Happy Halloween, everyone. Welcome, and good to see so much interest, and thank you for joining us this afternoon, our second sustainability performance presentation of the year. This continues to be our twice yearly update, affording us the opportunity to discuss how we're progressing on performance and to deep dive into those areas that we have not yet covered or wish to bring to your attention. For those who don't know me, I'm Anik Michaud, and I'm Group Director, Corporate Relations and Sustainable Impact. Next slide, please. Our cautionary statement. I shall let you read this slide very carefully on your own time. Next slide, please. The order of play today. I will start by covering the safety share, and then we'll moderate the Q&A.
After talking about some of our key sustainability metrics and progress, Duncan will update you on our response to climate change. Given the increased importance of the nature-based agenda, Tony will then take you through some of the work we are progressing in the area of biodiversity. Finally, I'm pleased to have our Executive Head of PGM Marketing, Hilton Ingram here, and he will bring us a customer perspective on our responsible mining work. If there's a message you take away from our work is that sustainability is not only a key part of our strategy and decision-making, but it is integrated and being embedded through the whole of the value chain.
Fear not, of course, our Finance Director, Stephen, is also here with us and is ready and happy to respond to your questions on the value and business case of doing all of this, and so much more. For the safety share. Safety is always top of mind as we strive towards zero harm for every one of our employees and contractors every single minute of every single hour of every single day. Nothing, and I really mean nothing, can ever come before safety. I wanted to talk a bit about how we and others in the industry share learnings from incidents so that everyone is aware of particular issues quickly, and we can take action to help prevent repeats and therefore save lives.
One such example was a fatal incident where a technician was working to repair the hydraulic power pack of the boarding steps of a haul truck. These trucks are massive. The tires are 13 feet in diameter, and the trucks weigh 200 tons, and this is when they're empty. Crews get on and off these trucks many times a day and in all weather conditions. Retractable boarding steps, like the ones in the photo, are offered by the OEMs and by third-party producers to reduce the risk of people falling from the vertical ladders that were traditionally fitted. This design is used on trucks at several of our mines, as well as by many other mining companies around the world.
The hydraulic power pack for the stairs is mounted into the floor of the first landing of the truck, and in order to observe the pumps and pipes in the pack, you need to look down into the floor area. While doing the maintenance, we believe the technician had positioned himself on the steps outside the handrailed area and somehow activated the hydraulic system, which tragically crushed him with fatal consequences. Immediately following the accident, we deployed trauma counselors and senior leadership to the mine to support the site team, and of course, our employee assistance program was fully implemented. Based on initial information about the incident, we issued an internal alert and an immediate call to action to all of our mines. This instructed them to immediately review procedures and risks around powered ancillaries, such as these steps.
An investigation by the regulator is ongoing, and we will, of course, continue to fully support with information and access. An initial briefing was also shared with the ICMM as part of our commitment to safety of the broader industry, and this is also why I wanted to share this with you today. Awareness and learning from incidents are really important to save lives, many lives across the industry every year. Safety is not and should never be a source of competitive advantage. With that, I will now hand across to Duncan.
Thanks very much, Anik. Welcome everybody. Good to see you virtually, albeit, thanks very much for joining us this afternoon. Now, before I get into the detail of our sustainability performance, you may remember that back in July, I spoke about a $100 million 10-year loan agreement that we just contracted with the IFC. This is linked indeed to the delivery of our sustainability goals, and these are integral to our Sustainable Mining Plan.
In this case, it was very focused around South Africa and supporting the partnership that we have with government over there to significantly increase the educational performance in host community schools, as well as creating three jobs offsite for every one job that we have onsite, and all of that by 2025. Since then, we've now introduced our first sustainability-linked bond, which includes performance targets that reduce greenhouse gas emissions and freshwater abstraction, as well as to enhance the support of job creation in host communities. I think that this very much was a first of its type for the mining industry.
Not necessarily the first sustainability-linked bond in the industry, but the first to include social performance goals as part of the criteria of the financial instrument. You know, I think very important steps for us in this space and a clear indication that this is very important to us and we're taking it seriously. Now, I'm pretty sure that the audience to whom I'm speaking to today is very much aware of this growing awareness of the centrality of mining and its role in enabling the energy transition. And the contribution that of course we can make to delivering a more sustainable future.
You know, that said, recognizing that many of the metals and the minerals that we produce are absolutely critical to the technologies that are gonna be required to decarbonize the world's energy and transport systems. I think our commitment to being a part of the solution, and the changes that the solutions require must begin at home, in our own businesses. This is by meeting our own emissions reduction and carbon neutrality goals in the first instance. While at the same time being very cognizant of the impact of that to our communities, both in terms of skills and jobs, as well as to help catalyze new forms of economic activity in those regions.
That's why, you know, that's why when we speak about the transition, which we know to be absolutely deterministically important to society at large, it is important to talk about it in terms of a just transition, and what that means for all of those that are going to be impacted by it. I want to assure you that we spend a lot of time thinking about that and how it's going to play out for all of our stakeholders, and especially those that are very close to where the metals are actually mined. That's why we've decided to put in place our Sustainability Financing Framework.
I think that, as I said, further demonstrates our commitment to sustainability in the round, and meaningfully links certain of our funding requirements to the stretch and sustainability objectives that we have set for the business. Moving on to the next slide, please. Just a quick recap of some of the messages that I made at the H1 results. As Anik spoke about, safety is always and has to always be at the top of our mind as we strive for zero harm for every single one of our employees and contractors. I am deeply saddened to report that we have experienced now a second fatality this year at our managed operations, and Anik has gone through that incident in quite some detail.
Primarily because, you know, there's a lot that we can do to eliminate it, but there are a number of inherent risks in here that were very important to share with the industry at large. Not only did we do our own internal call to action as Anik mentioned, but we shared this with the manufacturer of the vehicle and with the ICMM membership at large, because it's really important that these sorts of lessons, these sorts of learnings are distributed as widely and as broadly as we possibly can. I've spoken in the past about our uptick in injury rates as we climbed out of the COVID disruptions after many years of continuous improvement.
We absolutely do remain laser-focused in reversing that trend, and I'm quite pleased to say that certainly quarter-over-quarter since the beginning of the year, we have seen modest improvements in that trend. Not enough for us to be happy, but certainly some small changes that would indicate positive progress. We've continued to record zero new cases of occupational health issues in 2022, as well as no Level 3 or above environmental incidents. Both of those I think reflect our continued work on environmental planning controls and our predictive monitoring programs. Moving on to the next slide, please. Thanks, operator. Looking briefly now at three of the key components of our sustainability performance.
