We recognise that human activities are influencing the climate and support efforts to limit global warming in line with the goals of the Paris Agreement. A transition to a net zero emissions economy is required and we are committed to doing our part.
We continue to implement our climate change strategy in our efforts to build economic resilience, accelerate decarbonisation, embed climate in decision making and catalyse climate action. A core pillar of our approach is our ambition to achieve net zero greenhouse gas (GHG) emissions by 2050.
Please click here to see how Orica is helping our customers to reduce their environmental and social impact, here to better understand new technologies and partnerships to reduce our carbon footprint and here for creating value from waste.
As a global leader in mining services, we also recognise that we have a role to play in mobilising the commodities, raw materials and technologies fundamental to the lower-carbon transition. Advanced computing, manufacturing, low emissions energy systems and transport electrification are all made possible by future-facing commodities and critical minerals. Orica is advancing strategies to rebalance our commodity portfolio and reimagine our manufacturing processes to enhance our competitiveness for a lower-carbon future.
For detailed climate disclosures in line with the recommendations of the Task Force on Climate-related Financial Disclosures, refer to our Climate Action Report.
Our strategy for climate action
Portfolio resilience and diversification
We are reshaping our portfolio for delivery of initiatives and outcomes that strengthen the resilience and sustainability in alignment with our strategic plan by:
- increasing our exposure to key emerging markets within Asia, Africa and Latin America;
- growth in Orica Digital Solutions through the accelerated adoption of innovative blasting technologies and expansion in high-growth Mining Chemicals markets, balancing our core blasting business and fast-tracking customer usage of more sustainable solutions; and
- moving towards more progressive and sustainable commodities that are essential to a broader energy transition, including rebalancing our portfolio mix towards gold, copper, future-facing commodities and the quarry and construction vertical.
Accelerating our decarbonisation
We are reducing our (GHG) emissions and our operational footprint by:
- prioritising net Scope 1 and 2 operational emissions reductions by 30 per cent by FY2026 and at least 45 per cent by FY2030, on FY2019 levels, deploying tertiary catalyst abatement technology and optimising energy efficiency and industrial processes;
and sourcing renewable electricity to achieve our target of 100 per cent renewable
electricity by 2040, with an interim step of 60 per cent by 2030; and
- continually reviewing our decarbonisation pathway and projects in support of our ambitions to achieve net zero emissions by 2050, covering Scope 1 and 2 GHG emissions and our most material Scope 3 emission sources and reduce our Scope 3 emissions by 25 per cent from FY2022 levels.
Embedding climate into our strategic decision-making
We are continuing to integrate climate change into our governance, risk and strategic planning including:
- conducting scenario analysis to inform strategy planning;
- linking executive remuneration to emissions reductions; and
- expanding the adoption of internal carbon pricing.
Catalysing climate action
We are mobilising our people, collaborating with others and helping our customers respond to climate change. This includes:
- fostering climate innovation and the development of new technology solutions;
- helping our customers reduce their emissions and supporting emissions reductions in our value chain; and
- advocating responsibly on climate.
Stewarding natural resources
We recognise that our business depends on and impacts natural resources and are committed to strong environmental stewardship across our operations.
Avoiding environmental harm
Managing our environmental risks and preventing loss of product events is a primary goal of our environmental strategy. We are taking action to manage environmental risks and have a framework that defines key controls and ensures verification protocols are in place to systematically mitigate adverse environmental impacts.
Optimising resource use (water and waste)
The management of freshwater resources is an issue that directly impacts the communities and ecosystems in which we operate. With competition for water resources increasing globally due to multiple pressures, particularly climate change, population growth and pollution, we are increasing our focus on optimising our water use. We are also improving our waste management, including optimising resource use through circularity with a growing list of start-up and commercial initiatives creating value from waste.
An increasing focus on nature and biodiversity
We acknowledge that effective management of biodiversity is emerging as a core tenet of natural stewardship. There is an increased emphasis on businesses to understand their dependencies and impacts on nature and biodiversity and develop methods to maintain and regenerate areas of high nature value and prevent significant degradation.
Increasing stakeholder expectations will require a more targeted and sophisticated approach to nature and biodiversity that leverages emerging methods to manage and account for impacts. We are working to determine the most effective approach and gain a more comprehensive understanding of our nature-related risks and opportunities, with consideration to the Kunming-Montreal Global Biodiversity Framework and the rapidly evolving landscape of frameworks, including the Taskforce on Nature-related Financial Disclosure (TNFD).
Progressing environmental remediation
We are working with technology and nature to progress environmental remediation where our operations have impacted natural systems and resources. Our aim is to remediate land to permanently reduce risks to human health and the environment and to allow divestment and reuse.
Delivering sustainable commercial solutions
As a company, we are recognised by our customers as an innovative leader in blasting technology.
We are uniquely placed to address our environmental footprint and deliver commercially beneficial solutions for our customers that enable them to minimise their own environmental impact. Our portfolio of research and development projects are targeted at creating solutions to optimise the blasting process, delivering more productive, efficient, safer outcomes that also reduce the environmental footprint of our customers’ operations.
By understanding our customers and their sustainability challenges, we design and develop solutions that deliver commercial outcomes for Orica and enhanced sustainability outcomes for our customers. Safety, process efficiency and environmental performance are at the heart of our innovation process and are the priorities that are driving our focus toward digitisation, automation and increased use of data. Commercialising sustainable customer solutions is a fundamental element of our sustainability approach.
Catalysing renewable hydrogen and ammonia technologies and markets
Orica is positioning as a key collaborator for lower-carbon industrial precincts, which offer new markets, partnerships and commercial opportunities. Orica has executed agreements to progress low-carbon ammonia/ammonium nitrate supply opportunities with Origin Energy (Australia), H2U Group (Australia) and Fertiberia (Spain). Orica supports the Australian Government's efforts to establish a Guarantee of Origin (GO) scheme in line with international accounting frameworks, to help unlock opportunities for Australian industry to meet the growing demand for lower-carbon products and verified renewable electricity.