Climate Change Report 2022

Climate Change
Report 2022
Re-imagining mining to Contents
03 Our business at a glance 24 Decarbonising our operations (Scope 1 and 2)
improve people’s lives 05 Chairman’s statement

06 Chief Executive’s statement
28 Decarbonising our value chain (Scope 3)
33 Just Transition
07 Purpose to value 35 Effective governance and engagement
08 Sustainable Mining Plan 38 Assurance statement
09 2022 key highlights 40 TCFD disclosure
10 Towards a low carbon future – our strategy 41 Climate Action 100+ Net Zero Company
and approach Benchmark disclosure
Tackling climate change is the Climate change performance *
11 Climate Transition Plan 44 Glossary

defining challenge of our time. 14 Resilience to climate risk 45 Contacts and other information
2022 Scope 1 emissions 2022 Scope 2 emissions
Understanding the implications for Anglo American is
a significant strategic matter for us. But being resilient
as a company is not enough. We understand that
mining has a critical enabling role to play in providing 8.3 Mt CO2e 5.0 Mt CO2e
the metals and minerals needed for a low carbon 2021: 8.9 Mt CO2e 2021: 5.6 Mt CO2e
world. In this context, we are working actively to be
part of the solution to climate change, because it is Our reporting suite FutureSmart Mining™
the right thing for the long term sustainability of our You can find this report and others, In order to live up to our Purpose, we
business, and also the right thing for society. 2021 Scope 3 emissions** 2022 GHG emissions intensity
for Scope 1 and 2 including the Integrated Annual are changing the way we operate
Report, the Sustainability Report, through smart innovation that
98.5 Mt CO2e 6.1 t CO2e/t CuEq

our Tax and Economic Contribution connects technology, digitalisation
Report and the Ore Reserves and and a holistic approach to
2020: 114.8 Mt CO2e 2021: 6.7 t CO2e/t CuEq Mineral Resources Report, on our sustainability.
corporate website.
— For more information, visit:
— For more information, visit: www.angloamerican.com/futuresmart
www.angloamerican.com/reporting
Scope 1 and 2 target Scope 1 and 2 target
Social channels
30% Carbon AngloAmerican Anglo American angloamericanplc @angloamerican angloamerican
reduction by 2030
(against a 2016 baseline) neutral
by 2040
Anglo American plc Climate Change Report 2022
This report provides our stakeholders with transparent disclosure of References to Anglo American plc in this document, references to
Anglo American’s comprehensive approach to climate change. The report ‘Anglo American’, the ‘Anglo American Group’, the ‘Group’, ‘we’, ‘us’, and ‘our’
is aimed at investors, customers, suppliers, our communities, governments, are to refer to either Anglo American plc and its subsidiaries and/or those who
non-governmental organisations (NGOs), and our employees and those who work for them generally, or where it is not necessary to refer to a particular entity,
Scope 3 ambition Portfolio alignment work with us. In addition to reporting, we use a variety of tools to ensure that entities or persons. The use of those generic terms herein is for convenience
we engage with all interested stakeholder groups on climate change. In some only and is in no way indicative of how the Anglo American Group or any entity
cases, individual business unit reports are also published and provide greater within it is structured, managed or controlled. Anglo American subsidiaries,
detail on performance. These are available on the Anglo American website. and their management, are responsible for their own day-to-day operations,
50% ~85% The Anglo American Integrated Annual Report and Sustainability Report include
additional information about the Group’s management, operations, financial
performance and sustainable development. The Anglo American Chairman,
including but not limited to securing and maintaining all relevant licences
and permits, operational adaptation and implementation of Group policies,
management, training and any applicable local grievance mechanisms.
reduction by 2040 of portfolio focused on future-
Chief Executive, and the Board’s Sustainability Committee have reviewed this Anglo American produces Groupwide policies and procedures to ensure best
(against a 2020 baseline) enabling products
report, which has been approved by the Board. uniform practices and standardisation across the Anglo American Group
but is not responsible for the day-to-day implementation of such policies.
Scope of the report Such policies and procedures constitute prescribed minimum standards
only. Group operating subsidiaries are responsible for adapting those
* Scope 1 and 2 emissions data has been subject to high assurance, while our Scope 3 The Climate Change Report covers subsidiaries and joint operations over
policies and procedures to reflect local conditions where appropriate, and for
data has been subjected to limited assurance. All data presented includes only ongoing which the Anglo American Group has management control or acts as operator.
implementation, oversight and monitoring within their specific businesses.
operations. It does not include independently managed operations, such as Collahuasi
Cover image and Samancor, unless specifically stipulated. It also excludes De Beers’ non-
General assistant James Kutumela assembling photo-voltaic (PV)
** 2021 Scope 3 data is based on updated Scope 3 methodology. Scope 3 emissions
managed joint operations in Namibia and Botswana from our reporting scope, — See more on page 44
continue to be reported with a 12-month lag. This is due to the complexity involved
panels for the solar-powered hydrogen plant under construction at in processing data at a granular level across our value chain, and continuous unless specifically stipulated in the reporting.
02
our Mogalakwena PGMs mine. improvements to our methodology.

Our business at a glance
Anglo American is a leading global mining company with a world class portfolio
of mining and processing operations and undeveloped resources, providing
tailored materials solutions for our customers, with more than 105,000 people
working for us around the world.
Peru Chile Brazil South Africa Australia

Scope 1 Scope 1 Scope 1 Scope 1 Scope 1
0.16 Mt CO2e 0.39 Mt CO2e 1.29 Mt CO2e 1.14 Mt CO2e 5.11 Mt CO2e
Scope 2 Scope 2 Scope 2 Scope 2 Scope 2
0.07 Mt CO2e 0 Mt CO2e 0 Mt CO2e 4.12 Mt CO2e 0.66 Mt CO2e
Operations Operations Operations Operations Operations
1 3 3 9 6
1
United Finland
Kingdom
1 Canada
Product groups* 2 Botswana Zimbabwe 1

Diamonds
2Namibia
Shanghai
Copper 1 Peru
Nickel Singapore
Platinum Group Metals
3 Chile Brazil 2 1
Iron Ore
Steelmaking Coal South Africa
Manganese 1 2 5 1 Australia 1 5
Crop Nutrients
Full disclosure of emissions can be found elsewhere
* Number within dot denotes number
03
in the report and on the Anglo American website.

of operations, shown by product.
Base Metals
We provide many of the essential metals and Diamonds Copper Nickel PGMs
minerals that are fundamental to the transition
to a low carbon economy and enabling a
cleaner, greener, more sustainable world, as $1,417 million $2,182 million $381 million $4,417 million
well as meeting the growing consumer-driven Underlying EBITDA Underlying EBITDA Underlying EBITDA Underlying EBITDA
demands of the world’s developed and maturing
economies. And we do so in a way that not only
generates sustainable returns for our shareholders,
10% 15% 3% 30%
but that also strives to make a real and lasting Group underlying EBITDA Group underlying EBITDA Group underlying EBITDA Group underlying EBITDA
positive contribution to society as a whole.
— Our overview video gives a complete introduction 34.6 Mct 664 kt 39.8 kt 4,024 koz
to what we do and our ambitions for the future Production (100% basis) *
Production Production: Nickel Production: PGMs
Our business at a glance continued
See https://youtu.be/cYUz_h97X0A
Bulk Commodities
Iron Ore Steelmaking Coal Manganese

$3,455 million $2,749 million $378 million

Underlying EBITDA Underlying EBITDA Underlying EBITDA
24% 19% 3%
Group underlying EBITDA Group underlying EBITDA Group underlying EBITDA
37.7 Mt 15.0 Mt 3.7 Mt

Production: Iron ore – Kumba Production: Steelmaking coal Production: Manganese ore
— More detailed information and maps can be found in

the business unit reviews
21.6 Mt
See pages 84–111 of the Integrated Annual Report
Production: Iron ore – Minas‑Rio
04
* Except for Gahcho Kué, which is on an attributable 51% basis.

Chairman’s statement
Climate change is the defining issue of our time, without question. Delivering on our commitments Portfolio
At our 2022 Annual General Meeting, more than 94% of voting The commissioning of Quellaveco has significantly increased
Notwithstanding the prevailing headwinds, the mining industry must shareholders endorsed our 2021 Climate Change Report and our copper production profile, further aligning our portfolio with
move at pace along the pathway to carbon neutrality – while at the the plan that it contained. Within that resolution was a those metals and minerals that are critical to enabling a low
same time endeavouring to reduce its environmental footprint and commitment to report annually on the Group's delivery against carbon world, as well as to meet the demands – and improve
this plan. This is our first such update, detailing progress made the lives – of a growing and urbanising global population.
help create socially sustainable employment so that the transition since our 2021 Report. Our Scope 1 and 2 emissions have Potential projects at Los Bronces and Collahuasi (copper);
to a low carbon future is indeed a Just Transition. This document, reduced by both 9% from 2021 and 21% from their peak in Sakatti (polymetallic); and at Mogalakwena (PGMs); plus the
our second stand-alone report on climate change, details the 2019. Switching to renewable energy is a major part of our
journey to carbon neutrality across our operations by 2040. The
development of the Woodsmith mine (crop nutrients) are
expected to add to this portfolio alignment as we continue
progress the Group is making to contribute to this crucial agenda. arrangements that we have in place in South America and to grow our business over the next decade.
Australia are expected to result in our drawing 60% of our
global electricity requirements from renewable sources from Governance
2025. South Africa will take longer, given the near total lack of We welcome the interest from our shareholders, customers,
existing renewable infrastructure, but we are progressing our suppliers, host communities and employees in our thinking
plans with partners to build that capacity over the next decade. about climate change and the actions we are taking, and
we will provide regular updates on our progress. The Board
Our well-established FutureSmart Mining™ programme is
has supervision and direct oversight of the Group’s strategy
delivering the technology and sustainability innovation that
and risk management in relation to climate change and
keeps Anglo American at the forefront of responsible mining,
approved this report on 22 February 2023.
including how we are reducing emissions. In July, at our
Mogalakwena PGMs operation in South Africa, we launched
the prototype for a fleet of hydrogen and battery hybrid
powered mine haul trucks – a world-first at this scale.
In 2021, we also set out our ambition to halve our Scope 3
emissions by 2040. This report provides an update on that Stuart Chambers
work, including reducing carbon emissions in our chartered Chairman
shipping fleet through using vessels powered by liquefied
natural gas. We are also working with several prominent
steelmaking customers to develop ways of making cleaner
steel and, ultimately, ‘green’ hydrogen-fuelled steelmaking.

05
Chief Executive’s statement
Warnings from the Intergovernmental Panel on Climate Change Leadership changes
This is my first Climate Change Report as chief executive and
(IPCC) about the risks of climate change are no longer exclusively we have seen several changes on the Board and Group
about the future. In 2022, we witnessed numerous extreme Management Committee in the last year. Of those changes, I
weather events around the world. At the same time, greenhouse must put on record my thanks to Tony O’Neill, who has played a
central role in the development and progress towards the
gas (GHG) emissions resumed their upward trajectory as the delivery of our ambitions in relation to climate change, amongst
global economy reopened following the pandemic. At COP27, many other achievements.
adaptation was at the forefront, recognising that alongside
reducing emissions, we must all prepare for the impacts
of a changing climate. This report provides an update on
Anglo American’s work on these issues and, more broadly, the Duncan Wanblad
Chief Executive
significant work we are undertaking related to climate change.
Resilience inside and outside the mine site Progress towards our commitments
In our 2021 Climate Change Report we detailed the strategic Delivering on our commitment to be carbon neutral by 2040
resilience of Anglo American to shifting markets caused by the and our ambition to halve our Scope 3 emissions, are
transition to a low carbon economy, not least since we produce embedded in our strategic planning and decision making. This
many of the metals and minerals that are so critical to enabling report demonstrates the progress we have made, and plans
that transition. This updated report builds on that analysis and that we are firming up, which are designed to deliver both
includes more detail on the work we continue to do to ensure emissions reductions and generate sustainable value. This
that our operations are resilient in the face of the physical risks value will be realised in part by the innovative series of
of a changing climate. Crucially, as we think holistically about partnerships we are developing, including to deliver renewable
how we can preserve the natural environment and support host energy in South Africa, hydrogen fuel cell and battery electric
communities in terms of skills, jobs and helping catalyse new hybrid solutions to heavy haulage across our operations, and
economic activity, this approach to resilience cannot stop at the with our customers, to deliver lower carbon forms of production,
mine gate. If the transition to a low carbon world is to be a Just most notably in the steel sector. Innovative forms of financing,
Transition, then the resilience of communities must be an such as our $100 million 10-year sustainability loan agreement
important part of the debate. with the International Finance Corporation (IFC), and our first
sustainability-linked bond, a 10-year €745 million instrument
which includes performance targets to reduce our operational
emissions, are demonstrations of practical partnerships we
have formed with the financial sector, which also have an
important role to play. We see such partnerships as vital to
deliver our shared endeavour of a low carbon transition,
because we cannot do so alone. To achieve the transition to a
low carbon world, everyone needs to play their part, from
governments, to business, to civil society, to individuals.
06
Purpose to value We are guided by our Purpose – re-imagining mining
to improve people’s lives – to deliver sustainable value
for all our stakeholders.
Our Purpose Our strategy Value
Re-imagining Innovation
Delivering sustainable
value for all our
mining to improve stakeholders
people’s lives Re-imagining We are working together to develop better jobs,
Portfolio mining to improve better education and better businesses, building
brighter and healthier futures around our operations
Transforming the very nature of people’s lives in host countries and ultimately for billions of people
mining for a safer, smarter, more who depend on our products every day.
sustainable future. – Investors – Natural environment
People – Employees – Suppliers
– Communities – Customers
People
– Host countries
Our Values Guided by our Purpose, our strategy is to secure, Capital allocation
Anglo American’s Values and behaviours are at the develop and operate a portfolio of high quality and Underpinning our strategy, we have a value-
heart of everything we do. Guided by our Purpose long life mineral assets, from which we will deliver focused approach to capital allocation, with clear
leading shareholder returns. We achieve this prioritisation. Our Sustainable Mining Plan outlines Balanced reward
and our Values, we enable high performance and
through innovative practices and technologies – ambitious targets that our projects must support to Anglo American’s directors’ remuneration policy is
purposeful action. Our Values and the way in which
in the hands of our world class people. ensure a Healthy Environment, Thriving Communities designed to encourage delivery of the Group’s strategy
we, as individuals, are expected to behave are the
and our position as a Trusted Corporate Leader. and creation of stakeholder value in a responsible and
foundation of our Code of Conduct.
sustainable manner, aligned to our Purpose.
— For more on capital allocation
See pages 64–66 of the Integrated Annual Report 2022
The main elements of the remuneration package are
basic salary, annual bonus and Long Term Incentive

Measuring delivery of our strategy People
Plan (LTIP).
To create a sustainable competitive advantage
We track our strategic progress holistically Safety through capable people and an effective,People — For more on remuneration
Safety
– spanning non-financialand
and Socio-political
financial Environment Socio-political
People Environment
health and health purpose-led, high performance culture See pages 160–203 of the Integrated Annual Report 2022
performance using KPIs that are based on our
Production
seven pillars of value: To sustainably produce and grow valuable
Safety Socio-political Environment People
Production Cost Financial product
Safety and Health and health
To ensure our workforce is safe and healthier for
Production Cost Financial
Cost
working with us To achieve optimal margins based on delivery
Safety Socio-political Environment
Safety PeopleSocio-political Environment of targeted
People growth
and health Environment Production Cost Financial
and health
To have a net positive and sustainable impact on
climate change, water and the natural environment Financial
Safety Socio-political Environment People To deliver industry-leading sustainable returns to
and health Socio-political
Production
To build thriving communities and develop trust as Cost Financial our shareholders
Safety a corporate leader
Socio-political Environment People
and
Production health
Cost Financial
07

Our Sustainable Our Sustainable Mining Plan, integral to FutureSmart Mining™, is built
on our critical foundations and three Global Sustainability Pillars and
sets out our commitment to stretching goals – driving sustainability
Mining Plan outcomes through technology, digitilisation and our innovative

approach to sustainable economic development.
Environment Social Governance

Partnership and engagement
Partnership and engagement

Healthy Environment Thriving Communities Trusted Corporate Leader
Climate change Education Accountability
Biodiversity Health and well-being Policy advocacy
Water Livelihoods Ethical value chains

— For more information See page 53–71 of the Sustainability Report 2022 — For more information See pages 72–81 of the Sustainability Report — For more information See pages 82–92 of the Sustainability Report 2022
Collaborative Regional Development
Our innovative partnership model to catalyse independent, scalable and sustainable economic development in regions around our operations
– the objective being to improve lives by creating truly thriving communities that endure and prosper well beyond the life of the mine.
— For more information See pages 77–78 of the Sustainability Report 2022
Our Critical Foundations
These form the common and minimum requirements for each of our operations and our business as a whole. The Critical Foundations
are essential to the long term credibility and success of both the Sustainable Mining Plan and to maintain our social licence to operate.
Zero Leadership Inclusion Human Group standards Compliance with legal
Harm and Culture and Diversity Rights and processes requirements
— For more information — For more information — For more information — For more information — For more information — For more information
See pages 24–33 of the See page 34–40 of the See pages 41–44 of the See pages 45–48 of the See pages 49–52 of the See pages 49–52 of the
Sustainability Report 2022 Sustainability Report 2022 Sustainability Report 2022 Sustainability Report 2022 Sustainability Report 2022 Sustainability Report 2022
08
Launch Combined Anglo American’s nuGen™ ZEHS Partnership 100%
with First Mode. Additional $200m capital with EDF Renewables to form
of the world’s largest investment committed to help fund the Envusa Energy – launching renewable electricity supply
hydrogen-powered mine haul ongoing development of the ZEHS 600 MW of wind and solar projects agreements in place across
truck – nuGen™ Zero Emissions
in first phase of the renewable all South American operations
Haulage Solution (ZEHS)
energy ecosystem in South Africa
Agreement Increased 20% (by volume of iron ore sales)

New memorandum of understandings
signed with Thyssenkrupp Steel AG
with Stanwell Corporation customers now covered by and Nippon Steel to collaborate on
production of future-enabling
to supply 100% renewable decarbonisation scoping agreements developing new pathways for the
products with the start-up of
energy to all Australian decarbonisation of steelmaking
Quellaveco copper mine in Peru
operations from 2025
2022 key highlights

First sea trial using a blend of biofuel
14% Updated approach to assessing
and mitigating the physical risks
of climate change at our sites
€745 million sustainability-linked bond
launched, including performance targets
reduction in Scope 3 emissions to reduce greenhouse gas emissions
and very low sulphur fuel oil to reduce and in host communities
compared with 2020 and creation
emissions from ocean freight

of high level pathway to deliver
our ambition of 50% reduction
94.3%
First of 10 Ubuntu LNG vessels christened,
in Scope 3 emissions by 2040 delivered, and entered service, resulting
21% in a total of an estimated 35% reduction

in CO2 emissions
shareholder approval for climate
change strategy at AGM
reduction in Scope 1 and 2 Verified as in line with the expectations
emissions from our peak in set out by the International Maritime
2019, demonstrating progress
towards our target of 30%
reduction by 2030 and
Organization’s goal of reducing
shipping emissions by at least 50% 52% External verification of the alignment
of our carbon neutrality goals with
by 2050 by the Sea Cargo Charter of electricity derived from 100% the 1.5°C ambition enshrined in the
carbon neutrality by 2040 renewable sources in 2022 Paris Agreement
09
Towards a low carbon future
– our strategy and approach
Tackling climate change is the defining challenge Our climate change strategy is entrenched across the business. Since setting our current Scope 1 and 2 emissions reduction
of our time. Informed by robust analysis and constant engagement with targets in 2018, we have made considerable progress,
Understanding the implications of climate change for our stakeholders, we continue to align our portfolio with the needs including successfully demerging our thermal coal operations
business is embedded in our strategy. But being resilient as of a low carbon world; we are reorientating our operations and achieving our first 2020 emissions reduction target a year
a company is not enough. Mining’s critical enabling role in towards carbon neutrality; we are pushing for decarbonisation early. In 2021, in our inaugural, stand-alone Climate Change
providing the metals and minerals needed for a low carbon along our value chains; and we are considering carefully the Report, we went further, setting a Scope 3 ambition of a 50%
world is increasingly recognised. Against this backdrop, we social and wider environmental interrelationships associated reduction by 2040.
recognise our responsibility to understand the impact of our with our decarbonisation journey – doing what we can to Building on our 2021 Report, this update provides more
business, to minimise our footprint and maximise the value we support a Just Transition. detail on the progress we are making. It considers each of our
create for all our stakeholders. Doing so is right for the long term strategy’s pillars in turn, outlining the progress made in 2022.
sustainability of our business, and the right thing for society.
In achieving this, we are living our Purpose – Re-imagining
mining to improve people’s lives.
In Brazil, we are partnering with wind-energy specialist Casa dos Ventos

to build the Rio do Vento wind farm. Our operations in South America are
in the process of switching to renewable sources of power for all their
10
grid-supplied energy requirements.

