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Climate Change and Energy Use

Energy use and efficiency initiatives, climate change-related risks, carbon pricing and greenhouse gas emissions, climate policies and regulations.

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Climate Change and Energy Use

Global imperatives to reduce emissions, adapt to the effects of climate change and transition to a low-carbon economy continue to intensify. 2019 saw numerous climate-related extreme weather events around the world and over six million people participating in climate demonstrations across 150 countries.1,2 In response, governments and companies are taking unprecedented levels of action and commitment.

To achieve the objectives of UN Sustainable Development Goal 13 on climate action and the Paris Agreement, which commits governments to limiting global temperature rise to well below 2°C, a number of major mining jurisdictions, including Canada and Chile, have made climate change commitments and are reporting on their progress towards implementing them.3

At Teck, we recognize that climate change is a key global risk, that it is directly influenced by human activity and that it requires decisive global action. Failure to act will expose the world to climate change impacts that will be costly for global ecosystems and for society as a whole. We are a signatory to the Paris Pledge for Action and believe we have a responsibility to help address this global challenge by reducing emissions at our operations, advocating for effective climate policies and responsibly producing the metals, minerals and energy that are essential for building the technologies and infrastructure needed to transition to a low-carbon economy.

The copper, lead, zinc and steelmaking coal produced at our operations are among the lowest carbon intensity products in the world compared to our peers and we are building on that track record in how we approach our oil sands developments. For example, the paraffinic froth treatment used at our Fort Hills oil sands mine has about half the upstream GHG intensity of older oil sands mining operations.4 Building on this track record, we set new goals in climate change, with a new strategic priority to be a carbon neutral operator by 2050.

Our responsibility to address climate change also includes accounting for climate-related risks and opportunities in our business strategies and at our operations. In August 2019, we released our second Portfolio Resilience in the Face of Climate Change report, which outlines the potential implications of three climate-related scenarios for our business looking forward to 2040, ranging from a scenario that limits climate change to 2° Celsius (C) above pre-industrial levels to scenarios with more significant climate change in that time frame.


Our Approach to Climate Change and Energy Use

At Teck, we believe that climate change is a key global risk, that it is directly influenced by human activity and that it requires decisive global action. Failure to act will expose the world to climate change impacts that will be costly for global ecosystems and for society as a whole. We believe we have a responsibility to help address this global challenge by reducing emissions at our operations and by sustainably producing the metals, minerals and energy that are essential for building the technologies and infrastructure needed to transition to a low-carbon economy. 

We understand that investors, lenders and other users of climate-related financial disclosures are interested in understanding the role an organization’s board plays in overseeing climate-related issues, as well as management’s role in assessing and managing those issues. We work to ensure that climate-related issues receive appropriate Board and management attention — our Board and senior management consider climate-related issues and risks in strategic planning across our business units. Teck’s climate-related disclosures are reviewed using similar governance processes and disclosure procedures as those used for financial disclosures.

Teck’s Board of Directors provides oversight on all strategic matters, including the risks and opportunities related to climate change. The Board has established the Safety and Sustainability Committee, chaired by a member of the Board. Through the SSC, the Board reviews and monitors environmental performance, and includes consideration of climate-related issues in corporate-level strategies and capital investment decisions. The Committee meets and reports to the company’s Board of Directors quarterly.

The Health, Safety, Environment and Community (HSEC) Risk Management Committee, chaired by our CEO, consists of corporate officers and senior managers who establish priorities and direction for environmental programs, and who monitor results. During both Safety and Sustainability Committee and HSEC Risk Management Committee meetings, specific issues related to energy and climate change management may be raised as individual items.

Climate-related risks and opportunities are identified using risk management tools internal to Teck, and rely on both internal and external expertise on climate change. These risks and opportunities are then prioritized based on their likelihood and severity of impact on our business, and are considered in our overall strategic planning.

