The South African coal mining industry as a driver of green growth and a low carbon economy? A study on Sustainable Development Goals 7 & 13

Beavon, Corey

The South African coal mining industry as a driver of green growth and a low carbon economy? A study on Sustainable Development Goals 7 & 13

Master Thesis

2019

Abstract

There is an apparent inconsistency between South Africa’s pledge to transition toward a green economy and its continued dependence on coal-based energy. This research investigates the South African coal mining sector and its alignment with two of the United Nations Sustainable Development Goals (SDGs), in terms of company reporting and measurement of specific indicators. The research methodology employs a content analysis of the 2016 annual reports of the five largest coal companies operating in South Africa. Data is analysed in accordance with the Sustainable Development Goals, to determine if the mining companies are in fact reporting on the specific indicators outlined in the SDGs, and what their strategy is with regard to energy and climate change. The coal sector is analysed in view of South Africa’s high contribution to greenhouse gas emissions as a result of its coal-based energy system. Results show that the major coal mining companies are reporting on some of the SDG 7 (Clean Energy) and 13 (Climate Action) indicators. The quality of the data varies, however, and the lack of uniformity in reporting makes comparison between firms challenging. Some companies have created sophisticated climate action plans, with one company showing strategic intent to diversify its core business into renewable energy production, while three others are implementing some form of renewable energy deployment onsite. There are thus definite signs of active engagement with the specific SDGs, but not (yet) of radical innovation. In conclusion it has been found that coal companies operating in the South African coal sector do have the sufficient systems in place to measure and report on data that is critical for reaching Sustainable Development Goal 7 (Clean Energy) and Sustainable Development Goal 13 (Climate Action), however it cannot be stated that by early 2017, the companies were representing demonstrable progress in contributing toward meeting these targets. It can also be concluded that publicly released data can be used to gauge a company’s sustainability performance, however doing a comparative analysis remains challenging and there are no industry standards to define what are acceptable emissions or energy use across different industries.

Keywords

Chemical Engineering

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