We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.
Open PDF file of Data Source
Climate Lobbying Overview: African Rainbow Minerals (ARM) is engaged on climate change issues, however most of its positions are limited to top-line statements with little engagement on specific policies. The company has mixed positions on the energy transition, supporting both the role of coal and the transition to renewables.
Top-line Messaging on Climate Policy: ARM’s top-line statements are extremely limited, and its positions are broadly positive. ARM appeared to support the Paris Agreement’s goal of limiting GHG emissions in line with 1.5°C of warming in its October 2021 Climate and Water Report. Additionally, in its 2021 Climate and Water Report, ARM appeared to support a price on carbon, but does not provide a clear position on government policy to price carbon into the global economy.
Engagement with Climate-Related Regulations: ARM has limited transparent public engagement with specific climate regulations. In its October 2020 Climate and Water Report, ARM appeared to support appeared to support the Renewable Energy Independent Power Producers Programme (REIPPP), stating that increased energy generation capacity due to the programme is a “positive development”. ARM takes no clear position on South Africa’s carbon tax in its corporate reporting from 2019 to 2021, nor does it take a clear position on greenhouse gas emissions legislation.
Positioning on Energy Transition: ARM appears to support the continued role for coal in the South African energy mix, however it has expressed some top-line support for renewables and hydrogen. In its 2021 Climate and Water Report, ARM appeared to support the continued role for coal in the medium-term in the South Africa energy mix, without reference to the deployment of carbon capture and storage. ARM CEO Patrice Motsepe also supported the continued role for coal alongside renewables in South Africa’s energy mix in a March 2022 Mining Weekly report, stating that “coal will continue to be an important part of the South African economy as part of the transition”.
In its 2021 Climate and Water Report, ARM supported the transition to a low carbon economy. In the same report, the company also appeared to support the role of renewables and hydrogen in the energy mix, however its position on the decarbonization of hydrogen production was unclear. In line with this, in its November 2020 Climate and Water report, the company appeared to support the transition of the South African energy mix away from coal. In its October 2021 Climate and Water Report, ARM appeared to support decarbonization, however it is not clear if this is sector specific.
Industry Association Governance: ARM has no dedicated disclosure on its industry association memberships. ARM’s reporting on its memberships is limited to sporadic coverage in its corporate reporting, and the company does not disclose details of the nature of its membership to each association. ARM has not published a review of its industry association’s climate policy engagement or their alignment with the Paris Agreement. ARM is a member of Minerals Council South Africa, and Business Unity South Africa, both of which have actively engaged with mixed positions on climate-related policies in South Africa.
*African Rainbow Minerals has a 100% stake in Cennergi, a South African independent power producer of renewable energy.