The following senior leaders are involved in implementing the management of energy and greenhouse gas (GHG) emissions:

  • The Senior Vice President, Sustainability and External Affairs reports directly to our CEO and is responsible for sustainability, health and safety, environment and community affairs, including our climate action strategy
  • The Vice President, Environment oversees compliance with environmental standards for projects, operations and our legacy properties, and regularly reviews environmental performance risks and strategic issues, including our climate action strategy
  • The Vice President, Community and Government Relations is involved in engaging provincial and federal governments on climate policy
  • The Manager of Sustainability & Climate Change coordinates the risk and opportunity management for climate-related risks and the implementation of our climate action strategy and energy and GHG reduction goals

Our commitment to efficient energy and climate change management is outlined in our Portfolio Resilience in the Face of Climate Change report, which includes scenario analysis, as well as in our sustainability strategy. Our Code of Sustainable Conduct describes our commitment to promote the efficient use of energy and material resources in all aspects of our business, and outlines our support of sustainable development and willingness to accept our obligation to constantly improve our methods of extracting the world’s resources to the benefit of our stakeholders. Our HSEC Management Standards stipulate that all of Teck’s major capital projects will include the identification and evaluation of opportunities for improving energy efficiency.

We work with various local, national and international organizations and programs to support climate action:

  • CDP: We annually report our global GHG emissions data to the CDP, an independent not-for-profit organization working to drive GHG emissions reduction by businesses and cities
  • GHG Protocol for Calculating Emissions: Our energy and carbon accounting practices follow these rigorous standards from the World Resources Institute and the World Business Council for Sustainable Development
  • The Paris Pledge for Action: Teck is a signatory to the Paris Pledge for Action in support of reducing emissions and achieving the objectives of the Paris Agreement
  • Carbon Pricing Leadership Coalition: A partnership of national and sub-national governments, businesses and organizations working toward integrating carbon pricing into the global economy
  • Council for Clean Capitalism: A group of forward-thinking companies working together to ensure sufficient financing and transparency to smooth our transition to a low-carbon economy
  • Canada’s Oil Sands Innovation Alliance (COSIA): An alliance of oil sands producers focused on accelerating improvement in environmental performance in Canada’s oil sands through collaborative action and innovation
  • Climate Solutions and Clean Growth Advisory Council: This council provides strategic advice to government on climate action and clean economic growth; Teck’s Senior Vice President, Sustainability and External Affairs is currently a council co-chair

Our strategy to contribute to global climate action, to adapt to a low-carbon economy and to continue to responsibly produce the materials essential for society is built around four pillars:

  1. Positioning Teck for the low-carbon economy
  2. Reducing our carbon footprint
  3. Support for appropriate carbon pricing policies
  4. Adapting to physical impacts

 

Positioning Teck for the Low-Carbon Economy

The minerals and metals we produce — including steelmaking coal, copper and zinc — are some of the basic building blocks of low-carbon technology and infrastructure. We are developing a cost- and carbon-competitive energy business, based in Alberta, Canada, which is home to some of the most progressive climate action policies of any oil-producing jurisdiction globally. One of these projects, Fort Hills, will have one of the lowest carbon intensities among North American oil sands producers.

Our approach to ensuring Teck remains competitive throughout the shift to a low-carbon economy also focuses on ensuring our operations remain efficient and low cost. This gives us increased ability to weather potential carbon-related costs and shifts in demand while remaining competitive.

Carbon intensity is a measure of the GHG emissions generated during production of a given unit of a commodity, e.g., the amount of carbon dioxide (CO2) generated per tonne of copper or steelmaking coal produced. According to the ICMM, at 60 kilograms of CO2-equivalent per tonne of steelmaking coal produced, the emissions intensity of our steelmaking coal is less than half the industry average of more than 150 kilograms.

Similarly, our copper production averages 2.6 tonnes of CO2-equivalent per tonne of copper produced, which is 35% below the industry average of 4 tonnes. Moving forward, our goal is to continue to improve the carbon intensity of our operations and future projects. As part of our sustainability strategy update in 2020, we have set ambitious new goals to reduce our emissions, including to be a carbon-neutral operator by 2050. Further detail is included below. 

Low-Carbon Energy

Each of Teck’s operations has an Energy Lead and when sites find opportunities to optimize energy use, these strategies are shared across sites to continuously work to lower our total energy consumption.

