ESG Index: Revealing Scope 3 Progress in Mining Sector

The ESG Mining Company Index is a first-of-its-kind benchmark measuring the ESG performance of 61 of the world’s largest mining companies.

It utilises more than 7,000 data points to analyse six critical ESG areas: carbon emissions, water, land disturbance, safety, diversity and social investment.

With ESG metrics becoming central to evaluating corporate responsibility, this comprehensive index offers a holistic snapshot of the mining industry’s sustainability efforts.

Carbon emissions: Slow progress in a high-stakes arena

Carbon emissions remain a central focus in the mining industry’s ESG evaluations.

According to the ESG Mining Company Index, the 61 companies included in the analysis collectively emitted 230 million tonnes of CO2 equivalent in 2023—roughly 0.4% of the total global emissions.

Although some companies have made strides in reducing their carbon footprint, significant challenges persist.

One of the most notable success stories highlighted in the report is BHP, which achieved a substantial 39.9% reduction in emissions from 2021 to 2023, primarily by entering renewable energy agreements.

The achievement serves as an example of how strategic energy transitions can lead to meaningful emissions reductions, yet the industry as a whole faces pressure to accelerate progress as it works toward ambitious climate targets.

Scope 3 emissions: A complex web of accountability

The report highlights the complexities surrounding Scope 3 emissions—those generated across the supply chain and largely outside the direct control of mining companies.

Measuring and managing these emissions is challenging due to diverse and often inconsistent data from suppliers.

Of the 61 companies evaluated, only 43 reported Scope 3 emissions, which collectively amounted to 4.7 billion tonnes in 2023.

"Variations in reporting standards and inconsistent supplier data continue to complicate accurate measurement of these emissions," the report notes, emphasising the need for more robust frameworks.

The lack of standardisation hinders the industry’s ability to gauge its total environmental impact accurately, pointing to an urgent need for improved reporting structures to capture the complete ESG picture.

Progress and gaps in gender diversity

Diversity, particularly in terms of gender representation, emerged as another focal point in the ESG Mining Company Index.

Among the companies analysed, the data reveals progress at board level, with female representation on boards reaching an average of 31% – notably higher than the global average of 23% female-held board seats.

The statistic reflects an increasing awareness of the value of gender inclusion in leadership roles, signalling gradual improvements in diversity at the executive level.

However, there remains a notable gap in gender diversity across the broader workforce. Women accounted for just 17.4% of employees in these companies in 2023, a figure that, while increasing gradually, indicates the need for ongoing initiatives to improve workforce diversity across all levels.

"Significant strides are still needed to boost female representation throughout the workforce," the report observes, underscoring that gender diversity remains a work in progress for the mining industry.

Setting the stage for a sustainable mining future

The release of the ESG Mining Company Index marks a critical step in holding the mining industry accountable for its environmental and social impacts.

By evaluating companies across key ESG areas, the index provides stakeholders—investors, employees and community members alike—with essential insights into each company’s commitment to sustainability.

As the mining sector grapples with growing pressure to enhance sustainability, the index serves as a valuable tool for tracking progress and identifying areas for improvement. It offers a clear benchmark against which companies can measure their ESG performance, helping to pave the way toward a more sustainable and inclusive future for the industry.

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