Climate Transition Plan
Our targets and ambition
30%
8 50%
Carbon 2040
C02 target reduction in Scope 1
of our assets carbon neutrality reduction ambition in Scope 3 target for carbon
neutral by 2030 across our operations for neutrality in controlled
and 2 emissions by 2030 emissions by 2040 against a
against a 2016 baseline Scope 1 and 2 by 2040 2020 baseline ocean freight
Evolving portfolio Decarbonising our operations (Scope 1 and 2) Decarbonising our value chains (Scope 3)
90%+
of growth capital expenditure
FutureSmart
Mining™
technologies, increasing energy
Developed and
commercialising
the world’s largest hydrogen-
earmarked for future-enabling metals
and minerals
efficiency to reduce energy powered mining truck Working together Product quality
demand, avoid emissions and technology to decarbonise with customers, especially prioritising the production of high-
capture and use fugitive methane high power transport using steelmaking customers, to quality products which feed into
Our portfolio is predominantly focused renewable energy accelerate the transition to lower more efficient and less carbon-
on future-enabling metals and minerals,
Towards a low carbon future
carbon production processes intensive processes

many being fundamental to delivering a
cleaner, greener, more sustainable future
3–5 GW
Regional Renewable Energy Ecosystem (RREE) being Resilience in the face of a changing climate
New operations developed in South Africa by Envusa Energy, a new jointly
owned company established with EDF Renewables
at Quellaveco (copper), early
progress of greenfield development
at Sakatti (polymetallic) and
Woodsmith (crop nutrients)
Deploying Investing
renewables in methane capture infrastructure Strengthening Working
with our wider value chain
Resilient profit pools sourcing 100% renewable
and working on technology
solutions to further reduce
our response and communities to improve
$ electricity for all operations to physical climate change
under a 1.5°C pathway, emissions, alongside industry their resilience in the face of
analysis suggests where possible risks to enable/support
partners climate change
adaptation of our business
Just Transition Effective governance and transparency

Sharing knowledge Alignment Executive remuneration
about Just Transitions by working with the of climate-related disclosures with key standards linked with the achievement of
Council for Inclusive Capitalism and others and frameworks such as the Task Force on Climate- decarbonisation goals
Related Financial Disclosures (TCFD).
Ensuring Embedded Monitoring and review Board supervision

that our Collaborative Regional Development climate and Just Transition of industry associations to ensure lobbying
approach supports sustainable livelihoods principles into our and advocacy are conducted in line with
and oversight
of the Group’s climate change strategy,
and aims to catalyse low carbon industries company approach the goals of the Paris Agreement
risk management and associated disclosures
11
12 Anglo American plc Climate Change Report 2022
commitments
Delivering on our
Resilience in
the face of a
changing climate
In the region around our new Quellaveco copper mine in the south of Peru,
drone operator Helmer Vasquez monitors the movements of the Suri, a large
13
flightless bird only found in South America.

Resilience to climate risk
The scientific evidence of human-induced climate change is clear. Climate change – a principal risk
However, the longer term impacts to our business are, to a degree, Climate change Root cause: We are committed to the alignment of Risk appetite: Operating within the limits
unpredictable. As a consequence, our risk management processes Climate change is the
our portfolio with the needs of a low carbon world in of our appetite.
embed climate change in the understanding, identification and defining challenge
a responsible manner; however, different stakeholder
expectations continue to evolve and are not always
Commentary: For more information on
mitigation of risk. We have aligned ourselves with the Task Force of our time and our
aligned. Long term demand for metals and minerals
our Sustainable Mining Plan, see page
42 of the Integrated Annual Report
commitment to being
on Climate-Related Financial Disclosures (TCFD) recommendations part of the global
mined and marketed by Anglo American may deviate 2022, and for further information on
from assumptions based on climate change abatement
on climate-related risks and we are committed to evolving our disclosure response presents
initiatives. Changing weather patterns and an increase
how we engage with key stakeholders,
both opportunities see pages 16–19 of the Integrated
to meet the recommendations of the UK’s Transition Plan Taskforce, and risks.
in extreme weather events may impact operational Annual Report 2022.
as these are finalised. stability and our local communities. Our Scope 1 and
Pillars of value:
2 carbon emission reduction targets are partly reliant
on new technologies that are at various stages of
assessment of the various impacts that may arise and development, and our Scope 3 reduction ambition is
likelihood of occurrence. An exception relates to those risks reliant on the adoption of greener technologies in the
Risk management at Anglo American deemed catastrophic in nature, where the focus of assessment steelmaking industry.
The Board establishes the system of risk management, setting is on impact and status of internal controls, given the very low
Impact: Potential loss of stakeholder confidence,
risk appetite and overseeing the system of internal control likelihood of occurrence. When considering the impact of
negative impact on reputation, financial performance
to manage risk within the Group. The Group’s system of any risk, we assess safety, environmental, financial, legal,
and valuation.
risk management and internal control is monitored by or regulatory, social and reputational consequences.
the Audit Committee under delegation from the Board. Mitigation: We have articulated our climate change
Regular reports on the status of risks and controls are presented
The Board confirms that it has completed a robust plans, policies and progress and engage with key
to executive management teams throughout the year. The
assessment of the Group’s emerging and principal risks. stakeholders to ensure they understand them.
Audit Committee reviewed reports on Anglo American’s overall
Our Sustainable Mining Plan includes operation-specific
The process for identification and assessment of the principal risk profile on two occasions during 2022 and conducted
and Group targets for reductions in carbon emissions,
risks combines a top-down and bottom-up approach. At the in-depth reviews of specific risks during its meetings over the
power and water usage.
operations level, a process to identify all risks that prevent the course of the year. Each principal risk is assigned to either the
achievement of objectives is undertaken. Detailed analysis of Board or the relevant Board committee to oversee executive
the material risks at each location is performed to ensure management actions in response to that risk. The Audit
management understanding of the risk and controls that Committee reviews that oversight process on an annual basis. Pillars of value Safety and health Socio-political Production Financial
reduce likelihood of occurrence and impact should the risk
Risk appetite Environment People Cost
materialise. These operational risk profiles contribute to the
assessment of risks at the business unit level. Executive We define risk appetite as ‘the nature and extent of risk that
management at each business unit assesses risks that threaten Anglo American is willing to accept in relation to the pursuit of
achievement of the business unit objectives and the status of its objectives’. Each principal risk is assessed as to whether it is
controls, or actions, that mitigate those risks. At the Group level, operating within the limit of appetite for the Group. This is based
risks are identified through assessment of global factors on review of the external factors influencing that risk, the status
affecting the industry and the Group specifically, as well as the of management actions to mitigate or control the risk and the
risks arising from the business unit assessments. Consideration potential impact should the risk materialise. For risks operating
is given to the views and interests of Anglo American beyond the limit of appetite, a change in strategy may be
stakeholders. Materiality of risk is determined through required. For risks operating within, but approaching the limit
of appetite, specific management actions may be required
to ensure the risk remains within the limit of appetite.
14
Managing transition risks
through portfolio evolution
We have evolved our portfolio to help support the transition
to a low carbon economy.
The evolution of our portfolio is informed by a full assessment of Portfolio resilience in a 1.5°C world Limiting global warming to 1.5°C above pre-industrial levels by
A future-enabling portfolio*
climate-related challenges. We assess our portfolio resilience Climate change has the potential for significant long term 2100 requires a rapid acceleration of global climate change
to both economic and physical risks and opportunities across a impact on our world and for our industry. We expect climate efforts. This includes the deployment of low carbon Long term energy transition enabler
range of climate change pathways. Leveraging our global change to impact the mining industry through both risks and technologies which will underpin an increase in demand for a
scale and resources, we identify and deliver projects that will opportunities in two broad areas: range of mined products. As a result, we expect the overall
create value for our shareholders, the communities in which extraction industry profit pool to be robust across the three
– Transition impacts: The potential impact on demand
we operate, and the planet. scenarios. In addition, our analysis suggests that the profit
for different products, given assumptions on regulatory,
pools in which Anglo American participates will remain broadly
Strategic principles guide portfolio choices technological, and behavioural changes in the transition
resilient under a 1.5°C scenario.
Changes to the portfolio are guided by our strategic foundation, to a low carbon economy.
Our assessment that Anglo American remains resilient is based
which can be distilled into a set of principles that drive portfolio – Physical impacts: The potential impact on our operations and
on the interrelationship between the quality of our endowments,
c.85%
choices. These principles also inform capital allocation and surrounding communities from both acute extreme weather Future-enabling
the expected life of our assets, our exposure to commodities
investment appraisal processes, ensuring consistency of events and chronic shifts in climate patterns.
that support a green transition and the mix of products in our
strategic decision making across the Group and embedding
To consider potential transition impacts and inform our strategic portfolio, as well as our strong organic growth optionality. Under
climate-related considerations at all stages.
choices, we developed a set of climate change scenarios as the ~3°C scenario, with our current asset footprint and organic
These principles are: detailed in our 2021 Climate Change Report. The scenarios growth options, we expect stable cash flows to 2035. Similarly, Diamonds Iron Ore
Resilience
– High quality low-cost assets include a 1.5°C scenario and a 2°C scenario referencing the we expect our cash flow to remain resilient under both the 2°C Copper Manganese
Wood Mackenzie Accelerated Energy Transition scenarios1, and 1.5°C scenarios, but with greater uncertainty given the
– Long-life assets at scale Nickel Steelmaking Coal
and a ~3°C scenario, based on the Wood Mackenzie Energy broad range of potential pathways to achieve the low carbon
PGMs Crop Nutrients
– Assets where we can generate differentiated returns by Transition Outlook2. In addition, we incorporate pathways for outcomes. For example, in the next decade under the 1.5°C
leveraging our internal capabilities AFOLU3 greenhouse gas (GHG) emissions into the three scenario, our cash flow could be up to 30% higher relative to * Based on copper equivalent production, which is calculated including the equity
share of De Beers’ production and using long term consensus parameters. Future
scenarios, reflecting guidelines set by the Intergovernmental the ~3°C scenario. In the subsequent decade, our cash flow
In addition to these principles, we also assess the alignment production levels, based on information available at December 2022, are indicative
Panel on Climate Change (IPCC) Special Report on Global could be 20–25% lower under the 1.5°C scenario, relative to and subject to final approval.
and resilience of our portfolio and opportunities to a range of
Warming of 1.5°C4 for methane and nitrous oxide emissions. the ~3°C scenario. This range of uncertainty falls within our risk
long term trends including, critically, the implications of climate

Across the scenarios, we assess Anglo American’s resilience to tolerance. In addition, the optionality in our portfolio will allow us
change. We explore how the world might develop under a
transition impacts along key dimensions of financial strength to further strengthen our resilience and offset any potential
range of climate change pathways and the potential outcomes
and strategic robustness. Financially, we measure how our cash downside risks to our cash flow.
for mining profit pools and for our business.
flow would evolve across scenarios, focusing on our existing
A significant majority of our portfolio comprises future-enabling
assets and organic growth opportunities, to ensure consistency.
products that support the transition to a more
This is overlaid with an assessment of the strategic risks and
sustainable future.
opportunities across each scenario, considering the evolution
of our product profit pools, the life of our assets, as well as the
quality and mix of our portfolio.
(1)
The Wood Mackenzie Accelerated Energy Transition 1.5°C scenario is predicated on the
carbon budget set by the IPCC SR-1.5 for a 67% chance of limiting warming to 1.5°C
through rapid reduction in annual emissions, reaching net negative energy-related CO2
emissions by 2050, and sustained net negative emissions from 2050 onwards
(2)
http://bit.ly/3YJHZbf
(3)
Agriculture, forestry and other land use
(4)
The Intergovernmental Panel on Climate Change (IPCC) is the United Nations body for
assessing the science related to climate change. For more information about the report,
15
see: https://www.ipcc.ch/sr15
Case study As these scenarios are risk management tools only, no singular Allocating capital to achieve our targets
scenario should be taken as representative of management’s Portfolio
view of the likely outcome. Anglo American’s strategy seeks opportunities in the metal and
— For more information on our climate scenario work mineral needs of the future, including the impacts of climate
See our 2021 Climate Change Report, pages 15–19 change and the energy transition. We draw on multiple sources
We continue to monitor the evolving climate change context to to judge the contribution that individual assets would make to
refine our understanding of the potential impacts to our industry the portfolio under different climate scenarios, and, amongst
and our business. A full refresh and update of our climate other things, this informs the way that we allocate capital. As a
change scenarios and the quantified transition impacts is result, the mix of our portfolio of assets is predominantly towards
conducted every two to three years. The frequency with which future-enabling metals and minerals – accelerated by our exit
our scenarios are updated is based on a consideration of from thermal coal operations and the addition of crop nutrients,
several factors, including shifts in climate-related policy and through the acquisition of Woodsmith. More than 90% of our
emerging technologies, updates in climate change and growth capital expenditure is allocated to projects in these
emissions projections, and materiality of the updated impact on future-enabling products.
Managing transition risks through portfolio evolution continued
our business. We expect to produce a revised scenario analysis Ensuring the continued resilience of our portfolio to the physical
for the 2023 iteration of this report. impacts of a changing climate is also a key priority in our
allocation of capital. Investments in maintaining this resilience
are driven by our continuing climate change risk management
Global CO2 emissions (Gt CO2), including processes and, for example, include investments related to
energy-related and AFOLU CO2 emissions(1) managing water where it is expected to become scarcer, or
45 where there is a risk of future disruption due to flooding. These
2020–2050 cumulative
CO2 emissions (Gt CO2) investments are subject to the Group’s robust investment
40
evaluation criteria, and to independent technical and financial
35
3°C pathway 1,226 assurance.
30 Carbon pricing
25
Our major investments take into account the cost of carbon by
embedding forward-looking carbon price assumptions, which
Gt CO2
Administrative secretary Terhi Svartsjö and geotechnician
20
are developed in conjunction with leading external providers,
Tomas Karjalainen during winter-drilling activities at Sakatti. 15 and are differentiated by geography and time horizon. The aim
2°C pathway 803 is to reflect our best estimate of the level of carbon pricing likely
10
to prevail in the respective jurisdictions over time. These prices
Developing future-enabling Situated in Finland and the United Kingdom
respectively, both projects enable the building of
5 range between $10–60 per tonne* by 2030. This approach
metals and minerals in Europe innovative, modern, state-of-the-art and low impact 0
1.5°C pathway 578(2)
ensures that project returns are evaluated on a realistic basis
alongside consideration of a project’s impact on carbon
mines within Europe. Showcasing Anglo American’s
Building on the start-up of our Quellaveco copper
-5
abatement and portfolio resilience to the effects of
technological and sustainability leadership, each mine,
operation in 2022, we are continuing to grow and
2020 2030 2040 2050 climate change.
once developed, will occupy a small footprint above
evolve our portfolio through the potential development ground, whilst providing stable, secure, resource-
1 Charts based on data from Wood Mackenzie Energy Transition Service and
McKinsey & Company.
of Sakatti – a unique, polymetallic deposit including efficient sources of the critical minerals needed for 2 Sustained net negative CO2 emissions post-2050 bring cumulative emissions
copper, nickel and platinum group metals, and the world to both decarbonise and feed an ever- back within the budget set by the IPCC to restrict warming to 1.5°C.
Woodsmith – the world’s largest deposit of polyhalite, expanding population more sustainably.
a low carbon fertiliser, suitable for organic use.
16
* On a 2022 real basis.

