illuminem market insights: Mining industry | Are renewables targets rock solid?

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Introduction

The mining industry is at the heart of the global energy transition, supplying essential metals for renewable technologies. However, while mining companies play a critical role in enabling clean energy solutions, their own renewable energy adoption and reporting remain significantly lacking and transparency in sustainability reporting plays a key role in fostering accountability. An analysis of data from 106 mining companies indicates that many firms have yet to establish clear renewable energy targets, highlighting opportunities for further progress in their decarbonisation efforts.

Analysis

Key ESG metrics and findings

A detailed analysis of renewable energy reporting in the mining sector reveals:

• 94% of mining companies do not disclose an additional renewable energy target beyond their primary and secondary commitments

• 93% do not report the year they aim to achieve these targets

• 91% do not provide a clear timeline for reaching 100% renewable electricity (RE100)

However, significant differences emerge between mining companies based in the EU and the US:

• In the EU, 100% of mining companies do not disclose an additional renewable energy target, and 100% do not report the year they aim to achieve these targets. However, only 66.67% fail to provide a clear RE100 (100% renewable electricity  usage) timeline, indicating slightly better transparency in this metric compared to the US

• In the US, 80% of mining companies do not disclose an additional renewable energy target, while 100% do not report the year they aim to achieve these targets. Furthermore, 100% fail to provide a clear RE100 timeline, highlighting a major reporting gap in long-term renewable energy commitments

These disparities underline the systemic issue that, while companies are eager to make net-zero commitments, the lack of detailed interim targets and renewable energy reporting undermines credibility and may slow down progress.

Industry leaders and laggards

Among the companies assessed, Newmont stands out with transparent sustainability reporting. Unlike many peers, Newmont provides data on emissions reductions, renewable integration, and transition plans. Their Boddington Mine in Australia is targeting 100% renewable electricity between 2027 and 2029, demonstrating how ambitious, data-backed commitments can drive meaningful change.

However, even sustainability reporting champions like Newmont fail to disclose all key renewable energy targets. While the company provides renewable energy transition plans for select sites, it does not:

• Disclose an additional renewable energy target beyond its primary and secondary commitments. The primary commitment typically refers to an overarching goal, such as achieving 100% renewable energy (e.g., RE100 target), while secondary commitments include interim targets or site-specific goals that track progress toward the primary objective

• Provide a definitive year  achieving full renewable energy transition across all operations

• Establish a company-wide timeline for reaching 100% RE100

The majority of mining companies have yet to follow suit, leaving investors and stakeholders in the dark about their renewable energy adoption. 

Tailings management: a critical ESG factor

In addition to renewable energy reporting, tailings management remains a major environmental and social concern in mining. Tailings are the waste materials left after the extraction of valuable minerals from ore, often stored in large dams or impoundments. These structures are designed to contain fine particles and process water, but if not properly managed, they can pose significant risks of leakage, seepage, or structural failure, leading to severe environmental and human consequences. Catastrophic failures, such as the Brumadinho (272 deaths) and Mount Polley (24 million cubic meters of mining waste spilling into nearby water bodies) disasters, have heightened the need for stricter oversight and compliance. The Global Industry Standard on Tailings Management (GISTM) provides a roadmap for responsible tailings management, yet many mining companies still struggle to meet its requirements.

Mining companies must implement effective tailings management strategies to prevent failures that can cause severe environmental damage and endanger communities. The failure to properly disclose tailings risks and mitigation strategies presents significant financial and reputational risks. Investors and regulators are demanding stricter compliance, and failure to act on these issues could result in legal consequences and loss of stakeholder trust. Additionally, integrating real-time monitoring technologies and AI-driven insights can enhance tailings management efficiency and predict potential failures before they occur.

Conclusion

Strengthening renewable energy and ESG commitments

To rebuild trust and demonstrate real progress, mining companies must improve transparency in renewable energy adoption. Following Newmont’s example, firms should:

• Set clear, measurable interim renewable energy targets

• Report actual progress toward RE100 goals

• Invest in sustainable on-site energy solutions like wind and solar

Enhancing tailings management and ESG compliance

• Implement and adhere to GISTM standards to prevent environmental disasters

• Engage with local communities to ensure transparent reporting on tailings risks

• Align reporting with global sustainability frameworks (GRI, CSRD, TCFD)

Leveraging technology for sustainability

• Adopt advanced data tools for real-time emissions and renewable energy tracking

• Integrate AI-driven insights to optimise sustainability strategies

• Standardise tailings and renewable energy disclosures to meet investor expectations

Final thoughts

The mining industry cannot afford to remain opaque in its sustainability commitments. Transparent, data-driven reporting on renewable energy and tailings management is essential for securing long-term investor confidence and regulatory compliance.

Check Data Hub™ for the sustainability performance of the world's most polluting companies in the mining sector: Glencore, Rio Tinto (31.1 mtCO₂), BHP (11.8 mtCO₂), Vale, Anglo American...

How does your industry compare? Benchmark against peers and add your company to Data Hub™ to enhance visibility and transparency in sustainability performance.

This report has been created in collaboration with Filippo Bagnara. illuminem Voices is a democratic space presenting the thoughts and opinions of leading sustainability and energy writers.