Approach to climate change

Fortescue is committed to taking a leadership position on climate change. Climate change is the most pressing challenge of our generation as well as a once in a lifetime opportunity for economic growth and value creation that generates a better, cleaner, more sustainable world.

 

 

Our approach

We accept the scientific consensus as assessed by the Intergovernmental Panel on Climate Change (IPCC) and are taking steps to realise the Paris Agreement goal of limiting global temperature rise to well below 2°C above pre-industrial levels.

During FY21, we accelerated our transition from being a major fossil fuel importer to a major clean and renewable energy company by:

  • Setting ourselves the target of carbon neutrality by 2030, which requires our net Scope 1 and Scope 2 emissions across existing and future operations to reduce to zero by 2030.
  • Establishing our decarbonisation pathway, through applying renewable energy and battery storage to meet our stationary energy requirements, and green hydrogen, green ammonia and battery electric solutions to decarbonise our mobile fleet.
  • Creating Fortescue Future Industries to lead the global energy transition by developing a portfolio of renewable energy and green hydrogen projects that will accelerate the decarbonisation of hard-to-abate sectors such as metals processing, long-haul transport and industrial heating.
  • Expanding our research, development, engagement and collaboration to reduce emissions across our downstream value chain, focusing on shipping and iron and steel production.

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Reducing emissions

Image - Renewable Energy

Climate Change Strategy

Our Climate Change Strategy is based on the following four elements:
  1. Reducing emissions Decarbonising our operations to achieve carbon neutrality by 2030.
  2. Engagement and collaboration - Working with stakeholders across our value chain to support efforts to develop and deploy low carbon solutions.
  3. Maximising opportunities - Pioneering new low carbon solutions and diversifying the commodities we produce.
  4. Building resilience - Working to ensure the resilience of our operations, assets, value chain and communities.

Reducing emissions

Our pathway to decarbonisation is focused on addressing our largest sources of emissions: stationary power and our mining fleet.

We are working to replace our fossil fuel power stations with renewable power and finding alternatives to diesel, which currently fuels our mining fleet.

Key elements of our decarbonisation pathway include:

  • Significant investment in renewable power generation that is supported by battery storage, to replace existing stationary diesel and gas-fired power generating facilities.
  • Building transmission links between our mining operations in the Pilbara to integrate stationary energy facilities and provide a secure and reliable network to which additional renewable generation, storage facilities and electrolysers can be added.
  • Developing and trialling electric battery and green hydrogen powered haul trucks to remove our reliance on diesel fuel.
  • Developing and trialling hybrid locomotives that run on green ammonia and battery storage to replace diesel fuels.
  • Replacing diesel engines in other heavy mining equipment (HME), such as excavators and diggers, with electric motors and trialling hydrogen fuel cells as their power source.
  • Pursuing options to reduce emissions from other sources, which include dewatering, ammonia nitrate and port operations.

Our pathway to carbon neutrality is underpinned by the following risk-based principles:

  • Emissions reduction programs should drive our transition to carbon neutrality.
  • The mitigation hierarchy to avoid, reduce and offset emissions should be applied to all programs and projects.
  • Emissions reduction pathways that mitigate climate change transition risks should be prioritised.
  • Our emissions reduction strategy should inform business strategies and provide certainty to investors and other stakeholders that we will continue to thrive in a net zero economy

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Scope 3 Emissions

Scope 3 emissions are those emissions that fall within a company’s value chain but are outside its operational control. Our Scope 3 estimates are informed by the international Greenhouse Gas Protocol's (GHG Protocol) Corporate Value Chain (Scope 3) Accounting and Reporting Standard. In accordance with this guidance, estimates for quantified Scope 3 emissions are provided in the table below.

The Scope 3 emissions shown in the table above are the only GHG Protocol Scope 3 Accounting and Reporting Standard defined business activities that were determined to be material. Details of the methodology used to estimate Scope 3 emissions can be found here