Climate Change
Doing our part to mitigate against the battle of our time.
We recognize that climate change, including shifts in temperature, precipitation and more frequent severe weather events, could affect the mining industry in a range of possible ways. Volatile climatic conditions can affect the stability and effectiveness of infrastructure and equipment; potentially impact environmental protection and site closure practices; lead to changes in the regulatory environment, including increased carbon tax regimes; and potentially impact the stability and cost of water and energy supplies. We therefore view climate change as a company, community and global concern.
During 2019 we reviewed and updated our climate strategy. Our Strategy has three pillars:
- Identify, understand and mitigate the risks associated with climate change
- Measure and reduce our impacts on climate change
- Improve our disclosure on climate change
Climate change related factors are incorporated into our formal risk assessment process. For example, when assessing site weather-related risks, we also consider availability and access to water and the impact of increased precipitation, drought, or severe storms on operations as well as on communities near our operations. Through this process, we have identified several climate-related risks and opportunities for our business: physical impacts of climate change, such as an increase in extended duration extreme precipitation events; an increase in regulations that seek to address climate change; and increased global investment in innovation and low carbon technologies.
The Board’s Corporate Governance & Nominating Committee, which meets quarterly, is responsible for overseeing Barrick’s policies, programs, and performance relating to the environment, including climate change. At management level, the E&S Committee reviews performance and progress in addressing climate change across our sites. The Audit & Risk Committee assisted the Board in overseeing the company’s management of enterprise risks as well as the implementation of policies and standards for monitoring and mitigating such risks. Climate change is built into our formal risk management process, outputs of which were reviewed by the Audit & Risk Committee throughout 2019. In addition, the Audit & Risk Committee reviewed the company’s approach to climate change in the context of Barrick’s public disclosure.
We track our energy data to understand our total energy consumption, and the source. The bulk of the energy we consume is from thermal generators burning diesel and heavy fuel oil. This is one of our most significant operational costs, and a major source of greenhouse gas emissions. Alongside this, we track our carbon footprint in terms of our total scope one (direct) and scope two (indirect) emissions. By understanding our energy mix and our carbon emissions, we can understand the contribution and value of our clean energy initiatives such as the hydropower stations in Kibali, both in terms of cost savings and emissions avoided.
Approximately 88% of our emissions are scope one emissions, which are direct emissions such as from the burning of fuel at our own power plants. We expect reported emissions in 2020 to be higher than 2019 reported emissions as emissions from Nevada Gold Mines and the Tanzanian operations will be reported for the full year for the first time.
Energy Consumption GJ (000)
Scope 1 and 2 Emissions Tonnes - CO2-E1