Low carbon transition risks and opportunities
Short term = 0–5 years
Medium term = 5–15 years
Long term = 15+ years*
Commodity Low carbon transition risks and opportunities Time frame Anglo American’s portfolio alignment and resilience Commodity Low carbon transition risks and opportunities Time frame Anglo American’s portfolio alignment and resilience
Copper – Copper is a key material for enabling increased Short to long term Iron ore – Steel is a critical foundational material for almost Short to long term
electrification across sectors (such as the shift from upside risk all infrastructure and will provide the backbone upside risk
– Our high quality iron ore supports efficient
the internal combustion engine (ICE) to electric – Quellaveco came online in 2022 adding on of the low carbon economy and wider, long term
steelmaking today
vehicles), the transition to renewable power average 300,000 tonnes per year of copper socio-economic development
generation, and the expansion of power grids and equivalent production (100% basis) into our – Shift to low carbon direct reduced iron – electric Medium to long term – We are growing our share of high quality pellet
distribution systems portfolio in the first 10 years of operation arc furnace (DRI-EAF) routes will rapidly grow upside risk feed and premium lump ore, which is suitable for
– Increasing environmental concerns – especially Medium to long term demand for higher quality iron ore pellet feed lower carbon, direct reduction processes of iron in
– Our independently managed joint operation,
in major copper-producing countries – increase upside risk steelmaking, resulting in materially lower emissions
Collahuasi, is a world-class copper resource, – However, an accelerated use of scrap steel Medium to long term
the risk of delays for new projects, with tight supply with additional capacity expected to ramp-up will limit demand growth for primary iron downside risk
likely to support pricing in the fourth quarter of 2023 Steelmaking – Even in low carbon pathways, steelmaking coal Short to long term
– Accelerated use of scrap could offset some Long term downside risk coal remains a key input into steel in the near term and upside risk
demand growth for primary copper potentially also the longer term with the addition
Nickel – Nickel sulphate is a critical input to lithium-ion Short to long term of Carbon Capture and Storage (CCS) to capture – Our product is high quality, with a high calorific
batteries used in multiple carbon abatement upside risk emissions from blast furnaces content and low impurities, supporting carbon-
technologies, including battery electric vehicles efficient steelmaking today and through the
– Limited development of CCS could increase shifts Medium to long term
(BEVs) transition period as steelmaking moves to less
– Our PGMs operations produce nickel sulphate and towards DRI steelmaking routes and away from downside risk
carbon-intensive production
– Nickel is also a key input for steel, a foundational Short to long term nickel cathode as by-products blast furnaces
material for many low carbon technologies, such upside risk – An accelerated use of scrap steel will limit demand Medium to long term
as wind turbines – Our Barro Alto operation produces ferronickel,
growth for primary iron downside risk
the majority of which is used in the production
– Uncertainty of battery chemistry outlook introduces Medium to long term Polyhalite – With growing population and food requirement Medium to long term
of high quality stainless and heat resistant steels
downside demand risk if non-nickel battery downside risk increasing crop demand and limited available land, upside risk
cathode chemistries increase share – Sakatti, our potential greenfield project in Finland, – The Woodsmith project – the world’s largest
fertilisers will play a critical role in improving crop yield known deposit of polyhalite – adds greater
– Greater adoption of public transportation, ride Medium to long term is a polymetallic deposit including copper, nickel,
and PGMs
– There is further potential upside in a 1.5°C scenario Medium to long term diversity to our portfolio and provides additional
sharing, and other mobility levers could limit downside risk as diets shift away from meat consumption, upside risk support to the low carbon world due to the
demand for personal vehicles reducing the availability of manure fertiliser minimal processing required compared to
– As secondary battery supply reaches scale, Medium to long term – Polyhalite may also support efficient use of nitrogen Short to long term the vast majority of other fertilisers
demand growth for primary nickel could slow downside risk fertilisers to reduce excess nitrous oxide soil upside risk – Suitable for organic use, our polyhalite product
Platinum – With potential further tightening of air quality Short to medium term emissions, as well as reverse the degradation maximises crop yields, supporting increased food
Group Metals legislation, PGMs play a crucial role in reducing upside risk of soil and the resultant carbon emissions needs. It also has properties which strengthen and
(PGMs) pollution from ICE vehicles, through PGM-containing – A reduction in crop demand could arise from Short to long term support soil structure, which we believe brings a
catalytic converters efficiency improvements in the food system and downside risk range of additional sustainability benefits, including
– Hybrid vehicles, which contain similar quantities Short to long term new technology could optimise fertiliser use, with respect to carbon emissions. Polyhalite from
of PGMs as ICE vehicles, are expected to play a upside risk lowering fertilisation rates Woodsmith will also have a manufacturing carbon
role in the decarbonisation of vehicles even in – Our high quality PGMs operations deliver – New technical levers to reduce methane from Medium to long term footprint that is 85% less than comparable
the longer term world-class performance using innovative and synthetic fertilisers
livestock could maintain manure supply and downside risk
sustainable methods through FutureSmart Mining™
– PGMs will also play a major role in the development Medium to long term limit upside for mineral fertilisers
of the hydrogen economy, as a key material used in upside risk – Our PGMs portfolio of Tier 1 assets are long life Diamonds – We expect little to no impact on the diamond profit – Although diamonds have a less direct role in the
fuel cell electric vehicles (FCEVs), and supporting and have considerable organic growth optionality, pool outlook across climate change pathways transition to a low carbon economy, our mined
the process of hydrogen production via electrolysis which position us well as demand patterns evolve diamond production is highly aligned with a
through the polymer electrolyte membrane process low carbon future. De Beers has a longstanding
– Increased demand for BEVs poses a downside risk Medium to long term commitment to sustainability and is targeting
demand for the PGM-containing catalytic converters downside risk carbon neutrality across its operations by 2030
used in ICE vehicles
– An accelerated shift away from ICE vehicles towards Medium to long term
BEVs and a delayed penetration of FCEVs introduces downside risk
additional risk for PGMs demand
17
* Long term time frame of 15+ years chosen to align to typical time frame for commodity supply response to major demand shifts.
Case study Allocating capital to achieve our targets EDF Renewables, Envusa Energy, to create a regional
Our commitment to achieve carbon neutrality across our renewable energy ecosystem (RREE). The ecosystem is Investing in early-stage climate innovation
operations is embedded in company strategy and our medium expected to meet our operational electricity requirements in Recognising that financial and scaling support for
term plan, including the allocation of capital. Through our work South Africa through the supply of 3–5 GW of renewable innovation will be critical to developing the new
with the Carbon Trust, and recognising that with forecasts electricity (solar and wind) and storage by 2030, with excess transformational technologies needed for decarbonisation,
of any type there is a margin for error, we are confident that electricity supplied to the grid to help improve its resilience. we have recently established our Decarbonisation
our 2040 ambition is broadly in the range of what is widely This investment is expected to generate positive financial Ventures team.
understood as a 1.5°C future (see page 26). We believe, returns for Anglo American and its partners while significantly
This team uses both direct investments, bespoke
therefore, that capital deployed to meet those targets is increasing the use of renewable energy in South Africa. The
commercial partnerships, and Anglo American’s
aligned with a contribution to achieving the goals of the investment will be syndicated with additional empowerment
operational capabilities to build and accelerate early-stage
Paris Agreement. partners providing equity financing for the ecosystem, and debt
companies developing climate positive innovations.
financing that is typical for high quality energy infrastructure
In many cases it is impossible to distinguish between capital Aligned with our existing Scope 1, 2 and 3 emission
projects. This syndicated structure will help manage both our
deployed to continually improve our business and that which reduction efforts, the team is focusing not only on
risk and total capital deployed while enabling a significant
is deployed to achieve carbon neutrality. For example, our technologies that could help reduce our operational and
reduction in our Scope 2 emissions and contributing to the
investments in FutureSmart Mining™ technologies, such as
transformation of South Africa’s energy profile, in turn wider value chain emissions, but also on opportunities
digitalisation, result in a wide range of benefits, including beyond our own direct remit.
supporting the country’s development goals.
but not limited to, reducing the emissions of our operations
through efficiencies which, in turn, also improves the Other partnership models to deliver decarbonisation Key focus areas include clean energy; methane
profitability of our business. We are taking a similar model of partnership and syndication abatement; steel decarbonisation; and materials
The distinctive Papujune dome covering Quellaveco’s with the development of our zero emissions haulage solution innovation.
Our approach to decarbonising electricity supply
processing plant. The mine will draw all its electricity (ZEHS). In partnership with First Mode, a specialist engineering By investing in a wide range of cutting-edge technological
supply entirely from renewable energy sources from 2023. An example of how we take a tailored approach to capital
technology company, we developed the proof of concept that advances and innovative thinking, this team will provide
allocation for our decarbonisation goals is the sourcing of
is now running in our Mogalakwena PGMs operation. To Anglo American with broad strategic flexibility to address
electricity. In jurisdictions where there is a plentiful supply of
A blueprint for renewable power, we have negotiated power purchase
accelerate the development and commercialisation of
nuGen™’s ZEHS, we have combined nuGen™ with First Mode
the climate challenge.
agreements with suppliers. This means that from 2023, all our
FutureSmart Mining™ South American operations will be sourcing all of their electricity
and entered into a supply agreement to decarbonise our global
fleet of ultra-class mine haul trucks. The creation of a new
Earlier this year, we saw the start of production at our from renewable power and, by 2025, our Australia operations
entity will allow strategic third parties to co-invest alongside
Quellaveco copper mine in Peru. Quellaveco is expected will follow. In general, sourcing power from renewable sources
Anglo American and First Mode, offering the opportunity to
to produce 300,000 tonnes per year of copper equivalent in these jurisdictions, including, where necessary, exiting legacy
accelerate their own decarbonisation and participate in the
volume on average over its first 10 years. conventional power purchase agreements, has not only helped
potential offered by the clean ZEHS technology. The roll-out
us reduce emissions but has also positively affected operating
Our delivery of Quellaveco, a major new world class across Anglo American’s haul truck fleet over the next ~15
costs, given the increasingly competitive cost of renewable
copper mine, is testament to the efforts of our workforce years is subject to the completion of agreed and committed
energy and volatility of fossil-based energy supply.
and our commitment to our stakeholders in Peru over many studies across seven mine sites, certain performance, and cost
years. Quellaveco alone is expected to lift our total global For South Africa, the approach is necessarily different; while criteria, and relevant regulatory, corporate and shareholder
output by 10% in copper equivalent terms and take our there is an abundance of potential for renewable energy, there approvals. We are contributing a further $0.2 billion in equity
total copper production close to 1 million tonnes per year. is currently insufficient renewables infrastructure. As a result, we funding through the course of 2023 to help fund the ongoing
have taken the decision to develop, with partners, infrastructure development of the ZEHS. In addition, ~$0.3 billion of capex
Quellaveco is one of Anglo American’s and South
to harness the supply of renewable energy. In October 2022, annually (2023–2025) is expected to be invested across
America’s most technologically advanced mines,
we announced the creation of a jointly owned company with the South African RREE and nuGen™ programmes*.
incorporating autonomous drilling and haulage fleets –
a first in Peru, a remote operations centre, as well as
a number of Anglo American’s digital and advanced
processing technologies. Drawing its electricity supply
entirely from renewables from 2023, Quellaveco is setting
an example of a low emission mine producing a critical
metal for decarbonising the global economy – copper.
In Quellaveco, we can see FutureSmart Mining™ in action.
18
* Includes the Group’s proportionate share of capex incurred by Envusa Energy.

Physical climate risk: adapting
Identified hazards in the regions in which we operate
to a changing climate
Our operations, communities and broader value
chain, from the Arctic to the far South, are already
experiencing the impacts of climate change.
Climate science and future predictions both top-down and bottom-up – assessing identified physical
For over 10 years, we have been working to ensure that our risks at each of our operations against current controls and
operations have the best available models to understand, future needs to plan appropriate mitigation. Physical risks
assess, mitigate and adapt to the physical risks of climate emerge at different times and with different levels of severity
change. We have drawn on the expertise of the UK Met Office, depending on the site and its context. As a result, our approach
the South African Council for Scientific and Industrial Research is very site and impact specific.
(CSIR), Jupiter Intelligence and the Pontificia Universidad Risks emerging in the medium term (5–15 years) are an
Católica de Chile to understand future climate projections exacerbation of our short term risks such as the likelihood that
and the vulnerability of our operations, host communities future extreme weather events will become more intense or
and host countries more broadly. more frequent, thus potentially adding incremental risk to
We recognise the importance and urgency of enhancing our our operations. In addition, we expect to see a continued
resilience – in fact, our production in 2022 was affected by strengthening of the chronic decrease in precipitation and
extreme weather, exacerbated by climate change, around the increase in annual temperatures which will exacerbate existing
world. We have begun to use a climate change scenario risks such as water stress in southern Africa, Chile and Peru.
analysis solution specifically for our assessment of physical We also expect to see an introduction of some new chronic risks,
climate change risks that uses multiple Global Climate Model such as the change in annual temperatures and precipitation
(GCM) projections dynamically downscaled to a local level to causing a shift in seasons which, for example, will reduce the Examples of the resulting potential risks/impacts on our operations:
provide projected changes in climate and hazard estimates period that we can use ice roads for access in the Arctic.
for each of our assets and key shipping ports over the period Our long term time horizon covers the remainder of our
Water stress/ Increase in annual Annual increase
2020 to 2100. The modelling is based on three of the Shared operations life (15+ years) as well as the post-closure period. Flood
drought precipitation in temperature
Socioeconomic Pathways (SSPs) used in the IPCC Sixth The projections for physical climate change risks in this time
Assessment report on climate change: SSP1–2.6, SSP2–4.5 – Disruption of operations – Compromised viability of – Inadequate capacity of water – Impact on ecosystems
frame start to diverge considerably depending on the scenario due to flooding of vegetation on rehabilitation management infrastructure
and SSP5–8.5(1). These scenarios project warming of ~1.8oC, chosen. We will continue to monitor the global trajectory and operational areas (dams, dewatering water
– Impact on ecosystems
~2.7oC and ~4.4oC respectively by 2100. This analysis provides calibrate our long term predictions accordingly. Our work on – Infrastructure damage treatment, etc)
– Reduced community access
us with a top-down view of key physical climate change long term risks is linked to our desire to have sustainable – Supply chain disruption to water
hazards across our portfolio. To complement this, we have mine plans beyond the operational activities of an asset.
defined a bottom-up approach to understand the climate Examples of this are ensuring rehabilitation strategies take into
context at a local and regional level, including understanding consideration future physical conditions that may impact plant Annual increase Extreme
Wildfires Acute heat
past weather trends and present emerging climate-related or soil selection, through to water management activities or in temperature weather events
impacts, as well as vulnerabilities and adaptive capacities aspects related to the security of renewable energy supplies. – Impact on ecosystems – Safety and health risks – Operational disruption – Increased heat exposure
particular to each site. – Impact on biodiversity from heavy winds, lightning, leading to reduction in
Our approach is evolving as we conduct further site-level heavy rains workforce efficiency
Understanding short, medium and long term and communities
bottom-up risk assessments and it is through this process – Inadequate design – Exceeding equipment
physical risks resulting from climate change we will connect our work in this area across all aspects of parameters on design criteria
We assess our physical climate change risks over different time our operational activities. key infrastructure – Increase in energy
horizons. In our current operational planning we are focused (tailings, dams, etc) consumption for
(1) IPCC (2021). Masson-Delmotte V, Zhai P, Pirani A, Connors SL, Péan C, Berger S, Caud
on addressing the impacts of acute emerging and short term N, Chen Y, Goldfarb L, Gomis MI, Huang M, Leitzell K, Lonnoy E, Matthews JB, Maycock – Rehabilitation stability ventilation and cooling
(0–5 years) physical climate change risks such as the heavy TK, Waterfield T, Yelekçi O, Yu R, Zhou B (eds.). Summary for Policymakers (PDF). impacted through – Impact on railway
Climate Change 2021: The Physical Science Basis. Contribution of Working Group I
rains in southern Africa and Australia and wild fires in Brazil that intense rains (rail buckling)
to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change.
19
Cambridge (UK): Cambridge University Press.

we have experienced over the last few years. This approach is
Climate change risk and resilience
Global climate
change models
Climate Risk Adaptation Investment Climate

intelligence assessment and resilience and execution stewardship
– Science-based, standardised – Identify and assess physical – Develop and improve – Assess cost of adaptation – Contribute to climate
approach to collation and risks and opportunities adaptation plans based on based on chosen scenarios, resilience in communities and
use of climate data to identify efficacy in mitigating risk, cost, timelines, and risk appetite ecosystems as well as across
– Assessments are scenario-
key hazards barriers, flexibility, co-benefits, our supply chain and markets
Physical climate risk: adapting to a changing climate continued
based, consider chronic – Ensure adaptation and

and environmental and Disclosure
– Develop knowledge and acute risks and look at resilience measures are – Integrate Physical Climate
community impacts recommendations
leadership in climate change short, medium and long term budgeted and implemented Change Risk and Resilience
risk and adaptation. emergence – Integration into operational (PCCRR) into our Social Way.
– Monitor adaptation success.
and investment decisions, – Governance
– Issue-based impact
operational management,
assessments for high risks – Risk assessment approach
standards, and processes.
– Assess cost of doing nothing. – Physical risks and opportunities
– Impact-related costs
– Adaptation planning and related
investments
Historical trends – Climate stewardship
Vulnerability contributions
Adaptive capacity
Governance and reporting
– Enhance awareness, ownership and accountability for PCCRR and adaptation

