Anglo American
Performance Score
Anglo American has refocused its scope 1 and 2 objectives on a simplified portfolio, with a target of –30% by 2030 and a "net zero" ambition for 2040, but its scope 3 objective has been weakened by shifting from an absolute reduction to an intensity indicator that covers only 86% of emissions and is not aligned with a 1.5°C pathway. Material investments are directed towards growth projects considered "transition priorities", but are not specifically earmarked for decarbonisation, and no dedicated CAPEX is disclosed. Regarding sold products, identified actions remain limited to improving premium iron ore and some efforts on maritime transport, while steel transformation accounts for the bulk of emissions.
Climate governance is ensured at the executive committee level. The company is intensifying its engagement with its key steel-producing suppliers and customers, but this work remains partial given the scale of scope 3. Public positions are broadly aligned with the Paris Agreement, but the business model remains largely dependent on iron ore and the downstream emissions it generates. Furthermore, the revision of scope 3 objectives and the absence of dedicated decarbonisation investments weigh heavily on performance.
Narrative Score
The company applies a simplified portfolio approach to its emissions objectives, reflecting a reorientation towards transition-enabling products, but raising questions about its level of ambition and the scope of its measures due to the exclusion of certain assets. At the same time, it has revised its scope 3 objective, moving from an absolute reduction to an intensity-based indicator linked to premium iron ore, which could signal a weakening of its ambition compared to its 2024 objective, which targeted a 50% reduction by 2040, as it prioritises relative efficiency over absolute emissions reductions.
Trend score
The observed trend in Anglo American's objectives and significant investment indicators appears negative compared to the previous year, reflecting a less robust alignment and a shift towards less ambitious, intensity-based scope 3 objectives. While improvements have been noted in management practices, particularly in transition planning and scenario analysis, the company should strengthen the alignment of its objectives and investments with absolute emissions reductions in order to achieve an overall positive trend.
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