News, Sustainability

Mining sector primed to set climate related goals

The new KPMG Mining Risk Forecast 2024 report has identified climate change as the top reported risk for ASX-listed mining companies.

The results are collected from an analysis of reported material risks in the most recent annual reports from ASX 300 mining sector companies.

Climate change was the top reported risk, with the other four risks including:

  • Community relations and social licence to operate
  • Commodity price risk
  • Health, safety and security risks
  • Environmental risks including new regulations

Commodity price risk held the top spot in 2023 but has since fallen to third.

“What stands out is that climate and community/social licence risks have jumped up in the past year to be the new top two concerns for miners,” KPMG partner risk consulting Caron Sugars said.

“We would say the challenges from uncertainty regarding climate change and social licence to operate are considerable but so too are the opportunities for the sector.”

Sugars said the finding represented an opportunity for the mining industry to set strong climate-related goals to reach decarbonisation targets.

“There is opportunity ahead for Australian miners to focus on not extraction but also processing, with Federal Government support being provided for critical minerals,” Sugars said.

“This is a key part of the response to climate change risk and reflects the positive outlook for the sector longer term in both traditional mining and critical minerals.”

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