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.
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Exxaro is a member of Minerals Council South Africa, and has two representative on the association's board, one being the company's CEO (MCSA website, up-to-date March 2022)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Exxaro is a member of Minerals Council South Africa, and has two representative on the association's board, one being the company's CEO (MCSA website, up-to-date March 2022)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Exxaro CEO Mxolisi Mgojo is a non-executive director at Business Leadership South Africa (BLSA website, up-to-date April 2022)
Mxolisi Mgojo
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Exxaro CEO Mxolisi Mgojo is a non-executive director at Business Leadership South Africa (BLSA website, up-to-date April 2022)
Mxolisi Mgojo
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Exxaro is a member of National Business Initative, and has two representatives on the Advisory Committee on Environment and Society (NBI website, April 2022)
not specified
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Exxaro is a member of National Business Initative, and has two representatives on the Advisory Committee on Environment and Society (NBI website, April 2022)
not specified
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: Exxaro Resources Ltd has limited transparent engagement on specific climate-related policies. Despite expressing consistently positive top-line positions on climate policy and the energy transition, Exxaro supports the continued role of coal in the South African energy mix.
Top-line Messaging on Climate Policy: Exxaro has overall expressed positive top-line positions on climate change, and also appears to support some forms of government intervention to address the issue. Exxaro appeared to support the goal of limiting temperature rise to well below 2°C, and achieving net-zero greenhouse gas (GHG) emissions reductions by 2050, in a June 2020 blog post. Additionally, the company expressed support for the goals of the Paris Agreement in its March 2020 Climate Change Position Statement and its 2020 Climate Change Response Strategy Report. Exxaro also supported the South African Climate Change Bill in its 2021 CDP response.
In its March 2020 Climate Change Position Statement, Exxaro supported government intervention to price carbon into the South African economy. Additionally, Exxaro CEO Mxolisi Mjogo appeared to support the policy action taken by the US government to reduce its emissions by 50-52% by 2030 in a May 2021 African Mining Market article. Mjogo also appeared to support the South African policymaking process, specifically the Presidential Climate Change Coordinating Commission, and the work conducted by the commission to reduce the country’s emissions.
Engagement with Climate-Related Regulations: Exxaro has disclosed some engagement with specific climate policies. In its 2021 CDP response, Exxaro supported the South African Carbon Tax Act, but also supported aligning the Tax with carbon budgets which will delay the implementation of the policy. This is however an improvement on its position on the Tax in the past – in its 2019 CDP response the company emphasized the risk of carbon leakage and economic impacts of the Tax. Exxaro has not disclosed transparently on its engagement with any other climate-related regulations.
Positioning on Energy Transition: While Exxaro expresses top-line support for the energy transition, the company supports the continued role of coal in the South African energy mix. For example, in a May 2022 Mail and Guardian article, Exxaro’s Managing Director for Minerals, Kgabi Masia, supported the continued role of coal in South Africa’s energy mix, stating that “the country’s energy security still depends on this fossil fuel” and “it would be foolish to even consider walking away from coal”. Additionally, in a September 2021 tweet, Exxaro CEO-designate, Dr Nombasa Tsengwa, questioned the economic feasibility and pace of a transition away from coal in South Africa, stating that the country should be considerate when stating that coal will not be relevant in South Africa’s energy future.
Exxarro has expressed top-line support for the transition towards renewables and green hydrogen. In a July 2022 Mining Weekly article, Managing Director of Energy at Cennergi (an Exxaro subsidiary) Roland Tatnall appeared to support green hydrogen production and its role in the South African energy transition. Exxaro also supported the transition to a low-carbon economy in its 2021 ESG Report. Additionally, in its 2020 Climate Change Position Statement, Exxaro supported the integration of renewables to electrify the South African power sector. Similarly, In a statement by CEO Mxolisi Mgojo at Exxaro’s September 2021 Capital Markets Day, the CEO appeared to support increasing the share of renewables in the South African energy mix. In its Capital Markets Day presentation, Exxaro also supported the increase in the independent power producer threshold from 1MW to 100MW under the South African Electricity Regulation Act, a change that allows further penetration of renewables into the South African energy mix.
Industry Association Governance: Exxaro has disclosed a list of its industry associations in its 2021 ESG report. However, its disclosure has no details of the nature of Exxaro’s membership to each association, or their climate policy positions. The company has also not completed an audit of its industry associations and their positions on climate change policy. Exxaro is a member of Business Leadership South Africa, and Minerals Council South Africa, both of which have mixed engagement with the Paris Agreement.