Sustainability

A progressive journey of transformation

ESG has ignited the vision toward sustainable diversification – new frontiers are on the horizon. The beginning of a new chapter in the Wescoal book – the unfolding story of Salungano Group – the multi-sector diversified investment group.

The business has embarked on a carefully crafted transformational process into a strategic set of sectors.

Our core values inform our commitment to the sustainability of accountability, safety, delivery, and integrity, which are imperative to our compliance with ethics and corporate governance measures.

We are accountable for how our business impacts the communities we operate, and our social labour plans continue to reflect this. We have also made advancements in assessing the use of farmland owned by Wescoal to enhance food and water security for local communities.

For more information, please refer to our annual reports.

Our approach to ESG

Transforming the future while delivering today

This is the inside story of our journey away from coal, a robust intentional drive to diversification, built on the pillars of Environment, Social and Governance Principles (ESG). ESG underpins decision making at all levels of the organisation and drives investment direction to strategically targeted sectors.

Continuous mining of coal to meet contractual agreements and LOM, to bring to realisation the yield on investments made in coal assets while mining responsibly and developing the master plan for a JUST TRANSITION.

ESG Strategy & Outlook

We are mindful of the negative impact of coal on the environment and the external pressure exerted on the organisation because of it. Investors and other stakeholders require that mining companies move away from fossil fuels toward more sustainable alternatives.

Our key stakeholders are those significantly affected, directly and indirectly, by our mining activities and the sale and use of coal as an energy source. Stakeholders include financers, suppliers, customers, mining contractors, shareholders, employees, unions, mining-affected communities, civil society groups, the Government, regulators, and the media.

Established science is unequivocal that climate change presents an existential risk to all biological life on Earth if left unchecked. To effectively address this issue, the extraction and combustion of fossil fuels will need to end well before the exhaustion of current reserves.

The South African Constitution and the United Nations Universal Declaration of Human Rights compel our organisation to uphold and promote the fundamental rights of our employees and the communities affected in various ways by our mining activities.

Approach to Reporting

Reporting is a mechanism for Governance, Accountability and Transparency – the outcome of careful monitoring and ongoing Risk and Materiality analysis, alignment, goal setting and performance tracking.

Independent auditors measure and mark the assurance journey. Reporting is underpinned by international standards and framed by specialist tools in the Sustainability Barometer.

The Just Transition

We are gearing toward implementing the strategy, the re-purposing of land, how Salungano embraces the principles of ESG in future investments and structure.

The organisation is committed to environmental sustainability and to advancing the drive to lower carbon emissions – the basis of the Just Transition. Sustainability Governance platforms graft in support of enabling work and developing capacity among staff through training and skills development for continued relevance. This approach systematically opens the way for implementing the new corporate strategy.

Fundamentally, the transition is people-centric, underpinned by stakeholder consultation and ongoing dialogue. At the same time, strategic steps such as the re-purposing of land and re-commissioning of equipment will testify to how Salungano embraces the principles of ESG into future investments and group structures as the vision unfolds over the medium and long terms. And in the present, managing the impact the transformation will have on the people, the workers, contractors and the communities, and all other stakeholders.

Inspired by passages in the Paris Agreement – ”Taking into account the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities.”

The introduction of circular economy projects relevant to today and the future strengthens universal sustainability. Value creation through continuity and relevance while working in alignment with national imperatives.

Climate Change / CARBON

Climate change is a severe issue for our planet, and coal-based energy contributes to current CO2 emissions levels and global warming. We acknowledge our role in driving emissions reduction at our operations and collaborating with key industry bodies towards a low carbon growth economy.

We will continue to measure and report on Scope 1 and Scope 2 emissions and develop a carbon and climate change strategy, including position statements on climate change and Scope 3 emissions.

Our role starts with a commitment to reducing carbon emissions from operations and setting targets to align with global and national expectations around sustainable development.

Our climate change position paper is a living document that will update stakeholders on our medium and long-term strategy, plans, and activities to influence and collaborate around a low carbon growth economy.

Environment

Our mandate is to value and protect land and biodiversity by limiting impacts and restoring resources.

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