PWC: Mining Operations are Increasing Sustainability Goals

Mining companies face particular obstacles in decarbonisation efforts as they navigate capital requirements and operational complexity, according to PwC's Third Annual State of Decarbonisation Report.

The report finds that 23% of companies are increasing sustainability ambitions compared with 18% reducing them, while 82% held steady or accelerated timelines for achieving targets.

The business case for emissions reduction could be strengthening across industrial sectors. However, mining operations encounter specific barriers that distinguish their transition pathway from other industries.

Financial performance in extraction

Mining and construction companies that allocate higher shares of capital expenditure to climate transition activities are achieving valuation premiums ranging from 15% to 59%, according to PwC. These sectors represent some of the most capital-intensive and hard-to-abate industries globally.

Progress on emissions reduction remains slower than other sectors due to the need for large-scale, asset-heavy transformations. Energy-intensive processes in extraction and construction require different approaches to decarbonisation than less capital-dependent industries.

Strategies in these sectors are increasingly focused on process efficiency, electrification and long-term capital planning. Companies are aligning emissions reductions with asset replacement cycles to manage the high cost and complexity of transitioning fuels and equipment.

The report notes that continued progress will require ongoing investment and innovation specific to heavy industry contexts.

Supply chain visibility gaps

Supply chain visibility remains a weakness across sectors, with 25% of companies lacking visibility beyond tier one suppliers, according to PwC. Only 18% consistently track supplier activities and emissions across multiple tiers.

A further 58% of companies report only partial visibility into tier two suppliers. This limitation restricts their ability to address high-impact emissions sources in upstream operations.

"One of the clearest findings in the report is that supply chain visibility is still a major gap," says David Linich, Decarbonisation and Sustainable Operations Consultant and Partner at PwC.

"Only 18% of companies consistently track supplier activities and emissions past their direct suppliers, which means many businesses still lack line of sight into key upstream risks and where the biggest pockets of Scope 3 emissions exist."

Mining operations often involve complex supplier networks for equipment, consumables and services. The 64% of companies now operating structured and scaled decarbonisation programmes could mean improved engagement with suppliers, but only 7% have fully incentivised supplier action across their base.

Scope emissions tracking

According to PwC, 69% of companies are on track to meet Scope 1 and 2 targets. However, only 56% are on track for Scope 3 emissions, which include supply chain and product use impacts.

The report highlights that only 46% of companies are on track for Scope 1 emissions, unchanged from the prior year. This category represents more than 80% of operational emissions across the organisations analysed.

"In manufacturing and other operationally intensive sectors, the story is increasingly about disciplined execution," says David.

"We're seeing companies make steady progress on Scope 1 and 2 targets, but the harder work now is reducing on-site emissions, where changes are capital-intensive and operationally complex."

Mining companies face particular challenges with on-site emissions due to the nature of extraction processes. Process efficiency improvements delivered a 6% reduction, renewable energy generation contributed 6% and procurement changes accounted for 4% of progress.

Energy costs and investment

Electricity prices increased by 7% to 25% between 2020 and 2025, according to PwC. Global industrial energy efficiency investment rose by 45% during the same period, reaching approximately US$30bn.

Energy has become a key component of decarbonisation strategies across sectors. Companies are achieving stronger financial outcomes in some cases, with valuation premiums observed in sectors investing more heavily in climate transition activities.

"The leaders are tying decarbonisation to asset replacement cycles, process efficiency and smarter capital planning so they can improve resilience and performance at the same time," says David.

For mining operations, energy costs represent a larger proportion of operating expenses than many other industries. The need to balance energy investment with production requirements could create specific planning challenges.

Technology and AI applications

Rising demand for AI and data centre capacity is reshaping the energy and sustainability landscape, making Scope 2 decarbonisation more complex to track and reduce, according to PwC. Electricity demand is surging faster than clean energy supply can scale, especially in contexts where policy support has weakened and infrastructure investment has lagged.

This imbalance is contributing to higher power prices and greater reliance on fossil fuels. The International Energy Agency projects that most of the increase in data centre electricity demand in the US through 2030 will be largely met by natural gas, potentially slowing the pace of grid decarbonisation.

AI itself presents opportunities for emissions reduction. According to PwC, 60% report using AI for operational decarbonisation, but most applications remain first-generation machine learning such as process optimisation, energy monitoring and predictive maintenance.

In mining contexts, AI applications could include logistics optimisation, energy efficiency in processing and predictive maintenance of heavy equipment. The technology presents both an energy consumption challenge and a potential tool for operational efficiency.

Procurement integration requirements

While 63% of companies have implemented supplier requirements at scale, just 13% consistently verify and enforce them, according to PwC. These gaps could show the need for stronger procurement integration across industrial supply chains.

"The companies making stronger progress are the ones treating supplier engagement as an operational priority — improving visibility, setting clearer expectations and building more accountability into procurement," says David.

Companies that improve supplier visibility, engagement and accountability are seeing faster Scope 3 emissions reductions. For mining operations, procurement spans equipment manufacturers, logistics providers, consumables suppliers and service contractors.

The capital-intensive nature of mining equipment and infrastructure means procurement decisions have long-term implications for emissions profiles. Verification and enforcement of supplier requirements could become more critical as decarbonisation timelines compress.

"What the data shows is that the business case for decarbonisation is getting stronger, not weaker," says David.

"Even in a tougher environment, most companies are staying the course and the leaders are shifting from broad ambition to disciplined execution that supports resilience, growth and long-term value."