Aligning South Africa's Climate-Related Financial Disclosure with Global Best Practice Climate-Related Financial Disclosure Fact Sheets
Impala Platinum Holdings Limited Compiled March 20211
Purpose
Driving the Green Agenda through Aligning South Africa’s Climate-related Financial Disclosure with Global Best Practice is a project addressing barriers to financial sector analysis and reporting of climate-related financial risks and opportunities. It is funded by UK PACT (Partnering for Accelerated Climate Transitions) and is a £60m flagship programme under the UK’s International Climate Finance (ICF) portfolio A detailed introduction to the project is available here.2
The purpose of these fact sheets is to provide an overview of climate-related practices and disclosures from the largest companies on the Johannesburg Stock Exchange (JSE) using publicly available data. All the fact sheet are available here.
Please see Climate-Related Financial Disclosure Fact Sheets – Overview (available here) for an introduction to the fact sheets, the methodology used to develop them, and a disclaimer that should be read in conjunction with this document.
1 Based on 30 June 2020 Annual Report and Financial Statements released 3 months post financial year-end. 2 Also accessible from http://www.dnaeconomics.com/pages/SAclimatedisclosure
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1. COMPANY PROFILE
Impala Platinum Holdings Ltd
JSE Industry: Basic materials
JSE Sector: Mining
Reporting Year-End: 30 June
2021 Total Market Value of Equity: R 163 billion3
Size Category: Large Cap4
Other Stock Exchange Listings: Not applicable
Company Operations Summary: Impala Platinum Holdings is a producer and supplier of Platinum Group Metals (PGMs) to industrial economies.
% South African operations by revenue5 % South African operations by assets6
80,26% 35,33%
Significant region/country Major activity
South Africa Mining, refining
Zimbabwe Mining
Canada Mining
3 At 31 January 2021 as per IRESS. 4 The companies in the Top40 index are considered Large caps; MidCap index comprises stocks ranked 41 to 100 on the market; and Small caps are the companies with values smaller than the top 100 listed companies. See: JSE. “Small, medium and large caps”. [Online]. Available: https://www.jse.co.za/grow-my-wealth/small- medium-and-large-caps. 5 This is not a valuation, but an indicator of the value of South African operations (revenue) from the segmental geographic analysis in the Annual Financial Statements 30 June 2020. 6 This is not a valuation, but an indicator of the value of South African operations (assets) from the segmental geographic analysis in the Annual Financial Statements 30 June 2020
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2. CLIMATE-RELATED FINANCIAL DISCLOSURE (CFD) SOURCES
For the purpose of analysing the quality of a company’s climate-related financial disclosure, analysts relied extensively on publicly available documentation produced by the company. A list of sources consulted can be found in the table below.
Sources consulted Yes/No Note Link to source(s) Company website ✓ Date Accessed: March 2021 www.implats.co.za Annual integrated report ✓ Integrated Annual Report Annual Financial report ✓ Date: 30 June 2020 Annual Financial Statements Sustainability Report ✓ Sustainable Development Report Climate-related standalone Not applicable Not applicable ✘ report TCFD report Implat’s is not currently aligned, but notes that it is Not applicable progressively reviewing and aligning its management and ✘ reporting approach with the Task Force on Climate- related Financial Disclosures7. Publicly available climate ✘ Not applicable Not applicable policies CDP ✓ Date Accessed: March 2021 CDP Online Submission
Other ✓ Date: 30 June 2020 ESG Report 2020
7 Impala Platinum Holdings Limited, ESG Report, page 98 3 | P a g e
3. CFD DASHBOARD8
Findings Theme Area Recommended Disclosure Result (Disclosed/Not disclosed)
Governance • The board provides oversight through its Health, Safety, Environment and Risk (HSER) Committee, Disclose the organization’s who is responsible for governance, and governance around Company describes the board’s monitoring the implementation of health, safety, climate-related risks and oversight of climate-related Yes No environmental (including climate-related issues) opportunities. risks and opportunities. and risk strategies 9. • Further details on the boards oversight of climate- related risks and opportunities are disclosed in the company’s CDP Climate Response 2020 Report10. • The CEO plays a key role in the consolidation monitoring of all decisions made associated with Company describes sustainable development, environmental management’s role in assessing management and the monitoring and and managing climate-related Yes No management of climate-related risks. risks and opportunities. • The Executive Committee lends support to the CEO with climate-related risk management process and sustainable development
8 The dashboard was informed by the four pillars of the Task Force on Climate-related Financial Disclosures (TCFD) Framework. A full copy of the publication is available here: Recommendations of the Task Force on Climate-related Financial Disclosures Final Report. The dashboard covers additional issues considered of relevance in South Africa. 9 Impala Platinum Holdings Limited, Climate Change Report 2020, question C1.1a 10 Impala Platinum Holdings Limited, Climate Change Report 2020, question C1.1b 4 | P a g e
Findings Theme Area Recommended Disclosure Result (Disclosed/Not disclosed) responsibilities (including climate-change) is also managed by the executive committee11.
