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Mining leads climate disclosure gains but faces gaps in risk analysis and Scope 3 reporting. Explore insights from 2024 Barometer.
The EY Global Climate Action Barometer 2024 reveals that the mining sector is making notable strides in climate risk disclosure, outperforming all other sectors in year-on-year improvement with a 7% increase in quality score and 99% coverage. Governance practices have strengthened, with leading firms integrating climate oversight into board-level responsibilities and executive compensation.
However, the sector still lags in scenario analysis, with only 42% of companies conducting quantitative assessments—5% below the cross-sector average. Whilst 70% of mining companies now disclose decarbonization strategies, only 12% quantify climate-related financial risks in their statements.
Risk management disclosures are improving, with 87% of companies identifying physical and transition risks, and 75% reporting on opportunities like low-carbon products and services.
The sector leads in the “metrics and targets” pillar, with most efforts focused on Scope 2 emissions. Yet, Scope 3 emissions remain underreported, with only one-fifth of companies setting reduction targets.
The report urges miners to embed sustainability into core business strategies, enhance data governance and adopt robust scenario modelling. As regulatory expectations shift from voluntary to mandatory, credible transition planning will become a competitive differentiator. By embracing innovation and aligning financial disclosures with climate risks, mining companies can position themselves as sustainability leaders and drive long-term stakeholder value.