Many of our operations access low-carbon sources of electricity. For example, for our B.C. operations, 92% of grid electricity is renewable and almost entirely generated from hydro. Trail Operations’ electricity, which accounts for 44% of our company’s total electricity consumption, is from the Waneta hydroelectric dam and transmission system. This enables Trail Operations to produce refined zinc and lead at a lower GHG intensity, compared to producers powered by fossil fuel-based electricity grids.

We are making progress on decarbonizing our operations in Chile. At our Quebrada Blanca Operations, we are currently sourcing 30% of our total energy needs from solar power, and in 2020, we entered into a long-term power purchase agreement for our Quebrada Blanca Phase 2 project. Once effective, more than 50% of total operating power needs at Quebrada Blanca Phase 2 are expected to be from renewable sources.

Teck is exploring additional opportunities for solar, wind and other low-carbon technologies across our portfolio. In 2020, we purchased SunMine, a 1.05 MW (megawatt) solar facility, which is located on fully reclaimed land at Teck’s former Sullivan Mine site.

As we work towards our long-term commitment towards carbon neutrality, we will continue to gain expertise in renewables and prioritize technologies that provide other sustainability benefits such as for local communities.

Teck advocates for broad-based carbon pricing and we build carbon pricing into our business planning, capital planning and risk-decision processes. Currently, all of our steelmaking coal operations are covered by carbon pricing, as is half of our copper business and all of our metals refining business. Where a clear and certain carbon price is present, we incorporate that price into our planning, along with any known or planned changes to the carbon price.

We continue to advocate for carbon pricing policies that maintain the global competitiveness of trade-exposed industries to prevent carbon leakage, which is when GHG emissions move from one jurisdiction to another as a result of differences in carbon prices.

Adapting to Physical Impacts

We are taking steps to guard against the future impacts of climate change. The physical risks of climate change to our activities can include rising sea levels, rising temperatures and changes in precipitation. They can result in the increased intensity and duration of extreme weather events such as storms, drought and flooding. Consequently, we integrate climate variables (e.g., precipitation, temperature, water runoff) into our project designs and ongoing mine planning processes — including closure and reclamation planning.

We work with technical experts in the field of climate modelling and forecasting to better understand potential changes in climate-related conditions in the regions where we operate. This helps us to assess how climate change modelling can be integrated into our decision-making and risk management practices. We typically take climate change into consideration in project development, mine planning and closure planning.

We are taking steps to guard against the future impacts of climate change. The physical risks of climate change to our activities can include rising sea levels, rising temperatures and changes in precipitation. They can result in the increased intensity and duration of extreme weather events such as storms, drought and flooding. Consequently, we integrate climate variables (e.g., precipitation, temperature, water runoff) into our project designs and ongoing mine planning processes — including closure and reclamation planning.

We work with technical experts in the field of climate modelling and forecasting to better understand potential changes in climate-related conditions in the regions where we operate. This helps us to assess how climate change modelling can be integrated into our decision-making and risk management practices. We typically take climate change into consideration in project development, mine planning and closure planning.

The Task Force on Climate-Related Financial Disclosures (TCFD) made recommendations in 2017 for how companies can improve climate-related public disclosure.5 Teck’s Portfolio Resilience in the Face of Climate Change report is structured to align with the TCFD’s recommendations.

Building on our existing climate-related work and disclosures, Teck has analyzed and disclosed the potential implications of various climate-related scenarios for our business, including a scenario that limits climate change to 2° Celsius above pre-industrial levels. The use of scenarios aids our decision-making and strategic planning. We will build on our report in future years to continue to clearly communicate Teck’s approach to climate action and our potential climate-related risks and opportunities.

Our sustainability strategy outlines our goals in relation to continuously improving our energy use and emissions at our operations. In 2019, we conducted broad engagement with employees and external stakeholders to identify and prioritize global trends and issues and set a new sustainability strategy, including new goals in energy and climate change.

