Introduction
To what extent have multinational corporations listed on the JSE/FTSE been transitioning towards stronger sustainability world views in their sustainability reporting practices?
Literature review
Planetary boundaries framework
Evolution of corporate social responsibility (CSR) and environmental social governance (ESG)
-
Global Reporting Initiative (GRI).
-
The United Nations Principles for Responsible Investment (UNPRI).
-
Sustainable Development Goals (SDG’s).
-
The Carbon Disclosure Project (CDP).
-
The Dow Jones Sustainability Index series.
-
FTSE4Good Index Series.
-
MSCI SRI Index.
Method
Sustainability Stage | Description |
---|---|
Stage 1: Compliance (Very Weak Sustainability) | Firms engage in externally enforced or regulated activities to meet minimum sustainability standards. |
Stage 2: Business-centred (Weak Sustainability) | Firms engage in internally focused activities that result in benefits to the firm such as cost savings, increased efficiency, and improved reputation. |
Stage 3: Systemic (Intermediate sustainability) | Firms work with others to integrate the full realm of sustainability activities to address systemic change. This includes collaboration with stakeholders, supply chain management, and innovation. |
Stage 4: Regenerative (Strong Sustainability) | Firms understand sustainability science and seek to repair the damage of an industrial-era consumer society through regenerative practices that restore and enhance ecosystems. |
Stage 5: Coevolutionary (Very Strong Sustainability) | Firms understand the place of humans, corporations, and societies as existing in partnership with the natural world, giving as much as receiving. They strive for very strong sustainability by co-evolving with nature. |
Stage of Sustainability | Associated Key Words/ Themes |
---|---|
Stage 1- Compliance | Compliance; Legal; Regulation; Risk |
Stage 2- Business Centred | Business as usual; Business model; Competitive Advantage; Costs; Expense; Growth; Sales; Profit; Return on Investment; Market; Market Share; Value Chains; Strategy; Customer; Technology; Demand; Efficiency; Money; Retention; Public Relations; Biotechnology; Cost-benefit. |
Stage 3- Systemic | Integrate; Industry; Collaboration; Cooperation; System; Transformation; Global citizenship; Humanity; Partnerships; |
Stage 4- Regenerative | Carrying capacity; Consumption degrowth; Holistic; Natural systems; Interdependent; Planetary Boundaries; Steady State; Redistribute; Repair; Zero Growth; Science; Scientific; Consumption; Preservation. |
Stage 5- Coevolutionary | Circular; Coevolutionary; Ecocentric; Ecosystem; Flourish; No growth; Regenerative; Resilience; Ecoefficiency; Ecological; Ecoethic. |
Planetary Boundary | Keyword |
---|---|
Climate Change | Climate Change; CO2, |
Novel Entities | Chemical Pollution |
Stratospheric Ozone Depletion | Ozone |
Atmospheric Aerosol Loading | Aerosols |
Ocean Acidification | Phosphorous, Ocean acidification |
Biogeochemical Flows | Nitrogen |
Freshwater Use | Freshwater Consumption |
Land System Change | Land System Change; biodiversity |
Biosphere Integrity | Biosphere |
Life Satisfaction | Life Satisfaction |
Life Expectancy | Life Expectancy |
Nutrition | Nutrition |
Sanitation | Sanitation |
Income equality | Income equality |
Access to Energy | Access to Energy |
Education | Education |
Social Support | Social Support |
Democratic Quality | Democratic Quality |
Equality | Equality |
Employment | Employment |
Data collection method and sample size
Constituent | Sector | Net MCap (ZARm) | Weighting (%) |
---|---|---|---|
Comapaigne Financiere Richemont AG | Personal Goods | 880,940 | 14.70 |
Anglo American | Industrial Metals and Mining | 706,143 | 11.79 |
Naspers | Software and Computer Services | 502,602 | 8.93 |
