At Peabody, we believe that assessing and responding to the risks posed by changing
climate creates opportunities for innovation.
We are committed to aligning our programs and targets with the expectations of our
customers and stakeholders to deliver an approach that is measurable, actionable, and
supportive of our business strategy.
We believe that the most effective approach to reducing greenhouse gas emissions is
through near-term targets that are measurable, actionable, and address key risks and
opportunities within the organization.
We regularly evaluate new risks from climate change that could impact our mines, product
transport, and supply chain. We also consider how regulatory, financial, market, or
policy shifts in response to climate issues might affect operations. These practices are
central to continued sustainable mining that is aligned with customer goals and
shareholder expectations.
The Board oversees climate-related risks and receives regular updates through Peabody's
risk management process. Senior management executes strategic objectives, turning them
into actionable steps. Our ongoing assessments help us maintain resilient,
sustainability-focused operations.
We comply with all greenhouse gas emissions regulations and reporting requirements, in
both the U.S. and Australia, addressing both federal and state standards. Compliance
underpins our license to operate, and we seek innovation to minimize risk while
supporting our business strategy.
At our operations, Scope 1 emissions include diesel and fugitive emissions, while Scope
2 covers purchased electricity. Although we lack specific Scope 3 targets, we support
our customers' and suppliers' reduction efforts through continued research, technology,
and policy advocacy.
Our Executive Management Team, guided by the Board, directs investment in emission
reduction solutions. Partnerships with customers, suppliers, and research institutions
are vital for advancing technology and ensuring efficient and economical emission
reductions. We believe today's decisions will shape future opportunities for our
operations and products.
Coal remains an essential part of economic progress by supplying affordable, dependable
electricity needed for growth and as a key resource in steel production, which supports
infrastructure projects that lead to a better quality of life. We continue to
responsibly mine our existing thermal coal reserves to support increasing global energy
needs, while enhancing our steelmaking coal portfolio through the development of
Centurion Mine.
We are pursuing a future that balances our ability to support reliable and affordable
energy and steel production while also mitigating regulatory risk and creating value
through emission management and reduction.
As part of this strategy, Peabody continues to complement our coal portfolio with new
opportunities for our non-coal assets, including investing in renewables on reclaimed
land and waste gas utilization strategies. We remain committed to reducing greenhouse
gas emissions from our mining operations and will continue to promote innovation and
investment in low-emission technologies through our advocacy in policymaking, leadership
within industry bodies, and partnerships with research institutions.
As part of our incremental efforts, we have established a target of reducing our Scope 1
and 2 emissions by 20%, from a 2023 baseline, by 2030. This target builds upon Peabody’s
15% reduction in Scope 1 and 2 emissions from 2018-2023. We aim to achieve this target
by:
- Incorporating the risks and opportunities in each mine’s emission profile to optimize
emission and energy performance
- Prioritizing emission reduction initiatives that create value and mitigate risk,
especially in relation to the cost structure of each of our mines
- Minimizing dependence on purchased offsets through effective emission reduction