Reducing emissions, creating opportunity: Shareholder Association of Research and Education (SHARE) offers a solutions-oriented partnership to the Canadian mining industry

The race to secure critical minerals is accelerating globally, with Canadian federal and provincial governments proposing fast-track pathways to expediate project reviews and permitting for priority minerals project developments. When aligned with the initiatives of Canada’s Climate Competitiveness Strategy, these measures are intended to create new economic opportunities for Canada.

Critical within this landscape is the focus of global investors and international customers, who are looking for mining sector climate strategies to reinforce the goals of the energy transition.

By their nature, mining projects are seen as high-risk investments — they are capital-intensive, long-lived, and front-loaded with irreversible spending, with an understandable perception that adequate climate strategies and proper consultation could appear to increase costs or slow down the early approvals process. The reality is that undermining Indigenous consent and climate transition planning in this industry will not succeed in speeding up development or investment — rather, it will expose industry members to material risks that may have significant impact on the bottom line.

SHARE has been engaging with the mining sector for two decades on behalf of investors representing CAD $148 billion in Assets Under Management. Our engagements evolve to respond to economic and regulatory realities faced by mining companies, with a recent focus on reinforcing Canada’s Climate Competitiveness Strategy.

Canada’s position in the global market and the importance of critical minerals in economic development planning offer an opportunity for Canadian producers to position their leadership on the global stage. SHARE has been discussing solution paths, strategies and approaches to allow mining companies to set climate emission reduction targets that tackle emissions beyond direct mining operations. On average, Scope 3 (indirect) emissions represent 75 per cent of the greenhouse gas emissions profile for a mining company — but can be as much as 95 per cent for these same companies, depending on their commodity portfolio.

Tackling Scope 3 will be crucial for companies wanting to remain competitive in the energy transition. SHARE is currently engaging nine publicly-traded Canadian mining companies and there are stong signals of progress and emering leadership. Six companies have adequate disclosure of all emissions, including Scope 3, with three of these companies taking steps and/or setting targets to reduce these emissions.

SHARE will continue collaborating with these companies over the coming months, setting the stage for this spring’s AGMs of Canada’s largest and most influential mining players, with the goal of ensuring Canadian mining companies can continue to attract global investment and customers through climate leadership. Through meaningful emissions reductions we can maintain Canada’s position as a global leader in mining — and ensure that our mining sector has the longevity and stability to thrive in the economic transition.

Kyela de Weerdt is SHARE’s Senior Manager of Corporate Engagement and lead on Mining Sector and Climate. Kyela has operational experience managing ESG risk and opportunities in global mining supply chains.