[Anthesis] brought a creative and innovative perspective and approach in the development of IGO’s internal carbon price. Carbon pricing is a powerful tool to capture the costs of greenhouse gas emissions by providing an economic signal to carbon emitters and pricing the external cost of climate change. Working with Ndevr to take that next step in maturity by internally taxing our emissions and moving this revenue to a centralised decarbonisation fund has been critical in supporting emission reduction projects and our net zero ambitions.Tess Lewis, IGO Senior Advisor Decarbonisation.
Driving strategic decarbonisation through an Internal Carbon Price (ICP)
IGO Limited (IGO) is an ASX 100 listed company, focused on discovering, developing and delivering products that are critical to clean energy. Through its upstream mining and downstream processing assets, IGO is enabling future-facing technologies including the electrification of transport, energy storage and renewable energy generation.
IGO has set a target to be net zero across its direct operations and activities by 2035, if not sooner. With this objective in mind, IGO sought to develop a mechanism that would increase the pace of decarbonisation and support it to reach its target.
In 2021, IGO engaged Ndevr Environmental to design and implement an Internal Carbon Price (ICP) to drive strategic decarbonisation across its business.
IGO’s ICP was developed in accordance with Ndevr Environmental’s principles of carbon pricing. That is, the price was calibrated to ensure that it:
- Was materially impactful to IGO’s investment decisions and high enough to accelerate decarbonisation;
- Was comparable with international peers and leaders, ensuring its ICP meets stakeholder expectations; and
- Anticipates changes in carbon policy, both nationally and internationally, to ensure IGO is prepared for rapid, unexpected regulatory changes.
Importantly, IGO’s ICP goes a step further than many others, and is practically applied to scope 1 and 2 emissions generated within the business to incentivise efficient decarbonisation. Revenue from the ICP is then moved to a centralised decarbonisation fund.
In FY23, the decarbonisation fund allocated $8.3M to support investment in emission reduction projects, research and development, and nature-based solutions. All IGO employees can apply to access the fund, to support their emission reduction ideas and projects – empowering their employees to create positive change and bringing them on the journey towards net zero.
IGO’s innovative ICP and decarbonisation fund has earned it several mining innovation nominations and awards including the prestigious ‘Excellence in Environmental Management and Sustainability’ award at the Australian Mining Prospect Awards 2022 and as finalist in the Environmental Sustainability Excellence category of the 2023 AIM WA Pinnacle Awards.
Ndevr Environmental is proud to have supported IGO with such an innovative and valuable tool for its business to increase and scale decarbonisation in the years ahead.
Learn more about IGO’s sustainability commitments.