by Lauren Hermanus
The South African Carbon Disclosure Project (CDP) Report was launched on Thursday 11 November, the culmination of weeks of data collecting from the 74 responding companies, coordination by the National Business Initiative (NBI) and analysis and administration by the Incite team.
Companies eagerly anticipated their rankings, which were announced amid presentations from our new minister of Environmental Affairs, Edna Molewa, Jon Hanks of Incite, Sue Howells – head of global operations for the CDP, and representatives from the NBI, lead sponsor KPMG and from Exxaro.
The CDP report is published on behalf of 534 investors with assets of US$64 trillion. The primary aim of this reporting process is to encourage listed companies to be accountable for their carbon footprints and to share climate change mitigation and adaptation best practice through disclosure of carbon emissions and related responses.
As all efforts are directed at disclosure and accountability, we were pleased to note both the high rate of response and that the overwhelming majority of respondents made their responses public. A few highlight’s from this year’s report includes:
- A high response rate by JSE 100 (74% -fourth highest rate globally).
- Improved levels of disclosure across all issues with 94% of responding companies reporting GHG data (up from 77% two years ago).
- Evidence of increased commitment and improved performance.
Many companies are taking significant steps to enable the realisation of our national mitigation targets of:
- a 34% deviation below the ‘Business As Usual’ emissions growth trajectory by 2020; and
- a 42% deviation below the ‘Business As Usual’ emissions growth trajectory by 2025.
Companies that scored above 50 points for disclosure made it onto a leadership index (CDLI), and companies with the best disclosure were recognised with merit awards. Those who achieved the top three disclosure scores on the CDLI were awarded platinum awards and those who scored above 75 for disclosure were awarded gold awards. Platinum awards for disclosure went to:
- FirstRand and Gold Fields who shared first place with 93%;
- Anglo Platinum and Medi-Clinic Corporation who shared second place with 89%; and
- Nedbank who scored 88%.
Incite congratulates all platinum and gold achievers on carbon disclosure.
There was also recognition of performance in climate mitigation and adaptation responses. Although this process is in development and no leadership index has been established, recognition was given to top performers based on information supplied in their CDP responses. Companies were placed in four performance bands. Results were:
- Band A (Leading): 4 companies
- Band B (Fast Following): 26 companies
- Band C (On the Journey): 23 companies
- Band D (Just Starting): 4 companies
Band A achievers (in alphabetical order) – Barloworld, Gold Fields, Nedbank and Woolworths Holdings – were awarded platinum awards, and Band B were awarded gold awards.
Minister Molewa’s address indicated enthusiasm with respect to the CDP process and report. She expressed commitment to holding businesses to account in terms of the role they have to play if South Africa, a high carbon emitter even by developing country levels, is to make substantial progress on the road to achieving our ambitious carbon emissions targets. We at Incite wish her all the best as she takes on this new portfolio.
This year’s report is up on our website – http://www.incite.co.za/publications. Previous years’ reports are also available.