Managing our emissions
In the short- to medium-term, our strategy is to reduce our own Scope 1 and 2 emissions through the implementation of energy efficiency and productivity improvement projects across our operations, the installation of at least 19 MW of renewable energy, and the responsible closure of mines as they reach the end of their operational lives.
A third-party performed scenario analysis using climate models to understand future potential climatic changes and identify adaptation requirements to build climate resilience. It also provided insight into what the future demand for our products may be to guide future decision-making.A physical and transitional climate risk assessment was performed across our operations, critical infrastructure and export destinations. This quantitative assessment included an examination of relevant acute and chronic physical climate risks as well as market and regulatory risks, and changes in exposure under various climate scenarios. In addition, it determined high-level climate impacts and vulnerabilities on our operations, employees, communities and customers. The assessment covered two time horizons to inform nearterm (2030) and long-term (2050) decision-making.
Physical risks identified are sea level rise, increased average rainfall, droughts, storms and extreme weather events. Transitional risks identified are policy and legal , market drivers and reputation.
As the world moves towards a low-carbon economy, we recognise the role we must play in reducing our emissions and supporting the accelerated rollout of a fuel-agnostic, technology-driven approach to reducing global emissions.
Our position on climate change and energy transition
We support the goals of the Paris Agreement (Article 2), to limit the increase in the global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels.
The world is moving into an ‘age of electricity’, where increased demand for electricity is expected to be six times the increase in overall energy demand due to the growing uptake of electric vehicles, air conditioning, artificial intelligence and data centres. This trend further entrenches the need for all sources of electricity generation, all low-carbon technologies and for the transition to low-carbon energy systems to be just, orderly and equitable. We recognise the common but differentiated responsibilities and capabilities of domestic economies in pursuit of climate objectives, and believe that actions to limit temperatures must support the United Nations Sustainable Development Goals (UN SDGs), including sustained, inclusive economic growth and universal access to clean, affordable energy.
Energy security and affordability are essential measures that must be balanced with the rate of transition. Given the unique challenges presented by the transition, we anticipate that it will not be linear and will depend heavily on individual countries’ ability to transition away from fossil fuels in energy systems. Thermal coal for electricity generation remains a necessary source of energy in many of the markets we serve. It provides grid stability and supports energy access and security, which, in turn, contribute to socio-economic development.
We continue to advocate for a technology- and fuel-agnostic approach to achieving the least-cost path to emission reductions.
Mine closure and responsible
Notwithstanding climate change, coalfields and power stations have finite lives. This is particularly relevant in South Africa in the Highveld coalfields in the Mpumalanga region, where communities are heavily dependent on both mining and coal-fired power generation for their livelihoods. A coordinated and strategic approach to social transition and diversification of the economy in this area is critical. A multi-stakeholder approach is needed for this transformation to maximise the opportunities and mitigate the risks.
Engagement with national and regional governments, affected communities, workforces, trade unions and civil society groups to consider options to address the socio-economic consequences arising from mine closure is vital to a just and orderly transition, and to creating diversified economies that will persist in the long term.
Our vision is to collaborate with host communities to establish regenerative landscapes that create sustainable livelihoods through economic diversification. We aim to leave a positive legacy through the integration of mine closure planning, with the repurposing of rehabilitated land and the conservation of biodiversity for the benefit of communities and the environment.
We are investigating a wide range of post-closure land use options, with a view to developing a responsible mine closure strategy and maximising our climate change opportunities.
Thungela’s board has ultimate responsibility for promoting and safeguarding the business’s long-term success and for ensuring that the company acts in the best interests of its stakeholders. The board has delegated responsibility for oversight of our climate-related impacts, risks and opportunities to the health, safety, environment (HSE) and risk committee, while the social, ethics and transformation committee (SETCO) has oversight of sustainability-related disclosures, including those related to climate change.
The HSE and risk committee's climate-related responsibilities include reviewing and monitoring progress on the Thungela pathway to net zero and our 2030 target, and monitoring performance against key climate and energy indicators. Matters relating to climate change are included in quarterly reports to the committee, and as standalone items on the agenda where necessary.
The HSE and risk committee chairperson provides a summary of the committee’s discussions to the board, which addresses the most material issues raised by the committee.
The SETCO’s primary purpose is to ensure that we comply with the laws, codes and standards that apply in the running of a principled and socially responsible business, focusing on ethics, stakeholder relationships, corporate citizenship, inclusion and diversity, human rights, and social transition associated with mine closure and the transition of the globe to a low-carbon future.