Global warming poses danger to the life on earth, risking fresh water, food, and energy supplies. Greenhouse gas (GHG) emissions are the primary cause of global warming. Carbon dioxide (CO2), methane (CH4), and nitrogen oxides (NOx) are GHGs produced by the combustion of oil, fossil fuels, and other sources.
The metals and mining industry accounts for approximately 4% to 7% of worldwide greenhouse gas emissions. GHG emissions are produced by industry operations such as energy generation, heat or steam, and fuel use. The International Council on Mining and Metals (ICMM) has committed to a goal of net zero Scope 1 and 2 emissions by 2050.
China Shenhua Energy Co Ltd (CSEC), a subsidiary of China Energy Investment Corp, is a diversified company. It carries out the production and sale of coal and electricity. The company owns and operates coal mines in Inner Mongolia, Shaanxi and Shanxi. In 2021, the company reported total GHG emissions of around 176.7 million tonnes CO2 equivalents (MtCO2eq), up 31% from 2020.
Scope 1, 2, and 3 emissions are the three categories of GHG emissions. Scope 1 emissions are direct emissions by the company, such as fuel use. Indirect GHG emissions from the generation of purchased electricity, steam, heat or cooling that is consumed by operated assets are referred to as Scope 2. Scope 3 emissions refer to the company's other indirect emissions beyond the company’s direct operations and occur in the company’s value chain, including upstream and downstream activities. The company has not disclosed details for its Scope 3 emissions.
Scope 1 emissions account for most of China Shenhua’s overall GHG emissions, accounting for 95% of total GHG emissions (167.8 MtCO2eq) in 2021. In 2021, the company's Scope 1 and Scope 2 emissions rose by 32.5% and 7.8% respectively.
China Shenhua aims to achieve carbon neutrality by 2060. The company has set a 2030 target to regulate the increase of Scope 1 and Scope 2 carbon emissions within 48%.
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