Mining head calls ‘net’ in net zero a ‘weasel word’

Fortescue chair wants companies to focus on ‘real zero’ as he explains $6.2bn plan to transform business

The chair of Fortescue Metals Group has described the ‘net’ in ‘net zero’ as a “weasel word”.

Speaking at a conference hosted by the Economist on Tuesday, Andrew Forrest dismissed the concept of net-zero emissions as an “out-clause” introduced by the oil and gas sector.

The billionaire, who founded the Australian mining firm in 2003, said the term was also loved by bankers, financiers and middlemen, despite the fact it “doesn’t do anything”.

He called on the private sector to focus on achieving “real zero” – meaning the absolute decarbonisation of companies’ business operations, rather than direct emissions reductions combined with the purchase of carbon offsets.

Fortescue, which emits 2.4 million tonnes of carbon annually, has committed to eliminating the use of fossil fuels and achieving zero Scope 1 and 2 emissions by the end of the decade.

It also claims to be the only heavy emitter in the world to have stopped purchasing offsets.

Forrest said Fortescue will focus on electrifying its business activities and using green hydrogen, in a transition it estimates will cost $6.2bn.

He acknowledged the bill was “not chopped liver” but said it would be partly paid by the $1.2bn the firm will save on fossil fuels.

“We haven’t just saved that $1.2bn, we have a huge green energy company which is going to serve our shareholders and other companies for generations paid off,” he said.

The transition at Fortescue is non-negotiable, Forrest continued.

“Each one of the chief operators of those control rooms know I am walking into their centres in 2029 and saying ‘show me your energy circuits’, and if any of those energy circuits have oil and gas going into them, I am going to switch off those control rooms.”