Climate change economics

We believe that the activities of people and companies are causing emissions of greenhouse gas which are contributing to climate change.

We also understand that meeting the challenge of climate change will impose costs on us as we work to find ways to reduce greenhouse gas emissions.  It will also require us to change the way we use energy, particularly coal.

However, we also believe we must invest in technologies to reduce greenhouse gas emissions and energy use, to ensure our continued access to markets and retain our licence to operate.

The cost of climate change abatement

Our climate change position is based on identifying and addressing risks and capturing opportunities.  Since 2003, it has been structured around three core themes:

• Reducing emissions from our operations.
• Developing low emission product pathways by working with others on supply chain emissions and breakthrough technologies.
• Engaging with governments and stakeholders to advocate sound and efficient policies. 

Building on that strategy, we have instituted a three-year Climate Change Plan that takes a stepped, Group wide approach to addressing each theme.

We actively and routinely identify energy saving opportunities, some of which we are able to implement immediately. Other projects require significant capital expenditure and have long design and construction lead times.

But in the wider world, we believe that technology should be developed to meet the energy challenge. We hope that companies, governments and society will work together on all fronts - fossil fuels, nuclear and 'new energy' sources - with the goal of continually discovering increasingly cleaner processes.

Our results

We continue to publicly report under the Carbon Disclosure Project.  In 2006 we were named sector leader for metals, mining and steel with a score of 95 on a 100 point scale in its Climate Leadership Index.