From both the first two charts there on the left-hand side and the center, both energy and a greenhouse gas emissions perspective, our efficiency improvements clearly are offsetting the additional emissions that we see from increased production, primarily from our steelmaking coal business as well as Quellaveco coming online. Some very good work there in terms of those initiatives and more good work on the implementation of our Social Way 3.0 management system as well. Why coin it 3.0? Well, it's because it's a progression on 2.0 and 1.0, and I think that that's very important. As I've said before, I think this is a much higher bar than anything we've seen in the industry to date.
Our 49% implementation, which you see on the right-hand chart there, of the foundational requirements of Social Way 3.0 from the end of 2021, now already represents a much higher level of overall performance than the 96% that we reported against Social Way 2.0, back in 2019. The little bit of a wedge on the right-hand side indicates where we expect to land, by the end of this year. Work in progress, and very happy with the direction of travel on that. Onto the next slide. You're all going to be familiar now with the Anglo American purpose and the context for its strategy. It is really worth reiterating how our innovative approach to sustainability is very much at the heart of our business strategy.
Our Sustainable Mining Plan is designed to deliver outcomes that are aligned with both our purpose of reimagining mining to improve people's lives and to deliver enduring value in its many different forms to a very wide range of stakeholders. The three pillars of our Sustainable Mining Plan, which we originally launched back in 2018, include goals that are aligned to 12 of the 17 United Nations Sustainable Development Goals, the ones that we felt that we could most positively impact. Now, these goals are embedded into our business planning at a very granular level. In the same way we think about operational objectives, you know, planning a mine, executing a mine, these goals are embedded into those sorts of decision-making and those sorts of planning processes.
I think that that's absolutely critical when you think about turning ambitions into real outcomes. We ensure, I think, that the set of goals remains relevant to our stakeholders. We do that through a very significant program of engagement and scanning of what we perceive to be the risks and ensure that we're still focusing on the right issues. Things change over time. You know, I mean, many of these goals date back, some of them to 2016, in fact. We want to be sure that we're getting them right and we're understanding how the world is evolving around us and be sure that we continue to work on the things that are most important to not only ourselves but our stakeholders too.
We are broadly comfortable now that with the set of goals as we've described them and as they stand, that they are good. We will continue and have to continue to evolve these as needed over time. Moving on, just a quick word about climate change. I mean, I absolutely am of the view, and we as an organization are of the view, that climate change is now undeniably the defining challenge of our time. As we have said repeatedly, we are committed to playing our part in working out solutions that help manage the impacts of climate change.
Today, I wanted to update you on how we're doing in delivering against those commitments that we've made and in positioning our portfolio to deliver the future enabling products that the world is going to need to be a cleaner, a greener, and a more sustainable world. On the next slide, this is a brief reminder of the journey to carbon neutrality within our own portfolio as we currently have it today and of the decarbonization commitments that we've already made. For Scope 1 and Scope 2, we have a target of reducing our emissions by 30% against a 2016 baseline by 2030. On our way then to achieving full carbon neutrality across the whole of the portfolio by 2040.
You'll be fairly familiar now with that chart on the left-hand side, which gives you a very clear indication as to how we expect the emissions profile to evolve over that period of time, those two distinct periods of time. We always said that over time we would fill the detail in of achieving our reduction targets, and there've been a couple of developments since we updated you in April of this year. The first one I spoke about at length during our results presentation at the half, which is of course the launch of nuGen™ and the First Mode of our zero emission haulage solution. That work continues to progress and is going well.
The new news is the creation of Envusa Energy, which is a joint venture company that we now have with EDF Renewables, and we will bring others on board with that as well. We are setting that up to produce the renewable energy that we need to decarbonize our Southern African operations. I'm gonna speak a bit more about that later on in this presentation. For Scope 3, we do have an ambition to reduce our Scope 3 emissions by 50% by 2040, and that is from a baseline that we measured in 2020.
I'm not going to be spending a lot more time on Scope 3 today, but we are working very hard in terms of turning that ambition of 50% into actual pathways, and I'm hoping that in one or two of the next sessions that we have with you, we'll be able to share some of those pathways more fundamentally. Now, this month, we signed a memorandum of understanding with a long-standing customer, thyssenkrupp Steel . That was to collaborate on the developing of new pathways for the decarbonization of steel making. Steel making being one of the hardest to abate industries. We have a couple of products that, as you know, go into steel making, very high-quality products.
Where we are also looking for ways to completely decarbonize steel, and we're looking to do that in collaboration with our downstream partners that are like-minded, in the way that we think about things. These collaborations, in fact, generally focus on joint research to accelerate not only the development of high-quality feedstock for low-carbon steel, but also to build on similar partnerships that we've formed with other long-standing steel customers like Salzgitter and ArcelorMittal .
Another area that we'll be able to talk about soon is enhancing our existing approach to assessing and mitigating the risks associated with climate change. The resilience that such an approach will bring to the existing portfolio, our future portfolio, and will not only be important for our own operations, but also key points in our value chains and especially for our host communities. Moving on to the next slide, please. Before I get into quite a lot of detail, I just wanted to step back and look at the question of ambition. Like many other companies, we are being asked quite regularly now whether our emissions reduction targets are ambitious enough.
As many have put it, you know, to me, say, "Are you aligned with Paris?" Now, this is a more difficult question to answer than I think it might seem, because, you know, as far as we can tell, there's no agreed way yet to assess whether the targets are aligned to pathways constraining global temperature increase to only 1.5 degrees Celsius, and not even a single consensus definition of what this or alignment to Paris actually means. Firstly, the context here. We set our current Scope 1 and Scope 2 emissions of an absolute 30% reduction by 2030, as I said a little earlier, of our 2016 base, back in 2018. At that stage, I think the target was absolutely sector leading, very ambitious.
We also knew that our emissions would rise in the years immediately after 2016, so that was due to production growth outpacing the rate at which we were able to affect emissions reductions in the short run. That really means that our reduction from the peak emissions that we measured in 2019 down to 2030 is actually 45%. That is very ambitious, I would say. With that context and to assess our level of ambition, we then undertook an even further detailed internal review. After we'd done that, we went external and said, "Can we be sure that we understand that this is the right way, it is heading us in the right direction?" We took a third-party verification from the Carbon Trust.
This review compared the emissions reduction that we were targeting between 2020 and 2030 to the many 1.5 degree C pathways that have been defined by the UN's Intergovernmental Panel on Climate Change. The combination of our internal analysis and the independent gap assessment, I think now gives the group confidence that our Scope 1 and Scope 2 trajectory are aligned with a well below two degree scenario, and broadly are in the range of a 1.5 degree C world. Beyond 2030, our Scope 1 and Scope 2 emissions target of carbon neutrality by 2040 is absolutely now well within the range of Paris-aligned scenarios that are out there today. Next slide, please. This is just a bit of a reminder on the big picture of our decarbonization initiatives.
