Hudbay produces the metals that the world needs to successfully transition to a low-carbon future. Copper, needed for electric vehicles, wind turbines, solar panels and batteries, smartphones and computers, will be essential in building the infrastructure required to achieve the climate change mitigation goals outlined in the Paris Agreement of 2015.
These considerations shaped our thinking in 2021, when we began laying out our roadmap to further identify and manage risks associated with climate change and opportunities to reduce greenhouse gas (GHG) emissions. Guided by our roadmap, in December 2022 we announced our commitment to achieve net zero GHG emissions by 2050, in line with the Paris Agreement, while adopting interim GHG reduction targets for 2030 to support this commitment.
Compared to other copper producers around the world, Hudbay’s operations are already in the lower half of the global GHG emissions curve. Building on that foundation, we understand that we have a role to play in mitigating climate change, and our reduction plan includes the following initiatives:
- Pursuing a 50% reduction in absolute Scope 1 and Scope 2 emissions from existing operations by 2030 (compared to 2021)
- Achieving net zero total emissions by 2050
- Reporting on material Scope 3 emissions in the near term
- Assessing acquisitions and new projects against corporate emissions targets
- Continuing to be transparent with GHG performance data disclosure, including reporting total GHG emissions and GHG intensity
- Evaluating new technologies as they become commercially available and economically viable
In announcing our commitment, Hudbay’s President and Chief Executive Officer (CEO), Peter Kukielski, noted, “Our GHG reduction targets were developed following a thorough review of our existing emissions and the evaluation of reduction opportunities that are achievable without compromising the long-term economics of our operations and projects.”
It will be challenging to determine how to initially maintain and then reduce our carbon footprint while simultaneously striving to increase our production of copper and other metals that the world needs for decarbonization. In many ways, the challenges that go with exploring for a new mineral deposit are like those of finding decarbonization solutions. While exploration, geology and location indicators can lead us to a prospective area, we still may have to conduct an extensive drilling program and test many sites before finding an economically viable deposit.
When it comes to decarbonization solutions, we may find practical approaches that, at first, are not economical or work in certain applications but are not yet suitable for our operations. As we progress toward meeting our targets, we expect to work with manufacturers and provide feedback they can use to refine and retool their products to meet our needs. In this case, we benefit from the variety of our activities and operations. Hudbay works in all four stages of the mining cycle – exploration, construction, operation and closure – and we have underground and open pit mines. We have projects in various stages of development, stretching from northern Manitoba to the highlands of Peru.
Our operations are real-world testing laboratories for ways to reduce GHG emissions. For example, in Manitoba, among other options, we are looking at battery vehicles for underground use. In Peru, we are examining technologies, like trolley-assist systems, that would make us more energy efficient. Early in 2023, we signed a Power Purchase Agreement (PPA) with a new electricity provider. In our tender, we requested that bidders include options for renewable grid power. Starting in 2026, when we begin to receive power under the agreement, 100% of our electricity will come from renewable sources. Finally, in Arizona, as we move the Copper World project forward, reducing emissions and aligning with our corporate emissions targets will be considered in our design plans.