Environment

The impact of climate change on the PGM industry and our key stakeholders is recognised as an overarching challenge. Operating activities associated with the exploration, extraction and processing of PGMs results in the disturbance of land, the consumption of resources and the generation of waste, emissions and water pollutants, while PGM-bearing products play a meaningful role in mitigating the impact of these outcomes.

The environmental impact of the industry is a challenge to assess in full, as the global benefits of using PGMs in catalytic converters and other pollution control technologies are significant. The PGM industry therefore routinely collects and analyses data over the full life cycle of the metals to assess its environmental performance and ensure steady progress, especially with regard to its contribution to reducing Greehouse Gas (GHG) emissions in the light of climate change.

Mining companies in South Africa are regulated by an extensive framework of environmental legislation, including the National Environmental Management Act, 107 of 1998 (NEMA), and other environmental management acts which focus on waste, air quality, biodiversity, water and heritage resources.

Increased spend focus on climate change

In our SDG Mapping Report, reviewing industry spend on all SDGs for the time period 2015-2020, the primary shift in spend focus has been the growth of Climate Action (SDG 13) related proportional spend, growing by an additional 2.5% of total industry spend over the period. Given the quantum of spend in the industry, this is a significant input. While both mining and fabrication organisations have increased proportional focus on Climate Action, the real step change has come from the fabricators, driven by increasing pressures in Europe. For the PGM Industry, most of the impact (both positive and negative) related to the environment relates to climate change and water usage, even while the most visible impact may be on land usage.

Direct reported emissions from companies have risen between 2015 to 2020, with the rise also in production volumes. CO2 emissions have grown by more, tracking 38% higher in 2019 compared to 2015, against a production growth of 33% over the same period. The South African grid heavily relies on coal, and as coal quality degraded over time CO2 emissions increased. Most other GHG emissions could be reduced even though production has increased.
 
However, decarbonization of the South African grid has started and is gaining momentum. The reliance on coal-powered electrcity decreased significantly from 87.4% in 2019 (IEA data) to 76% in 2023, showcasing the country's accelerating transition to cleaner energy.

Low-carbon transition of mining
IPA Members are operating in very diverse environments, and with access to different power sources. In addition, the operating regions of primary producers are often located in areas affected by scarcity of water, insecurity of power supply, and increasing costs of utilities such as energy and water, as well as rising regulatory and societal pressures, creating adverse impacts on profitability.South Africa is a major carbon emitter on an international scale, the fourteenth-largest emitter by country and the tenth-largest per capita. The country’s electricity generation is still highly dependent on mainly hard coal fired electricity supply by Eskom, the national energy supplier, which has the strongest impact on CO2 emissions during primary production.

Its 2030 target is to reduce carbon emissions to between 398-million and 614-million tonnes a year, excluding changes because of land use and forestry, while the 2050 target is between 228-million and 44-million tonnes a year, equivalent to a 25% reduction in present levels.[1]
South Africa's draft Integrated Resource Plan (IRP) 2023 outlines a significant expansion of renewable energy capacity, with ambitious targets for wind and solar installations to support a broader shift away from fossil fuels. Although exact numbers have been subject to discussion, the plan calls for renewables to account for the vast majority of new capacity additions over the next decade.

  • Reduction in Coal-Fired Generation:
    A core component of the IRP 2023 is the planned reduction of coal’s share in the national energy mix. The document sets quantitative goals for gradually decommissioning older coal-fired plants and limiting any new coal capacity, thereby reducing overall reliance on coal. This is intended to help lower emissions intensity and better align with national and international climate commitments.
  • Emissions and Efficiency Targets:
    The IRP includes specific targets for reducing carbon dioxide emissions and improving energy efficiency. These targets are designed to ensure that as renewable capacity increases, the overall carbon intensity of the electricity sector declines in step with the nation’s climate policy objectives.
  • System Flexibility and Supportive Infrastructure:
    While not always presented as a single numeric target, there is a clear quantitative focus on adding sufficient capacity for storage and flexible generation (such as gas-fired or hydro plants) to support grid reliability as variable renewable energy sources are integrated at scale.

Current Status

As of now, the IRP 2023 remains in draft mode. This means the quantitative targets and projections are still subject to public consultation and stakeholder feedback. While the overall strategic direction is well defined, details—including the precise numbers for capacity additions and emissions reductions—may be refined before the final version is released.Ihe IRP 2023 sets out ambitious quantitative goals to expand renewable energy capacity, reduce coal-dependence, and lower emissions. However, because the plan is still in the draft phase, these numerical targets could be adjusted as the consultation process progresses.

