What is driving Thorn Associates' growth trajectory?

Thorn Associates is exclusively focused on decarbonization, and we have been fortunate that many of our customers refer us to new customers. This has led us to achieve more than 100% revenue growth for the last three years, which coincided with the rise of decarbonization as a top priority for mining executives. We have been expanding our business into new areas as energy and climate opportunities grow, and we have done several task forces on climate related financial disclosure (TCFD) reports and reviews for mining clients as the market continues to evolve. Thorn Associates’ mission is to help mining companies reduce their greenhouse gas emissions, which we believe is the existential crisis that humanity needs to solve this century. In collaboration with our mining clients, we have already helped them implement over US$100 million in energy cost savings, while also reducing carbon emissions by over 500,000 tonnes. You said previously that you would like to see greenhouse gas data reporting be treated similarly to financial reporting data. Has there been progress on this front?

There is definitely still a lot of qualitative reporting, and the hard core quantitative financial impacts are still missing in many cases. However, there has been substantial progress in the number of mining companies who are reporting to the TCFD, and the ones who have done that previously are getting more sophisticated. What are some of the ways mining companies can achieve more sustainable production?

In general, a mining company’s carbon footprint is made up of two key elements: electricity-related emissions, and diesel emissions related to fleets. Companies can therefore look at different types of renewable power (e.g solar, wind, or hydro) with energy storage, alternative fuels (e.g. renewable diesel), and technologies such as battery electric vehicles, trolley assist, and hydrogen fuel cell vehicles to have more sustainable production. What is your opinion on carbon credits?

There is definitely a role for carbon credits in the energy transition, but you have to be careful. The role is either at the end, or in addition to meeting your targets. When I say at the end, the Science Based Targets Initiative (SBTI), which is the global gold standard when it comes to setting credible GHG reduction targets, requires that you only use carbon offsets for residual emissions, and that would be only 5% to 10% of the very last emissions that you are trying to abate. You need to first focus on reducing your scope one and two emissions. Otherwise, if you wanted to do carbon offsets now, there is a place for that outside of your GHG reduction targets. You might have some co-benefits such as improved biodiversity and improved community relations from a social perspective, but they should not be counted towards the carbon reduction for your target. Is the industry moving in the right direction with respect to lowering carbon emissions, and to what extent does having a strong ESG profile benefit firms when it comes to obtaining financing?

Today, most major and mid-tier mining companies have targets, and are working a plan to move it forward, but the targets are still not ambitious enough, and industry needs to accelerate and do more, faster.

Investors are pushing miners to do things faster as companies with significant ESG targets and initiatives can more easily obtain financing. Moving forward, I believe we will see more sustainability backed bonds, such as what we saw with Newmont when they got preferential terms based on hitting certain ESG metrics. TCFD is also going to become mandatory, and there will be enhanced scrutiny on GHG inventory numbers. Companies will need to have those verified by a third party, and financing will more increasingly be linked to ESG. We led, in collaboration with Yamana Gold, their 2021 inaugural climate change strategy, and they now have been the subject of a bidding war between Gold Fields and Pan American Silver & Agnico Eagle. It is public knowledge that one of the great things about Yamana Gold is their GHG profile currently and going into the future.