Sustainable Copper

General

2020 Trends: A Year in Review

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Even with 2020’s unpredictability, some clear global trends emerged: (1) corporate social responsibility by the copper industry prioritized people over profits–supporting and helping local communities battle the pandemic; (2) policymakers and lawmakers focused on jumpstarting economies, with a larger emphasis on the clean energy transition; and (3) an increased commitment to responsible production by the mining industry. As this year ends, it is important to reflect on these three key trends.

1. Prioritizing corporate social responsibility during the pandemic

The coronavirus offered a unique opportunity for the copper industry to rethink corporate responsibility. Proactive players exercised agility, innovation and collaboration to protect their employees and surrounding communities. Their swift actions mitigated the pandemic’s effects on remote villages and allowed employees to play an active role in their communities.

For example, Swedish miner and smelter, Boliden, prioritized employee health and safety by encouraging its staff to take advantage of its benefits, such as taking an extended paid leave of absence. Markus Nordqvist, a qualified biomedical analyst, was the first to use this policy to help Skellefteå Hospital’s chemical laboratory. For a few months, Markus lent his expertise to the hospital when resources were strained.

In Mexico, Grupo Mexico formed a partnership with the government to construct new hospitals in rural communities and focused on equipping the country’s healthcare workers with ventilators and supplies. Additionally, Anglo-American’s pandemic response was recognized by the World Economic Forum for providing essential support to host communities around the world—including Africa, Australia and the Americas.

These are just a few examples of how ICA members stepped up during the global pandemic, highlighting a clear trend of prioritizing social responsibility and community well-being.

2. Economic recovery relies on the clean energy transition

As global economies begin to recover, an interesting trend has emerged in Asia, Europe and North America—the acceleration of the economic engine through the clean energy transition. This global shift to clean energy to aid economic recovery is embedded in several key recovery policies.

China’s 14th Five-Year Plan calls for aggressive sustainable energy goals to reach carbon neutrality by 2060. In Brussels, the European Green Deal’s implementation calls for clean energy for green recovery and growth—requiring large amounts of raw materials, including copper, for electric vehicles, smart grids and renewable energy systems. In the United States, President-elect Biden’s Build Back Better economic recovery plan focuses on modern, sustainable infrastructure and a clean energy future. Each plan calls for increased emphasis and resources for the clean energy transition. Because copper is one of these essential resources, copper demand is expected to grow to meet these economic and environmental initiatives.

New research by Fraunhofer ISI, commissioned by ICA, outlines the concept of urban mining and how it strengthens the circular economy and the copper value chain. Natural resources are often concentrated in remote or geopolitically unstable regions, whereas Urban Mining unlocks these resources close to where they are needed, increasing resource independence and reducing transport costs.

As highlighted in Euractiv, there are limitations for Urban Mining, such as landfill recovery, that will need to be lifted by regulators. Manufacturers also play a critical role in recovering anthropogenic resources. Therefore, a “design for sustainability” approach can help ensure the product’s entire life cycle is considered from the beginning, giving due consideration to the product’s environmental impact during its use and the value of its components when it comes time for disposal.

As global leaders plan the path out of the economic crisis, cities should be placed at the center of the recovery. The smart cities of the near future will need more energy-efficient and renewable resources, requiring crucial materials that are sustainable and durable — such as copper. Given that copper’s conductive properties lead to enhanced efficiency, it is no surprise that copper is the material of choice for smarter cities and smart city technology. By 2030, North America is predicted to be the leader in copper use for smart city technology, increasing its share to 35 percent. Therefore, leadership will need to partner with industry to assure the copper value chain’s sustainability and close the loop on the circular economy.

3. Leaders in the copper industry commit to responsible production

In March, the Copper Mark, founded and developed by the ICA, launched. The Copper Mark is the first and only comprehensive assurance framework developed specifically for the copper industry. The Copper Mark demonstrates the industry’s responsible production practices and contributes to the United Nations Sustainable Development Goals (SDGs).

Copper producers must be assessed independently against a comprehensive set of over 30 environmental, social and governance (ESG) criteria on a site-by-site basis to earn the Copper Mark. Being awarded the Copper Mark enables each site to demonstrate to customers, investors and other stakeholders their credible responsible production practices.