Broadly, these for us on a Scope 1 and Scope 2 level, absolutely break out into the supply of energy for our operations and the use of diesel within our operations. Just dealing with the first point first. Purchased electricity is clearly one of the biggest issues that we need to deal with. We already have contracts in place across our South America operations, meaning that half of the group's electricity supply is now already coming from renewable sources. The solution for Southern Africa is actually quite different, right? I mean, the fact is that renewable capacity just doesn't exist in Southern Africa. It's not a matter of clever contracting.
It's not a matter of swapping contracts with one energy provider for another energy provider and working out what the value equation in that is. This is actually about creating a capacity that doesn't exist. To do that, you know, the fact that I mentioned earlier, the creation of Envusa Energy, which is our next step towards a renewable energy ecosystem. I think you have to think about this in the context of ecosystems, when you're thinking this broadly across the whole of Southern Africa, where we aim now to end up producing clean energy at a rate of 3-5 gigawatts.
That's pretty big, which will both enhance the stability of the grid in South Africa and at very least, if not add capacity to that grid, replace some of the energy on that grid with more sustainable sources of energy. We expect that this investment is going to be funded by a number of equity partners and debt financing, which would be typical, I think, for high-quality infrastructure projects of this type. The first wave of these projects is to deliver 600 megawatts, and they are almost shovel-ready. We would expect that construction would begin on those very early next year. This is actually, you know, taking the strategy and turning it into an implementation plan. First 600 megawatts to start construction next year. It's not a process.
I've said it before, and I continue to say this, and it's certainly not a process that we can do all on our own. It really does need effective collaboration and partnership across the businesses, and with government to drive the scale and magnitude of change. Our work in South Africa, I think, certainly does demonstrate this. We are working to support South Africa's NDC climate goals. Specifically, you know, these goals state the need for public-private partnerships. 18 months ago, the public policy space was very, very different in South Africa. Our ability to actually build the type of renewable capacity that we're looking at was absolutely impossible.
Through the constructive and deliberative engagement that we've had with various stakeholders, but specifically with the government of South Africa, I think we can now see the way that the landscape has changed, and it enables us to create these solutions. Not just to solve our own carbon emissions conundrum, but along with other changes in the stakeholder expectations, has now taken us to a very different place, and allows us to have these partnerships where actually we can create more change that solve not only ours, but some of our other stakeholders, particularly our communities' issues as well. Finally, on diesel, the second component of what it takes to decarbonize internally.
On diesel emissions, you've heard from us quite a few times about the work on developing a hydrogen powered truck. We announced a few months ago this non-binding agreement to bring together nuGen™ with First Mode. First Mode was our technology and engineering technology partner on nuGen™. We brought ourselves together in a new combined business. The idea here is to accelerate the development and the commercialization of this technology. That includes potentially applications beyond the scope of mining. You know, when we developed this drivetrain, it became eminently clear to us that this didn't just need to be in big trucks. There was entirely a world on rail, for example, where this could play.
Why not create an entity that would bring all of these interested parties together, allow them to co-invest, drive scale more rapidly, and then ultimately support a much greater decarbonization objective that we're pretty sure is going to benefit from the potential of this clean technology. It also means that we don't just need to do this on our balance sheet. Stephen's absolutely thrilled about that. The idea that we can get to scale much more quickly in a much more leveraged way is what we're aiming at here.
If we assume that we progress as we envisage to do at this point in time, we would expect to replace our global fleet, which is currently around about 400 trucks, starting towards the end of this decade over the following decade. That's a really rapid expansion of a technology or a technological solution that just three years ago didn't exist at all. Onto my next slide, please, before I hand over to Tony. This is just a quick snapshot view of the shape of the portfolio as it stands today. As I pointed out before, I really do believe that the vast majority of our portfolio is now what we would call future, you know, consisting of future enabling products.
Those are the metals and the minerals that are needed to enable the future that we're all aiming for as society. Our portfolio now exposes us to the major long-term demand themes, primarily cleaner, greener, more sustainable world, through a growing global population that clearly need homes, transport, food, and a decent quality of life. All of our products in this portfolio play a role in that world and in a transition to that world. With that in mind, I'm going to hand over now to Tony, who's going to take us through some of the thinking that we're developing and are working on in terms of biodiversity. Tony, with that, over to you.
Thanks, Duncan. Good afternoon, everyone. It's great to be with you. First slide, please. As we all know, our planet and its ecosystems are at a tipping point due to the pressure of climate change and the way humanity interfaces with the planet. Clearly, this includes nature and biodiversity, which are declining at an unprecedented and alarming rates, with potential for significant impacts for humanity within the next 10 years. It's really becoming very pressing. Living up to our purpose must include a strong relationship with nature and biodiversity, given its fundamental role to enabling thriving ecosystems through healthy waterways, climate change impact, wildlife and habitats.
This challenge of climate and environment impacts the communities and stakeholders that we partner with, and it refocuses our responsibility to ensure that we understand the biodiversity in the areas that we operate, our impact on it, and how we ensure that our overall biodiversity impact is ultimately net positive. We have a huge opportunity in front of us to go beyond compliance, to being able to operate and operate with purpose. Next slide, please. Approximately 65% of our sites operate in semi-arid areas. This biome is very variable. It's very difficult to measure the biodiversity. Data, historically, is erratically collected and the data itself is quite hidden and can be quite seasonal.
We're putting a lot of effort into ensuring that our understanding, if you like, of the biomes in which we operate are much better understood. One of the biggest challenges is water, and biodiversity has a role to play here, not only in the quality of the water, but clearly when you've got water in semi-arid areas, then that has a huge impact on the range of biodiversity that's living healthily. Taking water then and looking more closely at some of the work that we've been doing in this biome. In Chile and our sites in Collahuasi, we've modeled and designed new rehabilitation land forms that promote increased water retention, reduced land and soil erosion from runoff, which in turn creates a cleaner and more reliable supply of water to both the ecosystem but also the communities.
In Australia, in our Dawson mine, we use water and aquatic biodiversity features that are often missed to allow us to both improve the quality of this water, which in turn makes it more available to other users and promotes more biodiversity. We recognize that biodiversity exists at large and small scale and are excited particularly about this work that the microbes play in supporting both nature and water outcomes. In Peru, we've undertaken a wide catchment level evaluation, looking at both our Quellaveco site and its broader region, so that we have a more detailed understanding of the functionality of the whole ecosystem. This level of assessment as part of our biodiversity management program has never been done to this detail before, and included a much improved definition of the important bofedales habitat within our operational footprint, its extent, and its needs.
