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Overview

Responding strategically to climate change

The mining industry, similar to other industries, is facing numerous challenges relating to water access and utilisation, energy security, decarbonisation, and biodiversity management.

At Anglo American Platinum, we are determined to address these challenges by delivering a net positive biodiversity impact, while reducing our carbon emissions, energy and water intensity across our operations.

We are stewards of the land and ecosystems within and around our operations and are constantly innovating to reduce the environmental footprint of our business as we work on achieving the stretch environmental goals of our Sustainable Mining Plan. Our contribution to a ‘Just Energy Transition’ to a low-carbon world is further underpinned by the jobs we provide, the host communities we support and particularly the PGMs and base metals we produce, as these metals are critical in enabling associated technologies that support sustainable green solutions.

A clear pathway to carbon neutrality

Climate change is the defining challenge of our times. Our underlying principle is to reduce carbon entering the atmosphere, and our clear pathway is guided by our Purpose of re-imagining mining to improve people’s lives. This includes optimising opportunities for our products to support a greener, cleaner, more sustainable world; reducing our energy consumption and intensity; and increasing our use of renewable energy.

We are introducing novel and innovative ways to reduce diesel and energy consumption, while increasing the role of renewables in our energy mix. As part of the Anglo American Group, our partnership with EDF Renewables will ensure that all electricity utilised by 2030 will be from a zero-emission power source, enabling Anglo American Platinum to achieve its target to become carbon neutral (scopes 1 and 2) across our operations by 2040.


 

Scope 1

The deployment of Anglo American’s FutureSmart MiningTM programme across the portfolio will be instrumental in significantly reducing our Scope 1 emissions through technology.

This includes the displacement of diesel at our mines, a significant contributor to our Scope 1 emissions, through innovative solutions, including the development by nuGenTM of the world’s first hydrogen fuel-cell-powered haul truck.

Scope 2

Anglo American Platinum is following two tracks to reduce our Scope 2 emissions.

First, we are working to consume less energy through the application of FutureSmart Mining™ technologies. We are deploying energy-reduction applications in ore processing, which is the most energy-intensive part of mining. To this end, we have commissioned a bulk ore sorter plant at Mogalakwena, which aims to reject >10% low-grade material to increase the feed grade downstream. This will reduce energy consumption on waste material. The Coarse particle rejection plant is also currently under construction, which again targets to eliminate waste at the beginning of the downstream process and therefore increase concentrator capacity for high grade material.

Secondly, we are transitioning to renewable sources of electricity – given that Scope 2 GHG emissions (associated with electricity) are the largest contributor to GHG emissions in our business. As part of the wider Anglo American Group in South Africa, Anglo American Platinum is involved in the partnership with EDF Renewables, a global leader in renewable energy, to work together towards developing a regional renewable energy ecosystem (RREE) in South Africa. The ecosystem is expected to be designed to meet Anglo American’s operational electricity requirements in South Africa through the supply of 90% renewable electricity by 2030. The RREE will draw on South Africa’s natural renewable energy potential to develop a network of on-site and off-site solar and wind farms, among other opportunities, offering 24/7 renewable energy to Anglo American’s operations.


A clear pathway to carbon neutrality

Scope 3: Our commitment to decarbonising our value chains

Anglo American Platinum is committed to playing its part in mitigating the impact of our value chain emissions, while recognising that the nature of Scope 3 emissions means many of them are outside our direct control. Our supply chain has a vital role to play in meeting our ambition to reduce our Scope 3 emissions by 50% by 2040.

In 2022, we have measured, verified and reported on our Scope 3 emissions at an Anglo American Platinum level. This will enable us to identify areas and to establish detailed abatement plans focused on the areas of our most material value chain emissions, alongside our broader investigations into strategic and impactful decarbonization options.

 

A clear pathway to carbon neutrality

Just energy transition

Anglo American Platinum is committed to supporting a ‘just energy transition’ in line with our ambition to become carbon neutral by 2040. We recognise the Council for Inclusive Capitalism’s just energy transition framework and, as such a key priority for our business is ensuring that our initiatives to support the transition benefits multiple stakeholders, including employees, communities and our customers. In addition, we acknowledge South Africa’s Presidential Climate Commission’s just transition framework, which sets out a shared vision of government and social partners, principles to guide the transition, and policies and governance arrangements to give effect to the transition.

 

Disclosure and investor dialogue

We have long been engaged with investors on ESG-related issues and particularly those relating to climate change. We have a good understanding of the evolving interest and expectations of investors on our approach to climate change.

We will continue to monitor evolving standards – such as the International Sustainability Standards Board and other climate-related disclosure, including in adjacent, but relevant, areas, such as the Taskforce for Nature Related Financial Disclosure (TNFD)

Accountability and Governance

Sustainability governance is integrated into all levels of our company. Ultimately the Anglo American Platinum Board is responsible for setting the company’s Climate Change targets and monitoring the execution of our climate change decarbonisation plans. We have considered investors’ interests and expectations of investors and will continue to engage with them on climate change.

Our remuneration system takes significant account of safety and sustainability performance. A short-term incentive (STI) applies to executive directors, prescribed officers, management and corporate employees. Safety, health and environmental performance accounts for up to 20% of the STI, with critical tasks (including the Sustainable Mining Plan) contributing a further 30% to the condition weightings. Penalty metrics are applied for fatalities. Long-term incentive plan performance weightings are calculated over a three-year vesting period and include energy efficiency, CO2 emissions, water, social sustainability and transformation issues.

Further details appear in the Remuneration Report contained in the ESG Report available on www.angloamericanplatinum.com.

Climate-related advocacy

The chief executive officer plays an integral role, particularly on the overall vision for PGMs. She is also involved in advocacy issues and is a key participant in the UN Sustainable Development Goals dialogues.

We have also taken an active role in harnessing the potential of a global hydrogen economy, including through our Board membership of the Hydrogen Council, a global CEO-led initiative of leading companies with a united vision and long term ambition: for hydrogen to foster the clean energy transition for a better, more resilient future.

To develop the roadmap for a ‘Just Energy Transition” in South Africa it is crucial that all the major players work in concert to advocate and direct policy. To this extent, our CEO Natascha Viljoen was a key influencer and driver of the creation of The Energy Council of South Africa, which is a CEO-led initiative that brings together key public and private stakeholders and local development finance institutions that actively participate in the energy sector.