Exxaro announced that it has improved its Carbon Disclosure Leadership Index (CDLI) score from 97 to 98 over the previous reporting period.
The Carbon Disclosure Project (CDP) request information on how companies measure and disclose what climate change means for their business, is sent to the top 100 companies listed on the JSE on behalf of more than 600 institutional investors.
This was South Africa’s eighth annual response, and Exxaro’s seventh.
Transparency and data management
Corporate performance is measured across two indices. The CDLI measures transparency and data management with regards to the emission of greenhouse gases amongst those companies responding to the CDP.
The CPLI also assesses how companies incorporate emissions reductions into their strategies and meet their emissions reduction targets.
Exxaro scored a B in this category – the same as in 2012 and 2013, reported the company on Thursday.
Carbon management strategy
“The CDP has created the framework around which to build strategies for carbon management, which is what stakeholders expect,” commented Exxaro executive head: strategy and corporate affairs, Mzila Mthenjane.
“Our participation in, and assessments by, the CDP over the last seven years have contributed to our placement in investment indices like the Nedbank Green Index and the S&P Dow Jones Sustainability Index,” he added.
Exxaro’s emission targets
He says the CDP has been very important in communicating Exxaro’s thinking and focus on energy management, emission and energy efficiency targets.
Exxaro is addressing three imperatives simultaneously in its drive to become carbon neutral and thrive in a low-carbon economy.
These are energy security, economic productivity and socio-environmental impact. In 2012, this led to Exxaro’s establishment of an energy supply company to feed the national grid and third-party customers, the company stated.
A joint venture with Tata Power of India, Cennergi focuses on cleaner power production to contribute to lowering carbon emissions and position South Africa to proactively drive sustainability.
Exxaro said it is actively involved in industry forums and policy groups aimed at assisting government in the formulation of energy policy.
Mthenjane says the company is committed to improving its score in the leadership index and that a reduction in overall greenhouse gas emissions remains a priority.