As global competition for critical minerals intensifies, the Canadian government is expediting the approval process for priority mineral projects through a fast-track system. These measures, combined with a climate competitiveness strategy, aim to create new economic opportunities for Canada.
Global investors and international clients are increasingly focusing on the climate strategies of the mining sector to support energy transition goals. In this context, appropriate strategic planning has become key to attracting investment.
Mining projects are often viewed as high-risk investments due to their capital-intensive nature, long cycles, and significant upfront costs. While some argue that climate strategies may increase costs or delay approvals, neglecting Indigenous rights and climate transition planning can instead pose substantial risks and impact corporate operations.
The Shareholder Association for Research and Education (SHARE), representing investors managing C$148 billion in assets, has collaborated with the mining sector for two decades. Its recent focus has shifted towards strengthening Canada's climate competitiveness strategy to address economic and regulatory changes.
Canada's position in the global market and the importance of critical minerals provide an opportunity for local producers to demonstrate leadership. SHARE explores solution pathways to help mining companies set emission reduction targets, covering emissions beyond direct operations. Scope 3 (indirect) emissions account for an average of 75% of a mining company's greenhouse gas emissions, with some companies as high as 95%.
Addressing Scope 3 emissions is crucial for companies to remain competitive during the energy transition. SHARE is currently working with nine publicly listed Canadian mining companies. Six have fully disclosed their emissions data, including Scope 3, and three are taking steps or setting targets to reduce these emissions.
SHARE will continue its collaboration in the coming months to prepare for spring annual general meetings, ensuring Canadian mining companies attract global investment and clients through climate leadership. By effectively reducing emissions, Canada can maintain its position as a global mining leader and promote the sector's stable development during the economic transition.
