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.
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Climate Lobbying Overview: PPC appears to have a mixed stance towards climate change policy, albeit with limited engagement on specific climate-related regulations. The company appears to support climate action and the decarbonization of the cement sector in its top-line communications. However, the company also appears to support the continuation of fossil gas in the energy mix.
Top-line Messaging on Climate Policy: PPC appears to have broadly positive top-line communications on climate change. In its 2021 Integrated Annual Report, published in November 2021, the company supported the goals of the Paris Agreement, and seems to support action consistent with meeting these goals. In the same report, PPC supported emissions reductions in line with the well-below-2°C goal, and “preferably” the 1.5°C goal.
Similarly, in its November 2021 Task Force on Climate-related Financial Disclosures (TCFD) report, the company appeared to support the UNFCCC’s climate goals and the Paris Agreement, as well as net-zero by 2050. However, there is evidence that the company has reservations about the attainability of this target, particularly as PPC’s operations are located in developing countries.
In the same 2021 TCFD Report, PPC appeared to support the integration of climate and regional policies, including market-based solutions to drive innovation and decarbonization.
Engagement with Climate-Related Regulations: While PPC appears to support some general policy strands, the company has limited engagement on specific climate-related regulations. In its 2021 TCFD report, published in November 2021, the company appeared to support a carbon border adjustment mechanism on “carbon-intensive cement imports” into the African continent. In an extract from its 2021 integrated report, published in November 2021, the company also appeared to support improvements in energy efficiency, however it does not explicitly support specific energy efficiency standards. In the same report, PPC also appeared to support emissions standards, but again does not reference any specific regional or national standards.
PPC is also associated with the South Africa Draft Green Finance Taxonomy, and has participated in stakeholder input. However, despite presenting at a stakeholder seminar in November 2020, PPC does not disclose a position regarding the taxonomy.
Positioning on Energy Transition: PPC appears to express top-line support for the decarbonization of the cement sector. In its November 2021 TCFD report, published in November 2021, the company supported the decarbonization of the global cement sector and appeared to show general support for decarbonization policy. The company also supported attaining zero-carbon concrete by 2050. Despite this, the same November 2021 TCFD report also suggests that the company appeared to emphasize concerns around investment uncertainty and the affordability of decarbonization.
PPC also appeared to support the long-term role of fossil gas in the energy mix in its 2021 TCFD report, particularly through coal-to-gas displacement. However, the company states that fossil gas supply in Africa is uncertain. The company also appeared to support carbon capture and storage (CCS) but does not appear confident that CCS is currently feasible in its areas of operation.
Additionally, in the same report, the company does not appear to fully support the transition to green hydrogen. PPC stated that, while green hydrogen can provide low-carbon energy, “technologies need to further mature before this can become a viable option in the cement industry”.
Industry Association Governance: PPC discloses a summary of its industry associations in the company’s 2021 Environmental and Social Supplementary Report. The company does not provide details on alignment or misalignment with its industry associations’ stance on climate policy, nor does it comment on its governance of industry associations. PPC also has not published a full audit disclosure on its alignment with its industry associations. Notably, the company is a member of Business Unity South Africa (BUSA), an association that has mixed engagement on climate policy, and has also supported the continued role of fossil gas in the energy mix.