Strategic Priority:

  • Be a carbon-neutral operator by 2050

 

Goals:

  • Reduce the carbon intensity of our operations by 33% by 2030
  • Procure 50% of our electricity demands in Chile from clean energy by 2025 and 100% by 2030
  • Accelerate the adoption of zero-emissions alternatives for transportation by displacing the equivalent of 1,000 internal combustion engine (ICE) vehicles by 2025

 

Our focus in 2020 will be on making progress towards our new goals and concluding final steps on the 2020 energy and climate change goals within our previous sustainability strategy.

By the end of 2020, we will:

  • Implement projects that reduce energy consumption by 2,500 terajoules (TJ).
  • Implement projects that reduce GHG emissions by 275 kilotonnes (kt) of CO2-equivalent. This goal was completed in 2018.
  • Assess opportunities and identify potential project partners toward achieving our 2030 alternative energy goals
  • Engage with governments to advocate for effective and efficient carbon pricing

 

For more information on our existing and new sustainability strategy goals, see the Sustainability Strategy section of our website.

Type

Organization

Items Reviewed

External

Mining Association of Canada: Towards Sustainable Mining assurance

  • Energy use and GHG emissions management systems

  • Energy use and GHG emissions reporting systems

  • Energy use and GHG emissions performance targets

External

International Council on Mining and Metals: Sustainability Report assurance

  • GHG emissions — direct scope 1

  • GHG emissions — indirect scope 2

  • GHG emissions — indirect scope 3 (use of sold products)

  • Principle 6: Pursue continual improvement in environmental performance issues, such as water stewardship, energy use and climate change

External

GHG Regulation Assurance (B.C. and Alberta)

  • Validation of GHG data reported and quantification of methodologies

External

ISO 14001 external audits

  • Components of the environmental management system at each site

Internal

ISO 14001 internal audits

  • Components of the environmental management system at each site

Internal

Risk-based Health, Safety and Environment audits at each site

  • Adherence to regulatory and permit requirements
  • Effectiveness of controls based on risk profile

Following each of these types of assurance, applicable management teams use the results to inform future actions and Teck’s five-year planning process.

We report on our performance against these indicators and our progress towards our energy consumption and GHG emissions reduction goals on an annual basis in our sustainability report. Also see our Portfolio Resilience in the Face of Climate Change report for information on our climate change strategy, how we analyze climate-related risks and opportunities, and analyses of various climate scenarios and their implications for Teck.

Our Performance in Climate Change and Energy Use in 2019

Reducing Our Carbon Footprint

Throughout our business units, operations and project planning stages, we assess a full spectrum of environmental risks, including those associated with energy use and GHG emissions. As shown in Figure 9, Scope 1 (direct) GHG emissions are those that occur from energy sources that are owned or controlled by the company. Scope 2 (indirect) GHG emissions are those that occur from the generation of purchased electricity consumed by the company and physically occur at the facility where electricity is generated.

In 2019, our total GHG emissions (Scope 1 and Scope 2), as CO2e, were 3,226 kilotonnes (kt), compared to 3,210 kt in 2018. Of those totals, our direct (Scope 1) GHG emissions were 2,936kt in 2019, compared to 2,869 kt in 2018. We estimate our indirect (Scope 2) GHG emissions associated with electricity use for 2019 to be 290 kt, or approximately 9% of our total emissions. These emissions are associated primarily with our Cardinal River, Carmen de Andacollo and Quebrada Blanca operations, as their electricity power grids are based heavily on fossil fuels. Elsewhere, our indirect emissions were relatively small, as operations in B.C. obtain a significant proportion of their electricity from hydroelectric generation.

Scope 3 emissions are other emissions that arise from sources owned or controlled by other entities within our value chain, such as those arising from the use of our products, business travel by employees and the transportation of materials that we purchase and sell. In 2019, our most material Scope 3 emissions were 73,000kt, which are from the use of our steelmaking coal product by our customers.

In this report, we have also introduced two updates to our GHG quantification methodologies that have resulted in restatements to our historical figures. The first update was made to the emission factor used to estimate fugitive methane at our coal operations. This update was made to reflect changes within our regulatory reporting obligations. The second update was made to the electricity emission factors used in British Columbia to more accurately reflect historical annual estimates of the electricity grid’s GHG intensity.

