South32 has set a significant operational emissions reduction target, aiming to cut its net operational emissions (Scopes 1 and 2) by 50% from its FY21 baseline by FY35. The company’s commitment to this target underscores its dedication to decarbonisation and managing climate-related risks.
Material actions and disclosures
The baseline for the FY35 target has been adjusted for divestments of Cerro Matoso, Metalloys, Illawarra Metallurgical Coal, South Africa Energy Coal, and Tasmanian Electro Metallurgical Company. These changes have resulted in an adjusted FY21 baseline of 17.5 Mt CO2e. Mozal Aluminium, which was placed into care and maintenance in March 2026, remains within South32’s operational control and continues to be included in the target.
South32’s FY35 operational emissions reduction target is an absolute target, with no current planned use of carbon credits. The target covers Scopes 1 and 2 emissions and applies to operations under South32’s operational control.
Given the recent announcement to sell its aluminium value chain assets (excluding Mozal Aluminium) to Alcoa Corporation, South32 will reassess the implications for its FY35 target in FY27. This includes recalculating the FY21 operational emissions baseline to reflect the divestment of the aluminium value chain assets and reviewing whether the FY35 target remains appropriate for the residual portfolio.