Climate-Related Opportunities and Risks

Cameco’s board and management understand that our responses to the changing dynamics of climate-related opportunities and risks are central to long-term sustainability and value for all of Cameco’s stakeholders.

We integrate climate-related topics into our governance, strategy and risk management processes, recognizing that climate change is an important and complex business and strategic matter. Cameco is firmly committed to being an active partner in addressing climate change.

Our responses to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) are detailed in our 2020 ESG Report

Climate-related opportunities

Our role in the energy transition

By 2040, the International Energy Agency (IEA) projects that global electricity demand will increase by about 49% from 2019 levels. At the same time, concerns about air pollution and climate change are driving demand for zero emission electricity sources.

Backed by more than three decades of safe performance, Cameco is poised to be an important part of this clean energy transition.

Uranium is unparalleled in clean power generation:

  • Nuclear reactors emit no GHGs during operation.
  • On a life cycle basis, nuclear power emits just a few grams of CO2 equivalent per kWh of electricity produced, similar levels as renewables like wind and solar.
  • Uranium is so energy dense, the amount Cameco sold in 2020 has the potential to generate about 484,000 GWh of electricity. For context, generating that amount of electricity with nuclear compared to coal-fired power would be equivalent to taking more than 137 million cars off the road for one year, which would eliminate about 449 million tonnes of CO2e from being emitted.

The IEA has warned that a decrease in nuclear power as part of the energy mix by 2040 would have two significant implications:

  • The energy transition would require $1.6 trillion of additional investment over the next two decades.
  • A major clean energy shortfall would emerge by 2040.

Nuclear power is a key contributor to all the strategies needed to meet society’s decarbonization goals:

  • As we increase variable renewable generation from wind and solar, we need reliable zero emission baseload power to keep the grid stable and performing well through seasonal variations.
  • Not every form of zero emission energy (solar, wind or hydro for example) can be moved where it’s needed. Uranium fuel has safely been transported around the world for decades.
  • Nuclear power generation is one of the safest energy technologies and has one of the lowest rates of fatalities and injuries per unit of generated electricity.

At Cameco, we believe nuclear power must be an essential part of the energy transition and we are uniquely positioned to support zero emissions and reliable nuclear power growth. We believe our tier-one reserves and fuel services business can safely provide the uranium fuel the world needs as we continue to decarbonize our future.

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Our role in the energy transition Transition-related opportunities

Climate-related risks

To support business continuity, we take measures to address two types of climate-related risks:

  1. Physical risks (to the business) which could be created by acute (flooding, wildfires and other extreme weather events) or chronic (long term) changes in the climate.
  2. Transition-related risks which could be related to the transition to a low-carbon economy, such as GHG regulation and pricing, exclusion to green taxonomies, technology risks and reputational/market risks.

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How we address climate-related risks