With over 80 countries partaking in the 2050 net zero target, concerted efforts across all industries are required in the lead up to 2050 if the world is to reach this target. In recent years, several industries and sectors including the power and energy sector have progressively been adapting to the transformation known as the energy transition.

The mining industry is among the industries that are continuously being encouraged to make significant changes in their business conduct, this is through the introduction of ESG (Environmental, Social, and Governance) by the investors. This deliberate investing is in line with the net zero goal.

These adjustments in investments have meant that it is no longer just business as usual for mining operations. In fact, the promotion of sustainability by way of integrating green energy is redefining the future of the mining industry. Fortunately for mining companies, they don’t have to step into this uncharted territory alone. Experienced green energy solutions providers such as Energy First Limited are at their disposal to walk them through this unknown future.

With a mission to Providing first-class, cost effective and inclusive energy systems by leveraging robust technology to minimise carbon footprint, Energy First Limited (Energy First) is primed to help mining companies to managing not only their carbon footprint but their energy consumption through energy efficiency applications. Energy First deploys fully financed, fast-track, high quality and reliable solar plus battery energy solutions. We are immensely investing in the solar energy sector specifically to cater to the C&I and mini-grid clients (the latter is applicable to the mining industry) in the form of the Energy-As-A-Service Business Model.

How and why is the mining industry caught in this transformation?

Crux of net zero

Due to their needful for reliable power supply, heavy industries such as mining operations have for many years relied on fossil-fuel-based sources (coal, oil and gas) for the provision of stable power supply. However, burning fossil fuels generates greenhouse gas emissions, which then cause changes in temperatures. According to scientists, greenhouse gas concentrations are at their highest levels in 2 million years, hence the call for net zero. Companies, cities, financial institutions and investors across the globe have set or are considering a target of reducing emissions to net zero by 2050.

The net zero drive started in 2015. The Paris Agreement, often referred to as the Paris Accords or the Paris Climate Accords, an international treaty on climate change, was adopted in 2015. The agreement covers climate change mitigation, adaptation, and finance. At onset, the Paris Agreement was adopted by energy companies that dominated in fossil-fuel-based sources. Equally, due to the synergies between the energy sector and mining industry, the transition necessitates for the industries to align for seamless transformation.

ESG: the game-changer

ESG is an approach that many investors now attach to their investments. Under the ESG criteria, investors prefer to fund companies that have a better record on environmental and societal responsibility scales rather than focusing on financial gain.

Deloitte’s latest report, Tracking the trends 2022 – Redefining mining, cautions: “While much of the focus today is on climate change and decarbonisation, companies will increasingly need to think holistically and ensure their capital-allocation decisions reflect their ESG commitments. Building a portfolio of businesses, initiatives, and projects that are collectively strategically sound, value-creating, resilient, and sustainable will minimise risk in the face of significant future uncertainty and boost the aggregate value of a company’s holdings over time.”

For mining companies looking to improve on the E&S in ESG commitments, Energy First is equipped to make meaningful contributions. Our offices across sub-Saharan African countries are ready serve mining companies.

Zimbabwe: +263 8677 197 083 | Zambia: +260 968 652 861 | Nigeria: +234 9062 547 220 | Email: info@energyfirstlimited.com

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