Carbon Accounting

Carbon accounting is the systematic process of measuring, recording, reporting, and verifying the greenhouse gas (GHG) emissions generated by an organization's activities, typically expressed in tonnes of carbon dioxide equivalent (tCO₂e), using recognized international methodologies and standards. In the mining sector — including bauxite mining and alumina refining, iron ore extraction and processing, gold mining and smelting, and diamond recovery — carbon accounting has become an essential business function as regulatory frameworks tighten, investor expectations evolve, and mining companies face growing pressure to demonstrate credible decarbonization commitments. Carbon accounting in mining follows internationally recognized frameworks including the GHG Protocol Corporate Standard (developed by the World Resources Institute and World Business Council for Sustainable Development), ISO 14064, and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Emissions are categorized into three scopes: Scope 1 covers direct emissions from sources owned or controlled by the company (combustion of fuel in trucks, generators, kilns, and smelting processes); Scope 2 covers indirect emissions from purchased electricity, heat, steam, or cooling; and Scope 3 covers all other indirect emissions in the company's value chain, including employee travel, transportation of materials and products, processing of sold products, and end-of-life treatment. Mining operations are typically significant emitters across all three scopes, with aluminum smelting being particularly emissions-intensive due to the energy requirements of electrolytic reduction and the process-related perfluorocarbon emissions from anode effects. Accurate carbon accounting underpins meaningful emissions reduction targets, carbon offset purchases, carbon credit trading, and public sustainability reporting.