Climate Change, Energy and Greenhouse Gas Emissions
Climate change driven by carbon emissions is an issue of global concern that will affect society, the environment, and economic development over the coming decades. We recognize that climate change is a potential threat to our business and many of our COIs, and we are committed to action to reduce climate risks through innovative solutions to reducing emissions, transforming energy supply, and optimizing land use.
Mining is an energy-intensive industry, consuming energy through extraction, processing, and transportation of products. Energy use, particularly through fuel combustion and electricity consumption, causes direct (Scope 1) and indirect (Scope 2) GHG emissions, which contribute to climate change. COI expectations around climate action in the mining industry include reducing carbon footprint and responding to potential climate-related risks. For Pan American Silver, innovatively reducing emissions and energy use can provide us with: cost savings; operational efficiencies, including expedited permitting and improved social acceptance; and environmental benefits beyond our operating boundaries, while at the same time contributing to the global response to climate change.
While we have been gradually improving our climate-related disclosure since our Scope 1 and 2 emissions were first publicly reported in 2010, we recently determined that adopting the climate-related recommendations of the Financial Stability Board is the most effective way to drive our strategy and respond to our stakeholders. In 2020, we became supporters of the TCFD reporting recommendations. The following section of this report reflects our first reporting under the TCFD framework. This is the latest step in a continuous process of enhancing insights, information and analysis provided through our public disclosures.
Chief Executive Officer’s Statement
Taking Action on Climate Change at Pan American Silver
Climate change is a threat to the global environment, society, our stakeholders and our business. We are committed to action to ensure an orderly transition to a prosperous low-carbon world.
As one of the largest primary producers of silver in the world, sustainable solutions to climate change are embedded in our purpose as a company. The silver we produce is a key material in solar energy applications and other carbon-efficient energy solutions.
We recognize that mining is an energy-intensive activity that generates GHG emissions and we are committed to doing our part to reduce our GHG emissions by setting realistic short and medium term reduction targets. Our strategy also includes improving our existing public disclosure, ensuring that physical and transition climate risks are considered in our strategic long-term plans, conducting stakeholder engagement on climate change, increasing our use of renewable energy, and supporting research and climate action both near our operations and globally. Our executive team, and each of our operations, are responsible for implementing this climate action strategy.
We support the approach presented in the TCFD recommendations, and have signed on as a supporter of the TCFD. We will also continue to report on our emissions, reduction targets, climate risks and climate action in our annual Sustainability Reports.