Reducing Greenhouse Gas Emissions and Financial Performance of Mining Companies

Running head: THE REDUCTION OF GREENHOUSE GASES REDUCTION BY MINING
COMPANY AND INCREASING PRODUCTIVITY 1
The reduction of greenhouse gases reduction by mining company and increasing
productivity
Name
Date

Running head: THE REDUCTION OF GREENHOUSE GASES REDUCTION BY MINING
COMPANY AND INCREASING PRODUCTIVITY 2
Table of Contents
Introduction.................................................................................................................................................3
Background..................................................................................................................................................3
Aims and Objectives..........................................................................................................................4
Research Questions...........................................................................................................................4
Problem Statement...........................................................................................................................5
Significance of the research...............................................................................................................5
Literature Review........................................................................................................................................5
Research methodology......................................................................................................................8
Research Approach............................................................................................................................8
Research Design and Type.................................................................................................................8
Data Collection..................................................................................................................................9
Analysis of Data.................................................................................................................................9
Ethical Issues.....................................................................................................................................9
Statistical calculations..................................................................................................................................9
One way ANOVA..............................................................................................................................10
Graphical Analysis............................................................................................................................11
Discussion of the Findings..........................................................................................................................13
Conclusions................................................................................................................................................13
Recommendations...........................................................................................................................14
Limitations of Findings.....................................................................................................................14
References.................................................................................................................................................15

Running head: THE REDUCTION OF GREENHOUSE GASES REDUCTION BY MINING
COMPANY AND INCREASING PRODUCTIVITY 3
Introduction
The advent of global warming, climate change and the depletion of the protective ozone
layer have led to increased concerns over the environment, and especially the role of humans and
specifically, organizations in contributing to greenhouse gases emissions and how these
emissions can be reduced (Andersen & Sarma, 2012). With the business environment becoming
increasingly competitive and with shareholders demanding more returns while executives have
to generate more returns with fewer resources; firms are pressed on how they can achieve both
objectives while also undertaking the corporate social responsibilities (CSR), including lowering
greenhouse emissions. CSR has become such an important factor, that firms that actively engage
in, and transparently report their CSR activities get positive perceptions from the public, and this
has been shown to have a positive correlation with their financial performance (Galant & Cadez,
2017).
Background
Mining and resource extraction is among the largest sectors and most important economic
activities for the country and its economy; it is a significant primary industry which has over the
years encouraged a rush of immigrants into the country. Australia boasts large mineral and other
natural resource deposits, which include iron ore where Australia was the second largest global
supplier at the end of 2015, coming only second to China with 824 million tons supplied; this
constitutes 25% of the global output. Nickel is another mineral found in large quantities with 9%
of global output, Aluminum (29% of global output), Copper (5th largest producer), Gold (2nd
largest global producer), Silver (6% of global output), Uranium (11% of global output), Diamond
(3rd largest global producer), Opal (95% of global production), Zinc (2nd largest global producer),
Coals (largest global exporter), Oil shale (6th largest global reserves), petroleum, natural gas (3rd
largest global producer), and silica ('Minerals UK', 2018). For Australia, the largest source of
energy is coal with 73% of the total electricity generated in Australia coming from coal (Reichl,
Schatz & Zsak, 2015).

Running head: THE REDUCTION OF GREENHOUSE GASES REDUCTION BY MINING
COMPANY AND INCREASING PRODUCTIVITY 4
This means that firms in Australia generate a lot of greenhouse gas emissions as a result
of over reliance on coal as the primary source of energy (Kelly & Iverach, 2016; Slezak, 2017).
Among the largest mining companies in Australia, which are also major global mining firms,
include BHP and Rio Tinto. BHP is based in Melbourne, Australia, and had revenues of some $
38.3 billion in 2017, while RioTinto, based in London UK, but with considerable operations in
Australia, posted revenues of some $ 40 billion in the same period. BHP is among the top 20 of
the largest greenhouse producing companies (Hamman, 2013); two thirds of all greenhouse
emissions in the world are accounted for by some 90 companies with BHP and Rio Tinto being
among the major producers, emitting 914 billion tons of carbon Dioxide. BHP is the largest
mining company in the world is the 19th largest producer, while Tinto rank at position 34 among
the top emitters of greenhouse gases (Ker & Hannam, 2013; Goldenberg, 2013). While the
effects of CSR disclosures have been shown to improve financial performance, it is important
that the effect of reduced greenhouse emissions have on financial performance (Platonova,
Asutay, Dixon & Mohammad, 2016). This paper seeks to determine, using a correlation analysis,
the effect of reduced greenhouse emissions on the financial performance of mining companies,
with BHP and Rio Tinto used. The paper defines the objectives and research questions after this
brief introduction, followed by a statement of the problem. The significance of the research is the
discussed followed by an extensive literature review; this is followed by a discussion of the
research methodology, data collection and analysis. The results of the research are then discussed
and conclusions and recommendations made, taking into account ethical issues and discussing
the limitations of the research.
Aims and Objectives
 To undertake an evaluation of the correlation between greenhouse gas emissions
reduction and financial performance of companies in the mining sector
 To discuss the findings and make recommendations that other firms can use