Company supports transition to low-carbon economy

Johannesburg – Coal mining company Exxaro Resources, which acknowledges coal’s negative impact on climate, expresses the view that a just transition to a low-carbon future should inform global climate action.

Exxaro CEO Mxolisi Mgojo said: “If we don’t take climate change issues seriously, and see it as being part of our responsibility to respond to climate change in impactful ways, God help us.” 

The Johannesburg-listed company is one of the largest and foremost black-empowered South Africa-based diversified resources companies, with an asset portfolio that includes coal, renewable energy and an investment in iron-ore.

In the 20-page publication, the company commits itself to a world that will see less than a 2°C increase in global warming by 2100.

Mgojo said the world is facing many challenges which compel organisations to operate with the highest level of social and environmental consciousness.

“While the share of coal in the global energy mix is expected to decline in the medium term to longer term, it is likely to remain dominant in South Africa for a foreseeable future as we transition to low-carbon energy sources. Nevertheless, we regard this as a medium to longer-term risk, and it is part of our diversification imperative to explore other climate-resilient opportunities to develop and commercialise new businesses that will add value to society. We are committed to supporting a smooth and just energy transition to the low-carbon economy,” he said.

He added that Exxaro plays an active role in climate-change policy development, working with policy makers directly and through business associations and research institutions. 

“The company has a strategy of extracting coal value early and disposes of coal assets that do not fit this strategy. The diversification of the portfolio into renewable energy through Cennergi is part of the company’s effort to build climate-change business resilience.”

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