Our management plan focuses on more water retention in this wetland, improving wetland function, which will overall increase biodiversity in this region and improves the overall management of the catchment. Next slide, please. Water is not the only connection with biodiversity, and obviously there are others, including climate change and ecosystem functionality. Across our organization, we are already achieving positive biodiversity outcomes. It looks like we've jumped too many slides, so just go back to the other one, please. Here are a few selected examples from across the business. In Brazil, at our iron ore operations, not only have we created a significant voluntary offset area to protect key threatened regional habitats, but we've also created a new nursery that is cultivating important native species, rehabilitates relocated plants, and integrates them into habitat improvement projects across the site and the neighboring landscape.
To date, 160 native species are in cultivation and already reforested. We are also targeting and protecting the restoration of important ironstone forest habitats. A lot of the work that we're doing in Brazil is around threatened species. In Chile, we have partnered with local communities and governments to develop important local seed banks. We've increased our own and community-owned nursery capacity and integrated this into a replanting program on areas of land impacted prior to our operations on site. We have several important endemic vulnerable species in our banks that will support future rehabilitation efforts. In using eDNA in our Woodsmith project, we've identified key species that we've returned to the site area as a result of our ongoing biodiversity management plans and establishment of a new wetland.
Subsequent creation of more of this habitat has also increased biodiversity, insect populations, bats, and birds. For example, we've seen the return of the harvest mouse, a previously thought to be extinct in the North Yorkshire Moors area. We have many more examples across the business and across the diverse landscapes in which we operate, and we continue to drive innovation and set up partnerships to increase our positive impact. Next slide, please. You can see that we recognize the threat of nature loss, and helping to rebalance the system requires going beyond the business as usual or no net loss approach.
Consequently, as part of our Sustainable Mining Plan, we've committed in 2018 to deliver net positive plans to all our business, and to be actively managing them across their life and to have this in place by 2030. I think we're actually good progress in this area. We have laid out a pathway to demonstrating net biodiversity gains in the areas we operate, which started with the rollout and implementation of our biodiversity standard at the end of 2018. This defines how we measure, assess, and manage biodiversity. It's critical that biodiversity impacts are incorporated into the design principles of a mine and fully integrated with mine planning. From the source through engineering, right through the life cycle of a mine. To digress, we just took all our key operators to Peru for a technical conference.
Footprint of our business was key. It was what it was about. We particularly took the operators out into the desert and said, "What do you see?" Trying to get them to focus more on, if you like, on the areas of their business that are outside of their normal operations, to understand the biodiversity, and that's part of their business as well. We're working to understand how we can positively and proactively impact the biodiversity in the regions in which we operate, particularly in the semi-arid areas that we've referred to earlier. By end of last year, we'd completed detailed baseline assessments across 16 of our 24 operations, defining and assessing significant biodiversity features, including key habitats, key species, and important ecosystems. From this, we have developed biodiversity management programs for every site. These programs are multifaceted.
They define the key features, defines the ecosystems that can be improved or restored or further protected. Includes measurements of progress to ensure our actions are adding value. Plans are used to feed into both regional and national biodiversity programs, so we add value beyond our own site work. Although the verified baseline is 2018, we know that there have been impacts potentially on some of this land prior to this, and we're also trying to qualitatively assess this and ensure that we include, if you like, additional conservation actions that can further improve, if you like, the environment in these areas. We have an industry-leading eDNA program running at 16 sites, as I said earlier. We're using this eDNA sampling in water, soil, air, and down to the microbiome bio area to help us assess and monitor the environment.
I think the level of information that we've got has never been achieved, certainly, in our business before. What does this tell us? It tells us that what is present at a level of detail not possible before that enables a species and habitat level approach to biodiversity management. The microbial element also enables to assess overall ecosystem health and recovery. This means that we can see gain from our management approaches occurring more faster, but also where the management program could be changed. We see tools like eDNA, drone surveillance, and fine level ecosystem mapping being integral to dynamic and successful biodiversity management programs. These are in place across our sites and are being updated to ensure progress and trajectory going forward.
I think some of the challenges that we haven't quite got our head around, one is clearly urban spread and where that encroaches around our business and what that means around the whole biodiversity plans that we're developing. Clearly, we need to get a better understanding of that. I think the other challenge is actually education. Not only how our operators see the environment in the same way that they see safety, the same way that they see carbon neutrality now. How do we get them to see biodiversity and have it as a normal part of their daily operations are clearly key. I think education in the universities with technical people needs to pick this up to a much higher level. Next slide, please. Finally, we cannot do this in isolation.
That is why we've developed and continue to develop programs and projects with long-term credible partners. Those who see our work as leading in the space, as well as networking with a broad range of groups in the biodiversity and nature sector. We are leading the way in creating a new eBioAtlas to make more improved data available to drive more protection and management decision-making. We're also at the forefront of efforts to develop nature-based disclosures. We're the only mining company that is a member of the Taskforce on Nature-related Financial Disclosures or TNFD. TNFD is working towards transparent disclosure on nature-related risk at a detailed level, considering impacts, measurements, dependencies of companies on nature, and how these are being managed. It is also designed to support the development of globally adoptable frameworks for disclosure that promote biodiversity and nature integration into business decisions.
In summary, we continue our net positive impact pathway with site-owned and delivered biodiversity management plans that are being driven by FutureSmart Mining and designed into our life of asset planning. They have to be everyday business. At the same time, we continue to work with our global diversity partners to deliver and verify positive outcomes and bring the ethos of FutureSmart Mining to our nature challenges. Most importantly, we don't see our work on biodiversity and nature singularly. It is interwoven with our work on climate, water, carbon neutrality, and thriving communities. We will keep you updated as we continue our journey. Now I'd like to hand you over to Hilton Ingram. Thank you.
Thank you, Tony. As Anik mentioned earlier, I'll be talking to you about responsible mining and giving you a customer's perspective on that. I'll outline to you how FutureSmart Mining is enabling Anglo American to better meet our customers' provenance needs for their supply chains. Next slide, please. Anglo American's strategy centers around a portfolio of long life, high quality assets, world-class people united by a common purpose and innovation, where FutureSmart Mining, including our Sustainable Mining Plan, offers us in marketing a great foundation to build value for our customers and for Anglo American. There are three pillars of product, partnership, and provenance. Under product, we look to maximize the value of our quality products through effective marketing, efficient value chains, and sourcing complementary third-party products. Partnerships sees us understanding our customers' unique needs and tailoring solutions to meet them.
