Optimising pathways for decarbonization in mining
Part Two - Strategic approaches and best practices
Part 2 of our Decarbonisation series dives deeper into how mining companies can foster an environment that drives meaningful change—covering process adaptation, systems integration, and cultural transformation.
The mining industry stands at a crossroads. With global demand for critical minerals surging, companies face unprecedented pressure to cut emissions. To bridge this gap, they must move beyond high-level commitments to a systematic, data-driven approach that embeds decarbonisation into business strategy and operations.
Discover our six key recommendations to uncover how companies can move beyond fragmented efforts, achieve measurable emissions reductions, strengthen resilience, and secure long-term success in a low-carbon future.
The mining industry stands at an inflexion point. As global demand for critical minerals rises to support the energy transition, mining companies face mounting pressure to reduce their carbon footprint. The industry accounts for 4-7% of direct global greenhouse gas (GHG) emissions, but when scope 3 downstream emissions are included, this figure surges to 28%, making mining the second-largest contributor to global emissions after agriculture.
Despite growing commitments to net-zero targets, progress remains slow – current decarbonisation rates hover around 2% annually, far short of the 4.5% required to meet Science-Based Targets and the goals of the Paris Agreement.
While many mining companies recognise the urgency of decarbonisation, translating ambition into tangible impact remains a challenge. A lack of consistent and accurate emissions data, misalignment between corporate targets and operational execution, and financial constraints often result in fragmented efforts that fail to deliver meaningful progress. Additionally, organisational silos and a lack of integration between sustainability, operations, and procurement teams hinder the ability to execute initiatives at scale. Part 1 of this series explored these barriers in detail, highlighting that without a structured and integrated approach, decarbonisation efforts tend to remain reactive or incremental rather than transformative. A summary of Part 1 of this series can be seen on the following page.
The complexity of scope 3 emissions reporting, the absence of standardised data frameworks, and the difficulty of aligning decarbonisation investments with core business strategies all contribute to the slow pace of change. Without addressing these systemic issues, mining companies risk stalling their decarbonisation journeys—exposing themselves to increased investor scrutiny, regulatory pressure, and operational inefficiencies.
To bridge this gap, mining companies must shift from high-level commitments to a more systematic, data-driven approach that embeds decarbonisation into business strategy and operations. We have developed six recommendations for how companies can achieve this, and move beyond fragmented or reactive efforts towards a more strategic, data-driven approach to emissions reduction that can deliver measurable progress, strengthen business endurance and position them for long-term success in a low-carbon future.
While many mining companies have committed to net-zero, the complexity of executing decarbonisation plans remains a challenge
Lack of operationalisation and centralisation
Decarbonisation efforts are currently fragmented and lacking a centralised approach. Decisions are made at sitelevel hindering the effectiveness of company-wide decarbonisation
Inadequate capital management frameworks
Capital allocation not making provision for environmental attributes (requires redesign with focus on core values - decarbonisation MUST be seen as a corporate responsibility like safety)
Organisational structures that prohibit improvement
Sustainability leaders are accountable for emissions reductions, but they often have little to no operational authority, and thus little ability to deliver meaningful reductions
Resources and skills shortage/constraints
Difficult to attract talent and create a more diversified workforce. It is perceived as dangerous, physically demanding and environmentally harmful and requires a more positive image
Upfront costs are often extensive
Inherent mine design for economies of scale makes decarbonisation CAPEX intensive
Shortage of affordable funding
Marginal abatement cost curves (MACC’s) suggest that several decarbonisation projects are NPV positive with significant potential to abate emissions. However, many of these projects are CAPEX intensive and access to “green” capital is expensive
No financial incentives
No incentives (small carbon tax liability) - consumers still demand certain products and lifestyles i.e., convenience of ICEs, cheap electricity from coal, etc.
Insufficient data and monitoring frameworks
Companies are only measuring emissions on an annual basis, rather than using real-time data and a mix of leading and lagging indicators that can give more meaningful insights on carbon intensity across operations
Lack of felt leadership and a compliance mindset
Despite very ambitious decarbonisation targets, the behaviours and practices of the mines does not extend past the minimum compliance requirements
Lack of conducive policy frameworks
Inadequate policy frameworks in certain geographies can inhibit financing, delay CAPEX or remove incentives to decarbonise such as delayed permitting for RE grid connection of prohibitive wheeling charges
dss+ recommendations to optimise decarbonisation pathways:
- Develop a detailed view of the company’s footprint to identify priority focus areas and generate the data and insights necessary to size and scope decarbonisation initiatives.
- Assess the organisation’s decarbonisation maturity to refine initiatives that align with the company’s current capabilities and risk appetite.
- Explore future scenarios to identify risks and opportunities, guiding the development of wellinformed marginal abatement cost curves (MACCs).
- Systematically assess and prioritise initiatives using MACCs, ensuring objective decisionmaking and identifying initiatives that could be feasible with further refinement or financial support.
- Incorporate qualifying initiatives into a structured decarbonisation pathway, enhance the MACCs through a value creation frame and considering constraints such as capital availability, operational capacity, and the required emissions reduction trajectory.
- Develop a comprehensive decarbonisation strategy that integrates both technical solutions and cultural and operational transformation levers necessary for successful implementation.