Despite launching at the end of March, the Copper Mark has 16 site applications, including 5 already awarded. In Utah, Rio Tinto’s site, Kennecott Utah Copper LLC, was the first producer to receive the Copper Mark, followed by Oyu Tolgoi LLC in Mongolia. The Copper Mark was next awarded to Freeport-McMoRan’s Cerro Verde site in Peru and its El Abra site in Chile–both firsts for these top copper-producing countries. The Copper Mark also went to Freeport-McMoRan’s Atlantic Copper in Spain, the first smelter-refiner site awarded.

Despite the pandemic, the Copper Mark exceeded predictions, and the organization is in a strong position to continue to develop and expand in 2021. 

Although 2020 was a year full of challenges and uncertainties, the copper industry showed its agility by reprioritizing and growing despite the economic difficulties caused by the pandemic. Looking toward 2021, the copper industry is ready to support world leaders as the global economy recovers, and countries and businesses expand their commitments to reach the Paris Climate Agreement’s goals.

Introducing Michèle Brülhart, Executive Director of the Copper Mark

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The International Copper Association (ICA) is pleased to announce Michèle as the first Executive Director of the Copper Mark.

With over 10 years of experience working on the design, implementation and independent assessment of sustainability standards, Brülhart has evaluated and assisted companies at every level of the supply chain—from raw material to end product—and across multiple materials. She was previously the Director of Innovations at the Responsible Minerals Initiative (RMI) and served as the Head of Auditing at RCS Global for several years. Prior to her work at RCS Global, she held roles focused on responsible sourcing at Underwriters Laboratories, the German Center for International Cooperation (GIZ) and STR Responsible Sourcing.

Brülhart assumes this important role heading the Copper Mark as investors and consumers of copper increasingly demand products with lower carbon footprints that require fewer resources and are constructed safely and responsibly by fairly treated workers. Under Brülhart’s leadership, the copper industry will continue to coordinate closely with the OECD, RMI, ICMM, LME and IRBC to meet due diligence guidelines and help as many copper industry members as possible commit to sustainable and responsible operations.

As Executive Director of the Copper Mark, I look forward to partnering with members of the copper industry and others to drive positive change through expanded commitment to responsible production standards,” said Brülhart.

“On behalf of the members and staff of ICA, I am excited to see Michèle Brülhart become the first  Executive Director of the Copper Mark,” said Tony Lea, ICA’s President. “We look forward to seeing this important program grow and prosper under her leadership.”

ICA has been working and consulting with external stakeholders continually since February 2018 to ensure the Copper Mark incorporates their feedback, and with Brülhart at the helm, the project’s next major milestone will be the launch of the formal application process in 2020.

More information about the Copper Mark and its goals can be found at sustainablecopper.org and coppermark.org, and to receive updates about the initiative’s progress follow us at @ThinkCopper.

European Copper Industry Leads in Solving Environmental Challenges

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Combating climate change and reaching a circular economy are essential for a more sustainable economy for the future. The copper industry takes this challenge seriously and is a frontrunner in carrying out actions to better manage copper production and its byproducts.

Many European copper industry leaders are already implementing measures to close the loop and reduce their environmental footprint. A series of best practices follows, including actions to reduce emissions and waste, improve water and natural resources management and support environmental protection. These success stories meet—and often exceed—the strictest environmental, chemical and emissions standards in Europe, ensuring the copper industry continues to innovate and implement solutions to protect the environment and ensure a more sustainable economy.

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The Copper Mark – Ensuring Responsible Production

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The Members of the International Copper Association (ICA) are proud to introduce the Copper Mark—a new assurance system for responsible copper production.

Goals of the Program

Designed for and in participation with the copper industry, the Copper Mark aims to demonstrate and improve the industry’s contribution to sustainable development over time by assessing the performance of copper mines and refiners against responsible production criteria and verifying performance through the Copper Mark Assurance Process.

Through the Copper Mark, investors in copper production and copper consumers will be able to make informed decisions about responsibly produced copper in their supply chains, recognize and demonstrate their support for committed suppliers, and make positive contributions to sustainable development.

How the Copper Mark Works

Inspired by the UN Sustainable Development Goals, the Copper Mark takes a comprehensive approach to sustainability and includes a credible verification of practices at copper production sites, including mines, smelters and refineries. Unlike many existing initiatives that follow a “standard-audit-certification” model, the Copper Mark is based on facilitating a flow of information on site-level, risk-management practices and public reporting on the positive on-the-ground impact.