– Standards and processes embed PCCRR, with effective monitoring, reporting and compliance
Assessing physical climate change risks assessments, more detailed issue-based risk assessments are Adaptation and resilience It is imperative that we also understand the climate change
We use two key processes to guide how we manage physical undertaken to understand the causes and potential impacts. We are already experiencing the impacts of a changing climate risks and opportunities across our broader value chain.
climate change risks – our Operational Risk Management In some cases, it is necessary to undertake in-depth studies at our operations. The forecasts are clear that these impacts Where these risks exist in areas not within our control, we will
(ORM) programme for mining operations, and the Investment to properly understand the impact pathways and explore will increase over the operational life of our assets. It is vital that seek to collaborate with our stakeholders to address them.
Development Model (IDM) for projects. The ORM guides potential adaptation mechanisms. we identify the potential changes and adapt to them to ensure
operations on how to assess and integrate climate risk All our sites have conducted initial assessments to understand that our business remains resilient.
management at each level of activity. The IDM process and their key climate change hazards and have, thus far, focused Our aim is to reduce the risks from the harmful effects of climate
evaluation criteria ensure that physical and market-related on managing current acute climate change-related change to an acceptable level in addition to identifying and
climate change risks and opportunities are embedded in impacts. We are now working to move to a more standardised capitalising on any opportunities arising from the changes.
the investment design. and systematic process that will ensure that all our operations Identified risks which may only emerge in the long term under
Climate change may introduce a new risk to an operation’s have a consistent physical climate change risk baseline and an SSP5 (~4.4oC warming by 2100) scenario will be monitored,
baseline assessment. More commonly, climate change will that our response to risks which have longer timescales of as it may not be necessary to invest in mitigation or adaptation
exacerbate, or in some cases reduce, the risk of an existing emergence is improved. Kumba Iron Ore’s 2022 Climate in the short term. Where response actions are identified, these
priority unwanted event. Where significant or high risks and Change Report provides some good examples of how are built into the operations’ business plans to ensure that
priority unwanted events are identified in the baseline risk that part of our business is developing this work. resources and responsibilities are allocated appropriately.
20
Climate change impacts on host communities Adaptation is a dynamic social process and mining operations Case study
The impacts of a changing climate do not stop at the mine may support the creation of an enabling environment to
fence, but will be felt by host communities, host regions develop adaptive capacities: in the longer term, communities’
and ecosystems in which we operate. We recognise our security and well-being will depend on building their capacity
responsibility to support host communities to become to identify and respond appropriately to change. By defining a
more resilient to physical climate risk. holistic approach to community resilience to climate change,
grounded in proactive collaboration with stakeholders and
As climate change intensifies, we are witnessing substantial
meaningful cross-functional integration, we can strive to
and non-linear increases in biophysical and socio-economic
support host communities in an uncertain future aligned with
impacts, which disproportionately impact disadvantaged and
our Purpose to re-imagine mining to improve people’s lives.
vulnerable populations, especially in less developed countries,
including Indigenous Peoples and rural communities Policy and regulation
dependent on land-based livelihoods and ecosystem services. As the impacts of a changing climate become more apparent
Impacts could include reduced access to water, lower crop around the world, we expect to see a stronger policy focus on
yields and reduced food security, as well as increased risks to understanding physical climate change impacts and investing
health and physical security. Furthermore, in many jurisdictions, in adaptation and resilience.
the impacts may be felt disproportionately by women and girls. COP27 was the first United Nations Framework Convention
The proactive, integrated, and strategic approach we take to on Climate Change (UNFCCC) meeting where the issue of
social performance at all our sites means that we have been adaptation had as much prominence as the issue of mitigation.
considering the changing climate in that work for some time. This reflects the evidence of the changing climate we are
The understanding drawn from climate modelling through our experiencing and will, we believe, drive further focus on
updated PCCRR work will ensure global consistency and that physical climate risk from governments, regulators, investors,
the latest available analysis is used in inputs for our site-level communities and other stakeholders.
social performance management systems. Climate change
projections will also be considered when developing the “Achieving net-zero emissions by 2050 is
geospatial analysis stage of our Collaborative Regional only possible if we also act now to deliver Effective fire management has benefits for community health and safety,
biodiversity, carbon emissions, cultural heritage and operational efficiency.
Development (CRD) approach, detailed in the Just Transition a nature-positive society.”
section of this report.
Paris Agreement Champions
Underpinned by the principles of value protection (to do no Adaptation to increasing and proactive fire management strategy that also
focuses on the causes of wild fires, such as biomass,
harm), value creation (to build proactive resilience), and to
support transformative change (to maximise opportunities
— For more information
Call from Paris Agreement Champions: Secure a strong sister wild fires in Brazil human behaviour and topography.
agreement for biodiversity or risk undermining climate action Preventative action undertaken on a routine basis
for adaptation), our approach to build community resilience Minas-Rio, Anglo American’s iron ore operation in
builds on physical climate change modelling to: Brazil, maintains approximately 15,000 hectares of includes making firebreaks and biomass clearing
The interdependency between nature and climate
protected areas in the Espinhaço Mountain region. and implementing access controls. In addition,
– Mitigate future impacts on communities to manage We recognise the interlinkages between climate change, water
As part of mining licensing commitments, Minas-Rio an extensive fire prevention, safety awareness
business risk systems and nature. Climate change is a major driver of
has a responsibility to support the municipality in and educational programme is now available
– Pre-empt potential conflict with stakeholders in relation biodiversity loss, damaging ecosystems and leading to loss of
forest fire management on its own property and in for Anglo American employees, as well as for
species, with negative consequences for human well-being.
to permitting/land take/water use, etc. communities across the municipality. After every
Science also demonstrates, however, that the Earth’s natural the neighbouring State Park, Serra do Intendente.
– Manage increasing expectations from communities, fire an investigation is undertaken according to
systems play a vital role in regulating the climate. In absorbing Forest fires have become increasingly frequent,
civil society, governments, investors, and customers the Learning from Incidents process to identify the
carbon emissions, these systems have protected us from the with the potential to impact the mine’s operations, cause of the fire and obtain learnings that can be
– Support greater accountability and transparency in reporting worst impacts of climate change and can continue to do so, to pose risks to community safety and health, local implemented to prevent similar events in future.
on impact management as long as society safeguards and restores thriving ecosystems biodiversity, and have a negative impact on carbon
and continues to reduce emissions. Up to 54% of the man- emissions, as well as cultural heritage in the area. Proactive monitoring and the ability to detect
– Leverage the Social Way 3.0 management system
made GHGs emitted over the past 10 years have been Climate change projections for the area indicate fires early and precisely are critical for good fire
to promote thought leadership
absorbed by soils, plants and water bodies. that the number of wild fires expected per management. A new automated fire detection
– Support accurate and effective capital allocation square kilometre is likely to increase by 17–30% system which utilises artificial intelligence (AI),
We will work to protect what we have already where possible,
– Differentiate Anglo American as a ‘partner of choice’. (medium–worst case scenario) by 2040. satellite imagery and cameras to identify daily
within and beyond our fence, as well as helping to protect
fire risk levels and detect fires as they start is
other landscapes upstream and downstream through positive 2019 was a bad year for forest fires and during being implemented to improve response time.
biodiversity outcomes, active conservation and partnerships, September alone, a total of 1,373 hectares were The system also allows the tracking of fire
including reducing societal impacts, repairing ecosystem burnt in the protected area and its buffer zone. brigade response efficiency and measurement
function, partially recovering native ecosystems, improving Of this, 93% was on land owned by Anglo American. of CO2 emissions from fires.
ecosystem management, initiating native recovery and fully This has led to the development of a more intensive
recovering native ecosystems.
21
Case study Our Sustainable Mining Plan targets on water and biodiversity both operational sites and conservation landholdings. Key
are aligned with the adaptation agenda. We seek to use less applications include landscape rehabilitation with native
fresh water, which will make us more resilient in a water scarce species as part of closure requirements, improving catchment
context and, at the same time, we can leave more in the natural level water security, and enhanced groundwater recharge
system and for communities. We are also incorporating climate combined with ecological connectivity and habitat restoration.
change scenarios into our water balances to assess potential One practical example of an NbS with multiple benefits is
implications so that we can adjust our water management De Beers’ recent investment in the start-up Kelp Blue, which
as required. plants kelp forests off the coast of Namibia to boost the
health of the oceans and lock away CO2, while creating
At our Los Bronces operation in Chile, the integration of climate
local employment.
change scenarios into our water balances has enabled the
production of long term projections on water availability. These, We are therefore looking beyond what we can achieve alone,
in turn, have been used to justify investments into resilience collaborating globally with a diverse range of partners to
solutions, such as the integrated water solution project, which develop and implement sophisticated solutions that support
enables a transition from fresh water to desalinated water and our climate and sustainability goals. Our commitment to
treated wastewater. To ensure that our tailings management is delivering positive outcomes for nature drives us to continuously
adaptive to the changing climate, we are embedding physical review and update our approach. Harnessing innovation and
climate change risk into our internal tailings management digitalisation, we are building a future where we take a holistic
guidelines, including identification of vulnerabilities and approach to how we care for the nature around us, in
potential impacts that would require any changes to partnership with our stakeholders. Our approach under the
infrastructure or adjustments to the operational management Sustainable Mining Plan is to prioritise nature throughout the
of the facilities. lifespan of our mines. We look at the entire ecosystem to
understand the intertwining relationships of people, biodiversity,
Many of our planned and ongoing activities fall under the
climate, water, and the economy as factors interconnected and
rubric of Nature Based Solutions (NbS) – actions to protect,
bound by nature.
sustainably manage, and restore natural and modified
ecosystems that address societal challenges effectively and A full report on our approach to water and biodiversity, which
adaptively, simultaneously providing human well-being and includes but is not limited to the overlap with climate change,
biodiversity benefits. Anglo American is focusing NbS work on forms part of our 2022 Sustainability Report.
Native species currently used for seed collection

at our Steelmaking Coal operations in Australia.
Case study
Climate-adapted seed Therefore, we are supporting a CRC-TiME research

project led by the Commonwealth Scientific and Integrated approach to the vulnerability of six conservation targets representing
sourcing to improve Industrial Research Organisation (CSIRO) to provide

managing physical climate
priority components of biodiversity in the same area to
climate change.
evidence for the effectiveness of climate-adapted
resilience seed-sourcing strategies. These include ‘predictive change risks in Chile The community-facing work projected different physical
provenancing’ (using seed from an area expected climate change risks to communities nearby. Some of the
In Australia, we expect a continuation of the
to reflect the future climate of the planting site), Understanding the interdependencies between climate, risks assessed indicate a direct connection with climate
increases in the annual average temperature, as
and ‘climate-adjusted provenancing’, which aims water, communities and ecosystems is critical to ensure that change, like the impacts of heat waves on mortality and
well as in the number of hot days per year, alongside
to mix locally sourced seed with seed collected any work that we do in the environment or communities morbidity. Most impacts on the community are more indirect,
greater rainfall intensity. A range of climate change
along a climate gradient in the expected direction avoids unintended consequences. Our Los Bronces copper resulting from changes in availability of water, crop yield,
impacts are already being seen on hundreds of
of climate change. operation in Chile has taken an integrated approach to or wildfires. The WCS analysis meanwhile identified different
species and ecosystems across large parts of
understanding climate change impacts, with the aim of levels of biodiversity vulnerability to climate change based
Australia. This is expected to continue as the climate The project will incorporate assessment of the social
using the learnings to better design response plans aligned on spatial distributions, characteristics, and climatic and
continues to change. acceptability of choosing an alternative seed-
to meeting our Sustainable Mining Plan commitments. non-climatic threats.
Our rehabilitation programmes are site-specific sourcing strategy by using learnings from a parallel
project. This will be through engaging with regulators Working with the Pontificia Universidad Católica de Chile’s These studies demonstrate the complexities of the effects
and designed for the long term using landform
and Indigenous groups to explore the acceptability Center for Global Change, a study was undertaken to of climate change on the socio-ecological systems.
evolution modelling (e.g. WEPP and SIBERIA) to
of climate-adapted seed-sourcing strategies. assess the risks and analyse the effects of climate change The identified synergies and interdependencies between
simulate weather events. We are looking at how
on socio-economic and cultural dimensions that determine biodiversity conservation and community management,
we can incorporate long term climate change Finding appropriate climate resilient species for
the livelihoods of the local communities around the mine will be used to inform decisions and promote more
projections into this modelling. We recognise a rehabilitation is one key element in ensuring we
and Las Tórtolas tailings facility. Another study, undertaken holistic and integrated climate change mitigation
need to investigate whether the changing climate have an adaptive approach to rehabilitation.
by Wildlife Conservation Society (WCS) Chile, evaluated and adaptation solutions.
requires us to update our rehabilitation programmes.
22
Decarbonising
our operations
The launch in May 2022 of a prototype hydrogen-powered mine haul truck using our
proprietary nuGen™ Zero Emission Haulage Solution at Mogalakwena PGMs mine in
South Africa marks a major step towards our goal of being carbon neutral across our
operations by 2040. Our subsequent combination of nuGen™ with our technology partner,
First Mode, is designed to accelerate the development of this breakthrough zero-emissions
23
solution to commercial roll-out, both for our business and more broadly.
Decarbonising our
Scope 1 and 2 abatement of methane emissions to the Group’s overall Scope 1 emissions,
Our Scope 1 and 2 emissions reduced 9% year-on-year in these operational changes contributed significantly to
2022 (2022: 8.3 Mt CO2e and 5.0 Mt CO2e respectively, 2021: emissions reduction.
operations (Scope 1 and 2)

8.9 Mt CO2e and 5.6 Mt CO2e respectively). Compared with our Our understanding of how we will reach our targets continues
emissions peak in 2019, we have delivered a 21% reduction in to mature. Our plan, set out in detail in our 2021 Climate
our Scope 1 and 2 emissions (2022: 13.3 Mt CO2e and 2019: Change Report, includes increasing energy efficiency, switching
16.8 Mt CO2e respectively) and a 1% reduction compared with to low carbon energy sourcing and significantly increasing
the 2016 baseline on which our 2030 target is set. The emissions the role of renewables in our energy mix. Where necessary,
intensity of our production decreased to: 6.1 t CO2e/t CuEq in we are also developing, often with partners, solutions to
We are delivering on our ambition to become carbon neutral 2022, compared with 7.2 t CO2e/t CuEq in 2019. technologically challenging but key emissions-intensive
elements of our operations and processing. Pulling each
across our operations by 2040. At the end of 2022, our Scope These reductions have been driven primarily by the continued
decarbonisation lever moves us closer to our target of a 30%
execution of our FutureSmart Mining™ programme, particularly
1 and 2 emissions were 21% below the peak levels of 2019 – with regard to diesel efficiency, other energy efficiency reduction in GHG emissions and eight sites carbon neutral
putting us ahead of our planned trajectory. improvements and renewable energy roll-out, predominantly in by 2030, as a stepping stone to carbon neutral operations
South America. Operational decisions also play a significant by 2040.
role. For example, in the last year, our Steelmaking Coal The following section details this year’s progress across
— For the assurance statement relating to Scope 1, Scope 2, business has transitioned production to new mining areas that our key decarbonisation levers.
energy consumption and tonnes copper equivalent. generate lower methane concentrations. Given the significance
See pages 93–94 in the Sustainability Report 2022
(1)
CO₂ from fossil fuel consumption (excluding diesel)
Fossil fuels and other¹ used in processing, and other activities
(2)
CO₂ emissions from electricity consumption (all Scope 2)
Electricity²
(3)
CO₂ sub-set from fossil fuel consumption
Diesel³ (4)
Fugitive emissions from steelmaking coal mining
Fugitive methane⁴
Chile 100%
100% renewable energy Carbon removals
Quellaveco reaches ramp-up
with 100% renewable energy
Estimated emissions range
Brazil 100% Three solar PV plants

renewable energy Australia 100%
75% in South Africa renewable energy
2030 goal – 30% reduction
of GHG emissions
Ongoing roll-out of integrated
solar and wind generation
50% in southern Africa Electrification of energy

sources for processing
facilities
Hydrogen truck Mogalakwena pilot
Hydrogen trucks
Carbon
Australia Ventilation Air
roll-out to priority sites neutrality across
25% Methane (VAM) abatement
demonstrator project Large scale VAM abatement our operations
technology in implementation Hydrogen and
electric mobility
for wider fleets
Significant operational
VAM capture and
abatement in Australia
0
Nature and mineral

based carbon negative Carbon negative
solutions pilots solutions ramp-up
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
24
Progress to 2030 the geographically dispersed renewable generating assets constructing a zero emission hydrogen production, storage,
Anglo American GHG emissions 2022
Powered by renewables and allocate the energy optimally to meet load demand and and refuelling complex for vehicles at Mogalakwena, which
Scope 1 (Mt CO2e)
In 2022, we sourced 52% of our electricity supply from maximise the renewable energy for Anglo American's sites. incorporates the largest electrolyser in Africa and a solar
renewable sources. We are committed to working towards nuGen™ – Anglo American’s Zero Emissions Haulage Solution photo-voltaic (PV) field.
the decarbonisation of the balance of our electricity supply Eliminating the use of diesel at our mine sites is fundamental The launch of nuGen™ provides a real-world case for the wider
via the use of power purchase agreements and self-developed to decarbonising our operations around the world. nuGen™ adoption and use of hydrogen across the heaviest duty forms
generation at site. represents a different way of thinking about mining; one that, of transport. With haul trucks representing up to 80% of diesel
From 2023, all our South America operations (Brazil, Chile developed as part of our FutureSmart Mining™ programme, emissions at our mine sites, this technology will make a major
3.2 brings together technology, digitalisation, and sustainability, contribution towards our operational carbon neutrality target.
and Peru) will be powered by 100% renewable energy. Building
4.2 on this progress, we have secured 100% renewable energy to with step-change innovation intended to transform the very The truck is a tangible example of the technology advances
meet all our electricity needs in Australia from 2025. Partnering nature of mining. This broader objective is behind the nuGen™ that are needed to enable the global shift towards more
with the Queensland government-owned provider of electricity Zero Emissions Haulage Solution (ZEHS) project, an end-to- sustainable, affordable hydrogen power, and of the way
and energy solutions, Stanwell Corporation, we will effectively end integrated green hydrogen production, fuelling, and investment in infrastructure and innovation can deliver a
remove all Scope 2 emissions from our Steelmaking Coal haulage system for mine sites. clear vision for the future.
business in Australia. This new agreement brings significant Following three years of extensive development, in 2022 we To capitalise on the success of this initial project and accelerate
0.4 environmental benefits and is net present value (NPV) positive launched nuGen™ ZEHS at our Mogalakwena PGMs mine the technology’s commercialisation, Anglo American has
Decarbonising our operations (Scope 1 and 2) continued
0.5 compared with our current energy mix, while underwriting a in South Africa – marking the first time a 220-tonne truck with combined nuGen™ with First Mode. We have also entered into
large investment in 650 MW renewable energy generation a 290-tonne payload has run on hydrogen. Retrofitted from a supply agreement with First Mode to decarbonise our global
CO2e from fugitive emissions from coal mining for Queensland. a diesel-powered vehicle, the nuGen™ truck uses a hybrid fleet of ultra-class mine haul trucks, of which more than 400 are
CO2e from methane flaring This means that from 2025 we expect to be drawing hydrogen fuel cell to provide roughly half of the power, and a currently in operation. The roll-out across Anglo American’s
approximately 60% of our global electricity requirements from battery pack the other half. The 2 MW hybrid battery/hydrogen haul truck fleet over the next ~15 years is subject to the
CO2e from processes completion of agreed and committed studies across seven
renewable sources, transforming our Scope 2 emissions profile. fuel cell powerplant, was designed by Anglo American and
CO2e from fossil fuel consumption its partner First Mode. The power management and battery mine sites, certain performance, and cost criteria, and relevant
Partnering to create a regional renewable
systems in the truck have been developed to improve overall regulatory, corporate and shareholder approvals. The supply
energy ecosystem in South Africa
efficiency by recovering energy when the haul trucks travel agreement also includes the appropriate provision of critical
We are working to decarbonise the largest single source of
Scope 2 (Mt CO2e) downhill, through regenerative braking. This energy stored in supporting infrastructure such as refuelling, recharging, and
0.1 our Scope 2 emissions, our use of South Africa’s electricity
the battery extends the truck’s range and reduces its out of facilitation of hydrogen production.
0.7 grid. Given South Africa’s context and coal dependency, our
cycle time. As part of the integrated nuGen™ solution, we are
approach has necessarily been different to that employed
0.1 elsewhere and developed in such a way as to support the
country’s decarbonisation journey as well as our own.
This decarbonisation journey will require all parts of the
political and economic system to play their role. 2019 2021 2022
To do so, we have partnered with EDF Renewables to form
a new jointly owned company, Envusa Energy, to develop a
regional renewable energy ecosystem (RREE) in South Africa.
Brazil Peru South Africa
In October 2022, we formalised the relationship to explore the

Signed Agreement: 2019 Signed Agreement: 2021 Signed Agreement: 2022
ecosystem's development, designed to meet 100% of our Supplier(s): Casa dos Ventos, AES Tietê, Supplier(s): Engie Energía Perú Supplier(s): EDF Renewables to form
operational power requirements in South Africa and support Atlas Renewable Energy Technology: Wind, hydroelectric a new jointly owned company, Envusa
4.1 the resilience of the local electricity supply systems and the Technology: Wind, solar Total electricity: 100% from 2023 Energy, to develop a regional renewable
Total electricity: 100% from 2022 energy ecosystem (RREE)
country’s wider decarbonisation. The RREE is also expected to in South Africa.
catalyse economic activity in South Africa's renewable energy Technology: Wind, solar
Australia sector, supporting the country's broader Just Transition. Chile* Total electricity: 100% by 2030
Signed Agreement: 2019
Peru As part of the agreement, Envusa Energy will launch a mature Supplier(s): Enel Generación Chile
Technology: Wind, solar, hydroelectric
South Africa pipeline of more than 600 MW of wind and solar projects in
Total electricity: 100% from 2021 Australia
Other 2023. We expect that these projects will displace more than Signed Agreement: 2022
* Our 44% owned copper joint operation,
1.5 Mt of CO2e by the end of 2025 – a significant first step Supplier(s): Stanwell Corporation
Collahuasi, also signed agreements with Technology: Wind, solar
towards developing an ecosystem that is intended both Enel Generación Chile and solar Total electricity: 100% from 2025
to generate 3–5 GW of renewable energy by 2030. power producer Sonnedix to provide
100% renewable electricity from 2020.
Envusa Energy is expected to supply Anglo American with a
blend of renewable energy generated on Anglo American's
sites and renewable energy transmitted via the national grid.
25
This energy portfolio approach will aggregate the energy from

