Diversified miner Exxaro Resources has received a Transition Pathway Initiative (TPI) ranking of 4/4, which reflects the company’s commitment to managing greenhouse-gas (GHG) emissions.
In a statement on March 16, the miner said the ranking indicates to stakeholders and investors that the miner “is in an excellent position to benefit from opportunities presented by the low-carbon transition”.
The TPI is an international initiative that aims to assess companies transition to a low-carbon economy. A TPI ranking shows how a company’s expected future carbon emissions compare to local or international targets that are part of the Paris Agreement.
As eco-friendly and responsible investing become more mainstream, the tool was designed to empower investors with the information they need to see which companies are dedicated to participating in the global low-carbon transition. The open-access TPI data shows what some of the world’s biggest businesses are doing to align their sustainability strategies with international climate goals.
A high TPI ranking means a business has demonstrated that it is actively trying to mitigate climate change at a strategic level.
Further, Exxaro joined the renewable energy space by winning an independent power producer contract in the wind sector. The business has adopted a proactive stance when it comes to climate change and broader environmental, social and corporate governance objectives.
While coal is still the largest energy source worldwide, renewable energy needs to be prioritised to stop climate change and make transition to a low-carbon economy possible.
As part of Exxaro’s response to climate change, the company aims to reduce its GHG emission by between 2.5% and 5% yearly and is committed to achieving a carbon-neutral footprint by 2050.
This commitment is already in motion as Exxaro is investigating ways of reducing its Scope 1 and Scope 2 emissions through the opportunities presented by both self-generation and power wheeling from renewable energy producers.