Provenance is assuring our customers that our products have been mined and sourced to the world's most exacting standards. Next slide, please. You see, when a customer chooses to buy from Anglo American, they're putting their reputation in our hands, and we believe that the way we safeguard our customers' reputations sets us apart from the competition. Our customers are increasingly being held accountable for the integrity and ESG credentials of their supply chains, thanks to increasing demands from consumers, shareholders, and regulators. How do customers get assurance on the sustainability credentials of their suppliers? Well, relying on regulation is no longer an option owing to different standards and different levels of enforcement globally. Auditing individual suppliers is also not an option. Many of our customers have loads of suppliers, and the audit burden on those suppliers would be untenable.
Many of our customers are increasingly turning to sustainability certification programs. Those sustainability certification programs need to be credible and include the support from customers, NGOs, and unions. Otherwise, our customers would still be at risk from legal and reputational harm. Next slide, please. Anglo American has been engaging with responsible mining standards since 2005. It all started with De Beers and the Responsible Jewellery Council in response to conflict diamonds. That raised the question for us, how do we tackle this challenge in our broader business? In 2008, we joined other mining companies, customers, and NGOs working to create a universally acceptable responsible mining standard.
That process led to the Initiative for Responsible Mining Assurance publishing a comprehensive standard for socially and environmentally responsible mining, which is widely regarded by most as the most rigorous responsible mining standard, not least because of the multi-stakeholder support that it has, including customers, NGOs, and trade unions. Now, Anglo American has long held a leadership position in IRMA, but today there are 65 mining companies engaging with it. Clear evidence that there is support for a rigorous standard with high levels of stakeholder trust. We've also continued to engage constructively with other schemes in partnership with industry peers and customers, like the ICMM's Mining Principles, Copper Mark, and Towards Sustainable Mining. Next slide, please. In recognition of the growing importance of provenance to our customers, in 2018, Anglo American committed to assuring all its operations against a recognized responsible mining standard by 2025.
We set out this commitment as one of our nine stretch goals in our Sustainable Mining Plan, and I'm pleased to say that we are well on track to meet that goal. Now, De Beers will continue to implement its well-established Responsible Jewellery Council standard, which ensures responsible practices across the entire jewelry chain from mine to retail. For our industrial metals and minerals business, our approach focuses on IRMA. By adopting the most rigorous standard, we can effectively and efficiently meet the requirements of membership standards like the ICMM and other certification schemes that our customers may offer, thereby reducing the cost and audit burden on our operations. I'm keen to stress, though, that we mine to Anglo American standards, and in most instances, our standards meet or exceed those of IRMA.
For the balance, we are looking at where we can improve our standards or where IRMA, which is in its first iteration, can achieve its objectives in other ways. Our first site to be IRMA audited was Unki, one of our smaller PGM operations based in Zimbabwe, and we're delighted to get an IRMA 75 rating there. After a break imposed by the pandemic, we've had 6 of our sites audited last year. The final results of those audits are expected in the next few months, and while we don't expect to match Unki's very strong performance at every mine, we are hopeful of some positive outcomes. Now, on the next slide, please. Our commitment to credible mining standards is further evidence of Anglo American living up to its purpose to reimagine mining to improve people's lives. It also makes economic sense.
Does it mean that we'll be able to add the mythical greenium to the bottom of an invoice? Well, I'd never say never, but I do think that's unlikely. However, we are increasingly finding that our most valuable customers are those whose values and aspirations align with our own. Those interested not only in the tangible qualities and characteristics of the commodities we sell, but more importantly, in the values and the commitments of those that mine them. This slide shows the companies that are publicly committed to IRMA. Their support creates opportunities for us in Anglo American to capture a first-mover advantage with these customers and other early adopters. It also enables us to build trust with valued customers and to leverage that trust for greater value.
You see, trusting customers are more open about opportunities to increase revenue, decrease cost, and decrease risk. All opportunities that will enable us to add value to our customers and to Anglo American. Trust is not only important to our customers, it's also clearly important to our host governments who entrust us with their precious resources and to the communities around them who afford us the opportunity to mine those resources. Finally, sustainability certification programs provide you, the investor, the ability to benchmark responsible mining credentials, to build trust, and hopefully take the right decisions. Thank you. That's all from me. I'll now hand you back to Duncan.
Thanks, Hilton. Appreciate that. Look, in summary, I guess, so we're on the last slide now. It's clear that the world that we're living in is changing at quite a rate. Not least within that world, so are society's expectations of businesses across many industries, not just the mining industry. I think that certainly what you heard from Hilton and Tony would suggest that as an organization, you know, we're very alive to the fact that these things are changing, and we want to be very adept and adroit at being able to change, you know, positively and constructively in line with these needs for society. Otherwise, how is it that we can improve people's lives?
This is very much, you know, fundamental to the strategy, and the direction of this business. I mean, we do think that given where we are today, we're well positioned to deliver into this. We've set the business up to be resilient. It is disciplined, it is opportunistic where it can be, but overarchingly, it is a responsible business. I do believe that we have the people and the assets, and the capabilities, and those capabilities that we don't have, as you heard from Tony today, we're developing pretty rapidly, to deliver these sustainable returns.
Right now, it is clear that our feet need to be firmly on the ground, as we steady ourselves for what is likely to be a pretty tough macroeconomic outlook in the near term. I want us to be absolutely ready to come out on the other side of this period even stronger than we are today, and to deliver the metals and the minerals that the world so urgently needs in the cleanest and the most socially responsible way possible. With that, Anik, I think I hand back to you so that you can moderate the Q&A session.
Thanks, Duncan. Operator, we are now ready to take calls.
Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. Once again, please press star one and one on your telephone to ask a question. As a reminder, if you wish to ask a question today, please register for the phone dial-in via the invitation sent to you or via the website. You will then receive the phone number and your personal pin to ask a question. Thank you. Once again, star one and one on your telephone to ask a question. With that, we will now go to our first caller. Please stand by. One moment, please. Your first question today comes from the line of Myles Allsop from UBS. Please go ahead.
Great. Thank you. Thank you, Duncan, Tony, and the team. Really, interesting presentation as always. I suppose one thing just thinking about this year and the performance of Anglo, there have been a whole host of operating issues, whether it's in met coal, in iron ore PGMs, copper. Maybe it's worth contextualizing kind of what's behind them. I think it's probably quite common to a lot of companies, but I guess you've made all this progress, you know, from the ESG perspective, but it doesn't feel like this year it's being visible in the operating performance being as reliable as it was sort of 12, 18 months ago. It's the first question.
Yeah. Myles, look, I pointed this out at the half year and the story really hasn't changed significantly since then. It's an extraordinary year for all sorts of reasons. Many of them related to the topic that we're discussing today, climate change and the impact that that's having on the business. There is no doubt in my mind, and we plan quite thoughtfully around cycles. Of course, you know, it rains every year in every country and therefore why can't we predict exactly what the rainfall is going to do. When we go through our planning processes, and we're in the middle of doing that now for next year, I can absolutely tell you, we have a look at the current data.
