Carbon Performance assessment of coal mining companies methodology note - version 1.0

The Carbon Performance assessment of coal mining companies methodology note - version 1.0 outlines how coal mining companies are evaluated against global climate targets, including those set under the Paris Agreement. The methodology enables investors to assess how aligned coal mining companies are with the transition to a low-carbon energy system, recognising the sector’s significant contribution to global emissions.

Unlike most TPI Carbon Performance assessments, which benchmark companies using emissions intensity metrics, this methodology introduces an Emissions Contraction Approach (ECA). Because meaningful decarbonisation in the coal sector requires a rapid decline in coal production, the framework evaluates companies based on reductions in absolute emissions over time, rather than emissions per unit of output.

The assessment compares companies’ emissions pathways with benchmark trajectories derived from climate scenarios, including those consistent with net-zero pathways. By analysing absolute emissions reductions across thermal and metallurgical coal production, the methodology provides investors with a transparent framework to evaluate the Carbon Performance and transition alignment of coal mining companies.

This 2025 methodology note represents the first dedicated TPI Centre Carbon Performance methodology for coal mining companies.