Climate change

Newcrest is committed to the sustainable discovery, development and production of gold and copper. 

As a responsible miner, we must identify, assess and report our responses to climate change challenges.

Our Climate Change policy outlines our approach as we take action to manage our climate change risks and opportunities consistent with our objective to sustainably deliver superior returns to our stakeholders.

Newcrest has committed to a greenhouse gas (GHG) intensity target – a 30% reduction in GHG emissions per tonne of ore treated by 2030 against the 2018 baseline.

We are supporters of the Task Force on Climate-related Financial Disclosures and are progressively reporting in our Sustainability Report.
In our business we use a range of energy sources from gas at Telfer to cogeneration at Lihir, to electricity from the national grid at Cadia.  Detailed data on our energy sources and uses can also be found in our annual Sustainability Report.

As a member of the International Council on Mining and Metals, the World Gold Council and the Minerals Council of Australia, we endorse our industry associations’ statements on climate change. We are also working with these associations to better understand the life-cycle greenhouse gas emissions for the gold and copper value chains, and to identify best practices in the mining and metals industry to reduce emissions, adapt to the changing climate and to contribute positively to a low carbon future.

Our three focus areas:
Climate Change

Climate Change Policy and 2030 emissions target
•    Sustainability is core to our business
•    A sustainable business is a successful business
•    Target of 30% reduction in emissions intensity by 2030 (from 2018). Based on CO2-e per tonne of ore treated

Shadow carbon price

Shadow carbon price in capital/investment decisions 
•    Sensitivity analysis for investment decision making & planning
•    Apply carbon price in range $25/t to $50/t CO2-e
•    For regions with no carbon price emissions scheme 


Task force on climate-related financial disclosures (TCFD)
•    We are a supporter of TCFD
•    ~800 global firms are supporters
•    Newcrest to progressively report on TCFD via Sustainability Report

Climate change risks

Newcrest has exposure to a range of climate change risks related to the transition to a lower-carbon economy and have used the Taskforce on Climate-Related Financial Disclosure (TCFD) framework to frame its climate change risk assessment. 

Newcrest has identified the following risks: 

•    policy and legal developments
•    technology
•    reputation; and 
•    increased cost of inputs and raw materials.

Newcrest also identified risks related to the physical impacts of climate change. Gold and copper mining operations are energy intensive and in the short term, Newcrest expects to continue to rely heavily on fossil fuels. However, Newcrest is seeking opportunities to improve its energy efficiency to reduce direct mining and processing costs and is assessing options to use renewable power generation and low emission technologies to reduce its greenhouse gas emissions intensity. 

In 2019, the Board approved Newcrest’s climate change policy and from 2020 Newcrest plans to progressively adopt the TCFD framework for reporting on climate related aspects in our Sustainability Report. 

Newcrest continues to take steps to manage its risks and build resilience to climate change, as well as to position itself for new opportunities. In order to manage risks associated with policy and legal developments and to inform our investments, Newcrest has adopted a protocol for applying shadow carbon prices of US$25/tonne and US$50/tonne CO2–e in the period to 2030 for jurisdictions where there are no regulated carbon prices. Using the two carbon prices will enable a range of sensitivities to carbon price be considered for specific projects. 

Newcrest’s operating sites are vulnerable to physical climate impacts. As part of its risk management framework, Newcrest has identified risks that potentially relate to physical climate impacts, mainly at an operating site level. 

Extreme weather events have the potential to damage infrastructure, disrupt operations and delay delivery of products to market. Newcrest is working with experts to better understand physical threats from climate change at its current and planned operating sites and to put in place adaptation plans to ensure that we have considered these risk factors in our design criteria for site operations and infrastructure.