We say, "Right. That's what it's likely to be. We think this is a relevant data set, and we're gonna plan for that." We might get this wrong in a country, but by and large, you know, we get it more right than wrong. The beginning of this year, in every country that we operated in, we had excessive rainfall that took quite a lot longer to deal with in terms of our, you know, our capabilities to deal with it in the instant. Not in the medium term, but in the instant.
Then on the other side of that coin, as you know, we had really excessive levels of drought that affected the operations in Chile, which by and large, we managed to plan for, but actually were more extreme than we expected them to be. That remains true. The second element is this issue of the impact of coming out of COVID. For two years we operated the business in a way that would be inconsistent with the operating model that we have.
That was deliberately so in terms of managing access to site, managing the social distancing between employees and contractors, managing the way we operated and had to work during what was a terribly disruptive period for everybody, not just for us. I think that the consequences of some of that aligned with some of the climate issues play through into the business. Your ability to execute planned work is a function of your ability to resource the work that you plan. For two years we just didn't—I mean, there were some operations that had 50% of the people on site at the work phase as a result of dealing with conditions associated with the pandemic.
Primarily, there are a couple of overhang issues that exist within the business that we're working through. You know, I said to you that quarter two was gonna be better than quarter one, it was. Quarter three was gonna be better than quarter two, it was. We expect that trend to continue.
Great. Next year is gonna be a fantastic year, hopefully. Maybe just the
Next year will be what we plan.
Yeah. Yeah. The other kind of question is around legacy assets and how you're dealing with these. We had that tailings slide of an old De Beers mine in South Africa. How does that fit in with your broader approach to ESG? Obviously, it's very focused on current assets, but clearly there's a sort of a legacy challenge that impacts reputation as well.
You're talking about Jagersfontein, Myles?
Yes. That's right.
Yeah. Look, I think we definitely have a responsibility to ensure that when we divest assets, that those assets are responsibly divested. I mean, I don't think it's true that we can hang on to or be accountable for every single asset that we divest if we take the right process and ensure that the people that are going to operate those assets in the way that we would expect them to be operated. I think that De Beers absolutely did that with Jagersfontein. You know, more than that, I don't think there is anything that we could do.
That's different from legacy assets that we hold but don't operate anymore. There we have a direct responsibility to deal with those assets in the way that we would as if they were operating assets.
Great. Thank you.
Thank you, Myles.
Thank you.
Next question.
Thank you. We will now take our next question. One moment. Please stand by. We are now taking our next question, and the question comes from the line of Sylvain Brunet from BNP Paribas. Please go ahead. Your line is open.
Thank you. Thanks, Duncan and team. My first question is on your ESG reduction target and pathway. You've given us the ambitious target to 2030. Wondering if you had some sense, and it could be a range, it doesn't have to be an exact figure, but where you'd like the company to be at the midpoint of that, say in 2025. That's my first question. My second question is on water and obviously the bottleneck in Latin America, and I'm thinking more so about Chile in your case. Do you believe the mining industry will manage to avoid new regulation in this area? And are you engaging with the Chilean government on this? And what are the solutions that you're putting in place to avoid this?
My last question, if I may, on the S of ESG, which as we know is a lot about perception, how do you ensure that you stay on top of what communities really want? As often they get asked extensively before a project gets started and at the time of approval. But how do you ensure that these trusts and this understanding of each other remains or at its best throughout the life of a mine, please? Thanks.
Thanks, Sylvain.
Duncan, do you wanna take the first two, and I can take the third one?
Yes. Thank you, Anik. That sounds great. On the first one in terms of where we'd like to be on our progress, I think that is by and large described in that slide that I pointed out earlier, that left-hand slide of that page. That is a trajectory. It is a pathway within our existing assets that show where we hope to be from a neutrality point of view. Now, of course, you know, there are many things that that's dependent on. You know, the rate at which we are able to develop technology, the rate at which governments change some of their regulatory environments, et cetera, et cetera.
So far that is the direction of travel and so our interim milestones are internally at least measured off of that pathway. As far as water and water risk goes, particularly in Chile, this is a really big issue. I think continued reliance in any way, shape, or form on continental water in the region is going to be problematic. Therefore, you know, Tony and his team actually have been working very hard with Ruben to come up with sort of more sustainable long-range water solutions that strategically do not rely on having to swap groundwater sources around in times of emergency. We have done this.
I mean, we are very close to a complete solution, which would involve both the use of gray water and desalinated water, and that in time would see us completely eradicate our dependence on continental water as it's called in Chile. We are basically within months of starting the execution on that. Just one last point on that is that I do think industry, it behooves industry a lot to work more closely with one another in more effective partnerships. You know, the number of desalination plants that are going up in South America, particularly in Chile, are extraordinary.
Of course, it always does get complicated in the context of, you know, who's going first, what projects are dependent on what water. To be able to consolidate around combining big infrastructure projects like that, I think is probably the next step of sustainability at a macro level that we as an industry all need to work on.
Okay. Thanks, Duncan. Maybe to answer the S then, how do we know what our communities want? Well, first of all, our approach is not mine-centric, but engagement-centric. Engagement, engagement, engagement is the name of the game. From our processes point of view, if you look at one of the targets in the trusted corporate leader part of our SMP, we have local accountability forums. That ensures that we are co-creating with the community, that we don't take a paternalistic approach in thinking that we understand what they want better than they do. It is very much about engagement.
As Duncan was mentioning in our performance slide, we have our Social Way 3.0 that we're in the process of implementing. Through some of those processes, we have some ways of actually understanding some of the causes of the issues that we have. For example, through our grievance process. It's very much a mindset, a process, and a systems response to that. Operator?
Thank you.
Thank you. We will now go to our next question. Please stand by.
Your next question comes from the line of Ian Rossouw from Barclays. Please go ahead. Your line is open.
Thank you, team. Just to follow up on Sylvain's question about the Chile water situation. Duncan, you mentioned, I guess, sort of you continuously trying to improve the sort of water performance of the operation. I guess you've said that in the past. And you've, I guess, done some deals to give some more or have more water available. If we have the same droughts next year as we had this year, I mean, do you have other sort of measures you can or sort of sources you can add to Los Bronces in terms of the performance to improve production? Or can we—I guess, when can we actually expect to see a bit more sort of self-sufficiency on some of the options you're looking at? That's the first question.
