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Barrick Gold CEO says plans for reducing carbon emissions are good news for business

Barrick Gold CEO says plans for reducing carbon emissions are good news for business

CNBC’s Jim Cramer heard Friday from Mark Bristow, CEO of Barrick Gold, that the company’s plans for reducing greenhouse gas emissions will bring financial benefits to the company as well as positive environmental impacts.

According to Barrick’s latest sustainability report, the gold miner intends to reduce its emissions by 30% by 2030 compared to 2018. It has a net zero goal by 2050.

“We’re not just reducing our gas emissions to be compliant. It’s good to business,” Bristow said during an interview on “Mad Money.”

Bristow explained that Barrick has set a 15% internal rate for return as part its strategy to reach its 30% reduction goal. It’s also known as the Internal Rate of Return, which is a financial metric that companies can use in determining whether a project is worth investing in.

Barrick will reduce its use of fossil fuels in its operations to be less vulnerable to fluctuations in oil and natural gas prices. Both have risen over the past 12 month.

Bristow spoke of the benefits of emissions-cutting programs, saying that “it’s giving us an return.” “It will reduce the cost and make it less dependent on hydrocarbons.

Cramer, for example, asked Bristow whether investors should be concerned that rising natural gas and oil prices might lower the company’s total return. Bristow replied: “Yes.” There is a short-term impact.

Bristow also reminded investors that higher commodity prices are also good for the company in other ways. He stated, “Remember that the gold price is going to rise for the same reason.”

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