Diversified energy company Exxaro reports that its commitment to a just energy transition (JET) has resulted in the organisation becoming the only basic resources company, globally, with an improved environmental, social and governance (ESG) rating of Level 4.
As a result of its actionable commitments towards a JET, FTSE Russell’s Green Revenues data model, designed to measure the revenue exposure of public companies engaged in the transition to the green economy, bestowed a Green Revenues Factor rating of 3.64% on Exxaro for the first time ever.
Exxaro CEO Dr Nombasa Tsengwa says from the moment the company committed to a JET through the guidance of its sustainable growth and impact strategy, carbon intensity in Exxaro’s operations decreased by 0.7%, mainly because of energy efficiency initiatives designed to reduce diesel consumption at its flagship Grootegeluk mine.
“There have been further efforts made to reduce water intensity to preserve this scarce commodity, leading to an increase of 0.5% in water intensity and 0.6% in water consumption by 2022,” she says.
According to the FTSE Russell ESG Index Ratings, Exxaro’s rating increased from 3.7 in December 2021 and 3.8 in June 2022.
The FTSE Russell ESG index ratings provide investors with an understanding of the company’s exposure to, and management of, ESG issues.
The ESG rating is an average rating that streams into underlying pillars and theme exposures and scores that are built on over 300 individual indicator assessments.
Exxaro was found to have made significant improvements in the environmental category, specifically towards climate change mitigation, yielding a rating of four, while the social element rated at 3.3. Exxaro’s governance was rated at 4.7.
“We are immensely proud of our improved ESG and Green Revenues Factor ratings.
“Sustainable development is the most conducive way to address systematic inequality without compromising the future survival of our planet,” concludes Tsengwa.