The Copper Mark is a voluntary program open to all industry members and can be used by verified sites in corporate literature, invoices, contracts, etc., and on copper products to convey a copper producer’s commitment to meet industry sustainability standards in their operating practices. While initially established, funded and staffed by ICA, the program will be overseen by an independent entity governed by a multi-stakeholder body as soon as the first quarter of 2020.

Download the Copper Mark Overview One-Pager

Three Considerations for the Next Wave of Smart Buildings

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Written by Fleming Voetmann, International Copper Association.

Today, 36 percent of energy use and nearly 40 percent of the carbon emissions in the world come from buildings, according to the UN Global Status Report 2017. To achieve the climate goals agreed in Paris, we must accelerate adoption of smart buildings with energy-efficient technology—and go beyond to aim for smart communities and cities.

Enabling the next wave of smart buildings requires three components:

1: Artificial Intelligence (AI): Buildings will need to reduce energy consumption beyond old and proven technologies like thermostats, refrigerators, light bulbs and insulation.

Imagine, for example, smart buildings that incorporate AI to provide a customized experience for each person—predicting human and environmental behaviors to reduce energy used for lighting, water, heating and cooling. These technologies could be implemented in office buildings, schools, hospitals, airports and private homes. Adjusting water and energy demands based on our behavior will save significant energy costs.

For building users, owners and operators, this leads to far better experiences—on top of huge savings. Additionally, the technology will run in the background, seeking constant improvement without users spending any time or changing their behaviors.

2: Demand Response and Flexibility: Given the world’s future reliance on fluctuating energy sources and distributed energy, demand response is becoming an essential tool in city resource plans. Micro-scale demand response already exists, allowing individuals to change energy consumption when energy is high—thereby incentivizing lower electricity prices. Several areas in the United States and Europe are already experimenting with demand response in an attempt to both ensure the right economic incentives and share kilowatt-hours more efficiently.

In future smart buildings, these technological capabilities will also function as fueling stations for electric vehicles and adjust their charging times based on pricing and grid capacity. The same thinking can be used for pumping water, cooling data centers, food refrigeration and more. Most needs that require electricity can be interchanged at peak energy times, saving consumers money, avoiding brownouts and increasing grid optimization.

3: Smart Buildings Powering Smart Communities: This electrification of heating, cooling and transportation is one key component of smart buildings. Beyond single buildings and single-use items, the opportunities for smart infrastructure are vast. Cities can be broken down into communities—and communities into individual buildings. So, to have smart cities, we must look at communities and find new ways of collaborating, creating large-scale synergies among energy and waste solutions.

This introduces the need for new business models. Utility companies must sell energy as a service and look beyond pushing kilowatt-hours. One industrial company’s industrial heat or wastewater can become the future heat and electricity for entire communities. For example, in Hamburg, Germany, Europe’s largest copper producer, Aurubis, provides carbon-neutral heating for new parts of the city. Using this heat will save 20,000 tonnes of CO2 emissions per year, or 160 million kilowatt-hours annually.

Forward-thinking organizations are already developing solutions. Apple, Facebook and Google plan to sell surplus heat from data centers. The German supermarket chain, Lidl, provides charging stations for EVs in its locations in Ireland. In Denmark, wastewater treatment plants produce electricity from gasification of wastewater and optimize the pumping of fresh water based on when the wind is blowing.

Beyond the opportunities offered by technology, we need to address some fundamental global conditions. Most importantly, population growth will introduce the problem of supplying basic resources like safe food, clean water and sufficient electricity, while also ensuring the overall economic, social and environmental sustainability, to all. Smart cities can provide solutions to these challenges as well as a good quality of life for citizens, though this is possible only with the help of improved building codes and standards and clever regulation, forcing developers to invest in state-of-the-art technologies (lighting, energy efficiency HVAC, etc.). Without these components, countries with rapid population growth will lock-in to old and inefficient technology—which is unsustainable.

As we provide another billion citizens with electricity and facilitate rapid urbanization in a sustainable fashion, Europe and the United States are facing slightly different challenges: A old and inefficient building stock. The existing building stock in Europe and North America needs to be made more efficient by updating automation (saving between 8 and 22 percent of total energy consumption, according to Buildings Performance Institute Europe) and updating appliances, which needs to be done both reactively and proactively. Waiting to retrofit at the point of failure is costly, and the vast expenses negatively affect the ability to incorporate smart technology. The United States and Europe must invest in the accelerated retrofitting of buildings.