Taking diesel emissions out of the equation would not only Methane emissions occur with all coal mining; so, the challenge When our 30% emissions reduction target was set in 2018
take us a long way along the path towards achieving carbon we face is one that all other coal mining companies share. against a 2016 baseline, the Group forecast that emissions
neutrality across the Group by 2040, but replacing diesel with Recognising this fact, we have partnered with Low Emission would increase from 2016 due to production growth outpacing
hydrogen in South Africa would also support the development Technology Australia to study possible solutions. We are also emissions reductions. Therefore, the Group’s target reduction
of South Africa's hydrogen valley, a principal component of an part of the Metcoal Methane Partnership, alongside industry of 30% by 2030 against a 2016 baseline was equivalent to a
eventual hydrogen economy in the country that is intended to partners, the UN’s Environment Programme, the European ~45% reduction in absolute terms against the Group’s reported
further support the Just Transition through stimulating a myriad Commission, the Environmental Defense Fund, Responsible 2020 emissions.
new economic opportunities. Steel, and others, looking to bring the experience of tackling With this as the context, to assess our level of ambition we
Energy efficiency methane leakage in the oil and gas sector to steelmaking coal. undertook an internal review and then sought third-party
Our Energy and CO2 Management (ECO2MAN) programme Residual emission abatement verification of our work from the Carbon Trust. This review
has been a central part of the way we have understood and We do not yet see a pathway to absolute zero for our Scope 1 compared the emissions reductions we were targeting
driven reductions in our operational GHG emissions since and 2 emissions – so, negative emissions will play a role to between 2020 and 2030 with the multiple 1.5°C pathways
2011. The programme continues to enable us to analyse our offset any residual emissions. We are developing our approach defined by the UN’s Intergovernmental Panel on Climate
activities and identify operational levers for reducing energy to negative emissions and recognise that what we do must be Change (IPCC). The outcomes of this work can be summarised
consumption and GHG emissions, complementing our other transparent, independently verifiable, and have real-world as follows:
initiatives. In 2022, our energy consumption reduced by carbon impact. We will use the mitigation hierarchy as a guide: – A consultant-supported exercise was performed in 2021
Decarbonising our operations (Scopes 1 & 2) continued
1% when compared to 2021 (2022: 82.7 mGJ and Avoid – Reduce – Substitute – Sequester – Offset, and likely by Anglo American to assess the Group’s emissions
(Left to right) Group director – South Africa, Nolitha Fakude;
2021: 83.7 mGJ respectively). favour self-managed carbon projects (otherwise known as profile and targets against a set of 37 publicly accessible
Anglo American chief executive, Duncan Wanblad; President
of South Africa, Cyril Ramaphosa; CEO of our PGMs business, insets) with a focus on nature-based solutions. However, global pathways collated by the IPCC that limit the global
FutureSmart Mining™, our innovation-led approach to
Natascha Viljoen; South Africa’s Minister of Mineral and Energy following the agreements at COP26 and COP27 on Article 6, temperature increase to 1.5°C and that reach net zero
sustainable mining, seeks to fundamentally change our Resources, Gwede Mantashe; and Anglo American technical we expect the international market for voluntary carbon to emissions before, or at, 2050. Against those scenarios, the
operations, from how we evaluate the orebody to how director at the time, Tony O’Neill.
develop quickly, and we are following that evolution closely, 2030 target was more ambitious than 19 of the pathways.
we mine, sort and process the ore. Technologies developed
looking to build on the knowledge and experience we have While these results are not definitive, they indicate that the
as part of this programme also continue to play a role nuGen™ tangibly demonstrates the step-change developed trading carbon in compliance markets in Australia Group Scope 1 and Scope 2 2030 target is within the range
within our energy efficiency and abatement pathways. innovation in technology, digitalisation, and sustainability and the European Union. Our Marketing business will enable of those IPCC 1.5°C global pathways.
encapsulating our FutureSmart Mining™ programme.
Progress to 2040 us to participate in the key global emissions markets.
Furthermore, it signals our continued commitment to – In early 2022, Anglo American instructed Carbon Trust to
Ventilation air methane
achieving our carbon neutrality goals while showcasing Target ambition and alignment with 1.5°C conduct an independent gap assessment, comparing the
Methane emissions represent the largest component of our the role of PGMs in driving a greener, cleaner future and Current scientific evidence shows that, broadly, the world needs Group’s GHG targets and planned decarbonisation trajectory
Scope 1 emissions. We have two predominant sources of our support for the just energy transition through our to achieve net zero CO2 emissions by 2050 to limit average against selected credible pathways and accepted Net Zero
methane emissions: rich gas, which we capture and use for participation in the hydrogen economy. global warming this century to well below 2°C, and preferably definitions.
power generation, and ventilation air methane (VAM). The low
The 2022 launch of the ZEHS was attended by over 2,400 to 1.5°C, compared with pre-Industrial Revolution levels. – A comparison against the SBTi Absolute Contraction (intensity
concentrations of VAM make it more difficult to capture and use
online and in-person community representatives, civil This is enshrined as one of the goals of the Paris Agreement. pathway) approach indicated that the Group’s target was in
safely than rich gas. Through pre-drainage, we shift VAM into
rich gas for use, but this is not always possible with existing society, academia, representatives from business and There is no agreed way to assess whether emission reduction range in terms of trajectory and cumulative emissions from
technology in a way which aligns with our commitment to members of governments, including the South African targets are aligned to pathways constraining global 2020, though an increase to a 34% reduction in the target
safety. As we mine deeper, we are producing more gas, President and Minister of Energy and Mineral Resources, temperature increase to 1.5°C, and no consensus definition of relative to 2016 would precisely match the SBTi 1.5°C curve.
including both rich gas and VAM. who witnessed the truck in operation at our Mogalakwena what this or ‘alignment with Paris’ means. The Science Based – An applied Transition Pathway Initiative (TPI) intensity analysis
PGMs operation. Target Initiative (SBTi) is widely cited as a means of providing

We are developing a VAM abatement project for our using the Group’s forward projections, estimating both
some assurance of the level of ambition. However, the SBTi has forward production and decarbonisation pathways, indicated
underground steelmaking coal mines. Initial concept studies
have been undertaken to identify the best approaches to VAM "This is one of the first projects of South yet to develop a methodology to assess the diversified mining that the Group intensity performance was in line with a 1.5°C
Africa's hydrogen valley – an industrial cluster sector and currently excludes target verification for any TPI intensity pathway until 2040, including as at 2030.
abatement and methane emission reduction. We are working
company deriving more than 5% revenue from fossil fuel assets
with technology vendors and engineering partners to progress that brings various hydrogen applications – drawing no distinction between fossil fuel produced for steel – A comparison to the International Energy Agency (IEA) Net
a first VAM abatement project which, once successful, will to form an integrated hydrogen ecosystem. Zero Emission (NZE) 1.5°C aligned emissions reduction
production as opposed to energy. As a consequence, it is not
provide the template for further deployment at all of our pathways demonstrated that the Group’s general trajectory
The launch of the hydrogen-powered mine yet possible for us to secure SBTi verification for the level of
underground steelmaking coal mines. compares favourably in terms of targets in the longer term
haul truck is a source of pride for the mining ambition of the Anglo American Group targets, although
(2040); however, the medium term (2030) target would be
Since the technology implementation design is not yet fully De Beers has submitted its targets, a sub-set of the wider Group
defined and forms a longer term part of the Group’s climate
industry in the African continent." 8% outside the NZE 1.5°C pathway at that juncture.
targets, for SBTi verification. Nevertheless, we considered it
ambitions, we are not yet in a position to disclose the related Gwede Mantashe, South Africa’s Minister important to assess whether our Scope 1 and 2 targets were This work gave us confidence that, recognising that with
cost and benefit for the project as a whole. of Energy and Mineral Resources aligned with the ambition assumed in the Paris Agreement. forecasts of any type there is a margin of error, our 2030 Scope
1 and Scope 2 target and trajectory can be demonstrated to
be aligned with a well-below 2°C scenario and broadly in
the range of what is widely understood as a 1.5°C world.
26
Decarbonising
our value chain
Our Shipping team has successfully trialled the use of sustainable

biofuel to power a chartered Capesize vessel from Singapore to
South Africa – a voyage that also demonstrated a reduction in CO2
27
emissions compared with conventional fuel.

2021 Scope 3 emissions
16%
Decarbonising our
The four main areas in which we have evolved our approach
2021 Scope 3 emissions 16%
for the 2021 calculation are:
1. Increased specificity of emissions, replacing industry 16%
3%
value chain (Scope 3)

average emission factors with factors relevant to our 16%
customers’ emissions and the use of a more comprehensive 48% 98.53 Mt CO2e
database of emissions factors. 3%
48% 98.53 Mt CO2e 3%
2. An enhanced approach to convergent value chains in the 15%
steel industry to apportion the emissions between iron ore
48% 98.53 Mt CO2e
and steelmaking coal appropriately and reduce double
We are committed to playing our part to mitigate the impact of our value counting of those emissions.
48% 98.53 Mt CO2e 15%
15%
chain emissions, while recognising that the nature of Scope 3 emissions 3. An adjustment of the boundary for inclusion, removing 18%
is such that most remain outside our direct control. We continue to build those emissions attributed to the first use after production
in recognition of the lack of influence we have further down 18%
on our understanding of both the levers we can pull, and the influence each the value chain.
of those levers can have, over our Scope 3 emissions. We are committed 4. Introduction of a spend-based methodology for categories Upstream18%
(1)
to our ambition of reducing our Scope 3 emissions by 50% by 2040. 1 and 2, refined to reflect capex and opex and improve the Upstream(1) Logistics 18%
overall accuracy of the calculation. Other commodities(2)
Logistics
Details of our Scope 3 emissions across the 15 categories are Upstream (1)
Other commodities(2) Steelmaking coal
Our Scope 3 emissions saw a 14% year-on-year fall in 2021 translate into mutually beneficial relationships that redefine the shown in the chart below. The majority of our Scope 3 Upstream (1)
Logistics
Steelmaking coal Iron ore
to 98.5 Mt CO2e (2020: 114.8 Mt CO2e). The reduction was way the steel industry operates, helping the sector to meet emissions sit in Categories 10 and 11: the processing and
Logistics
Other commodities(2)
primarily driven by an increase in the proportion of iron ore its sustainability targets and the evolving expectations end-use of our products. More specifically, they relate mostly Iron ore Includes purchased goods and services, capital goods, upstrea
(1)
sales to direct reduced iron – electric arc furnace (DRI-EAF) of consumers and society more broadly. to our iron ore and steelmaking coal sales into the steel Other commodities
Steelmaking coal
(2) and distribution.
Includes purchased goods and services, Includes copper, exploration, manganese, nickel, PGMs, polyhal
(2)
(1)
capital goods, upstream transport
steel production (~20% in 2021 vs ~10% in 2020) with a value chain. Steelmaking coal
and distribution. thermal coal and traded product.
Measuring Scope 3 emissions (2) Iron ore
Includes copper, exploration, manganese, nickel, PGMs, polyhalite,
corresponding decrease in the share of sales to blast furnace Scope 3 emissions continue to be reported with a 12-month Iron coal
thermal oreand traded product.
Anglo American published its first detailed Scope 3 emissions
– basic oxygen furnace (BF-BOF) steel production. Emissions Includes purchased goods and services, capital goods, upstream transport
(1)
assessment in 2019. Recognising growing stakeholder interest lag. This is due to the complexity involved in processing data and distribution.
from the DRI-EAF route are significantly lower than emissions
(1)
Includes
Includes purchased goods and services, capital
nickel,goods,
PGMs, upstream
polyhalite,transport
at a granular level across our value chain, and continuous copper, exploration, manganese,
(2)
and a lack of consistency in how Scope 3 is assessed across and distribution.

thermal coal and traded product.
from the BF-BOF route. The detailed methodology that we improvements to our methodology.
(2)
Includes copper, exploration, manganese, nickel, PGMs, polyhalite,
companies, industries, and geographies, we published the thermal coal and traded product.
developed in 2020 for measuring our Scope 3 emissions,
full methodology we used at that time.
which included differentiating emissions by customers, provides
the basis on which this reduction has been realised and can Our methodology builds on the Scope 3 elements of the
2021 Scope 3 emissions*
be measured. Greenhouse Gas Protocol, which were conceived as a means
for businesses to understand the carbon intensity of their value Category
Our commitment 1. Purchased goods and services
chains and identify means to reduce that intensity; not for direct 6.80
The emissions in our value chain (Scope 3) are always the comparison between companies. The diversity of approach 2. Capital goods 8.00
emissions of another enterprise. Consequently, most of that has resulted, renders comparisons between companies 3. Fuel and energy-related activities 1.63
our Scope 3 emissions are outside our direct control. difficult. In this context, we welcome and are engaged with the
4. Upstream transportation and distribution 0.96

Our work in understanding our Scope 3 emissions and the International Council for Metals and Mining (ICMM) work to 5.Waste generated in operations 0.02
pathway to reducing them has reinforced the importance of agree principles for Scope 3 reporting across the mining sector. 6. Business travel 0.01
our customers in the steel sector setting and delivering on Since publishing our initial methodology, our thinking on 7. Employee commuting 0.10
clear decarbonisation pathways, allied with the existence of value chain emissions has matured, and we have continued 8. Upstream leased assets
a consistent and supportive global policy environment. With to develop our knowledge and understanding of Scope 3. 9. Downstream transportation and distribution 2.45
the right policy framework, we believe steelmakers will be Continuing our partnership with the Carbon Trust, we have built 10. Processing of sold products 48.14
able to accelerate towards less carbon-intensive methods of on our previous work, identifying areas in which we could be 11. Use of sold products 20.40
production, which would translate into a reduction of our Scope more specific in our assessment of our emissions, reducing,
3 emissions by at least 50% by 2040, against a 2020 baseline. 12. End-of-life treatment of sold products
where practical, double counting and reflecting the contribution
13. Downstream leased assets
Achieving this reduction will, therefore, mean going beyond that our specific activities make to Scope 3 emissions. We
14. Franchises
how we market our products and commercialise our solutions. continue to build and develop a more granular inventory of
15. Investments 10.00
It will be dependent on our success in collaborating effectively emissions to allow us to track progress against our emission
with customers, other industry participants and industry bodies reduction activities. 0 10 20 30 40 50
to actively channel society’s increasing demand for essential
— Section 1.3 details 2021 updates to our Scope 3 methodology Mt CO2e
metals and minerals into more transparent, ethical and See here: www.angloamerican.com/scope-3-methodology-report * Data included up to the second decimal
28
sustainable value chains. We believe that this approach will

Our strategy: from ambition to pathway With a mindset of providing material solutions to our customers,
Since setting our ambition to reduce our Scope 3 emissions Anglo American has a role to play in this growing market. Levering innovation challenges in Scope 3 reduction
by 50% by 2040, we have worked to turn that ambition into Our Marketing business has developed in-depth knowledge of As part of our Decarbonisation Ventures team’s work, we
a pathway. metal recycling segments and identified potential opportunities are exploring a range of novel partnerships to encourage
to apply the expertise and core competencies within the new technologies and pioneering thinking that will help
Our work has been concentrated under four key pillars:
business to contribute to the circular economy. reduce our Scope 3 emissions.
Observe and promote Product quality and Partnerships to drive New green business Joining forces with like-minded players devoted to shaping One such partnership is with the European Institute of
customer strategy decarbonisation solutions to drive a collective path towards a low carbon future, and taking Innovation and Technology (EIT), a European Union
technology adoption industry decarbonisation a leadership role to enable industry-wide decarbonisation is institution that seeks to create platforms where advanced
What Proactively shape policies and Accelerate customers’ Accelerate customers’ Accelerate industry integral to our approach. research and business can collaborate to support
industry initiatives decarbonisation by decarbonisation by decarbonisation by creating
Our participation in industry forums, working indirectly with innovation.
tailoring products to accelerating technologies new solutions
decarbonisation needs our customers and other stakeholders at a value chain level, In early 2023, we launched ‘Pathways to Steel
Why Gaining visibility and knowledge Lower Scope 3 by aligning Creating conditions for gaining Profitable new business solution
is crucial in enabling systemic change. We are a member Decarbonisation’, an innovation challenge that calls upon
products with lower share of wallet with lower emission of Responsible Steel, the steel industry’s first global multi- start-ups and SMEs to present technologies to reduce the
emissions customers customers in the future stakeholder standard and certification initiative, which seeks carbon emissions of the steel manufacturing industry.
Prioritised to enhance the responsible sourcing, production, use and
1 A
ctively monitor industry 3 E
volve understanding of 5 P
ursue partnerships with 7 C
reate and grow internal This may include decarbonisation technologies in areas
themes developments and advocate customer footprint customers to pilot carbon business solutions to reduce recycling of steel. Initiatives such as this provide a platform
such as mine-based beneficiation for DRI; the reduction
Decarbonising our value chain (Scope 3) continued
for policy and regulation reduction technologies carbon emissions to engage with other like-minded players on low carbon
4 P
rioritise production and sale or removal of high temperature heat in the pre-processing
2 E
volve Scope 3 methodology: of high quality material 6 P
ursue partnerships with technological innovation, share knowledge and find greater
proactively engaging customers to reduce Scope stages of iron ore; or blast furnace adaptations.
co-operation opportunities. They also allow us to advocate
with end-customers to 3 emissions
understand emissions through a common voice to enhance global policy and industry Submissions will be jointly assessed by Anglo American
response to climate change. We also participated in the and EIT, with shortlisted entries competing for support in the
Mission Possible Partnership’s Net Zero Steel Initiative. commercial piloting of their technologies, and the potential
for investment from the Decarbonisation Ventures team.
The focus of our Scope 3 work so far has been on the Driving emissions reduction within Beyond these areas, we believe that there are further
processing and use of our products (categories 10 our sphere of influence and control opportunities for us to create ‘ecosystems’ for emissions
and 11), our supply chain (categories 1 and 2) and High quality products reductions. For example, we are researching ways to support
our ocean-controlled freight (category 9). Focusing on providing high quality products that can feed low carbon technologies in host communities, including
into more efficient and less carbon-intensive processes is hydrogen and direct air capture.
Given the importance of the steel sector in our value chain,
understanding the sector’s likely pace of decarbonisation is vital to support the steel industry’s decarbonisation efforts Our ability to reduce our Scope 3 emissions within a given
critical. Our base case assumption is that the 2020s will be and to achieving our Scope 3 reduction ambition. timeframe is dependent on the speed at which the associated
a decade of transition and steel production will outpace Iron ore from our Minas-Rio operation in Brazil, for example, levers can be deployed. This is not always within our influence
technologically driven reductions in GHG emissions until 2030. presents the opportunity to produce DRI-grade pellet feed. or control, and the materiality of the emissions reduction that
Against this backdrop – and given the profile of production at The DRI production method generates significantly lower could result can be difficult to determine.
our assets and our expectations for the sourcing of third-party emissions than the integrated steelmaking route using blast
product for our customers – we expect our Scope 3 emissions furnaces and basic oxygen furnaces. By 2040, we believe
to increase to 2030, before reducing rapidly once investments Pathways to decarbonising the steel industry
DRI will be even more efficient, including through the greater
in steel value chain decarbonisation begin to take effect. use of renewable power and hydrogen as a reductant. Memorandums of Understanding (MOUs) are a
key aspect of our Scope 3 decarbonisation strategy.
In defining the context, it is important to position Anglo American’s The quality of the steelmaking coal we produce facilitates more Our MOUs support collaboration in joint research with
contribution to the steel sector. Our iron ore and steelmaking efficient operation of the blast furnace, allowing for the our MOU partners to accelerate the development and
coal sales accounted for approximately 3% and 2%, production of steel with a lower overall carbon intensity. use of high quality feedstock for lower carbon steel
respectively, of inputs into the steel industry in 2020. As a
Scrap recycling production. They also help build strong relationships
consequence, while we have some influence, we must continue
Demand for scrap metal is rising at a faster rate than that for with our customer base.
to partner with others in order to deliver change at scale.
primary material, driven by society’s evolving expectations. We have publicly announced three MOUs since 2021,
We estimate that using the levers to reduce emissions intensity The scrap share of total steel production is expected to rise including those with Salzgitter AG, Nippon Steel and
from our iron ore products from Kumba and Minas-Rio and our from approximately 32% today to more than 40% over the Thyssenkrupp AG, which cover c.20% of our iron ore sales.
steelmaking coal assets could reduce our Scope 3 emissions next 10 years. We continue to progress work on further MOUs within
by 40–50% from our 2020 baseline. Reduction in Scope 3
the steel industry and in non-ferrous metals.
emissions across other metals and minerals could reduce
emissions by an additional 10–15%.
29
Supply chain Supply chain innovation and the circular economy
Our activities with suppliers and our operations contribute

