Mining Journal Intelligence (MJI) and Mining Magazine Intelligence have released their inaugural ESG Mining Company Index, a comprehensive evaluation of ESG performance across 61 of the world's largest mining companies. This new index assesses over 7,000 data points, evaluating companies across six critical ESG pillars: Carbon Emissions, Water, Land Disturbance, Safety, Diversity, and Social Investment.
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The State of Carbon Emissions
The ESG Mining Company Index reveals that the 61 companies emitted 230 million tonnes of CO2 equivalent in 2023, approximately 0.4% of global emissions. This data highlights the ongoing challenge in achieving substantial emissions reductions across the sector, though some progress is evident. BHP, for instance, achieved the largest reduction from 2021-2023, cutting emissions by 39.9% primarily through renewable energy agreements.
Scope 3 Emissions: A Reporting Challenge
The report also highlights the complexities surrounding Scope 3 emissions—indirect emissions throughout the supply chain. Of the 61 companies, only 43 reported Scope 3 emissions, which totaled 4.7 billion tonnes in 2023. Variations in reporting standards and inconsistent supplier data continue to complicate accurate measurement of these emissions, underscoring the need for more robust reporting frameworks in the industry.
Boardroom Diversity and Workforce Inclusion
The ESG Mining Company Index also sheds light on gender diversity within the sector, especially at the leadership level. Among the companies analyzed, female representation on boards averaged 31%—a figure 8% higher than the global average of 23% female-held board seats. This progress in boardroom diversity reflects a growing recognition of gender inclusion in leadership roles.
However, the data indicates that gender diversity among the general workforce remains limited, with women making up just 17.4% of employees across these companies in 2023. Despite a gradual increase over the past three years, significant strides are still needed to boost female representation throughout the workforce.
The ESG Mining Company Index provides a vital benchmark for the sector, revealing both progress and ongoing challenges. As the mining industry faces growing sustainability pressures, this index offers valuable insights for stakeholders, guiding the path toward a more sustainable and inclusive future.