FTI Consulting: ESG & Energy Transition in the Mining Sector

With the election of a more climate-focused administration in the United States and the European Union (EU) honing in on the mining industry to reduce their carbon emissions, the South African government and mining industry must work together to effect the transition to a lower carbon future.

Government needs to cut the red tape to enable the South African mining sector to transition to lower carbon power source

Mining is one of the most energy intensive industries in the world, responsible for up to 7% of global Green House Gas emissions, making it a target for global policymakers increasingly focused on regulating companies’ carbon neutrality and Environmental Social and Governance (ESG) performance. With the local mining sector relying on coal-fuelled power supplied by Eskom, South Africa has been particularly slow in achieving emission reductions. Furthermore, current regulations and red tape continue to thwart progress on energy transition for the mining sector