Supply Chain has embarked on several projects linked to Driving emissions reduction within our sphere of influence and control
the circular economy – examples include reverse logistics 100% 15-20%
approximately 18% of the overall Anglo American Scope 3 100 Iron ore
optimisation within our warehouses, which significantly reduces
footprint, predominantly through the procurement of equipment Steelmaking coal
the emissions footprint. In 2022, we concluded work with
and capital goods. In support of our Scope 3 decarbonisation 10-15% Other
Accenture to rationalise our strategy – including defining future
target and objectives, working with over 17,000 suppliers 75
opportunities linked to the circular economy. This will enable 15-20%
across the world, we are considering how best to position
Supply Chain to identify further opportunities, including
ourselves to leverage both our influence and, critically, our
equipment life extension, recycling, materials recovery and 10-15% ~45-55%
spend, to reduce emissions across our shared value chains. 50
remanufacture – all of which will reduce the dependency
Understanding our footprint and impact 50% emissions
on virgin input materials, new equipment manufacture,
reduction target
In 2022, we analysed our upstream value chain, identifying and global logistics.
the ‘top 100’ suppliers who contribute more than 50 % of our Inclusive procurement 25
upstream Scope 3 emissions. Through this process we began
Through the incubation of localised suppliers, we are able
to engage and to track progress with many of these suppliers
to access people, maintenance and production facilities
to reduce the overall footprint. 0
from mining host communities – significantly reducing
Supplier engagement the reliance on transportation to our sites. 2020 baseline Kumba Minas-Rio Steelmaking 50% reduction 2040
emission emission coal emission from other ambition
Alongside our Responsible Sourcing Standard for Suppliers,

intensity intensity intensity Scope 3
which contains guidance and several requirements for levers levers levers categories
suppliers on climate change and decarbonisation practices,
working with the Carbon Trust we are developing a supplier
measurement tool. This engagement tool, once rolled out,
will capture current and future decarbonisation commitments
from suppliers, and be used to identify opportunities
for collaboration.
During 2022, we also started formalising MOUs with our strategic
suppliers – these MOUs are based on key commitments
from our Sustainable Mining Plan, establishing a series of
commitments, targets and tracking mechanisms to demonstrate At a warehouse at our Minas-Rio iron ore
decarbonisation and climate change action. For 2022, we operation in Brazil, warehouse operation assistant
Railan Kennedy da Silva Oliveira digitally tracks
have engaged with 10 major global manufacturers of mining items. Such facilities are becoming increasingly
equipment to agree mutual goals towards decarbonisation digitalised across the Anglo American Group.
– this includes commitments to reduce manufacturing-related
emissions and the development of more energy efficient
equipment. Our continued engagement with suppliers remains
a priority into 2023.
Measures to reduce climate impact

Anglo American’s supply chain function reviews potential risk in
our value chains and is actively supporting the development of
alternative, ethical, and traceable sources of renewable energy
components and equipment to enable Anglo American’s wider
renewable energy strategy. To support this work, Supply Chain
has started a feasibility study on the localised production of
polysilicon in South Africa. Polysilicon is a critical input material
for solar panels and development of local, responsible sources
offer significant opportunities for local employment, while
reducing the reliance on ocean freight and related emissions.
30
Driving emissions reduction Sustainable biofuels
Sea Cargo Charter
The suitability of sustainable biofuel as an effective alternative
across ocean freight transport to marine fossil fuel is increasingly being demonstrated through Anglo American is one of the founding signatories of the Sea Cargo Charter. It was formed by some of the world’s largest
We are targeting carbon neutrality in our controlled ocean the growing number of trials taking place across the industry. energy, agriculture, mining and commodity trading companies with the aim of establishing a standard methodology and
freight by 2040 and, aligned with our Scope 1 and 2 targets, reporting framework to allow charterers to measure and align their emissions from ocean transportation activities.
In 2021, we successfully trialled the use of a sustainable biofuel
are aiming for a 30% reduction by 2030. We are making The first Annual Disclosure Report of the Sea Cargo Charter was released in June 2022, reporting Anglo American's
blend, produced by converting waste cooking oil, which
progress towards achieving this goal, actively working to shipping operations’ climate score as in line with the expectations set out by the International Maritime Organization’s
reduced CO2 emissions by ~5% compared with using 100%
contribute to the long term sustainability of the shipping sector. (IMO) goal of reducing shipping emissions by at least 50% by 2050. Anglo American is the only mining company
conventional marine fuel. In 2022, we completed a second,
reporting under the Sea Cargo Charter along with over 30 maritime industry participants.
We are accelerating the shift to decarbonising the transport larger successful trial using a blend composed of Very Low
of our products. Improving vessel efficiency through the Sulphur Fuel Oil (VLSFO) – the industry’s most widely used 1
The switch to LNG alone is generally estimated to allow a reduction of 25% of CO2 emissions. When supported by the right technology, it enables our chartered fleet to reach
installation of energy-saving devices, the use of voyage conventional marine fuel – mixed with 10% second-generation an overall estimated emissions reduction of 35%.
optimisation software, and support for technology biofuel originating from used cooking oil, resulting in a reduction
development to help enable the switch from conventional of ~10% of CO2 emissions compared to using 100% VLSFO.
fuel oil to sustainable marine fuels are all part of our efforts A functional equivalent to existing liquid fuels, this blend meets
to decarbonise ocean freight activities. the specification requirements of the International Sustainability
and Carbon Certification (ISCC), is compatible with existing
Exploring and trialling alternative fuel options vessel engines and requires no infrastructure modification.
Alternative marine fuels have an important role to play in the
Applying our learnings, we are now working with the Global

decarbonisation journey, with a number of potential options
Centre for Maritime Decarbonisation in Singapore on biofuel
being explored – from liquefied natural gas (LNG), and
implementation, regulation, and transparency.
biofuel, to hydrogen and ammonia.
Green ammonia and hydrogen
LNG
Hydrogen and ammonia have a promising future. As an
LNG has an important role to play in the decarbonisation of
early supporter of the hydrogen economy, we have invested
the maritime industry. We are introducing 10 LNG dual-fuelled
significantly in this space.
new-build Capesize+ 190,000 dwt chartered bulk carriers – the
Ubuntu fleet – during the course of 2023 and 2024, delivering We are partnering with Hydrogenious Maritime AS to explore
an estimated 35% reduction in CO2 emissions compared with the use of innovative Liquid Organic Hydrogen Carrier (LOHC)
vessels fuelled by conventional marine oil. In addition, the technology. By chemically bonding hydrogen to a diesel-like
adoption of new technologies eliminates the release of unburnt liquid with a high-storage density, which can be stored under
methane, as well as removing sulphur oxides, and reducing the ambient conditions (pressure and temperature), this solution
volume of nitrogen oxides and particulate matter. Construction can help propel hydrogen’s viability for marine transportation.
of the vessels started in 2021 and the first two ships – Ubuntu Ammonia, which emits no CO2 when combusted, has potential
Harmony and Ubuntu Equality – were delivered ahead of both as a fuel in its own right and as a hydrogen carrier.
schedule in December 2022 and January 2023, respectively. However, there is significant work that still needs to be done
Ubuntu Harmony loaded its first cargo from Kumba Iron Ore to ensure green ammonia is brought to market in a safe and
at Saldanha Bay in January 2023. sustainable way. To examine its prospects, we are working
with industry partners to study possible solutions for more

widespread adoption.
The newly launched LNG dual-fuelled Capesize+ vessel, the Ubuntu Harmony,
the inaugural ship in a planned fleet of 10 vessels, with its first cargo of iron ore
from Kumba in South Africa. The ships offer significant environmental benefits,
with the potential to reach an overall CO2 emissions reduction of an estimated
35% in comparison with vessels fuelled by conventional marine oil.
31
Just
Transition
A key aim of Anglo American’s Sustainable Mining Plan is to create

five jobs off site for each one we create on site. Here, a construction
contractor assembles steelwork at Kumba Iron Ore’s Kapstevel
32
South project in South Africa.

Just Transition
In practical terms, this will lead to projects and programmes 2. The nuGen™ programme and our wider support for the
designed to mitigate, alleviate, or benefit from the transition development of a hydrogen valley in South Africa is another
through which host communities are impacted, by helping example. The proof of concept of the ZEHS demonstrated
to build long term socio-economic resilience in those our commitment to using green hydrogen as part of our
communities and the wider regions of influence around decarbonisation solution. Through the South Africa RREE,
our sites. our intention is that hydrogen is produced using renewable
Direct implications: policy evolution energy sources. We also recognise the wider benefits that
could be accrued in South Africa through the development
The global transition to a low carbon world will be metals and
The 2015 Paris Agreement recognised the imperative of minerals intensive and, while resource efficiency will play a role,
of linked hydrogen-related investments. An ENGIE Impact
the transition to a low carbon economy being a Just Transition. primary production through mining will be vital. This context is
study, which we supported alongside other businesses
and the South African government, considered the
Numerous organisations have attempted to define what exactly important when considering what the Just Transition means for
development of a hydrogen valley linking PGMs operations
the diversified mining sector.
a Just Transition is, and what it means for business, with a particular in Limpopo province with Durban, via Johannesburg.
Since the demerger of Thungela Resources in June 2021, our That study identified nine specific projects along the valley
focus on those businesses, largely in the energy sector, whose portfolio is predominantly focused on future-enabling metals as anchor projects, including our ZEHS, and suggested
business models will change fundamentally as they decarbonise. and minerals. As a consequence, the transition does not that the hydrogen valley could add $4–9 billion to
assume a fundamental change in our business, unlike the South Africa’s GDP, creating 14,000–30,000 direct
change required in, for example, the energy sector. Therefore, and indirect jobs each year.
our challenge has two, interlocking elements: to decarbonise
Our Sustainable Mining Plan has committed us to supporting
To help bring structure and pragmatism to how businesses Direct and indirect implications for Anglo American our operations and our value chains in such a way that we
five jobs off site for every job in our operations through our CRD
should think about this theme, in 2021 we joined the Council The Council for Inclusive Capitalism definition and framework minimise the negative consequences for our employees and
approach. The investments in the South Africa RREE and
for Inclusive Capitalism in its work on developing a shared, remain the basis for assessing what a Just Transition means other stakeholders and maximise the benefits; and to practise
the development of green hydrogen have the potential to
company-focused framework in addressing the need for for Anglo American. However, we have evolved our thinking, and advocate for responsible mining, so that the development
contribute significantly to bringing us closer to achieving our
a Just Transition. That work, built on the thinking done by other including through engagement with thought leaders around of new mines, and the production of the metals and minerals
livelihoods ambition. Through CRD, further investments with
organisations, including the International Labour Organization’s the world. Through that work, it has become clear that there the world needs to transition, is done in such a way as to
our partners are being made in agriculture, agro processing,
(ILO) Just Transition guidelines, and defined the Just are direct implications for us: for example, what the social produce real, sustainable benefit for those communities closest
municipal capability and partnership, and education to ensure
Transition as: implications are for the evolution of our portfolio and our to the developments.
the positive impacts of our operations are felt beyond the life of
“The transformation of the global energy sector from fossil- decarbonisation strategy. There are also indirect implications: What we are doing to decarbonise our operations and value mine and help catalyse diversification within local economies.
based to zero-carbon in a way that is underpinned by attention for example, how is our business affected by the transition in chains is covered in detail elsewhere in this report, however, it is
to the issues of equity and justice.” the countries where we operate, and is there a role for us in worth highlighting two examples of how Just Transition Responsible closure
shaping that transition? principles are being embedded in the design of Mine closure planning is both an important tool for us in thinking
Alongside this definition is a framework for action, which
Just Transition as context key programmes. about transition and ensuring that the transition to post-mining
provides a pragmatic structure under which companies can
is ‘just’. It is also potentially a useful starting point when
think through their contribution to a Just Transition. Crucially, The transition to low carbon is an economy-wide prerogative. 1. The South Africa RREE. The main aim of this programme
considering aspects of the Just Transition in other sectors.
the framework recognises that context is critical, and that each It is a transition that requires government to work with every is to displace the fossil-fuel based electricity that we draw
company’s approach will need to reflect their own unique sector of the economy, as well as with civil society. In other across South Africa through the development of 3–5 GW The Anglo American Mine Closure Toolbox is publicly available.
circumstance, taking into account sectoral and geographic words, the transition is a context within which we as a business of renewable power generation. However, several aspects It is based on the concept of a ‘cradle-to-cradle’ approach to
differences, amongst others. The pillars of the framework are: are operating. of the programme have been adapted to support Just mine closure and rehabilitation, with initial thoughts on closure
Transition principles. First, the structure of Envusa Energy, developed while still conducting exploration. Central to our
– Universal net zero energy – how to support access to energy What role can and should we play to help ensure that the
the company we have created in partnership with EDF thinking is how to ensure that sustainable value is created that
and a net zero emissions world wider transition, outside our direct control or influence, is ‘just’?
Renewables, will include local equity partners, ensuring will endure after mine closure and what can, and should, be
– Workforce evolution – how to ensure the journey is a just one We believe our responsibility is to understand fully each context we continue a proud legacy of supporting broad-based done through the life of the mine to ensure sustainability after
for the company’s workers and ensure that that understanding is embedded in the design empowerment in South Africa; second, we are considering the working mine has been closed. To put this thinking into
and implementation of our strategic sustainability programmes. procurement of goods and services in such a way as we practice, a process of stakeholder identification and
– Community resilience – how to ensure the journey is a just
In this context, implementation of our Sustainable Mining Plan can incentivise the development of South African value engagement is a required part of all mine closure planning from
one for communities affected directly and indirectly by the
will recognise the context created by the need for a Just chains linked to renewable power; and finally, as we secure the very beginning of the process, ideally 25 years before
company’s transition
Transition, and that context will be considered as we work the rights to construct the wind turbines and solar plants, we closure. ‘Social Transition’ is a central element of this, broken
– Collaboration and transparency – how to bring everyone towards our environmental, social and governance goals. are considering carefully local benefits. In other words, how down between the mine’s ‘employees and stakeholders’,
on the journey and support the Just Transition of communities closest to the renewable energy installations ‘interested and affected parties’, and ‘authorities’. Overall,
In addition, Just Transition principles will form the context
other organisations. gain benefit from the clean, reliable, and affordable energy the toolbox helps guide what we must do when closing
within which strategic planning for both the Anglo American
Social Way and our Collaborative Regional Development being generated. an operation.
(CRD) programmes will be undertaken. The nature of this
work means that the exact focus will differ by locality, reflecting
the needs of a given place. But, crucially, the work will be
33
underpinned by an understanding of what the Just Transition

implies for the areas of influence.
34 Anglo American plc Climate Change Report 2022
and engagement
Effective governance
Effective governance and engagement
Anglo American applies a principled Anglo American Board
and consistent approach throughout – The Board provides leadership to the Group on its strategy and is collectively – The Board focuses on workstreams that underpin our 2040 carbon neutrality targets,
our climate change governance and responsible for promoting and safeguarding the long term success of the business. in addition to, circular economy trends, and the consequences for the Group’s strategy.
management systems.
The Board delegates powers and oversight of climate-related considerations to its various committees
Remuneration Committee Sustainability Committee Audit Committee

Board climate change capability
Reporting
Informing
Our directors contribute to the Board’s experience from a broad Three members, all independent Five members, majority independent – Considers the Group’s principal Three members, all independent
range of sectors, including mining, industrial, energy transition, non-executive directors. non-executive directors, including risks that fall within its oversight non-executive directors.
finance, and technology, reflecting the evolving nature of the the chair. responsibility including risks
business. The Board’s Nomination Committee oversees, on – Determines the remuneration of – Monitors the integrity of the annual
related to climate change.
executive directors, the chairman The Sustainability Committee is and interim financial statements.
behalf of the Board, the succession process for directors. In – Sign-off of Anglo American’s
and senior management. responsible for addressing the Group’s – Reviews the Group’s material risks,
2020, the Committee updated the Board’s skills, experience annual Climate Change Report
– Oversees remuneration policy for most material sustainability issues – including those related to climate
and diversity matrix to include climate change and clean including climate change-related (including TCFD disclosure)
all employees. This includes the change, twice a year.
energies. The Board’s ongoing refreshment programme strives topics. The Committee oversees, on and Sustainability Report.
Long Term Incentive Plan (LTIP), – Oversees the Group’s relations
to maintain the right balance of skills, experience, knowledge behalf of the Board, material policies, – Monitors the Group’s carbon
awarded to the most senior with the external auditor.
and diversity to sustain the success of our business and meet managers – around 450 people – processes and strategies designed to neutrality target, Scope 1 and 2
the challenges posed by climate change. In 2021, the Board and its elements linked directly to: manage climate-related risks targets review, and the Group’s
appointed two independent non-executive directors with a and opportunities. Scope 3 reduction ambition.
– Operational GHG emissions.
strong track record in climate change reduction and energy – Monitors the Group’s roadmap
transition. Following changes to the Board’s composition in – Increase in energy efficiency.
for energy and decarbonisation.
2022, the Nomination Committee led a process to recruit an – Increase in renewable energy, and
additional non-executive director, to ensure the composition of – Reduction of fresh water extraction.
Reporting
Informing
the Board continues to reflect an appropriate mix of skills,

capabilities, experience and diversity.
Following the Group’s 2022 preliminary results announcement
on 23 February 2023, on 28 February 2023 we announced
that Magali Anderson will join the Board as a non-executive

director and member of the Board’s Sustainability Committee Chief Executive and Group Management Committee (GMC)
from 1 April 2023. Magali is chief sustainability and innovation
officer at Holcim Group, and will bring to Anglo American highly – The chief executive, who is advised and supported by the GMC, is accountable for – Alongside the chief executive, the GMC includes business unit CEOs, Group directors
relevant business experience and a deep understanding of aligning our business practices with our climate change commitments of corporate functions, and the Group general counsel and company secretary.
sustainability in its broadest sense. and ambitions. It is supported by the Climate Change Steering Committee.
The Governance section of our 2022 Integrated Annual Report
Reporting
Informing
sets out details of our Board and committee composition, the

