Strategic Reforestation as a Greenhouse Gas Mitigation Tactic: A Case Study for the Mining Industry

Abstract

Mining companies that operate in economically, politically, socially, and environmentally sensitive environments are particularly susceptible to climate change risk, as their social impacts can adversely affect corporate reputation and financing. In response to stakeholder concern, mining companies are increasingly developing climate change risk mitigation strategies, including net greenhouse gas emission (GHG) reduction. Strategic reforestation provides an opportunity for mining companies to reduce the social damages of operational GHG emissions while providing environmental and reputational co-benefits. This case study demonstrates use of a model framework to estimate the carbon sequestration value and social benefit of multiple reforestation alternatives, and the extent to which they reduce operational damages. This framework is intended as a tool to supplement a broader climate change risk mitigation strategy.