Firstrand Limited | Banks | 309,280 | 5.16 |
MTN Group | Telecommunications Service Providers | 237,528 | 3.96 |
Prosus | Software and Computer Services | 228,802 | 3.82 |
Sasol | Chemicals | 207,101 | 3.46 |
Standard Bank Group | Banks | 205,972 | 3.44 |
British American Tobacco PLC | Tobacco | 180,936 | 3.02 |
Capitec Bank Holding Ltd | Banks | 168,129 | 2.81 |
TOTALS | 3,627,432 | 60.54 |
Descriptive statistics of companies in sample size
Company Name | Anglo American Platinum | British American Tobacco | Capitec | Compagnie Financière Richemont | First Rand | MTN | Naspers | Prosus N.V. | Sasol | Standard Bank |
---|---|---|---|---|---|---|---|---|---|---|
Average Compensation Paid to Employees, including wages and benefits (Rands) | 727 950 | 1 061 483 | 319 344 | 1 353 267 | 724 654 | 840 972 | 994 513 | 1 060 409 | 558 672 | 885 379 |
Average Compensation per Executive Director (Rands) - Including ‘Gains Realised from LTIP Awards’ | 29 526 056 | 105 640 325 | 32 180 667 | 67 836 650 | 18 203 000 | 37 624 500 | 200 586 770 | 203 470 714 | 23 439 000 | 26 119 500 |
Income Disparity Ratio: - Including LTIP | 40,6 | 99,5 | 100,8 | 50,1 | 25,1 | 44,7 | 201,7 | 191,9 | 42,0 | 29,5 |
Income Disparity Ratio: Excluding LTIP | 27,3 | 67,0 | 24,3 | 37,3 | 23,1 | 30,6 | 40,2 | 38,2 | 28,3 | 26,6 |
Rand Value of Dividends Paid to Shareholders | 55 718 000 000 | 99 722 840 000 | 6 130 000 | 9 167 570 000 | 6 947 000 000 | 0 | 2 202 220 000 | 2 350 824 000 | 12 072 000 000 | 11 945 000 000 |
Rand Value of Retained Earnings | 23 231 000 000 | 44 147 285 000 | 4 370 135 000 | 18 109 850 000 | 20 268 000 000 | 12 317 000 000 | 70 663 180 000 | 88 230 862 500 | -20 106 000 000 | 15 706 000 000 |
Ratio of Payments to Employees relative to Dividends paid to Shareholders | 0,3 | 0,6 | 764,3 | 5,3 | 4,9 | 0,0 | 12,8 | 10,8 | 1,3 | 3,5 |
Rand Value of Current Assets - Total | 102 668 000 000 | 107 348 465 000 | 367 499 980 000 | 125 800 000 000 | 113 613 860 000 | 107 121 412 500 | 36 975 000 000 | |||
Rand Value of Current Liabilities - Total | 56 468 000 000 | 81 177 320 000 | 140 996 880 000 | 127 928 000 000 | 63 687 020 000 | 60 074 947 500 | 22 832 000 000 | |||
Rand Value of Capital Expenditures (Capex) | 10 753 000 000 | 10 716 545 000 | 837 000 000 | 2 114 260 000 | 4 528 000 000 | 39 385 000 000 | 892 712 000 | 37 481 250 | 16 400 000 000 | 4 949 000 000 |
Company Name | Anglo American Platinum | British American Tobacco | Capitec | Compagnie Financière Richemont | First Rand | MTN | Naspers | Prosus N.V | Sasol | Standard Bank |
---|---|---|---|---|---|---|---|---|---|---|
Number of Board Members | 12 | 10 | 14 | 20 | 13 | 14 | 17 | 17 | 16 | 17,0 |
Percentage of Board Members who are deemed Non-Executive | 83,3% | 80,0% | 78,6% | 80,0% | 76,9% | 85,7% | 88,2% | 88,2% | 81,3% | 88,2% |
Number of Board Members who are deemed Executive | 2 | 2 | 3 | 4 | 3 | 2 | 2 | 2 | 3 | 2 |
Percentage of Board Members who are deemed ‘Independent’ | 50,0% | 80,0% | 57,1% | 5,0% | 61,5% | 85,7% | 58,8% | 76,5% | 81,3% | 52,9% |
Percentage of Board Members who are deemed ‘HDSA’ | 58,3% | 0,0% | 29,0% | 5,0% | 46,0% | 64,3% | 11,8% | 11,8% | 43,8% | 35,3% |
Percentage of Board Members who are Women | 50,0% | 40,0% | 21,4% | 20,0% | 23,1% | 35,7% | 29,4% | 29,4% | 37,5% | 35,3% |
Independence of Board Chairman | Yes | Yes | Yes | No | Yes | Yes | No | No | Yes | Yes |
Does the company provide public disclosure on any/all Board member conflicts of interest? | Not Reported | Yes | Yes | Not Reported | Yes | Yes | Not Reported | Yes | Not Reported | Yes |
Does the company provide public disclosure on any/all Board member politically exposed persons (PEP)? | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Yes | Not Reported | Not Reported | Not Reported | Not Reported |
