Behind Anglo American's Value Chain Risk Mitigation Strategy

Anglo American is expanding its environmental monitoring capabilities beyond traditional mining operations, deploying advanced technologies and strategic partnerships to address nature-related risks throughout its supply chain.

The global mining company, which focuses on the responsible production of copper, premium iron ore and crop nutrients, is pioneering approaches that could reshape how extractive industries manage ecological impacts across complex procurement and distribution networks.

The company has begun piloting new methods to understand, prioritise and influence change in areas where it does not hold direct operational control. This supply chain-focused strategy includes an upstream assessment of mining tyre procurement and a downstream initiative at Saldanha Bay using environmental DNA monitoring.

Upstream supply chain assessment

Mining tyres represent a critical supply chain input, but their production depends on natural rubber sourcing, which has been linked to deforestation, biodiversity loss and social impacts in tropical regions. To better understand these risks, Anglo American conducted a detailed pilot assessment of its tyre supply chain, with particular focus on natural rubber sourcing linked to Michelin.

Using the Taskforce on Nature-related Financial Disclosures (TNFD) framework, the company followed the LEAP process (Locate, Evaluate, Assess, Prepare). By combining global datasets with tools including the WWF Biodiversity Risk Filter, ENCORE, IBAT and Global Forest Watch, Anglo American mapped priority suppliers and identified high-risk sourcing regions, including rubber plantations in Indonesia.

The assessment revealed dependencies on ecosystem services such as soil fertility and water regulation, alongside significant risks related to deforestation, habitat loss and impacts on threatened species and local livelihoods. These nature-related risks could manifest as supply disruptions, volatile pricing, regulatory challenges and reputational damage.

Anglo American has used this data to engage directly with suppliers to secure commitments on zero deforestation and ecosystem restoration, explore systemic solutions such as circular recycling programmes and alternative materials, and invest in landscape-scale nature-based initiatives.

Downstream monitoring innovation

At Saldanha Bay, Anglo American has deployed environmental DNA (eDNA) monitoring to track biodiversity in marine environments affected by shipping and port activities. In contrast to traditional marine surveys, eDNA monitoring offers a non-invasive method to track biodiversity by analysing genetic material found in seawater, enabling identification of species from sensitive local populations to potential invasive threats.

The eDNA data establishes a biodiversity baseline and acts as an early-warning system for shifts in species composition, detection of non-native species introduced via global shipping, and informed dialogue with port authorities, logistics partners and customers.

The focus is not on attributing impact to a single actor, but on improving collective understanding of ecosystem condition and shared dependencies on healthy marine systems.

In partnership with the Saldanha Bay Water Quality Trust, this ongoing monitoring guides conservation actions and ensures transparency across the value chain.

All sustainability, net zero and sustainable procurement leaders should attend:

• Procurement & Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement & Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CPOs, CSCO, CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Value chain resilience

These initiatives are driven by recognition that nature-related risks are systemic and cumulative across the entire product lifecycle. By engaging across the full value chain, Anglo American has moved toward anticipating vulnerabilities earlier in the cycle and influencing positive change beyond direct operational control.

Duncan Wanblad, Chief Executive Officer at Anglo American, says: "Our Sustainability Strategy is based on what we firmly believe to be the right thing to do over the long term for our company and our people, local communities, host governments and of course our investors."

This approach aligns with emerging frameworks like TNFD, which require companies to account for broader impacts and dependencies on the natural world. By partnering with suppliers, customers and stakeholders, the company could address root drivers of nature loss rather than treating symptoms of environmental decline.

The integration of upstream and downstream monitoring creates a comprehensive view of nature-related risks and opportunities across the mining value chain. This holistic approach enables Anglo American to identify interconnected challenges and develop coordinated responses that strengthen both ecological outcomes and business resilience.