Anglo American has accelerated its sustainability strategy in 2025 by expanding renewable energy, strengthening greenhouse gas (GHG) emissions reduction initiatives, enhancing environmental stewardship and increasing investments in community development. The mining company continues to integrate sustainability into every aspect of its business strategy, positioning responsible mining as a driver of long-term value creation while supporting the global transition to a lower-carbon economy.
The company reaffirmed its commitment to achieve operational carbon neutrality by 2040, backed by an interim target to reduce Scope 1 and Scope 2 GHG emissions by 30 percent by 2030 compared with a 2020 baseline, Anglo American sustainability report 2025 indicated.
Its decarbonization roadmap combines diesel replacement, renewable electricity adoption, energy productivity improvements and internal carbon compensation projects. During 2025, Anglo American reported 6.3 million tonnes of CO₂ equivalent (Scope 1 and Scope 2) emissions from continuing operations as it continued implementing its climate strategy.
Renewable electricity remains central to Anglo American’s emissions reduction efforts. Since 2023, the company has sourced 100 percent renewable electricity for its mining operations in Brazil, Chile and Peru, eliminating Scope 2 operational emissions across these regions. Renewable energy deployment also expanded through the 63 MW solar photovoltaic project at Sishen, renewable power supplied to Kolomela through the Koruson 2 project, and additional renewable electricity initiatives across Kumba Iron Ore operations.
The company’s clean energy ambitions are being accelerated through its Envusa Energy joint venture with EDF power solutions, which aims to develop 3 GW to 5 GW of renewable energy capacity by 2030. A major milestone was the commissioning of the 520 MW Koruson 2 Renewable Cluster, comprising the 240 MW Mooi Plaats solar plant and two 140 MW wind farms, connected through the Koruson 400 kV Main Transmission Substation. In addition, Kumba Iron Ore’s Kolomela Mine now sources approximately 72 percent of its electricity requirements from renewable energy under 20-year power purchase agreements.
Anglo American is also addressing emissions across its value chain. The company introduced a new Scope 3 steelmaking target to reduce the average emissions intensity of steel produced from its premium iron ore to 1.3 tonnes of CO₂e per tonne of crude steel (tCO₂e/tCS) by 2040, aligned with the International Energy Agency’s 1.5°C pathway, which requires emissions intensity below 1.34 tCO₂e/tCS by 2040.
Customer collaboration is becoming increasingly important in the company’s decarbonization strategy. During 2025, approximately 39 percent of iron ore sales by volume were made to customers with externally verified net zero targets, while around 22 percent of premium iron ore sales were covered by decarbonization Memorandums of Understanding. More than 47 percent of Category 10 emissions from iron ore originated in China, which has committed to carbon neutrality by 2060, while around 31 percent came from Europe, Japan and South Korea, which have adopted 2050 carbon neutrality targets.
The company is also lowering emissions from logistics and supply chains. Its fleet of 10 LNG dual-fuelled Capesize+ bulk carriers can reduce CO₂ emissions by up to 35 percent compared with conventionally fuelled vessels. Anglo American surveyed its top 200 suppliers by emissions, achieving a response rate of more than 90 percent, representing over 50 percent of upstream emissions. Supplier activities account for approximately 5 percent of the company’s overall Scope 3 emissions footprint.
Helena Nonka, Chief Strategy & Sustainability Officer of Anglo American, said sustainability is embedded throughout portfolio decisions, project development and operational management, making it a core driver of commercial performance and stakeholder value rather than a standalone initiative.
Safety and environmental performance also improved during 2025. Work-related fatalities declined to 2, compared with 3 in 2024, while the Total Recordable Injury Frequency Rate improved to 1.26 from 1.57. Anglo American also recorded zero Level 4 and Level 5 environmental incidents, demonstrating continued progress in operational risk management and environmental protection.
Water stewardship and biodiversity conservation remain strategic priorities. The company is targeting zero freshwater use for mining processes at Los Bronces by 2030 while pursuing its ambition to halt and reverse nature loss by 2030 against a 2020 baseline through biodiversity restoration initiatives aligned with the Kunming-Montreal Global Biodiversity Framework.
Anglo American continued delivering economic value across its operating regions. South Africa employed 22,600 people, paying US$1,044 million in wages and benefits, US$1,212 million in taxes and royalties and US$2,421 million in local procurement. Chile supported 4,200 employees, contributing US$457 million in wages, US$607 million in taxes and royalties and US$2,743 million in procurement spending. Brazil employed 4,700 people while contributing US$192 million in wages, US$462 million in taxes and royalties and US$1,364 million in procurement. Australia and Asia supported 3,200 employees with US$1,425 million in procurement, Europe employed 2,600 people with US$644 million in procurement, Peru supported 1,500 employees and US$1,438 million in procurement, Other Africa employed 3,900 people with US$458 million in procurement, and North America employed 800 people with US$132 million in procurement.
SHAFANA FAZAL