Anglo American aims to halve indirect greenhouse gas emissions by 2040

(Reuters) -Anglo American aims to halve its indirect greenhouse gas emissions by 2040, the miner said on Friday, as it bolsters renewable electricity supply in South America and explores ways to better access metals and minerals.

The company said a reduction of Scope 3 emissions, or greenhouse gases (GHG) from a product or service that are released further along the value chain, depends on steel sector cuts in carbon emissions and supportive global policies.

"Through innovative technologies and practices, we can be more targeted in accessing those metals and minerals, use less water and energy and, crucially, generate fewer GHG emissions," Chief Executive Mark Cutifani said.

The miner said it was working to cut emissions in its supply chain and logistics, particularly in shipping.

Anglo American aims for Scope 1 and 2 emissions, produced directly by its activities and energy use, to be carbon neutral by 2040.

Last year just over a third of the electricity Anglo American used globally was from renewable sources, and the miner said it expected to draw 56% of its grid supply from renewables by 2023.

Anglo American has secured 100% renewable electricity supply for its operations across Brazil, Chile, and Peru, it added.

It also aims to replace diesel-powered mine trucks with hydrogen fuel-cell and battery trucks. Haul trucks contribute up to 80% of diesel emissions at the company's mines, it said.

(Reporting by Yadarisa Shabong in Bengaluru and Helen Reid in Johannesburg; Editing by Vinay Dwivedi and Clarence Fernandez)