Lack of green policies costs companies
SASOL emits far more greenhouse gases than any of the top 100 JSE-listed companies. It leaves even major mining groups such as BHP, Anglo American and ArcelorMittal South Africa trailing in its dust.
Despite this, Sasol secured 54th place in the environmental section of Legae’s environmental, social and governance scorecard because, although a major polluter, it is not apathetic when it comes to environmental issues.
By contrast, financial companies, holding companies and IT companies are inclined to be apathetic when it comes to the environment. PSG, whose headquarters are in the pristine environs of Stellenbosch, scored a zero in the environmental section of the Legae scorecard. Another company with Stellenbosch roots, Reinet Investments, the Rupert-aligned holder of British American Tobacco shares, is in second-last place with 0.97%.
An absence of policies on the environment are the reasons the two companies scored so badly. “Disclosure is too weak to make any reasonable comment,” said Legae of both companies. In contrast, the Rupert-controlled Swiss-based luxury-goods company Richemont recorded the highest environmental score, putting it in first place with 93%.
The Cape’s dominance of the bottom 10 was guaranteed by Trencor and Coronation’s inclusion in joint 93rd place.
The authors of the Legae report note that resource companies generally escape the lowest rankings because of their efforts in terms of disclosure. This is despite the fact that the greenhouse gas emissions of the top four emitters (Sasol, BHP, Anglo American and ArcelorMittal) amounts to 2.5 times the combined emissions of the other 68 companies that disclose their emissions. BHP was placed 48th, Anglo 46th and Amsa 62nd.
Legae cautions against any company being apathetic to environmental issues and warns financial institutions that it goes beyond having a green-building policy.