleaner,
Safer Vehicles’ provides an example from within the mining industry itself. A unique supply chain collaboration between the 27 ICMM member companies and 19 original equipment manufacturers (OEMs), it aims to eliminate collision-related fatalities, which account for 30% of mining related fatalities, and reduce emissions in line with Scope 1 and 2 targets. According to ICMM, the project represents a critical mass in terms of market pull. One of the initiative’s priorities is improving the safety levels of the gigantic haul trucks used to transport ore. “At present, the way the roads have been designed, the way the employees are trained to drive, the way the trucks have been designed – all of this has been designed for the existing system,” Spano says. “We’re moving towards a more automated system that requires processes, technologies and individuals to behave in a way that doesn’t fit the current model. Collaboration is required to understand what the new solutions look like, to open the space for a new market and to define how companies compete.” Similarly, to reduce the emissions from haul trucks, many different stakeholders will be involved. “If we don’t agree on a minimum base of external conditions, such as regulation and financing, these changes will take longer,” Spano says.
Scope 3 emissions and corporate strategy
One of the biggest challenges of setting credible targets for Scope 3 emissions is that action depends on the combined efforts of producers, suppliers and customers, with some commodities facing greater technological and collaborative barriers than others. While this means that setting targets that work
World Mining Frontiers /
www.nsenergybusiness.com
across the board is difficult, Spano says it’s crucial not to get distracted from the ICMM’s overall goal. “‘Should we compare [the actions of stakeholders to tackle Scope 3 emissions]?’ we’re asking ourselves,” he says. “And if we compare, how far should we compare? This is all about reducing emissions on a level that is well below 2°C and ideally within the 1.5°C the Paris Agreement is aiming for. It’s important to be able to compare, but what we should really focus on is helping companies and industries to understand their footprint, for that footprint to be measured with methodologies that are credible and robust, and for that to drive action in an increasingly accelerated and committed way.”
A reduction in Scope 3 emissions in the mining sector requires a rethink of systems across the board, including the array of vehicles used.
“We’re moving towards a more automated system that requires processes, technologies and individuals to behave in a way that doesn’t fit the current model. Collaboration is required to understand what the new solutions look like, to open the space for a new market and to define how companies compete.”
The encouraging news is that commitment is being seen across the board, right up to the highest echelons of leadership. “Compared to the kind of response you would have received from many industries five years ago, things have changed a lot,” Spano smiles. “We’re convening CEOs around the technical elements of Scope 3 – it’s very, very exciting.” This is all encouraging to hear, as it will take the combined efforts of all stakeholders across the mining industry if the effects of Scope 3 emissions are to be addressed in a way that matters. ●
28% McKinsey & Company 41
Percentage of global greenhouse gas emissions within mining when Scope 3 emissions are taken into account.
Mr. Tempter/
Shutterstock.com
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