Figure 9: Scope 1 and Scope 2 GHG Emissions by Fuel Type 

(1) For electricity emissions in Canada, the emission factors use 2010 as a base year and are based on the most recent version of the Canadian National Inventory Report.
(2) Fugitive emissions from our coal operations (i.e., estimated methane release) are captured as direct emissions. For fugitive emissions, the emission factors use 2010 as a base year and are based on the most recent version of the Canadian National Inventory Report.
(3) In 2016, we updated the Global Warming Potential values for all of our GHG accounting to align with regulatory requirements; therefore, historical values have been restated. Global Warming Potentials are the factors that convert greenhouse gases — like methane (CH4) — to a carbon dioxide equivalent (CO2e), thereby standardizing the quantification of GHG emissions.

 

Table 14: Total Emissions (kilotonnes CO2e)(1)

  2019 2018 2017 2016
Total Emissions — Direct (Scope 1) 2,936 2,869 2,954 2,817
Total Emissions — Indirect (Scope 2) 290 341 284 372
Total Emissions (Scope 1 + Scope 2) 3,226 3,210 3,238 3,189
Total Emissions — Scope 3 73,000 76,000 78,438 79,053
(1) Teck’s quantification methodology for our Scope 1 and Scope 2 emissions is aligned with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard

 

Positioning Teck to Thrive in the Low-Carbon Economy

Energy Use and Reduction

In 2019, we consumed a total of 44,032TJ of energy (i.e., electricity and fuels), as compared to 43,866 TJ in 2018, as shown in Figure 10. In 2019, six of our operations (Cardinal River, Coal Mountain, Greenhills, Carmen de Andacollo, Quebrada Blanca and Pend Oreille) reduced their absolute energy consumption from 2018. Collectively, projects implemented in 2019 have reduced annual energy consumption at our operations by 249 TJ — enough to power 2,311 homes for a year. Since 2011, our efforts have resulted in reduction projects totalling 2,964 TJ of savings.

Figure 10: Energy Consumption by Type (1)

(1) Other includes propane, waste oil, fuel oils and other process fuels.

 

In 2019, approximately 27% of our energy requirements (i.e., electricity and fuels) were supplied by non-carbon-emitting sources, primarily hydroelectricity, compared to 27% in 2018. Of our total electricity consumption in 2019, 82%, or 11,491 TJ, was from renewable energy sources, the majority of which is hydroelectricity.

In Figures 11 to 13, we outline our energy intensity, or the amount of energy used per tonne of product, as well as the carbon intensity. According to data from the ICMM, at 80 kilograms of CO2-equivalent per tonne of steelmaking coal produced, the emissions intensity of our steelmaking coal is less than half the industry average of more than 150 kilograms. Similarly, our copper production averages 2.56 tonnes of CO2-equivalent per tonne of copper produced, which is 35% below the industry average of 4 tonnes. Our goal is to continue to improve the carbon intensity of our operations and future projects.

Figure 11: Steelmaking Coal Production Intensity

(2) Carbon intensity includes Scope 1 and Scope 2 emissions and is stated on a CO2e basis, which is inclusive of CO2, CH4, N2O, PFCs, SF6 and NF3 as appropriate.

 

Energy and carbon intensity for the production of steelmaking coal increased in 2019 (Figure 11). This change is primarily a result of mining in new, recently permitted areas at a number of our operations, with increased strip ratios to generate production after the closure of Coal Mountain. Increased strip ratios require more waste material to be moved for an equivalent amount of coal production therefore increasing the energy and carbon intensity of the product.

Figure 12: Zinc and Lead Production Intensity

(2) Carbon intensity includes Scope 1 and Scope 2 emissions and is stated on a CO2e basis, which is inclusive of CO2, CH4, N2O, PFCs, SF6 and NF3 as appropriate.

 

Energy and carbon intensity for the production of zinc and lead increased in 2019 (Figure 12). This change is primarily due to lower throughput and zinc grades. Trail Operations also experienced a decline in refined zinc production due to the electrical equipment failure.

