How has 2024 been for Thorn Associates in terms of growth and performance?

2024 has been busy and rewarding for us at Thorn Associates. We received the 2025 Canada’s Clean50 award, which acknowledges our national impact on sustainability, being recognized for our work in developing decarbonization roadmaps.

We have been working with clients on Scope 3 greenhouse gas emission assessments. We are observing clients advance in their Scope 3 maturity, guided by the International Council on Mining and Metals’ framework. Climate risk assessment is now moving toward quantitative risk evaluations, with financial values assigned to potential risks. Additionally, we are running training programs for industry, collaborating with the Canadian Institute for Energy Training. This training covers topics like carbon pricing, renewable energy credits, and Ontario’s new energy and emissions regulations. Can you explain the new International Financial Reporting Standards?

The new International Financial Reporting Standards (IFRS) cover general sustainability and climate-related disclosures. Although they are finalized globally, they are not mandatory in Canada yet. The Canadian Securities Administration (CSA) will decide when they will apply to publicly traded companies here. Currently, Canada’s sustainability disclosure standards are in draft, closely aligned with the IFRS standards but offering temporary relief for Scope 3 emissions.

Compared to Europe, Canada is behind in sustainability disclosures. The US finalized its SEC climate rules in 2024, but legal challenges have delayed enforcement, and their rules exclude Scope 3 emissions. What common qualities do your most ambitious clients with strong climate and sustainability goals share?

First and foremost, they have strong support from the C-suite, which is essential. Buy-in from the top sets the foundation for everything else. Secondly, they are well-staffed, meaning they employ an entire sustainability team. In mining, you need a team of individuals who are focused not only on compliance but also on advancing sustainability initiatives. Lastly, successful companies either hire individuals with a strong environmental background or train existing staff on sustainability and climate specifics. This ensures the team truly understands the nuances and importance of sustainability. What initial steps should large companies take to reduce Scope 3 emissions?

The first step to effectively reduce Scope 3 emissions is measurement. Companies should start with a high-level screening to pinpoint emissions hotspots without committing to a detailed inventory initially. This allows them to identify major sources of emissions more efficiently.

From there, companies can focus on primary suppliers within key Scope 3 categories. Companies can further consider options like switching to lower-emission suppliers where feasible. Additionally, there are “quick wins” that can make an immediate impact. For example, implementing policies for carbon offsets on business flights or encouraging train travel where possible. What upcoming developments do you foresee for Thorn Associates over the next few years?

The mandatory standards in Canada will push all companies to comply with the new regulations. One of the primary growth areas I see is in land-use emissions. Canada has recently updated its land-use emissions projections, and this is essential since a significant portion of emissions in mining comes from land use. For example, one exploration-phase company issued its first ESG report, covering only Scope 1 and 2 emissions. About 95% of their Scope 1 and 2 emissions were from land use changes. This underscores the complexity and importance of accurately accounting for land-use emissions in the industry. How do you view the impact of EU legislation?

European legislation like the Carbon Border Adjustment Mechanism and the new European Sustainability Reporting Standards are having a global impact beyond Europe. As more companies, particularly those with European operations, adopt these standards, we are seeing momentum build on a global scale. We have historically focused on Canadian-based companies, but as we grow, Europe represents a new and strategic opportunity for us to explore. Do you have a final message for mining companies?

I encourage mining companies to stay committed to their GHG reduction targets, even though M&A activity can complicate these goals. It is vital to maintain a well-funded decarbonization budget and ensure that climate considerations are embedded across the entire business. This should not just be limited to the environmental department; it should influence strategic areas like exploration and investment decisions.