Decarbonisation and climate change
We are committed to understanding and managing our climate related obligations, risks and opportunities as we operate within an increasingly carbon-constrained and changing climate.
Our management approach
We support the goals of the Paris Climate Agreement and recognise the need to achieve these goals through an energy transition that takes into account the effects climate change may have on our customers and the communities where we operate.
Our climate change strategies and reporting framework are guided by international principles, best practices, national regulatory compliance requirements and stakeholder engagement to ensure we take meaningful action to manage our impact on the environment.
Our disclosure is guided by the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and our Climate Change Policy.
Strategy
Our strategy is to adopt a practical and project-based approach to decarbonisation, using known technologies that are available today and economically feasible.
We have implemented a Roadmap to Net Zero Emissions to guide our path to net zero emissions by 2050. We strive to achieve our target by focusing on displacing diesel fuel with transitional fuels, such as in-house supplied natural gas, scope two emission grid power and renewable energy sources.
We take an active and collaborative approach in supporting the latest research and development of new clean energy technologies critical for the transition to a 1.5°C world.
Our roadmap shows our emissions profile fluctuating above and below the 1.5 and 2°C scenarios, which is a realistic depiction of how we will aim to reach our target.
Governance
Climate change has been identified as both a material risk and an opportunity for MinRes. To ensure appropriate management, it is incorporated through our corporate governance framework and receives Board and Committee oversight.
The MinRes Board continues to oversee climate performance through the monthly tracking of greenhouse gas (GHG) emissions while delegating oversight of climate-related management and performance to the below committees.
The Sustainability Committee is responsible for overseeing sustainability management, including climate-related issues, with standing agenda items including:
- MinRes' progress toward net zero
- climate opportunity and risk
- operational level GHG performance and
- status updates against the TCFD.
The Committee is deemed to have the appropriate skills, knowledge, experience and competencies to have appropriate oversight of the risks and controls relevant to us.
Where necessary, each member of the Committee may seek independent professional advice on matters relating to their responsibilities
The Audit and Risk Committee is responsible for reviewing the organisational structure of the Company to ensure appropriate resources and processes are available and are being used to eliminate or minimise risk.
The Committee also has oversight of our company's Enterprise Risk Register, including climate change risks, controls and mitigating actions, which is presented to the Board quarterly.
The Chief Financial Officer provides the highest management-level responsibility for climate issues.
This position serves as a joint Company Secretary, reports to the Board and Sustainability Committee on sustainability progress and authorises the monthly sustainability progress report, including consideration of climate-related performance.
Key Management Personnel (KMP) comprise members of our management team who have the responsibility, authority and accountability for planning, directing and controlling the activities of MinRes.
KMP remuneration decisions are guided by several principles, including the prioritisation of our culture and behaviours that continue to promote safety, social and environmental responsibility, innovation and risk management.
We utilise a balanced scorecard when assessing individual KMP performance to calculate short-term incentive (STI) entitlements. Performance measures linked to the STI remuneration framework include safety, governance and sustainability (including the management of climate-related issues).
Refer to our 2023 Remuneration Report for further information.
The Decarbonisation Working Group is responsible for matters and activities related to climate change and decarbonisation projects to reduce our carbon emissions.
The Working Group supports the integration of climate change strategy into our business and progresses internal GHG targets across operations, ensuring these are aligned with our overarching emissions reduction goals.
The group meets monthly and is comprised of KMP and subject matter experts.
Our Climate Change Policy acknowledges our responsibility to address the impact of our operations on the natural environment and to drive action to reduce carbon intensity.
The policy outlines MinRes' commitment to managing our climate-related obligations, risks and opportunities as we operate within an increasingly carbon-constrained and changing climate.
We understand that addressing climate change requires a coordinated effort and ongoing collaboration with a diverse range of stakeholders.
Opportunities and risks
We embed climate risk analysis in our portfolio composition, emissions reductions, targets, technology and innovation developments.
Guidance from our climate-related policy and stakeholder engagements progresses appropriate mitigation and management strategies.
Company-level risks, such as the evolving climate change mitigation regulations, are monitored by our Sustainability Committee and dedicated Decarbonisation Working Group.
Climate change presents both opportunities and risks for MinRes. Our innovative capabilities as a mining services provider position us well to respond to climate change drivers by developing energy-efficient materials handling solutions at our operations and displacing diesel fuel usage.
Using the TCFD recommendations, climate-related risks are characterised as either physical risks relating to the physical impacts of climate change, or transition risks related to the risks associated with transitioning to a lower-carbon economy.
Reduction initiatives
We are investigating alternative and renewable energy opportunities to support our net zero goal.
Natural gas will play an important role as a baseload transition fuel, ensuring a stable power supply at our operations while we advance our efforts to adopt renewable energy technologies to further reduce our emissions.
We remain dedicated to investigating and evaluating a diverse range of options to address hard-to-abate emissions in areas such as road haulage, mining fleet and transhipper operations.
Industry collaboration
Addressing climate change requires coordinated effort and collaboration with a diverse range of stakeholders. To achieve this, we are committed to:
- developing and maintaining strong community and stakeholder relationships with those impacted by our operations to effect positive change including our employees, customers, suppliers, government partners, communities and investors
- collaborating and partnering with Traditional Owners. This includes supporting business development in the regions in which we operate to ensure we are building climate resilience and restoring Country.
- participating with industry associations to engage with efforts to respond to climate change.
As awareness of climate change continues to grow, we remain dedicated to conducting engagement with stakeholders, fostering a deeper understanding of their concerns, interests and potential opportunities. We have recently collaborated with the:
- Future Energy Exports Collaborative Research Centre
- Climate and Energy Reference Group