Figure 13: Copper Production Intensity

  

(2) Carbon intensity includes Scope 1 and Scope 2 emissions and is stated on a CO2e basis, which is inclusive of CO2, CH4, N2O, PFCs, SF6 and NF3 as appropriate.

 

Energy and carbon intensity for the production of copper decreased in 2019 (Figure 13). This change is attributed to a larger proportion of the total copper production coming from Highland Valley Copper, which is a low-carbon and energy intensive operation, in relation to Carmen de Andacollo and Quebrada Blanca operations. In 2019, Highland Valley Copper experienced higher ore grades and improved recovery.  

Figure 14: Teck Carbon Intensity on a Copper Equivalent(1) Production Basis  

(1) Only the primary commodities we report on – i.e. Coal, Copper and Zinc – are included within the equivalency calculation. Lead has been excluded. Carbon Equivalency was calculated by using a three-year commodity price average, using prices reported in our previous annual reports.
(2) Carbon intensity includes Scope 1 and Scope 2 emissions and is stated on a CO2e basis, which is inclusive of CO2, CH4, N2O, PFCs, SF6 and NF3 as appropriate.

 

Figure 14 is new to our sustainability disclosures. It is demonstrating Teck’s carbon intensity which includes total Scope 1 and 2 emissions as reported above against a tonne of copper equivalent. We have used this metric – intensity per tonne of copper equivalent – in order to provide a single carbon intensity metric for the organization as a whole.

Investing in our Energy Business Unit

As the International Energy Agency (IEA) has articulated in looking at all future energy use scenarios, oil and gas will continue to be an important part of the world’s energy mix for the foreseeable future, even in the transition to a low-carbon economy. Our focus is on helping to meet that need and on developing Canada’s oil sands resources in the most sustainable way possible for people, for communities and for the environment.

We have a strong track record of taking steps to improve energy efficiency, reduce GHGs and lower the carbon intensity of our products. Both our steelmaking coal and copper production are among the lowest carbon intensity in the world and we are building on that track record in how we approach our oil sands development. Fort Hills incorporates industry-leading technologies to achieve best-in-class environmental performance. As a result, at 37.5 kilograms of CO2-equivalent per bbl the carbon intensity of oil produced from Fort Hills is the lowest in the oil sands by a significant factor (Figure 15). While we believe that lower-carbon production such as from Fort Hills can help to displace more carbon-intensive barrels as the world transitions to cleaner energy sources and seeks to minimize GHGs, we are further focused on continuing to push for further reductions in carbon intensity through new technology as we work towards our commitment of carbon-neutrality.

Figure 15: GHG Emissions Intensity of Oil Sands Facilities  

Carbon Pricing and Advocating for Climate Action

We believe that broad-based pricing of carbon is one of the most effective ways to incentivize real reductions in GHG emissions by ensuring that all emitters contribute to the solution. In 2019, we continued to advocate for carbon pricing policies that maintain the global competitiveness of trade-exposed industries to prevent carbon leakage, which is when GHG emissions move from one jurisdiction to another as a result of differences in carbon prices. Currently, all of our steelmaking coal operations are covered by carbon pricing, as is half of our copper business, our Fort Hills oil sands mine and all of our metals refining business.

We continue to see a trend among governments to pursue climate change policies. Some of the most significant action has taken place in Canada, where the majority of our operations are located and Canada has some of the highest carbon prices in the world.5 In 2019, the federal government implemented the Greenhouse Gas Pollution Pricing Act, which prices carbon in Canadian provinces not already covered by their own carbon price. The Province of British Columbia also increased the B.C. carbon tax by $5 per tonne of CO2e from $35 to $40 in 2019. This price is expected to increase by $5 per tonne of CO2e per year until reaching $50 per tonne of CO2e in 2021.

As part of its commitment to address impacts on emissions-intensive, trade-exposed industries, the B.C. government continued to develop its Clean Growth Program for Industry, which includes an industrial incentive to reduce carbon tax costs for operations meeting ambitious emissions standards, as well as an industry fund to invest carbon tax revenue directly into emission reduction projects. In Alberta, a new industry-specific carbon price policy, called the Technology Innovation and Emissions Reductions (TIER), is expected to be implemented in 2020. Details are still emerging and we will continue to engage with regulators and assess the potential implications of these policies on our operations and projects.

