Mining giants ‘don’t support new climate laws’

Most of the largest metal and mining companies don’t support new climate regulations. That’s according to a new report which states only two out of 11 – which includes BHP Billiton, Rio […]

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Most of the largest metal and mining companies don’t support new climate regulations.

That’s according to a new report which states only two out of 11 – which includes BHP Billiton, Rio Tinto and Antofagasta – do support it.

It added many are also failing to “effectively manage carbon and water risks”.

Not-for-profit firm CDP encourages businesses to provide their data so it can measure whether they are taking suitable measures towards a sustainable future.

The 11 companies in the report account for around 85% of emissions among large listed miners in one of the highest emitting sectors.

It adds only six of the 11 miners disclose “meaningful GHG emission reduction targets” and “Glencore and First Quantum Minerals were the worst across the board performers”.

The report states $10 billion (£7bn) in earnings are at risk across the 11 ranked companies if a carbon price of $50 (£33) per tonne is introduced as already accounted for by some companies.

It also showed almost 50% of company facilities are located in areas with medium or high water stress.

The report added more than half the companies are involved in coal production and together they represent 40% of the global seaborne export market in coking coal and 27% in thermal coal.

James Magness, CDP Head of Investor Research, said: “This research is a canary in the coal mine for investors. It shows that the world’s biggest mining companies, currently worth more than $329 billion (£217bn), are unprepared for the transition to a low carbon economy.”