Teck Rebalancing Climate Change Portfolio towards Copper
Teck Resources Limited today released its third TCFD-aligned climate change report, Climate Change Outlook 2021, outlining how Teck will continue to create shareholder value by producing metals and materials that are essential for a low-carbon future while also taking steps to reduce emissions to achieve the goal of being a carbon-neutral operator by 2050.
“Teck is taking significant steps to address climate change risks because we know all sectors, including mining, need to play an active role in contributing to solving the challenge of climate change,” said Marcia Smith, Senior Vice President, Sustainability and External Affairs. “We are working to reduce the carbon footprint of our operations, while at the same time rebalancing our portfolio towards copper, which is an essential metal for low-carbon technology and infrastructure.”
Portfolio Resiliency Analysis
Teck’s 2021 Climate Change Outlook Report outlines three different climate-related scenarios looking forward to 2040, helping to identify the range of future risks and opportunities to inform corporate strategy and risk management.
In all scenarios we see continued demand for the core minerals and metals Teck produces — copper, zinc and steelmaking coal — which are some of the basic building blocks of a low-carbon future. In particular, copper demand growth is directly tied to decarbonization, driven by growth in low-emissions vehicles, energy storage and transmission, improved energy efficiency and renewable energy generation. As a significant copper producer in the Americas with a strong pipeline of copper projects, Teck is well positioned to benefit from additional demand. Our QB2 project in Chile, currently under construction, will double our consolidated copper production when production starts in 2022.
Climate Action and Progress
Climate Change Outlook 2021 outlines Teck’s climate change strategy which includes producing the metals and minerals essential for a low-carbon future; reducing the carbon footprint of our operations and value chain; supporting broad-based and effective carbon pricing; and enhancing our resiliency to climate risks.
Teck has more than 10 years’ experience setting and achieving greenhouse gas (GHG) reduction targets and is committed to reducing our operational GHGs in line with limiting global warming to 1.5°C. In 2020, we set an ambitious, long-term goal to become a carbon-neutral operator by 2050, with a shorter-term goal to reduce the carbon intensity of our operations by 33% by 2030. To realize this vision, we have set an initial roadmap with corresponding 2025 and 2030 goals, including procuring 50% of our electricity demands in Chile from clean energy by 2025 and 100% by 2030.
Teck is already among the world’s lowest carbon intensity producers for copper, steelmaking coal and zinc and lead production and has taken steps to further reduce carbon emissions. In 2020, we switched to 100% renewable power at our Carmen de Andacolla operation and entered into a power purchase agreement to procure over 50% of operational power needs at QB2 from renewable sources. In total, these will avoid approximately one million tonnes of GHG emissions annually, equivalent to the emissions from about 210,000 passenger vehicles.
For more information on Teck’s approach to reducing carbon emissions while remaining competitive in a low-carbon world and to download a copy of the report, visit their Taking Action on Climate Change page.