• Implats has aligned their group strategy with their remuneration policy, thus all management is Company describes long-term incentivised in accordance with the Group’s and short-term incentives for objectives. The Group has an overall objective to company management to drive Yes No decrease GHG emissions, as well as to decrease performance on non-renewable energy consumption. The general/climate-related company gives a detailed disclosure on incentives indicators provided for the management of climate-related issues12. Strategy Company describes the climate- • A detailed description of climate-related risks and related risks and opportunities Yes No opportunities the company has identified is Disclose the actual and company has identified over the disclosed in the company’s CDP Climate Change potential impacts of climate- short, medium, and long term. 2020 Response13. related risks and Company describes the impact • Detailed identification and descriptions of the
opportunities on the of climate-related risks and Yes No impact of climate-related risks and opportunities company’s businesses, opportunities on the company’s on company strategy and financial planning are
11 Impala Platinum Holdings Limited, Climate Change Report 2020, question C1.2a 12 Impala Platinum Holdings Limited, Climate Change Report 2020, question C1.3 13 Impala Platinum Holdings Limited, Climate Change Report 2020, question C2. 5 | P a g e
Findings Theme Area Recommended Disclosure Result (Disclosed/Not disclosed) strategy, and financial businesses, strategy, and disclosed in the company’s CDP Climate Change planning where such financial planning. 2020 Response14. information is material. • Some of these risks include the security of water supply, rising energy costs and increasing energy insecurity. Operational stoppages of a day could cost Implats between R10mn -R100mn in lost revenue. Impact of climate-related risks and opportunities on the
company’s businesses, strategy, Yes No • Not disclosed. and financial planning is disclosed by region Company describes the resilience of the company’s • Company describes strategies in which they plan strategy, taking into to improve resilience but do no disclosure relating Yes consideration different climate- No climate-elated scenarios, including a 2°C or lower related scenarios, including a scenario, has been made15. 2°C or lower scenario. Risk Management • Impala Platinum provides a vast description of its Company describes its processes for identifying and assessing climate- processes for identifying and Yes No Disclose how the related risks within its CDP Climate Change 2020 assessing climate-related risks. organization identifies, Response16.
14 Impala Platinum Holdings Limited, Climate Change Report 2020, question C2.3, C2.4 and C3 15 Impala Platinum Holdings Limited, ESG Report, page 98-99 16 Impala Platinum Holdings Limited, Climate Change Report 2020, question C2.2 6 | P a g e
Findings Theme Area Recommended Disclosure Result (Disclosed/Not disclosed)
assesses, and manages • The company discloses the steps taken in climate-related risks. managing climate-related, steps being 1) Establishing the context; 2) Identifying the risk; 3) Company describes its Analysing the risk; 4) Evaluating the risk; 5) processes for managing climate- Yes No Treating the risk17. related risks. • Further details concerning the processes for managing climate related risks are disclosed in the company Climate Change 2020 Response18. • Climate change risks are included in the corporate Company describes how risk register and are reported to the executive processes for identifying, committee on a monthly basis and to the Health, assessing, and managing Yes No Safety, Environment and Risk Committee of the climate-related risks are Board on a quarterly basis19. integrated into the company’s • The company’s Integrated Annual Report provides overall risk management. an overview of its enterprise risk management process20. 21 Metrics and Targets Company discloses the metrics • Metrics are disclosed in Implats ESG Report . used to assess climate-related Yes No • Targets for Scope and 2 emissions only go up to risks and opportunities in line 2020. No future targets are disclosed.