Below is a summarized overview of the main components of South Africa’s Integrated Resource Plan (IRP) 2023:
  1. Accelerated Renewable Energy Deployment:
    The IRP 2023 emphasizes a significant scale-up of renewable energy generation, primarily through large additions in solar photovoltaic (PV) and wind capacity. This approach leverages the country’s abundant renewable resources and is central to reducing greenhouse gas emissions and curbing reliance on fossil fuels.
  2. Reduction in Coal Dependency:
    While coal remains part of the energy mix to ensure system stability, the plan outlines a managed decline in coal-fired generation. This includes the phased retirement of aging coal assets and a limitation on new coal capacity to pave the way for a cleaner energy system.
  3. Enhanced System Flexibility and Reliability:
    Recognizing the variable nature of renewable resources, the IRP stresses the importance of integrating dispatchable and flexible generation options (such as battery storage, gas-fired power plants, and existing hydro) to maintain grid stability and ensure reliable power supply.
  4. Diversification of the Energy Mix:
    In addition to renewables and coal, the plan considers a balanced role for other generation sources—including gas and, to a lesser extent, nuclear—aiming to diversify the portfolio for both flexibility and energy security.
  5. Modernization of Infrastructure:
    Upgrading and modernizing the transmission and distribution networks are highlighted as key to accommodating the evolving generation landscape. Improved grid management and smart technologies are deemed essential for integrating distributed energy resources and ensuring efficient operation.
  6. Alignment with Climate and Economic Objectives:
    The strategic vision of the IRP 2023 is aligned with South Africa’s broader climate commitments and economic development goals. The plan aims to foster a sustainable energy future while also supporting job creation and local industrial development in a transitioning energy economy.
  7. Policy and Regulatory Enhancements:
    To facilitate the energy transition, the IRP outlines the need for a supportive policy framework that encourages both public and private investments in cleaner energy technologies. This includes streamlining permitting processes and establishing incentives for renewable energy projects.
These components collectively map out South Africa’s roadmap toward a more sustainable and resilient energy future, balancing immediate system needs with long-term environmental and economic objectives.
An updated IRP is to be published in early 2025.

South Africa's reliance on coal-powered electrcity already decreased significantly from 87.4% in 2019 (IEA data) to 76% in 2023, showcasing the country's accelerating transition to cleaner energy.

[1] Decarbonisation of local power generation sedate, by Tracy Hancock, 17th April 2020, https://www.engineeringnews.co.za/article/decarbonising-of-local-power-generation-sedate-2020-04-17

Mining companies' investment in renewable energy

All mining companies have kicked-off significant projects to decarbonize the sector by reducing the use of coal as primary energy source and replacing it by the use of renewable energies. The big platinum miners such as Anglo American Platinum, Implats, Northam and Sibanye-Stillwater plan to scale up solar and wind farms for their own use to cut reliance on state-owned utility Eskom and to reduce their carbon footprint. Another option is the use of electrolysers to generate green hydrogen, an emerging technology which will also become less costly over the next decade. This will lead to a considerably decline in emissisons of CO2 once the projects are completed and their benefits materialise.

Mining companies have adopted their individual low-carbon transition strategies towards climate change regarding the reduction of Scope 1 (direct emissions) and Scope 2 (purchased energy) GHG emissions and other focus areas such as water preservation, shift to electrified mining operations and power generation from renewable sources. 

Activities to improve environmental performance, reduce carbon intensity and reach net-zero include:
  • Continously improving ESG strategies, principles, practices and results, while providing clear and comprehensive reporting on environmental management and climate-related impacts, in line with global best practice guidelines and recommendations
  • Developing low-carbon transition strategies and appointing energy specialists to lead decarbonisation efforts
  • Identifying and implementing projects for the self-generation of energy via solar, wind and hydrogen, in addition to external sourcing of renewable energy
  • Understanding, controlling and reducing gases, dust and waste generated at operations to prevent adverse impacts on host communities
  • Integration of mine-closure planning into life-of-mine planning with a focus on rehabilitating land in parallel with mining activities, while ensuring the protection of water and biodiversity resources
  • Re-mining tailings and improving tailings storage facilities
  • Transition the drivetrain of large mining trucks from fossil fuels to battery, electric, or hydrogen
  • Reducing the overall consumption of energy and water, and specifically from fresh potable water

Investments in renewable energy will have the highest impact on CO2 reduction

As electricity is the main impact related to primary production of PGMs, due to the high reliance on energy generated from hard coal power plants in South Africa, investments in renewable energy through both the mines and the South African Government are the key driver of decarbonization.

As part of its recent LCA on 2022 production, the IPA has performed a scenario study on the Global Warming Potential of primary production in 2030.
Please visit the Life Cycle Assessment section to find out more about the decarbonization roadmap of the PGM industry and projected improvements for 2030.



Carbon Footprint Guidance

How should the carbon footprint of PGMs be calculated?

To provide stakeholders involved in the PGM value chain with background information and techical guidance on what the industry perceives as best practice approach regarding the measurement of GHG emissions, the IPA has published a guidance document for the calculation of the carbon footprint of primary produced PGMs.



"The Carbon Footprint of Platinum Group Metals" complements the LCA publications that are made available on the website, and the industry-average life cycle asssessment data that LCA practitioners can source from the IPA or through the LCA For Experts database.



The methodology explained in the document has been applied throughout two industry wide IPA studies, and is also being applied in our recent update on 2022 production (to be released in 2024).

Establishing a sector guidance

Given the high representation of our LCA data collected, covering 95% of the global primary production of PGMs, and the experience built up in the course of over 13 years working on PGM industry LCAs, it is our aim to establish our methodology through the Carbon Footprint Guidance as sector guidance for all parties performing product carbon footprint (PCF) calculations on primary mined PGMs.

We collaborate with the World Business Council on Sustainable Development (WBCSD) on their PACT framework, and the guidance has been assessed against the PACT PCF methodology.
PACT aims to offer a streamlined methodology for calculating and exchanging product carbon footprints to improve accuracy and enable decarbonization across value chains.
Our guidance has been included in their online library of sector guidance resources.
Find their assessment here:
The Carbon Footprint of Platinum Group Metals | PACT Resources (carbon-transparency.org)

We are currently reviewing the document to include feedback from PACT and will publish an update in Q2/2025.
We are also in touch with Catena-X to get our guidance recognized as sector guideline for reporting to their PCF data ecosystem (summer 2025).

© Khaosai Wongnatthakan
Life cycle assessment