Eskom Holdings Soc Limited

InfluenceMap Score
C
Performance Band
63%
Organisation Score
n/a
Relationship Score
Sector:
Utilities
Head​quarters:
Sunninghill, South Africa
Official Web Site:
Wikipedia:

Climate Lobbying Overview: Eskom Holdings (Eskom) has communicated broadly positive positions on climate policy, but has contrastingly also remained supportive of the continued role of coal and fossil gas in the energy mix. In 2021, however, Eskom appears to have shifted this position, becoming more supportive of a transition towards renewable energy, and away from coal, in South Africa's energy mix.

Top-line Messaging on Climate Policy: Eskom appears to have broadly positive top-line messaging on climate change. In a September 2021 tweet, the company acknowledged the need to take immediate action to reduce global emissions in line with the IPCC. In its 2021 Integrated Report, published in September 2021, Eskom also supported emissions reductions in line with net-zero by 2050, and the 1.5°C goal of the Paris Agreement. Eskom’s Chairman, Professor Malegapuru Makgoba, stated in the company’s 2021 Integrated Report that “South Africa is a proud signatory to the Paris Agreement”, and that Eskom fully supports the country’s commitments. Eskom is also supportive of carbon pricing being used as a form of climate change regulation, as stated in its 2019 Integrated Report.

Engagement with Climate-Related Regulations: Eskom appears to have some positive engagement with climate-related regulations, although its positioning often lacks detail. In a May 2022 ESI Africa report, CEO Andre de Rutyer appeared to support bid window six of South Africa's Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), stating that procuring more energy will remove pressure from Eskom's coal fleet. In its 2021 CDP response, Eskom supported renewable energy legislation, stating support for clean energy generation. In the same CDP response, the company also supported mandatory carbon reporting standards and emissions trading, albeit with minor exceptions.

The company stated in its 2021 CDP response that it supported carbon tax with minor exceptions. Eskom also supported the introduction of a carbon tax in South Africa in its 2019 integrated report. Nevertheless, in 2019 Reuters reported that the postponement of the tax’s introduction was due to Eskom’s concerns surrounding prices and profitability.

In both its 2020 and 2021 Integrated Reports, Eskom supported South Africa’s “Peak, Plateau, Decline” GHG emission reduction scenario, supporting a target for emissions to “peak by 2025 at between 398Mt and 614Mt per year; plateau for up to a decade; and then decline in absolute terms thereafter”.

Positioning on Energy Transition: Eskom appears to have a mixed position on the energy transition. In a March 2021 media statement, Eskom supported a sustained role for coal in South Africa's energy mix via the promotion of clean coal technologies. In April 2021, according to Bloomberg, the company also appeared to support natural gas having a greater role in the energy mix. This was reiterated in the company’s 2021 Integrated Report, published in September 2021, wherein the company supported the use of fossil gas in the energy mix. Furthermore, in a June 2022 fin24 article, Eskom CEO Andre de Rutyer appeared to support the role of natural gas in the South African energy mix, without placing conditions on the deployment of carbon capture and storage.

However, Eskom’s positioning on coal has improved since South Africa’s announcement at COP26 that it had agreed a £6.2 billion deal to end its reliance on coal. On Eskom’s corporate website, accessed in January 2022, the company supported a “shut down of coal plants”. Support for this was reiterated by CEO Andre De Ruyter in an Engineering News article in October 2021, who stated that the shutting down of coal-fired power plants is projected to be equivalent to “22 GW by 2035, or roughly half of the total installed capacity that Eskom currently has”. The company appears to have reservations about the capacity of carbon capture and storage (CCS) in South Africa’s energy transition. In its 2021 Integrated Report, Eskom stated that CCS technology is not commercially viable for large coal-fire power stations, and that reducing emissions is therefore projected to come from the ‘de-loading and closure of existing coal-fired power stations’.

In an August 2021 tweet, Eskom supported a transition towards renewables under South Africa's Integrated Resources Plan 2019 (IRP19). This was echoed by CEO De Ruyter in Eskom’s 2021 Business Day, who appeared to support higher levels of renewable energy to be integrated in South Africa’s energy mix. Eskom’s interim chairman, Professor Malegapuru Makgoba, also appeared to support a just energy transition, and the decarbonization of the energy industry, in the company’s 2021 Integrated Report.

Industry Association Governance: In its 2019 integrated report, Eskom publicly disclosed a list of some of its industry association memberships. However, it does not comment on their climate-related lobbying activities, nor has it published a full audit disclosure of its links to trade associations. However, in both its 2021 and 2020 integrated report, the company did not publicly disclose any industry association memberships. The company also did not disclose its industry associations in its 2021 CDP response.

Additional Note: Eskom is a listed company with more than 50% of its shares owned by the government of South Africa. State-owned enterprises likely retain channels of direct and private engagement with government officials that InfluenceMap is unable to assess, and therefore are not represented in Eskom's engagement intensity metric.

QUERIES
DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
58%
 
58%

How to Read our Relationship Score Map

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.