Wheaton Precious Metals Corp. (TSX: WPM) has published its inaugural 2022 Climate Change Report showcasing how the company is tackling climate change risks.
The mining company announced the report on Thursday which details the strategies and progress made towards climate-related governance and achieving net-zero carbon emissions by 2050.
It emphasizes the management of climate risks and opportunities, including their integration into processes and ongoing monitoring. The document also highlights the commitment to support the decarbonization efforts of mining partners.
As of 2021, 68 per cent of Scope 3 financed emissions are covered by reduction targets aligned with maintaining global temperature rise of 2 centigrades or less.
“Mining plays a vital role in facilitating the energy transition and, as a provider of capital to the industry, we have a unique opportunity to influence and encourage our partners to operate in a sustainable manner, including setting targets to reduce their greenhouse gas emissions,” Wheaton CEO Randy Smallwood said.
“In addition, our high-quality portfolio of assets is diversified in terms of jurisdiction and commodity, allowing Wheaton to effectively manage our exposure to climate-related risks.”
“Through our business model, we are well positioned to help fund the supply of critical metals needed for the growing demand for low-carbon technology and infrastructure,” Smallwood said.
The report complements the company’s 2022 Sustainability Report which was published last May and includes updates on its ESG strategy, targets and commitments.
Read more: Wheaton Precious Metals 2022 sustainability report shows dedication to progress
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Wheaton conducted climate scenario analysis under two different scenarios
In 2021, Wheaton conducted a climate scenario analysis across two scenarios to understand how risks at the mining operations might translate to the company. In 2022, Wheaton built upon the results of the scenario analysis to assess climate risks exposure and vulnerability at the mining operations.
Wheaton’s business model focuses on developing a diversified portfolio of high-quality mineral stream interests, reducing its exposure to any one jurisdiction, region, commodity or operator. This strategy offers resilience to climate risks and challenges, making the streaming model uniquely resilient.
A significant portion of Wheaton’s production comes from base metal mines that have precious metals by-products, including mines whose primary metal is of strategic importance to the energy transition. Critical minerals, including copper, nickel and zinc, are required for many of today’s clean energy technologies and decarbonization efforts.
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The report is structured into six main sections including Introduction, Governance, Strategy, Risk Management, Metrics and Performance and an Independent Audit Report.
Wheaton’s 2022 Climate Change Report details the potential physical and transitional climate risks that could impact the company’s operations and its Mining Partners. Physical risks include acute weather events and chronic climate changes, while transitional risks encompass stricter environmental regulations, exposure to litigation, delayed implementation of low-carbon technologies, changes in consumer demand and sector stigmatization.
Despite these challenges, Wheaton is committed to managing these risks, supporting its Mining Partners’ decarbonization efforts, and contributing to global climate change solutions.
Wheaton recently signed a streaming agreement with Lumina Gold Corp.’s (TSXV: LUM), where its subsidiary Wheaton Precious Metals International Ltd. will pay Lumina $300 million in total upfront cash.
The stream will allow Wheaton to purchase 6.6 per cent of the payable gold from Cangrejos, located in El Oro Province, until 700,000 ounces have been delivered. After that, the stream will drop to 4.4 per cent for the remainder of the mine’s life.
The company has a portfolio of streaming agreements for 22 operating mines and nine development projects around the world.
Wheaton’s stock stayed flat on Friday at $59.04 on the Toronto Stock Exchange.
