Cape Town - Kumba Iron Ore on Monday said it had been named a carbon disclosure leader for 2016, the only company from the Brics region (Brazil, Russia, India, China, South Africa) to make the grade. The list is compiled annually by Engaged Tracking Index Research, which ranks the world’s largest companies according to greenhouse gas emissions and disclosure using data compiled from company sustainability reports, annual reports and websites.
Themba Mkwanazi, Kumba chief executive, said: “I am delighted that Kumba has been acknowledged in the ET Index for its excellence in carbon disclosure reporting as this forms an important part of our commitment to sustainability.
“Reporting is a powerful management tool that enables us to change behaviour and improve operations while further increasing transparency for our shareholders and stakeholders,” he added.
Mkwanazi said the company recognised its responsibility to continually improve sustainability by tackling the causes of climate change such as carbon emissions.
“Not only will this help us manage risk and meet rising stakeholder expectations, it also encourages us to embrace new efficiencies and operational excellence,” he added.
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Chris Huhne, co-chair of ET Index Research and former UK Secretary of State for Energy and Climate Change, said the world’s ability to keep warming to a manageable level depended on strong leadership from the largest companies.
“One of the key purposes of the ET Carbon Rankings is to highlight those companies that are leading the field and taking action today,” he said.
Mkwanazi added carbon emissions were part of a complex range of global environmental issues that threatened to exacerbate challenges such as food insecurity and competition for water and land, while potentially undermining health and livelihoods.
“Kumba will continue to help combat the causes of climate change and to protect our employees, assets and host communities against its potential impacts by striving to achieve best practice in sustainability and corporate reporting,” he said.
Sam Gill, chief executive officer of ET Index Research, noted changes within the company rankings, which are significant as a growing number of institutional investors look to decarbonise their investment portfolios.
“With the Paris Climate Agreement now in force, institutional investors are increasingly planning how to reallocate capital as the transition to a low carbon economy gathers pace,” Gill added.