broad range of skills, experience and the diversity of our Board,
Climate Change Steering Committee
and the processes for the appointment of new directors.
– Chaired by the Group head of strategy and includes the Group heads of carbon – It has both oversight and scrutiny of Group-wide work on climate change on behalf
All directors have complete and timely access to the neutrality, sustainable development, corporate finance, international, government of the GMC.
information required to discharge their responsibilities fully and and sustainability relations, and the Chief Executive’s Office. – The Committee meets on a monthly basis to drive implementation of the company’s
effectively. In addition to the advice and service they receive climate transition plan and regularly reports to the GMC.
– The Committee draws together all workstreams across the Group related to
from the Group’s executives and external advisers, they may climate change and proposes priority workstreams annually.
take independent professional advice in the furtherance of their
35
duties, at the company’s expense. Following appointment and At executive level, key management decisions are taken by the Disclosure and investor dialogue Case study
as required, directors receive training appropriate to their level chief executive and his leadership team, in accordance with We have been a formal supporter of the Task Force on
of experience and knowledge. This includes the provision of a their delegated authority. Our GMC is held accountable for a Climate-Related Financial Disclosures (TCFD) since 2018 and
comprehensive, tailored induction programme and individual range of measures including climate-related performance, continue to produce our climate-related disclosures in line Anglo American at COP27
briefings with members of the Group Management Committee which are then cascaded through the Group. The GMC is with this framework. Our Integrated Annual Report and our The ambition of COP27 in Sharm El-Sheikh (November
(GMC) and their teams. The Board seeks input from key external supported by the Climate Change Steering Committee, chaired Sustainability Report cover the key aspects of the disclosure 2022) was to be the ‘implementation COP’ – focused
and internal subject-matter experts on climate change to by the Group head of strategy, which draws together all each year. This report is aligned with the expectations of the on the delivery of agreements made by countries at
provide additional perspective and to challenge their thinking. workstreams across the Group related to climate change. TCFD, and a TCFD-linked index is provided on page 39. previous conferences. In this context, and being African
Governance and management structure Executive remuneration We welcomed the UK Government’s implementation of COP, Anglo American chose to participate to play a
At Anglo American, the Board approves the Group’s strategy For senior leaders, a proportion of their variable pay each mandatory TCFD disclosure for premium listed businesses and policy advocacy role. Our team at COP27 was led
on climate change, and holds regular discussions on material year is tied to the delivery of climate-related goals. This is have engaged with feedback offered by both the Financial by Group director – South Africa, Nolitha Fakude and
climate-related activities and energy efficiency targets. predominantly incorporated into the performance measures Conduct Authority and the Financial Reporting Council. the CEO of our Bulk Commodities business, Themba
The Board’s Sustainability Committee is responsible for for the Group Long Term Incentive Plan (LTIP). The LTIP is Continuing its implementation of climate-related disclosures, Mkhwanazi. We focused on three topics: the role of
addressing climate change-related topics. The Committee awarded to our most senior leaders across Anglo American, we have actively engaged in the development of the UK’s critical minerals in the low carbon transition; hydrogen;
oversees, on behalf of the Board, material policies, processes in total around 450 employees across our jurisdictions. Transition Plan guidance, including contributing to public and the Just Transition. On each of these topics we
and strategies designed to manage safety, health, environment, consultations on the forthcoming framework. contributed to debates, shared our own experiences
We have linked 20% of the 2022 LTIP to environmental, social
social and climate-related risks and opportunities. and we listened and learnt from others. We were
and governance (ESG) measures, specifically the delivery of Beyond mandatory disclosures, we recognise the role of also invited to contribute to discussions by the British
Matters relating to climate change are included in quarterly our 2030 Sustainable Mining Plan (SMP) goals. This is broken voluntary frameworks in supporting the evolving interests Government, the Carbon Trust, the World Bank Group,
Effective governance and engagement continued
reports to the Committee, and as stand-alone items on the down as follows: 14% is linked to climate-related measures and expectations of investors in understanding our thinking and the International Labour Organization, amongst
agenda where necessary. The chairman of the Sustainability that support the delivery of our 2030 GHG emissions reduction on climate change. We have had a regular and constructive others. We believe that business’ role in delivering a
Committee provides a summary of the Committee’s discussions target of 30% (Scope 1 and 2), against a 2016 baseline; dialogue with the Climate Action 100+ group of investors for low carbon future means that there must be a strong,
at the Board, which addresses the most material issues raised (6% of award); achieving a 50% net reduction in fresh water several years and value its perspectives. In 2020 and positive business voice in policy discussions about
by the Committee. abstraction in water scarce areas (8% of award); social 2021, we worked with Climate Action 100+ to support the climate change, and the periphery of the COP process
responsibility measure on the number of off site jobs we help to development of the Net Zero Company Benchmark and its
The Audit Committee oversees, on behalf of the Board, internal provides the ideal platform for this.
create in the communities where we operate (6% of award). application to the diversified mining sector. In 2022, with the
controls and risk management for the Group. The Audit
Committee reviews the Group’s material risks, including those In addition to the measures as outlined above for the 2022 LTIP, support of the ICMM, we continue to engage with Climate
related to climate change, twice a year. The Sustainability a portion of our in-flight 2020 and 2021 LTIPs are also linked Action 100+ as it develops a Net Zero Diversified Mining
Committee considers the Group’s principal risks related to climate-related measures. For 2020, these include reducing Standard. Our Climate Action 100+ summary is provided on
to sustainability that fall within its oversight responsibility. our GHG emissions and improving our operational energy pages 40–42 of this report.
The Remuneration Committee addresses climate-related efficiency. For 2021, this is based on reduction of our We will continue to monitor and engage with evolving
issues when considering environmental and sustainability GHG emissions. standards; for example, the International Sustainability
performance measures in relation to the Group’s Further details of the performance conditions attached to Standards Board (ISSB) climate-related disclosures and
incentive plans. our executive remuneration incentive arrangements can adjacent, but relevant, areas such as the Taskforce for
Pages 121–203 of our 2022 Integrated Annual Report be found in the Directors’ remuneration report within our Nature-Related Financial Disclosure (TNFD), on which
detail the role of the Board and its governance structure, Integrated Annual Report. Anglo American is the only sitting mining company.
the work of the Board and its committees, their membership,
responsibilities, and key activities during 2022.
Joanne Yawitch, CEO, National Business Initiative

Discussions related to climate change in 2022: (South Africa); Lebogang Mulaisi, Head of Policy, Congress
Board of South African Trade Unions; Barbara Creecy, Minister
for Environment, Forestry and Fisheries, South African
– The Group’s roadmap to carbon neutrality, focusing on the underlying initiatives, workstreams and plans underpinning Government; Wendy Dobson, Group Corporate Citizenship
delivery of our target of carbon neutral operations by 2040. Head, Standard Bank; Nolitha Fakude, Group director –
South Africa; Daniel Mminele, Head of the South African
– Initiatives towards achieving carbon neutral energy in the Group’s operations. Presidential Climate Finance Task Team; and Nazmeera Moola,
Chief Sustainability Officer, Ninety One.
– Climate change discussions as part of the Board’s dedicated strategy meeting, including external perspectives,
the Group’s resilience to 1.5°C pathways, hydrogen economy and the circular economy.
Sustainability Committee
– Updates on the decarbonisation programme for the Group’s Scope 1 and 2 GHG emissions and monitoring achievement
of carbon neutrality targets.
– The management of physical climate change risks and resilience across the Group.
36
Policy and advocacy approach In line with our approach to third-party lobbying, our intention is Alignment of advocacy through industry associations In a small number of cases, some potential misalignments have
In 2015, we demonstrated our commitment to the Paris that the industry associations of which we are a member We recognise stakeholder interest in advocacy undertaken by been flagged and in each of these cases, we have taken
Agreement through our signature of the Paris Pledge for Action. support work on a similar basis and similarly advocate for third parties on our behalf and the concern that some of that action with the relevant industry association.
That pledge demonstrates our willingness to work to support policies that support the achievement of the goals of the advocacy might not be aligned with our public policy positions The independent review sits alongside our annual disclosure of
efforts in meeting and exceeding the ambition of governments Paris Agreement. on climate change. At best, any such advocacy might be all associations of which we are a member, which is available
to keep the world on a trajectory that limits the global warming To bring greater definition to our approach to any climate- misaligned with the goals of the Paris Agreement, at worst it on our website. This disclosure includes the rationale for
temperature rise to well-below 2°C and pursue efforts to limit it related advocacy that we might be party to, we maintain a list might suggest a third party is advocating against those goals. our membership, any leadership positions we hold in each
further to 1.5°C. of public policy positions. These define Anglo American’s To mitigate this risk, we have rigorous internal governance association and our associated financial contributions.
thinking on specific climate-related policy issues and provide a procedures in respect of the management of the relationships
This pledge to support the aims of the Paris Agreement is one Alongside this information we provide a dedicated email
basis against which we can test the alignment of any third- with each of the industry associations of which we are a
of the principles guiding our engagement with policymakers address for anyone wishing to ask questions, seek clarification
party advocacy. In 2022, we significantly updated our public member. This governance is designed, in part, to ensure that
and our advocacy more broadly. Though we continue to take a or raise concerns about any of our memberships. Our aim
policy positions and redefined them across eight issues. These misalignments in advocacy do not occur and, if they ever do,
cautious approach to proactive lobbying, including on climate- through this disclosure is to be transparent in respect of our
revisions reflected developments in the public discourse, policy that action is taken.
related issues, we are committed to conduct any lobbying engagement with and through industry associations and to
activities in line with the goals of the Paris Agreement. environment and societal expectations. The updated policy We have also committed to completing and disclosing an facilitate dialogue with any stakeholders with a particular
positions are listed in full below. independent review of the alignment of our industry interest in this subject.
associations with our public policy positions every two years.
— For more information
Climate change policy positions The most recent review and our response to its findings has www.angloamerican.com/sustainable-mining-plan/
been published alongside this report. The latest review was trusted-corporate-leader/policy-advocacy
Effective governance and engagement continued
The science conducted using our updated public policy positions and
We support the mainstream climate science assessed by the IPCC, which forms the foundation for our approach to demonstrated that in the vast majority of cases, the industry
climate change. associations of which we are a member are either aligned with
our approach or do not take a position on climate change.
Paris Agreement/Scope 1 and 2
We support the Paris Agreement and the subsequent Glasgow Climate Pact, in which governments aimed
to limit the global temperature increase to 1.5°C. Achieving these aims requires significant reductions in carbon emissions by all,
including businesses.
Scope 3
We recognise the role we have to play in stimulating decarbonisation in our value chain and thereby reducing our
Scope 3 emissions, working with our supply chain and, crucially, our customers to support their own decarbonisation efforts.
Offsetting
We support the principles of the mitigation hierarchy in considering emissions reductions. High-quality or high-integrity
offsets should be utilised only after avoidance, reduction and restoration measures.
Carbon pricing/market mechanisms
We believe that carbon pricing has an important role to play in delivering a lower carbon world. We support the development of
consistent carbon pricing policies across jurisdictions and the use of fair and well-designed market-based instruments
to incentivise investment in low emission technologies.
Transparency/disclosure
We welcome increased transparency on climate reporting and climate advocacy. We support the development of
well-designed disclosure frameworks, such as TCFD, and advocate for consistency across standards and metrics.
Adaptation
We recognise the impact of a changing climate. We acknowledge the importance of increased adaptation and resilience
for both businesses and wider society.
Just Transition
We support an approach to climate transition which considers the societal impacts, aiming to ensure that a transition is ‘just’.
International and sustainability relations principal, Khule Duma (right), discusses Anglo American’s approach to the
37
Just Transition at the International Labour Organization pavilion at COP27 in Sharm El-Sheikh in November 2022.
Assurance statement
Scope 3 Scope and subject matter
The scope of the subject matter for limited assurance in line
Independent Assurance Report to with the ISAE3000 (Revised) assurance standard, as captured Anglo American IBIS
the Directors of Anglo American Plc
in the agreement with Anglo American, includes the following
Introduction Scope 3 GHG emission categories: The Directors of Anglo American are responsible for IBIS’ responsibilities were to conduct an assurance
IBIS ESG Consulting Africa (Pty) Ltd (IBIS) has been engaged Category 1: Purchased Goods & Services the generation, collection and presentation of the engagement and to report its conclusions to the Directors
by the Directors of Anglo American Plc (Anglo American) to selected sustainability information within the Report. in accordance with the assurance procedures followed.
Category 2: Capital Goods
perform an independent assurance engagement in respect of Anglo American is also responsible for maintaining IBIS conducted the engagement based on the
Anglo American’s Scope 3 Greenhouse Gas (GHG) Emissions Category 3: Fuel & Energy Related Activities adequate records and internal controls that support International Standard on Assurance Engagements
for the year ended 31 December 2021. This assurance report is Category 4: Upstream Transport & Distribution the reporting process during the disclosure period. (ISAE) 3000 (Revised), Assurance engagements other
produced in accordance with the terms of our engagement Category 5: Waste Generated in Operations than audits or reviews of historical financial information
letter dated 12 October 2022. issued by the International Auditing and Assurance
Category 6: Business Travel
Standards Board, which Standard inter alia requires that
IBIS is an independent provider of sustainability assurance Category 7: Employee Travel the assurance practitioner follows due process and
services. This engagement was conducted by a multidisciplinary
Category 8: Upstream Leased Assets comply with ethical requirements.
team of assurance specialists with extensive experience
in sustainability reporting. The assurance team was led by Category 9: Downstream Transport & Distribution
Petrus Gildenhuys who has more than 25 years’ experience Category 10: Processing of Sold Products
in sustainability performance measurement involving both Category 11: Use of Sold Product Summary of work performed
advisory and assurance work. Category 12: End-of-life Treatment of Sold Products Anglo American provided IBIS with the relevant supporting and the GHG Protocol as audit criteria in respect of the
Category 13: Downstream Leased Assets information and documentation related to the selected underlying data in the scope of the assurance engagement.
sustainability information reported. IBIS applied the IBIS’ limited assurance procedures, based on our professional
Category 14: Franchises
Anglo American Scope 3 GHG Emissions Methodology judgement, consisted of:
Category 15: Investments
IBIS’ responsibilities do not extend to any other disclosures
or assertions.
Testing Interviews Inspection Assessing Reporting
Testing, on a Interviews with Inspection and Assessing the Reporting the

sample basis, the relevant functional corroboration of disclosure of Scope assurance
measurement, managers at supporting evidence 3 GHG emission observations to

collection, Anglo American and to evaluate the data information for management as
aggregation the Carbon Trust to generation and consistency with they arose to
and reporting understand and reporting processes the assurance provide an
processes test the processes against the observations opportunity for
in place in place for assurance criteria corrective action
maintaining the prior to completion
Scope 3 GHG of the assurance
emission information process
38
Inherent limitations Category Total GHG Emissions excl. Biogenics (tCO2e)
The reliability of the reported sustainability data is subject Upstream 1: Purchased Goods & Services 6,834,277
to inherent uncertainty, given the available methods for
2: Capital Goods 8,047,396
determining, calculating or estimating the underlying
information. It is important to understand our assurance 3: Fuel & Energy Related Activities 1,630,710
conclusions in this context. 4: Upstream Transport & Distribution 963,330
Evidence to support information reported was obtained 5: Waste Generated in Operations 19,188
electronically for review and assessment as a basis for our 6: Business Travel 6,312
assurance conclusion. In addition, the evidence gathering 7: Employee Travel 95,524
procedures performed in a limited assurance engagement
8: Upstream Leased Assets 1
vary in nature from, and are less in extent than for, a reasonable
Downstream 9: Downstream Transport & Distribution 2,446,725
assurance engagement. As a result, the level of assurance
obtained in a limited assurance engagement is lower than 10: Processing of Sold Products 48,138,794
the assurance that would have been obtained had we 11: Use of Sold Products 20,360,275
performed a reasonable assurance engagement. 12: End-of-life Treatment of Sold Products 6,510
Assurance statement continued
Restriction of liability 13: Downstream Leased Assets 109

Our work has been undertaken to enable us to express the 14: Franchises 103
opinion and conclusions on the selected sustainability 15: Investments 9,981,278
information to the Directors of Anglo American in accordance
Total Scope 3 GHG Emissions 98,530,530
with the terms of our engagement, and for no other purpose.
We do not accept or assume responsibility to any third parties
i.e. other than the Directors and the company, for our work or for
this report to the fullest extent permitted by law, save where
such third parties have obtained our prior written consent.
Assurance conclusion
We believe that the information provided by Anglo American
and the work performed by IBIS are sufficient and appropriate
Petrus Gildenhuys
to form a basis for our limited assurance conclusion.
Director, IBIS ESG Consulting Africa (Pty) Ltd
In our view, and based on our limited assurance procedures, Johannesburg, 3 March 2023
nothing has come to our attention that causes us to believe that
the Anglo American Scope 3 GHG emissions prepared for the
year ended 31 December 2021, and as presented below, are
not fairly represented in all material respects.
39
TCFD disclosure
Anglo American’s response to climate change is multi-disciplinary and is detailed throughout our reporting suite – including the Risk management
Integrated Annual Report, the Sustainability Report, and this Climate Change Report. We continue to produce our climate-related Disclose how the organisation identifies, assesses and manages climate-related risks
disclosures in line with the TCFD framework. A full TCFD disclosure table can be found on page 114–119 of the Integrated Recommended disclosures References
Annual Report. a) Describe the organisation’s processes for identifying and assessing climate- Resilience to climate risk, page 14
— For our Integrated Annual Report 2022 related risks.
see: www.angloamerican.com/annual-report-2022
Managing transition risks through portfolio
— For our Sustainability Report 2022 evolution, pages 15–18
see: www.angloamerican.com/sustainability-report-2022
Physical climate risk: adapting to a changing
climate, pages 19–22
Governance
Disclosure the organisations governance around climate-related risks and opportunities. Integrated Annual Report, pages 45–46, 67–73
b) Describe the organisation’s process for managing climate-related risks. Resilience to climate risk, page 14
Recommended disclosures References
a) Describe the board’s oversight of climate-related risks and opportunities Effective governance and engagement, Managing transition risks through portfolio
pages 35–37 evolution, pages 15–18
Integrated Annual Report, pages 14, 20–24, Physical climate risk: adapting to a changing
26–27, 49, 64–66, 69–73 (specifically risks 9 climate, pages 19–22
and 12), 135 Integrated Annual Report, pages 28–55, 69–73
b) Describe management’s role in assessing and managing climate-related risks Effective governance and engagement, c) Describe how processes for identifying, assessing and managing climate-related Resilience to climate risk, page 14
and opportunities pages 35–37 risks are integrated into the organisation’s overall risk management.
Integrated Annual Report, pages 45–46, 69–73
Integrated Annual Report, pages 14, 20–24,
64–66, 69–73, 185 Metrics and targets
Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such
Strategy information is material.
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation business, strategy and Recommended disclosures References
financial planning where such information is material. a) Disclose the metrics used by the organisation to assess climate-related risks and Resilience to climate risk, page 14
Recommended disclosures References opportunities in line with its strategy and risk management process
Integrated Annual Report, page 48
a) Describe the climate-related risks and opportunities the organisation has identified Resilience to climate risk, page 14
over the short, medium and long term. b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) Decarbonising our operations, pages 24–26
emissions and the related risks

evolution, pages 15–18 Decarbonising our value chain, pages 28–31
Physical climate risk: adapting to a changing Integrated Annual Report, pages page 48, 323
climate, pages 19–22 c) Describe the targets used by the organisation to manage climate-related risks and Decarbonising our operations, pages 24–26
opportunities and performance against targets.
Integrated Annual Report, pages 28–35, Decarbonising our value chain, pages 28–31
40–41, 43–44 , 45–49, 72–73 Integrated Annual Report, pages 47–49
b) Describe the impact of climate-related risks and opportunities on the Managing transition risks through portfolio
organisation’s businesses, strategy and financial planning. evolution, pages 15–18
Integrated Annual Report, pages, 28–35,
40–41, 43–44, 45–47, 64–66
c) Describe the resilience of the organisation’s strategy, taking into consideration Managing transition risks through portfolio
different climate-related scenarios, including a 2°C or lower scenario. evolution, pages 15–18
Integrated Annual Report, pages 28–35,
40–41, 43–46, 64–66
40
Climate Action 100+ Net Zero
Company Benchmark disclosure *
Indicators and sub-indicators References Indicators and sub-indicators References