17 Impala Platinum Holdings Limited, Climate Change Report 2020, question C2.2 18 Impala Platinum Holdings Limited, Climate Change Report 2020, question C2.2 19 Impala Platinum Holdings Limited, Climate Change Report 2020, question C2.2 20 Impala Platinum Holdings Limited, Integrated Annual Report, page 15 21 Impala Platinum Holdings Limited, ESG Report 2020, page 101 7 | P a g e
Findings Theme Area Recommended Disclosure Result (Disclosed/Not disclosed) Disclose the metrics and with its strategy and risk targets used to assess and management process. manage relevant climate- Company discloses Scope 1, related risks and • Company’s Scope 1,2 and 3 greenhouse gas Scope 2, and, if appropriate, opportunities where such Yes No emissions are disclosed in the company’s CDP Scope 3 greenhouse gas (GHG) information is material. Climate Change 2020 Response22. emissions, and the related risks. • Implats set a target to reduce scope 1 emissions by 2% on 2017 levels by 2020, but failed to meet those targets as they had 7% increase in scope 1 emissions on 2017 levels23. Company describes the targets • Scope 2 emissions were set to be reduced by 5% used to manage climate-related on 2008 levels by 2020 but instead experienced risks and opportunities and Yes No 25% increase in scope 2 emissions on 2008 performance against targets. levels24. • The company CDP Climate Change 2020 Response provides details on the company’s absolute emissions targets and the progress made against those targets25. Targets and performance are • Targets and performance not disclosed by Yes No disclosed by geographic location geographic location.
22 Impala Platinum Holdings Limited, Climate Change Report 2020, question C6 23 Impala Platinum Holdings Limited, Integrated Annual Report, page 75 24 Impala Platinum Holdings Limited, Integrated Annual Report, page 75 25 Impala Platinum Holdings Limited, Climate Change Report 2020, question C4.1a 8 | P a g e
Findings Theme Area Recommended Disclosure Result (Disclosed/Not disclosed)
Social & Environmental • The company discloses that it is developing a low- Integration carbon transition plan to support the long-term business strategy that it aims to have completed Evidence that the company within the next two years26. have integrated addressing • Implats also disclose that their sustainability Yes No social and environmental risk strategy will include commitments to factors demonstrate leadership in the renewable energy transition and in collaborating with its communities to promote sustainable vibrant communities post mine closure27.
26 Impala Platinum Holdings Limited, Sustainable Development Report 2019, page 88 27 Impala Platinum Holdings Limited, ESG Report, page 30 9 | P a g e
Reporting CDP Carbon CDP Carbon CDP Carbon CDP Water CDP Water CDP Water UNPRI TCFD Other Framework/Principles Report Report – Report – Report Report – Report – Base year of Most recent Base year of Most recent reporting score (2020) reporting score (2020) score score
Signatories/Adopted Submitted. Submitted. Submitted. Submitted. ✓ ✓ ✘ ✘ ✓ Score: B Score: B Score: B Score: A
Notes United Nations 2010 2016 Global Compact (UNGC)
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Region/country Emissions Figures (Thousand Future targets Target date Notes tonnes CO₂e) (Metric used) Scope 1 419tCO₂e28 392tCO₂e • Impala’s Group scope 1 and scope 2 emissions are Scope 2 2020 independently assured29. 3 225tCO₂e30 2 568tCO₂e Total • Emissions were above the target. Scope 3 See footnote 28 • Impala is in the process of developing more accurate data Not disclosed31 See footnote 28 for scope 3 emissions for all operations32. Scope 1
Scope 2 • The South African segment’s emissions data not disclosed separately. South Africa Scope 3 Scope 1 Zimbabwe Scope 2 • The Zimbabwean segment’s emissions data not disclosed separately. Scope 3
28 Impala Platinum Holdings Limited, ESG Report, page 101 29 Impala Platinum Holdings Limited, ESG Report, page 99 30 Impala Platinum Holdings Limited, ESG Report, page 101 31 In progress, to be reported as part of Implats 2021 CDP submission 32 Impala Platinum Holdings Limited, ESG Report, page 99 11 | P a g e