Just on Quellaveco, there's been some sort of news reports over the last sort of month about, I guess sort of water license issues, I guess community or local, sort of regional mayors, that's known for anti-mining historically and, sort of questioning some of the, water licenses. Obviously, the water licenses at Quellaveco has been issued, and obviously you have the permits, but just wanted to get a sense of what exactly is going on. Seems to be a agricultural ministry, looking at a review of those licenses. Just wanna get your insights on that. And then lastly, just on the hydrogen truck in, at the Mogalakwena mine, just keen to hear how that's progressing.
Has the truck actually been sort of hauling ore around or waste, and whether you've been able to ramp up the electrolyzer and sort of producing hydrogen for that truck on site? Thanks.
Duncan, how would you like to allocate these topics? Chile water-
I'll do.
Quellaveco and hydrogen truck.
I'll do Chile and Quellaveco and if Stephen can just help me with some of the timing on the Quellaveco on the Chile story when I get there, and then Tony, if you'll take the Mogalakwena question relative to hydrogen, please. Ian, thanks for the question. You know, as you know, we spent quite a lot of time trying to swap these groundwater sources around for more sort of sustainable long-term kind of sources over the last few years. Of course we've done a lot of work with our neighbor at Andina to be sure that we're optimizing excess water, you know, water shortages between the two operations.
You know, helping to deal with some of the environmental issues that they may have in terms of their water and water quality and so on. That's all been very constructive. As we've pointed out, clearly not enough to cope with the extreme weather conditions as they happen from time to time. The integrated water solution that I mentioned when answering Sylvain's question was really around the implementation of a desalination plant, so that will take some time to get in place. That desalination plant is a relatively big desalination plant.
Actually ultimately what we will do is pump that water out with double the water that becomes available from a gray water plant facility. Probably a couple of years, and Stephen, you might be able to confirm exactly the timeline on that. I just can't remember that off the top of my head now. Just in terms of next year, if we had a similar sort of drought to this year, one, we're not predicting that this year, funnily enough, in terms of next year. Also our water stocks going into next year are significantly healthier than they were coming into this year. I did mention at the half that we'd had some precipitation.
You know, much of the water there is a function of the snow melting and there was some good snow this year. Our current water stocks in terms of our conventional sources are looking to be more robust for next year than they were at the beginning of this year. Stephen, do you have those dates?
Yeah. Thanks, Duncan. As you say, some good snowfall and water catchment this year. We'll continue with the interim arrangements in terms of supplementary sources, trucking in water, neighboring water supplies, et cetera, for the next couple of years. The Los Bronces solution will be implemented in a couple of stages. The first few stages will be some of the gray water sourcing and pipelines into site. Then the sort of second stage will be some of the desal plant, which will provide clean water as you suggest. It's another 2-3 years by the time those phases are fully implemented.
Thanks, Stephen. On Quellaveco, we absolutely do have all of our water licenses. All the processes that we followed in terms of acquiring those water licenses were the legislative processes that were in place at the time that they were acquired. The consultation was absolutely done in accordance with the way that we do those. Not as per how they are minimally described in legislation, but our own view as Anik mentioned earlier in terms of what an effective dialogue with stakeholders takes. All of that said, it is true that there were commentaries and questions about whether in the first instance these processes were followed appropriately, and I think it has subsequently been determined that it has.
Whether the impact of these processes were effectively analyzed, and I believe that they have been. I think this is the nature of any democratic society where they live in areas that are meaningfully affected by industrial development of any way, shape, or form. That these questions will come up from time to time. What we need to do is continue to engage, as Anik said. We continue to ensure that what we're doing is right and we're doing it the right way. At this point in time, there is absolutely no threat to Quellaveco or its licenses.
Okay.
Tony.
Before Tony answers the one on the hydrogen truck. I mean, it seems like just reading some of those press articles around sort of saying you, it's a 22 million cubic meter license. I mean, obviously, I guess from the site visit I recall, you're only gonna use four of it, and then the rest will be released to the community, I guess. So the community actually benefits from that. So there seems like the right message doesn't get to the right sort of those people in the community that seem to be complaining. Is that?
No. Again, I mean. You know, I mean, first of all, I think it's like a few more communities are homogeneous and that one community is the same as another community in any way, shape, or form. Absolutely. I mean, the issue that arose here actually comes from a community that's in a completely different valley from the one that we operate in. Very, very complex set of equations that are at play, which is why I'm very confident that the process that we followed was robust and the technical solution is very, very robust.
Okay. Thanks, Duncan.
Maybe Duncan, if I add, we also had very good support from the regional governors of the valley where we operate. Many government officials have gone on record supporting our licenses. It's unlikely. It is noise, but it's unlikely to result in anything at this point. Tony, do you wanna go to the?
Tony.
Yeah. On the hydrogen truck, was undergoing trials last week, fully loaded, including tipping in the crusher. They all went well. No. The whole development program is going quite well. On the hydrogen side, we've been to market on commercials for gas, but we also need to explore, the commercials around going liquid, and we're currently preparing to go that. At this point, there's no further expansion of the electrolyzer. It's not critical past this point, but we need to clearly sort out the commercials for supply, in the next six months. The liquid investigation is more around range. We take away one of the, issues that we have been wrestling with is just the number of refueling stops, you know, over a day.
If you go liquid, then clearly that solves for that. We're not going well at this point.
Thank you.
Operator, next question, please.
Thank you. As a reminder, if you would like to ask a question, please press star one and one on your telephone and wait for your name to be announced. That is star one and one if you'd like to ask a question. As a reminder, if you wish to ask a question today, please register for the phone dial-in via the invitation sent to you or via the website. You will then receive the phone number and your personal pin to ask a question. Thank you. With that, I will now go to your next question. Please stand by. Your next question comes from the line of Danielle Chigumura from Credit Suisse. Please go ahead. Your line is open.
Thanks. Good afternoon, and thanks for the presentation. Three questions, if I may. Firstly, I found Hilton's comments on the lack of a likelihood for a greenium pretty interesting. What is driving this view? Is it to do with how nascent the standards are or how small those customers are as a percentage of metal demand or something else? Secondly, in terms of biodiversity, Tony already spoke to some of the challenges around measurements. How will you measure overall whether the net impact on biodiversity is positive versus 2018? Will like the eDNA, which is supposed to enable Anglo to adopt some kind of nature data based natural capital accounting? What kind of timeframe should we be thinking about that being kind of disclosed to the market in terms of the data that we all love?
Finally on Envusa. For the 600 MW of projects which are almost shovel-ready, what's the financing agreement in place for those projects?
Okay, let's start. Thanks, Danielle. Let's start with the greenium question with Hilton.
