Over the last 25 years, the mining industry context was heavily framed by the emergence and growth of China, which triggered dramatic growth in demand for metals and minerals.
While China is likely to remain firmly at the center of the industry context, the broad-based effort to decarbonize and limit further global warming to a maximum of an additional 2°C by 2050 is expected to transform the industry. Global warming is likely to create not only strategic challenges but should open up exciting opportunities. Corporates need to consider both the potential threats and their resilience toward them, as well as opportunities for growth and impact. In general, corporates need to take a more proactive approach to understanding the climate change challenge, their role in it, and pathways of mitigation.
To get a better understanding of the disruptive force of climate change and to proactively drive an ambitious sustainability agenda, a leading mining company partnered with BCG.
Working with BCG, the client was defining its strategic response to climate change by quantitatively assessing the resilience of its portfolio to the effects of climate change abatement, defining strategic questions and developing best-in-class disclosure on sustainability and the pathway to achieving that.
Together, over the course of nine months, BCG and the mining company:
The impact of this project is increased transparency for management on financial impact of climate change across scenarios, a robust climate-related disclosure narrative for external stakeholders, and a foundation for strategic discussions on specific climate change related risks and opportunities.