Indicator 1 – Net-zero GHG emissions by 2050 (or sooner) Indicator 3 – Medium-term (2026 to 2035) emissions targets
Metric 1.1.a – The company has made a qualitative net zero GHG Metric 3.1 – The company has set a target for reducing its GHG emissions.
emissions ambition statement that explicitly includes at least 95% of its Decarbonising our operations, pages 24–26 Sub-indicator 3.2 – The medium-term (2026 to 2035) GHG reduction
Scope 1 and 2 emissions. target covers at least 95% of Scope 1 & 2 emissions and the most relevant
Decarbonising our value chain, pages 28–31
Metric 1.1.b – The company’s net zero GHG emissions ambition covers Scope 3 emissions (where applicable).
the most relevant Scope 3 GHG emissions categories for the company’s Climate Transition Plan, page 11
Metric 3.2.a – The company has specified that the target covers at least
sector, where applicable. 95% of its total Scope 1 and 2 emissions.
Indicator 2 – Long-term (2036–2050) GHG emissions target(s) Metric 3.2.b – Where applicable, the company’s Scope 3 GHG emissions
Metric 2.1 – The company has set a target for reducing its GHG emissions. target covers at least the most relevant Scope 3 emissions categories for Decarbonising our operations, pages 24–26
Sub-indicator 2.2 – The long-term (2036 to 2050) GHG reduction target the sector, and the company has published the methodology used to Decarbonising our value chain, pages 28–31
covers at least 95% of Scope 1 & 2 emissions and the most relevant Scope establish the Scope 3 target.
Scope 3: Technical Report FY2021
3 emissions (where applicable). Metric 3.3 – The expected carbon intensity derived from the company’s
Metric 2.2.a – The company has specified that the target covers at least medium-term GHG emissions reduction target (or, in the absence of a
95% of its total Scope 1 and 2 emissions. medium-term target, the company’s last disclosed carbon intensity or the
intensity derived from its short-term target) is aligned with or below the
Metric 2.2.b – Where applicable, the company’s Scope 3 GHG emissions
Decarbonising our operations, pages 24–26 relevant sector trajectory needed to achieve the Paris Agreement goal of
target covers at least the most relevant Scope 3 emissions categories for
limiting global temperature increase to 1.5°Celsius with low or no overshoot
the sector, and the company has published the methodology used to Decarbonising our value chain, pages 28–31 in 2035. This is equivalent to IPCC Special Report on 1.5°Celsius pathway
establish the Scope 3 target.
Scope 3: Technical Report FY2021 P1 or net zero emissions by 2050.
Metric 2.3 – The expected carbon intensity derived from the company’s
Indicator 4 – Short-term (2022 to 2025) emissions target(s)
long-term GHG emissions reduction target (or, in the absence of a long-
term target, the company’s last disclosed carbon intensity or the intensity Metric 4.1 – The company has set a target for reducing its GHG emissions.
derived from its short-or medium-term target) is aligned with or below the Sub-indicator 4.2 – The short-term (up to 2025) GHG reduction target
relevant sector trajectory needed to achieve the Paris Agreement goal of covers at least 95% of Scope 1 & 2 emissions and the most relevant Scope
limiting global temperature increase to 1.5°Celsius with low or no overshoot 3 emissions (where applicable).
in 2050. This is equivalent to IPCC Special Report on 1.5°Celsius pathway Metric 4.2.a – The company has specified that the target covers at least
P1 or net zero emissions by 2050. 95% of its total Scope 1 and 2 emissions.
Metric 4.2.b – Where applicable, the company’s Scope 3 GHG emissions Decarbonising our operations, pages 24–26
target covers at least the most relevant Scope 3 emissions categories for Effective governance and engagement,
the sector, and the company has published the methodology used to pages 35–37
establish the Scope 3 target.
Scope 3: Technical Report FY2021
Metric 4.3 – The company’s expected carbon intensity derived from their
short-term GHG target (or, in the absence of a short-term target, the
company’s last disclosed carbon intensity) is aligned with or below the
relevant sector trajectory needed to achieve the Paris Agreement goal of
limiting global temperature increase to 1.5°Celsius with low or no overshoot
in 2025.This is equivalent to IPCC Special Report on 1.5°Celsius pathway
P1 or net zero emissions by 2050.
* Climate Action 100+ provides its own view of Anglo American’s progress on the 10 key indicators outlined here,
41
based on an analysis of company disclosure documents: https://bit.ly/3k8NTUC

Indicator 5 – Decarbonisation strategy (Target Delivery) Indicator 7 – Climate policy engagement
Sub-indicator 5.1 – The company has a decarbonisation strategy that Sub-indicator 7.1 – The company has a Paris Agreement-aligned climate
explains how it intends to meet its long- and medium- term GHG lobbying position and all of its direct lobbying activities are aligned with this.
reduction targets. Metric 7.1.a – The company has a specific commitment/position statement
Metric 5.1.a – The company identifies the set of actions it intends to take to to conduct all of its lobbying in line with the goals of the Paris Agreement.
achieve its GHG reduction targets over the targeted timeframe. These Metric 7.1.b – The company lists its climate-related lobbying activities, e.g.
measures clearly refer to the main sources of its GHG emissions, including meetings, policy submissions, etc.
Scope 3 emissions where applicable. Effective governance and engagement,
Sub-indicator 7.2 – The company has Paris Agreement-aligned lobbying
Managing transition risks through portfolio pages 35–37
Metric 5.1.b – The company quantifies key elements of this strategy with expectations for its trade associations, and discloses its trade
evolution, pages 15–18
respect to the major sources of its emissions,including Scope 3 emissions association memberships. Industry Associations: 2023 Review
Climate Action 100+ Net Zero Company Benchmark disclosure continued
where applicable (e.g. changing technology or product mix, supply chain Decarbonising our operations, pages 24–26
Metric 7.2.a – The company has a specific commitment to ensure that the Anglo American 2022 Industry Association
measures, R&D spending). Decarbonising our value chain, pages 28–21 trade associations the company is a member of lobby in line with the goals Review (ERM)
Sub-indicator 5.2 – The company’s decarbonisation (target delivery) of the Paris Agreement.
strategy specifies the role of ‘green revenues’ from low carbon products See: www.angloamerican.com/
Metric 7.2.b – The company discloses its trade associations memberships.
and services. policy-advocacy
Sub-indicator 7.3 – The company has a process to ensure its trade
Metric 5.2.a – The company already generates‘ green revenues’ and associations lobby in accordance with the Paris Agreement.
discloses their share in overall sales.
Metric 7.3.a – The company conducts and publishes a review of its trade
Metric 5.2.b – The company has set a target to increase the share of ‘green associations’ climate positions/alignment with the Paris Agreement.
revenues’ in its overall sales OR discloses the ‘green revenue’ share that is
Metric 7.3.b – The company explains what actions it took as a result of
above sector average.
this review.
Indicator 6 – Capital alignment
Indicator 8 – Climate governance
Sub-indicator 6.1 – The company is working to decarbonise its
Sub-indicator 8.1 – The company’s board has clear oversight of
capital expenditures.
climate change.
Metric 6.1.a – The company explicitly commits to align its capital
Metric 8.1.a – The company discloses evidence of board or board
expenditure plans with its long-term GHG reduction target OR to phase out
committee oversight of the management of climate change risks.
planned expenditure in unabated carbon intensive assets or products.
Metric 8.1.b – The company has named a position at the board level with
Metric 6.1.b – The company explicitly commits to align future capital
responsibility for climate change.
expenditure plans with the Paris Agreement’s objective of limiting global
warming to 1.5°Celsius AND to phase out investment in unabated carbon Sub-indicator 8.2 – The company’s executive remuneration arrangements
intensive assets or products. incorporate climate change performance elements.
Managing transition risks through portfolio Metric 8.2.a – The company's CEO and/or at least one other senior
Sub-indicator 6.2 – The company discloses the methodology used to
evolution, pages 15–18 executive’s remuneration arrangements specifically incorporate climate
determine the Paris Agreement alignment of its future capital expenditures.
change performance as a KPI determining performance-linked
Metric 6.2.a – The company discloses the methodology and criteria it uses
compensation (reference to ‘ESG’ or ‘sustainability performance’ Effective governance and engagement,
to assess the alignment of its capital expenditure plans with
are insufficient). pages 35–37

decarbonisation goals, including key assumptions and key performance
indicators (KPIs). Metric 8.2.b – The company's CEO and/or at least one other senior
executive’s remuneration arrangements incorporate progress towards Governance, Integrated Annual Report,
Metric 6.2.b – The methodology quantifies key outcomes, including the pages 121–204
achieving the company’s GHG reduction targets as a KPI determining
percentage share of its capital expenditures that is invested in carbon
performance-linked compensation (requires meeting relevant target
intensive assets or products, and the year in which capital expenditures in
indicators 2, 3, and/or 4).
such assets will peak.
Sub-indicator 8.3 – The board has sufficient capabilities/competencies to
assess and manage climate related risks and opportunities. (not
currently assessed)
Metric 8.3.a – The company has assessed its board competencies with
respect to managing climate risks and discloses the results of
the assessment.
Metric 8.3.b – The company provides details on the criteria it uses to assess
the board competencies with respect to managing climate risks and/or the
measures it is taking to enhance these competencies.
42
Indicator 9 – Just Transition (not currently assessed) Indicator 10 – TCFD alignment
Sub-indicator 9.1 Sub-indicator 10.1 – The company has committed to implement the
TCFD disclosure, page 40
Metric 9.1.a – The company has made a formal statement recognising the recommendations of the Task Force on Climate related Financial
social impacts of their climate change strategy—the Just Transition—as a Disclosures (TCFD). Resilience to climate risk, page 14
relevant issue for its business Metric 10.1.a – The company explicitly commits to align its disclosures with Effective governance and engagement,
Metric 9.1.b – The company has explicitly referenced the Paris Agreement the TCFD recommendations OR it is listed as a supporter on the pages 35–37
on Climate Change and/or the International Labour Organisation’s (ILO’s) TCFD website.
TCFD table, Integrated Annual Report,
Just Transition Guidelines. Metric 10.1.b – The company explicitly sign-posts TCFD aligned disclosures pages 114–119
Sub-indicator 9.2 – The company has committed to Just in its annual reporting OR publishes them in a TCFD report.
Transition principles. Sub-indicator 10.2 – The company employs climate-scenario planning to
Climate Action 100+ Net Zero Company Benchmark disclosure continued
Metric 9.2.a – The company has published a policy committing it to test its strategic and operational resilience.
decarbonise in line with Just Transition principles. Metric 10.2.a – The company has conducted a climate-related scenario
evolution, pages 15–18
Metric 9.2.b – The company has committed to retain, retrain, redeploy and/ analysis including quantitative elements and disclosed its results.
or compensate workers affected by decarbonisation. Metric 10.2.b – The quantitative scenario analysis explicitly includes a Physical climate risk: adapting to a changing
Sub-indicator 9.3 – The company engages with its stakeholders on 1.5°Celsius scenario, covers the entire company, discloses key assumptions climate, pages 19–22
Just Transition, page 33
Just Transition. and variables used, and reports on the key risks and
opportunities identified.
Metric 9.3.a – The company, in partnership with its workers, unions,
communities and suppliers has developed a Just Transition Plan.
Sub-indicator 9.4 – The company implements its decarbonisation strategy
in line with Just Transition principles.
Metric 9.4.a – The company supports low-carbon initiatives (e.g.
regeneration, access to clean and affordable energy, site repurposing) in
regions affected by decarbonisation.
Metric 9.4.b – The company ensures that its decarbonisation efforts and
new projects are developed in consultation with and seek the consent of
affected communities.
Metric 9.4.c – The company takes action to support financially vulnerable
customers that are adversely affected by the company’s
decarbonisation strategy
43
Glossary
Ambition Direct reduced iron (DRI) Liquefied natural gas (LNG)
Refers to an objective we are aiming to achieve, for which Direct reduced iron is produced from the direct reduction of iron A natural gas mostly composed of methane that has been
we have not yet developed a pathway to delivery. ore into iron by a reducing gas or elemental carbon produced cooled to a liquid state for the safety of non-pressurised
from natural gas or coal. storage or transport.
Basic Oxygen Furnace (BOF)
A stage of an integrated steelmaking process where a furnace Electric Arc Furnace (EAF) Low carbon
blows oxygen through a mixture of molten iron, some cold A stage of steelmaking where a furnace heats, smelts, and Low carbon’ is used in the report as shorthand for low levels
metallics (like scrap or direct reduction iron), and basic fluxes partially refines iron rich material – mostly scrap with some of greenhouse gas emissions.
to remove unwanted carbon and other elements direct reduction iron and/or pig iron – using an electric arc.
Net zero
Business as usual (BAU) Fugitive emissions Net zero emissions is reached when anthropogenic emissions
The projected impact under a baseline scenario in which no Emissions that are not produced intentionally and are of greenhouse gases to the atmosphere are balanced by
additional mitigation policies or measures are implemented not physically controlled. anthropogenic removals over a specified period.
beyond those that are already in force, legislated or planned
to be adopted. Future-enabling Paris Agreement
Products, technologies and strategies that support the A legally binding international treaty on climate change that
Carbon transition to a low carbon economy and that meet aims to limit global warming to well-below 2°C, preferably
‘Carbon’ is used in this report as shorthand for the consumer-driven demand trends of a growing to 1.5°C, compared with pre-industrial levels.
greenhouse gases. global population.
Target
Carbon dioxide equivalent (CO2e) Goal Refers to an objective we are aiming for, for which we have
The standard metric measure used by the UN’s Refers to an objective we are aiming to achieve, for which we developed a plan for delivery.
Intergovernmental Panel on Climate Change to compare have developed a pathway or a series of possible pathways
the emissions from various greenhouse gases on the basis to delivery.
of their global warming potential against a common basis.
Greenhouse gas (GHG) emissions
Carbon neutral(ity) For our reporting purposes, GHG emissions are the combined
Carbon neutral(ity) is a condition in which during a specified anthropogenic emissions of carbon dioxide (CO2),
period there has been no net increase in the global emission hydrofluorocarbons (HFCs), methane (CH4), nitrous oxide
of greenhouse gases to the atmosphere as a result of the (N2O), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).
greenhouse gas emissions associated with the subject They are measured in carbon dioxide equivalent (CO2e).
during the same period.
Greenhouse Gas (GHG) Protocol
Decarbonisation The GHG Protocol Corporate Accounting and Reporting
Reducing the carbon emissions associated with electricity, Standard provides requirements and guidance for companies
industry and transport. and other organisations preparing a corporate-level GHG
emissions inventory.
Direct emissions
Emissions from sources that the reporting company owns Indirect emissions
or controls. Emissions that result from the reporting company’s activities
but occur at sources that another party owns or controls.
44
Contacts and other information
Forward-looking statements and third-party discovering new economic mineralisation, the impact of foreign Comments or queries related to this report
information currency exchange rates on market prices and operating costs, — Contact us
This document includes forward-looking statements. All the availability of sufficient credit, liquidity and counterparty Visit www.angloamerican.com/contact-us
statements other than statements of historical facts included in risks, the effects of inflation, terrorism, war, conflict, political or
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this document, including, without limitation, those regarding civil unrest, uncertainty, tensions and disputes and economic
and financial conditions around the world, evolving societal Integrated Annual Report
Anglo American’s financial position, business, acquisition and
divestment strategy, dividend policy, plans and objectives of and stakeholder requirements and expectations, shortages of Tax and Economic Contribution Report
management for future operations, prospects and projects skilled employees, unexpected difficulties relating to
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(including development plans and objectives relating to acquisitions or divestitures, competitive pressures and the
Anglo American’s products, production forecasts and Ore actions of competitors, activities by courts, regulators and UK Modern Slavery Act statement
Reserve and Mineral Resource positions) and sustainability governmental authorities such as in relation to permitting or Voluntary Principles on Security and Human Rights
performance related (including environmental, social and forcing closure of mines and ceasing of operations or
maintenance of Anglo American’s assets and changes in UK Gender Pay Gap Report
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such forward-looking statements involve known and unknown regulation in the countries where Anglo American operates,
Ore Reserves and Mineral Resources Report
risks, uncertainties and other factors which may cause the conflicts over land and resource ownership rights and such
actual results, performance or achievements of other risk factors identified in Anglo American’s most recent Business units
Anglo American or industry results to be materially different Annual Report. Forward-looking statements should, therefore, Building Forever at www.debeersgroup.com
from any future results, performance or achievements be construed in light of such risk factors and undue reliance
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forward-looking statements speak only as of the date of this Copper Chile Sustainability Report
Such forward-looking statements are based on numerous
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and any other applicable regulations) to release publicly any
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contained herein to reflect any change in Anglo American’s
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is based.
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Climate Change

improve people’s lives 05 Chairman’s statement

11 Climate Transition Plan 44 Glossary

98.5 Mt CO2e 6.1 t CO2e/t CuEq

Scope 1 and 2 target Scope 1 and 2 target

our Mogalakwena PGMs mine. improvements to our methodology.

Peru Chile Brazil South Africa Australia

Product groups* 2 Botswana Zimbabwe 1

in the report and on the Anglo American website.

Iron Ore Steelmaking Coal Manganese

$3,455 million $2,749 million $378 million

37.7 Mt 15.0 Mt 3.7 Mt

— More detailed information and maps can be found in

* Except for Gahcho Kué, which is on an attributable 51% basis.

steel and, ultimately, ‘green’ hydrogen-fuelled steelmaking.

Our Purpose Our strategy Value

basic salary, annual bonus and Long Term Incentive

Production Cost Financial

Mining Plan outcomes through technology, digitilisation and our innovative

Environment Social Governance

Partnership and engagement

Climate change Education Accountability

Biodiversity Health and well-being Policy advocacy

Water Livelihoods Ethical value chains

Collaborative Regional Development

Our Critical Foundations

Agreement Increased 20% (by volume of iron ore sales)

2022 key highlights

emissions from ocean freight

21% in a total of an estimated 35% reduction

In Brazil, we are partnering with wind-energy specialist Casa dos Ventos

grid-supplied energy requirements.

carbon production processes intensive processes

Just Transition Effective governance and transparency

Ensuring Embedded Monitoring and review Board supervision

flightless bird only found in South America.

long term trends including, critically, the implications of climate

* On a 2022 real basis.

* Includes the Group’s proportionate share of capex incurred by Envusa Energy.

Cambridge (UK): Cambridge University Press.

Climate Risk Adaptation Investment Climate

based, consider chronic – Ensure adaptation and

Governance and reporting

– Enhance awareness, ownership and accountability for PCCRR and adaptation

Native species currently used for seed collection

Climate-adapted seed Therefore, we are supporting a CRC-TiME research

sourcing to improve Industrial Research Organisation (CSIRO) to provide

operations (Scope 1 and 2)

Brazil 100% Three solar PV plants

50% in southern Africa Electrification of energy

Nature and mineral

In October 2022, we formalised the relationship to explore the

This energy portfolio approach will aggregate the energy from

PGMs operation. Target Initiative (SBTi) is widely cited as a means of providing

Our Shipping team has successfully trialled the use of sustainable

emissions compared with conventional fuel.

value chain (Scope 3)

and a lack of consistency in how Scope 3 is assessed across and distribution.

4. Upstream transportation and distribution 0.96

sustainable value chains. We believe that this approach will