The commitment follows the gold miner’s previous emissions reduction target, which it made in 2019. Then, Newcrest pledged to reduce its greenhouse gas emissions by 30% by 2030.
Let’s take a closer look at today’s news from Newcrest Mining.
Net-zero carbon emissions by 2050
Newcrest Mining announced it aims to reach net-zero carbon emissions across its operational scope 1 and scope 2 emissions by 2050.
Scope 1 emissions are those created by the company’s direct activities, such as running fleet vehicles or machinery. Scope 2 emissions are created alongside the electricity that powers the company’s activities.
Newcrest stated it’s also working to reduce its scope 3 emissions. Scope 3 emissions are those created downstream of a company’s business, during activities such as the transportation or further treatment of products. It will be interesting to watch how the Newcrest share price performs today as investors digest the company’s new commitments.
The gold miner also outlined the progress it’s made in reaching its target to reduce greenhouse emissions by 30% by 2030.
So far, it has created greenhouse gas management plans, which link achievements in emissions reductions to senior executive incentive payments. It’s also begun to measure greenhouse gas emissions across its value chain.
Finally, Newcrest has continued to implement the use of renewable energy – particularly from wind.
Newcrest also publishes a comprehensive sustainability report each year outlining its progress towards sustainability in its operations.
Commentary from management
Newcrest managing director and CEO Sandeep Biswas commented on the company’s net-zero emissions goal, saying:
Given our experience with identifying and applying innovative technologies, Newcrest has the potential to be at the forefront of meeting the challenge of net zero carbon emissions by 2050. As an industry more broadly, we have the ingenuity, technology and capability to take on this challenge and reduce our carbon footprint. We are seeing the rapid evolution of a range of new technologies that will help reduce emissions going forward and Newcrest is well positioned to leverage this technology as the world moves towards a zero-carbon future.
Newcrest Mining share price snapshot
The Newcrest Mining share price has been a solid performer on the ASX so far this year. Newcrest shares have jumped by almost 10% since the start of 2021. Though, they are still trading 12.1% less than they were this time last year.
The gold miner has a market capitalisation of around $23 billion, with approximately 817 million shares outstanding.