In 2019, we continued to work with the Mining Association of British Columbia (MAC) and the Business Council of British Columbia (BCBC) on carbon pricing policy, to provide both policy direction and technical input to the government, with a view to maintaining the competitiveness of industry in the province.

We are also engaging with the British Columbia government directly through the provincial Clean Growth Advisory Council, for which Marcia Smith, Teck’s Senior Vice President, Sustainability and External Affairs, is the co-chair. Teck has more than a decade of experience with carbon pricing policies, which has informed our work to help advance the effective design and acceptance of carbon pricing policies globally. This is best demonstrated by our participation in the Carbon Pricing Leadership Coalition. 

Timely and transparent climate and environmental disclosures are important to Teck and its communities of interest and are a key component of driving sustainability. Building on over a decade of public reporting on climate change, in 2019, we continued to participate in the Carbon Disclosure Project (CDP). We also engaged with the Climate Action 100+, a leading investor initiative that supports action on climate change, on topics such as our emission reduction and alternative energy targets.


5 Carbon Pricing in Action. Carbon Pricing Leadership Coalition. (https://www.carbonpricingleadership.org/who).

 

Summary of Portfolio Resilience in the Face of Climate Change

In August 2019, we released our Portfolio Resilience in the Face of Climate Change report. The report looks at how Teck is positioned for a low-carbon economy by analyzing potential business risks and opportunities under three different climate change scenarios:

  1. 3.5°C: A Story of Inaction
  2. 2.7°C: A Story of Transition
  3. Below 2°C Scenario: A Story of Transformation

These scenarios provide information on how Teck is analyzing and preparing for the risks and opportunities that may emerge as the global community combats climate change and moves to a lower-carbon future. This report builds on our 2018 Climate Action and Portfolio Resilience report and aligns with recommendations from the Task Force on Climate-related Financial Disclosure, which we support.

Adapting to Physical Climate Risks

We are taking steps to guard against the future impacts of climate change, as we recognize that ongoing changes to climate can increase the physical climate risks to our mining operations and to related infrastructure. Several of our operations have experienced weather events that are potentially climate related, including warming conditions at Red Dog Operations and increased snowmelt runoff leading to flooding at Highland Valley Copper (HVC) Operations. 

In 2019, we implemented climate adaptation measures at several of our operations. At HVC, we continued to execute our spring runoff water management strategy to protect key infrastructure and we completed climate change analyses to contribute to long-term adaptation plans for the mine. At our Fording River Operations, we continue to advance a flood mitigation project, in response to erosion caused by high water levels in 2013. At our operations in Chile, we advanced projects to reduce our fresh water consumption in response to potential water availability constraints due to future climate conditions.


Outlook for Energy and Climate Change

In 2020, Teck will continue to incorporate planning for climate-related risks and opportunities into our business strategies and at our operations. We will also continue to track and refine indicators that influence the strength and resilience of our assets in a low-carbon world, such as the electric vehicle market, growth in renewables and global carbon prices. As in previous years, we will advance the four pillars of our Strategy for Climate Action — reducing our carbon footprint, positioning Teck for the low-carbon economy, advocating for climate action and adapting to the physical impacts — and work to achieve our 2020 goals for Energy and Climate Change.

Moving forward, we will work towards our strategic priority of being a carbon neutral operator by 2050. We have set new goals in climate change, which include reducing the carbon intensity of our operations by 33% by 2030, procuring 50% of our electricity demands in Chile from clean energy by 2025 and 100% by 2030 and accelerating the adoption of zero-emissions alternatives for transportation by displacing the equivalent of 1,000 internal combustion engine (ICE) vehicles by 2025. Our focus in 2020 will be on concluding the final steps of our 2020 goals within our previous sustainability strategy, and on making progress towards achieving our new goals.

 


Teck

Teck is a diversified resource company committed to responsible mining and mineral development with business units focused on copper, zinc, steelmaking coal and energy.