The good news, however, is that all the technology we need already exists. We need smart buildings to achieve smart cities and a sustainable future. Realizing this ambition requires smart people and smart regulation, better economic incentives and more innovation in collaboration. The key to unlocking the full potential of smart energy technology is more than just technological advancement: it is about fostering new relationships between innovators, mayors, building operators, fleet owners and citizens.

The copper industry is committed to powering a more sustainable future. Estimates show that by 2035 we will need 43 percent more copper than we use today because of increased updates in renewable energy and energy efficiency, according to Wood Mackenzie. Modern life has been built on copper and powered by copper since Thomas Edison introduced the first electricity grid—and copper is more relevant than ever.

Natural resources as a driver for the SDGs—the case of Chile and copper mining

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Written by Fleming Voetmann, International Copper Association.

As the world transitions to a low-carbon future and delivers on SDG7, we are going to need more metals from both recycling and mining. The World Bank predicts copper demand from renewable energy alone could grow by over 250 percent toward 2050.[1] Similar forecasts are made for other vital metals. Reduced poverty, a rapidly growing global middle class and increased electrification will also drive demand for metals.

The metals we need to shift to low-carbon energy are often found in developing countries and emerging economies, offering enormous opportunities for sustainable growth and jobs, as well as generating taxes to finance education, healthcare, etc. Many of these resource-rich countries are positioning themselves to seek the full potential of a low-carbon future and help deliver on the Sustainable Development Goals (SDGs).

While countries with significant natural resources are planning how to achieve the SDGs, much can be learned from Chile. Rich in natural resources such as fish, agriculture and minerals, Chile is an excellent case of how a country with good governance, a solid political framework and ambitious public-private partnerships has used its natural resources to ensure strong economic development, employment and investments in education, healthcare and infrastructure.

Key to Chile’s robust economic development is its inclusive growth—enabling people to earn the wages they need to thrive. Through reforms and policies, Chile reduced its poverty from 40.5 percent just a few decades ago to 8.5 percent today while quadrupling per capita income.[2]

Mining, particularly copper mining, is a central pillar of Chile’s sustainable-economic development. Copper mining represents a $24 billion industry, 10 percent of the country’s GDP and an average of 7.8 percent of tax revenue. Copper mining also employs close to 400,000 people in Chile.[3] Impressively, copper-mining companies are among the most innovative in the country, with processes and organizational management at double the national average and significant positive indirect impact on supporting industries.

Additionally, mining regions have significantly higher salaries—between 80 to 110 percent higher than regional averages—and up to 50 percent lower poverty rates than the national average, one-third lower than regions without copper mining.

Chile has become one of the two highest-income Latin American economies. To achieve these results, Chile adopted policies and practices to raise and manage revenues in ways benefitting its citizens. Since clean technologies require large quantities of metals and minerals, developing countries with major natural resources have an opportunity to prepare for the growth in demand, while ensuring the appropriate policy mechanisms are in place to safeguard inclusive growth, local communities and the environment.[4]

To help achieve a more sustainable future the SDGs offer the best and most comprehensive framework for fruitful collaboration between the public and the private sector, and when it comes to sustainable development in natural resource-rich countries, much can be learned from the impressive progress made in Chile.

 

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[1] “The Growing Role of Minerals and Metals for A Low-Carbon Future.” World Bank, July 2017. Retrieved from http://documents.worldbank.org/curated/en/207371500386458722/pdf/117581-WP-P159838-PUBLIC-ClimateSmartMiningJuly.pdf. Figure 2.11 Mean Cumulative Demand, 2013–50, for the Technologies Examined in This Study (Impact on cumulative demand of relevant metals by 2050, under the 2DS scenario, as a fraction of cumulative demand if the 2013 production levels are sustained to 2050.)

[2] The Socioeconomic Impact of Copper Mining in Chile. (June 2018). Retrieved from https://sustainablecopper.org/the-socioeconomic-impact-of-copper-mining-in-chile/

[3] Ibid, The Socioeconomic Impact of Copper Mining in Chile. (June 2018)

[4] In a Low-Carbon Future, Better Mineral Governance Could Power Development. (June 5, 2018). Retrieved from https://resourcegovernance.org/blog/low-carbon-future-better-mineral-governance-could-power-development