Coal mining discussion paper

This discussion paper proposes a methodology for evaluating coal mining companies against global climate targets, including the Paris Agreement. The paper introduces an approach tailored to the coal sector, enabling investors to assess how aligned companies are with the transition to a low-carbon energy system.

The methodology focuses on assessing companies’ decarbonisation pathways in a sector where emissions are largely driven by the downstream use of coal. Unlike other sectors, where emissions intensity metrics are typically applied, the paper emphasises the need for approaches that reflect the sector’s unique characteristics and reliance on declining production pathways.

To date, the TPI Centre has developed methodologies to assess the carbon performance of 11 high-carbon sectors, including electricity utilities, oil and gas, food, and other industrial and transport sectors. The methodology proposed in this paper extends this work by enabling the assessment of coal mining companies’ decarbonisation pathways according to their sector-specific characteristics, which differ from other industries. It also includes an initial assessment of a small sample of companies as a proof of concept and is published to solicit feedback from stakeholders, with the aim of further refining the methodology.