Anglo American
From WikiClimate
Company Details
- Company name: Anglo American
- Country: United Kingdom
- Sub Sector: Metals & Mining
- Industry Group: Materials
- Parent Sector: Materials
According to its website, Anglo American is one of the world’s largest diversified mining groups. Its unique portfolio of high quality mining assets and natural resources includes precious, base metals and bulk commodities. It operates in Africa, Europe, South and North America, Australia and Asia.
Anglo American's subsidiary, Anglo Platinum, is the world’s largest platinum producer and Anglo American owns 45% of De Beers, the world’s leading diamond exploration, mining and marketing company. De Beers generates about 40% (by value) of global rough diamond production, primarily in South Africa, Botswana, Namibia and Tanzania.
Anglo Base Metals’ business produces copper, nickel, zinc, niobium, phosphate fertilisers, titanium dioxide and zircon in South America, southern Africa and Ireland. Associated by-products include lead, molybdenum and silver. Its bulks division is focused on iron ore and coal. It are a leading coal producer and we are making significant progress in developing our iron ore footprint.
Anglo Ferrous Metals is the world’s fourth largest iron ore producer. Other ferrous metal interests include manganese ore and alloy operations and carbon steel products.
Anglo Coal is one of the world’s largest private sector coal producers and exporters. We mine coal in South Africa, Australia, South America and Canada. We are active partners in diverse clean coal energy initiatives.
Anglo Industrial Minerals’ sole business is Tarmac, the UK’s market leader in aggregates and asphalt, and a leading producer of ready-mixed concrete. Tarmac operates primarily in the UK, continental Europe and the Middle East. In August 2007, Anglo American decided to divest Tarmac, a process that will take place when credit market conditions improve.
Carbon Disclosure
The following data is © Carbon Disclosure Project and was provided by Anglo American in response to the Carbon Disclosure Project Greenhouse Gas Emissions questionnaires.
Regulatory risks
Our operations are responsible for significant emissions of greenhouse gases. Only a small minority of these emissions originate in countries that currently impose emission restrictions, but we expect restrictions to become more prevalent over time. We also produce coal, an energy source that will face increasing challenges in a carbon-constrained world.
Physical risks
Our operations can be disrupted by extreme weather events and it is expected that such events are likely to increase in frequency. In particular, many of our operational processes require significant quantities of water. We expect that for some of our operations water availability will become more problematic both because of increased incidence of drought and the increased level of demand from other water users.
General risks
In addition to regulatory and physical climate change risks, there is also a potential reputational risk arising from failing to reduce emissions and otherwise respond to the challenge of climate change.
General and regulatory risks management
Our response to the climate change risks that we have identified has three aspects: 1. We are attempting to reduce our energy use and ghg emissions on a per unit of production basis in order that we move towards best industry practice and reduce our potential carbon liabilities. 2. We are working with Imperial College to forecast climate change impacts at our operations over the next 40 years and to assess the adaptation options available to reduce the physical risks of climate change. 3. We are seeking to understand and develop the technological possibilities for reducing emissions."
Current and/or future financial effects of risks
We understand the current financial risks of climate change regulation through the quarterly reporting by our operations of their compliance status with the authorities under the EU's emissions trading scheme. Our operations in the EU are the only ones in the Group facing legislated carbon constraints currently.
Future possible financial regulatory risks have been assessed by projecting the value-at-stake for our current portfolio of operations in different climate change scenarios.
The financial consequences arising from the physical risks of climate change will be assessed at the end of a three year study with Imperial College to forecast climate change impacts and adaptation possibilities. Reputational risks are difficult to quantify in financial terms.
Opportunities presented by current or anticipated regulatory requirements on climate change
We already have a history of developing carbon abatement projects that have helped reduce the greenhouse gas intensity of some of our operations. These projects have to date proved to be profitable. We believe that there are opportunities to develop further carbon abatement projects and have engaged the personnel needed to help realise these opportunities.
We are also active in understanding and developing new technologies that could reduce greenhouse gas emissions. Should we succeed in commercialising these new technologies, we should be better placed to negotiate the new carbon-constrained world.
Opportunities presented by current or anticipated physical changes resulting from climate change
We have not completed the climate change impacts and adaptation study noted above. Until we do so, it will be difficult to document any possible opportunities arising from climate change. It is possible that we will be better placed than some of our competitors as a result of this work or we might be able to develop technological solutions to the expected physical changes that will advantage us.
General opportunities presented by climate change
Our efforts to develop new technologies might represent climate change related opportunities. Should we succeed in developing attractive proprietory technology, it could represent a commercial opportunity.
It is possible that climate change and its regulation will favour increased sales of some of our products. For instance, platinum group metals are used in fuel cells and in a variety of catalytic roles for which demand might increase as a result of climate change.
Planned investment in products and services designed to minimise/adapt to effects of climate change
Anglo American is a commodity producer so in most cases our products are not designed to meet particular climate change opportunities. However, there are some exceptions such as Tarmac's Top Block that are designed to help reduce energy use in buildings and we therefore expect to face greater demand as a result of climate change policies. We also are engaged in the search for ways to use coal without undue climate change impacts. Should this search be successful, we should be able to market coal as an environmentally-friendly product.
Future financial effects of opportunities presented by climate change
The financial effects of opportunities arising from the abatement of our operational greenhouse gas emissions are assessed in a similar fashion as for any other project. The project is required to meet the financial hurdle rates expected of our business units. We give financial recognition to the expected volume of carbon credits that might be generated thereby enabling these projects to compete with others that will not generate carbon credits.
The assessment of the financial opportunities associated with new technology development is always more challenging than for existing technology deployment. Given that these financial opportunities will often be captured by other companies as well as ourselves, we often seek to develop new technology in partnership with others, including governments.
Greenhouse Gas Emissions
- Greenhouse Gas emissions methodology used: GHG Protocol
We use the factors available in the WRI / WBCSD GHG Protocol which are subject to annual assurance as noted in the Report of the Independent Auditors which can be found on pp62-63 of our 2007 Report to Society.
- Accounting year: 01/01/2007 to 31/12/2007
- Total global Scope 1 activity in Metric Tonnes CO2-e emitted: 12,704,000
- Total global Scope 2 activity in metric tonnes CO2-e emitted: 11,768,000