Yeah. Look, Danielle, thanks for the question. Look, I think when you talk to customers, you'll find that there's a bit of a reluctance to pay for what they think people should be doing anyway. Their perspective is that we should be doing the right thing, and us signing up to IRMA and other sort of certification standards is clear demonstration of that. That said, we are seeing increasing requests for these certification standards to be added to contracts by our customers, and clearly giving us an opportunity, because we're an early adopter, to create additional value by engaging with those customers. You know, some days you can say that not having your competitors in the room is priceless.
there's other ways for us to be able to get value, but not necessarily just as a distinct premium you can add to the bottom of an invoice.
Okay. Thank you, Hilton. Tony, do you want to respond to the measurement on biodiversity? Then Stephen, I'm gonna be coming to you after for the Envusa response.
Yeah, thanks. Danielle, that's a good question because clearly, measuring biodiversity change is somewhat subjective and there will be species change, so how do you rank the different species relevant to each other? At this point, we don't have the answer to that. Clearly we're going to have really good data, but I think it's going to take, in my sense, I would think 3-5 years, if I'm really honest, for a methodology to be really sorted out that everybody's happy with in this space. Maybe the TNFD and the sources through that will help in that. At this point, I actually think it's a question that's still to be solved.
Yeah.
Okay.
Thank you.
Can I take the Envusa one?
Thanks, Tony. Stephen? Yeah.
Yeah. Danielle, these projects are all quite typical of infrastructure energy projects and will be funded with that usual mix of equity and debt for infrastructure type projects, so often around that 20% equity, 80% debt mark. We're still just finalizing the power purchase agreements that sit behind that, which will help determine the funding structures, work in progress. Our equity contribution will be relatively modest as it works its way through those mathematics and equation for that first 600 MW, our equity contribution will be well south of $100 million over that next sort of two to three -year period as those projects get built out. The majority of them are in Envusa, and obviously one, a partnership with EDFR, their renewable arm in Mogalakwena.
Really, really comfortable how those projects will sit. Funding arrangements being finalized and worked on as we speak. There'll be no major surprises there. They'll largely be, as I say, E&C infrastructure funded, with partners, community partners, and bank counterparties, with largely offtake type arrangements for us as the customer.
Okay. Thank you, Stephen. I think we have one more question, operator.
Thank you. We'll now take the next question. One moment, please. The question comes from Myles Allsop from UBS. Please go ahead.
Oh, great. Thank you. I just wanted to follow up on nuGen™ and can you give us a sense as to how much you've invested in these new hydrogen trucks? You know, what that, you know, what the value is? Because clearly it's a huge opportunity, you know, above and beyond, sort of just Anglo American and, you know, how, you know, what's the timescale to monetize on this investment, the progress you've made so far?
Tony and Stephen, how do you wanna do this?
Go ahead, Stephen.
Go ahead. Go ahead, Duncan.
Yeah, Stephen.
Okay.
Thanks, Tony. So far with all the work we've done, we've invested, I believe the number is less than $200 million. We'll probably look to invest a similar amount over the next couple of years. Obviously Duncan mentioned we're looking at finalizing the MoU announcement that we had with First Mode. Assuming that gets completed, that then enables us to potentially attract other investors in that vehicle, look at both accelerating the rollout of trucks both to ourselves and potentially to the broader industry, even potentially enables us to look at deployments of the same technology into other businesses and industries. You know, we think that is a potentially very valuable path forward.
It does depend on a lot of hard work, a lot of work on technology and rolling out, you know, what is a very new technology that we didn't see in the market, and so we felt we needed to help seed fund that opportunity.
It is a good example potentially over time and, you know, we wouldn't monetize this anytime soon, I don't think, Myles. It's a great example where what you view as potentially a cost in the early stages can become potentially an investment and interest in a very valuable company going forward. When you're prepared to take a leadership position in some of these sorts of initiatives and, you know, full credit to Tony and the T&S team here, it can change the equation from being a cost within the business to potentially being value-enhancing to the business, and it may even become a potentially valuable business in its own right.
Often you probably have heard me talk about how you need to change your view sometimes over time on cost versus value, and this potentially is a great example of that.
Great. Thanks.
Very, very integrated to the energy solutions that we're talking about. I think we've mentioned to you before, Myles, that the rejigging of our energy supply agreements in South America was deeply NPV accretive when at the time that we started that, it just felt like it was going to be a big cost. The role that we're playing in terms of this integrated energy ecosystem that we're looking to develop in Southern Africa is very, very NPV accretive.
You know, if you add that all together with the diesel emissions solution, you know, these are potentially, as Stephen said, very, very good for the business from a value accretion point of view, but also potentially businesses in their own right, at some point in time.
Yeah. Thank you.
Thanks, Duncan. I believe we have time to sneak in just one last one.
Thank you. We will now take the last one. Please stand by. The question comes from the line of Danielle Chigumura from Credit Suisse. Please go ahead.
Thanks. Thanks for the follow-up. Just following up on the emissions flight path. I think I heard Duncan said, and I'm sure you'll correct me if I'm wrong, but I think I heard him say there'll be additional emissions from increased production from Quellaveco and met coal. That doesn't seem to be reflected in the flight path that you disclose. How do I square the circle for that?
We will add and take away as assets come and go from the portfolio. That flight path was designed at the time of the assets that we had in the portfolio. The point that I was making is despite the fact that we've added Quellaveco, we're still doing really well, but we would have to adjust the baseline for assets that we add and assets that we subtract from the portfolio over time. Every time we do that, we'll let you know. We haven't done that yet. That flight path is the one that we published, was it two years ago, Anik? Before we had Quellaveco on stream.
Yep. Okay. Mr. Wanblad, for you to wrap up.
I think, thank you very much, everybody, for your attendance and thank you for your interest and questions. I mean, this is a very, very fast-moving space. You know, there are rules that haven't been written here. You know, Danielle's question about, you know, how do we measure this? How do we know that this is progressing? Great question. You know, what I want to be absolutely sure is that we are committed to changing this environment and getting us into a point or into a position where it is clear that the change has been positive, meaningful, and at very least, we can measure our own progress in the direction of all of this.
As we've seen in terms of all the work that we've done on greenhouse gases, on Scope 1 and Scope 2, you know, we have a voice in the industry. We'll continue to exercise that voice. As the industry progresses, I think things will become way more transparent and our ability to measure performance is going to become better and better and better. The fact that we are thinking about some of these things well ahead of where the current thinking is shouldn't be a negative. It's absolutely a positive. I mean, how we measure biodiversity is a real head-scratcher at this point in time. We had a very long debate and conversation about this in Peru a few weeks ago.
Absolutely, just because there isn't a way to measure it today doesn't mean that this isn't going to be the most important thing that we need to be working on from a sustainability point of view. That's just how we think about these things. Thank you again, everybody, for your participation and the questions and see you soon.