Does the Board sign off on publicly available Climate Related Financial Disclosures, as per TCFD? | Not Reported | Yes | Not Reported | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Does the company have a publicly available human rights policy? | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Does the company include ESG into service level agreements with suppliers? | Yes | Yes | Yes | Yes | Yes | Yes | Not Reported | Yes | Yes | Yes |
Does the company formally audit suppliers and contractors for ESG compliance (including human rights)? | Yes | Yes | Not Reported | Yes | Not Reported | Yes | Yes | Not Reported | Yes | Yes |
Are shareholders given the right to vote on executive remuneration, and is the vote binding? | Partial | Yes | Partial | Yes | Partial | Partial | Partial | Partial | Partial | Partial |
Are shareholders given the right to vote on sustainability-related resolutions, and are the votes binding? | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Partial |
Is executive remuneration linked to ESG (i.e., is a proportion of remuneration/bonuses linked to Health, Safety and/or Environmental performance)? | Yes | Not Reported | Not Reported | Not Reported | Yes | Yes | Yes | Yes | Yes | Yes |
Company Name | Anglo American Platinum | British American Tobacco | Capitec | Compagnie Financière Richemont | First Rand | MTN | Naspers | Prosus N.V | Sasol | Standard Bank |
---|---|---|---|---|---|---|---|---|---|---|
Total Number of Employees | 21 474 | 52 050 | 14 672 | 35 588 | 47 413 | 13 932 | 28 445 | 23 874 | 28 949 | 46 632 |
Total Number of Employees and Contractors | 39 364 | 52 050 | 14 672 | 35 588 | 47 413 | 16 390 | 28 445 | 23 874 | 28 949 | 46 632 |
Percentage of management (Top and Senior) deemed ‘HDSA’ | 48% | Not Reported | 22% | Not Reported | 44% | Not Reported | Not Reported | Not Reported | 42% | 50% |
Percentage of management (Top and Senior) who are women | 25% | 39% | 22% | 35% | 38% | 31% | Not Reported | Not Reported | 26% | 40% |
Percentage of employees who are deemed ‘HDSA’ | 88% | Not Reported | 89% | Not Reported | 80% | Not Reported | Not Reported | Not Reported | 73% | 83% |
Percentage of employees who are women | 21% | 32% | 61% | 57% | Not Reported | 39% | 43% | 40% | 25% | 58% |
Percentage of employees who are ‘permanent’ | 99,97% | Not Reported | 95,93% | 94,0% | 98% | 85,00% | Not Reported | Not Reported | 99,23% | 93,51% |
Percentage of employees who belong to a Trade Union | 96% | 32% | Not Reported | Not Reported | Not Reported | 10% | Not Reported | Not Reported | Not Reported | 37% |
Employee Turnover (i.e., number of persons who departed relative to the total number of employees at year end) | 8,4% | 9,1% | 11,6% | 9,6% | Not Reported | 9,9% | Not Reported | Not Reported | 13,4% | 7,3% |
Total number of employees trained, including internal and external training interventions | 17 787 | 22 362 | Not Reported | 15 799 | Not Reported | Not Reported | Not Reported | Not Reported | 6 924 | 8 919 |
Rand Value of Employee Training Spend | 831 000 000 | Not Reported | 25 824 000 | Not Reported | Not Reported | 190 000 000 | 133 020 000 | 104 947 500 | 1 182 000 000 | 733 000 000 |
Company Name | Anglo American Platinum | British American Tobacco | Capitec | Compagnie Financière Richemont | First Rand | MTN | Naspers | Prosus N.V | Sasol | Standard Bank |
---|---|---|---|---|---|---|---|---|---|---|
Total Direct Energy Consumption (Gigajoules, GJ) – i.e., from renewable fuels burned | Not Reported | 2 548 800 | Not Reported | 14 400 | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported |
Direct Energy Efficiency: Total Direct Energy Consumed per Person Hour Worked (kJ/PHW) | Not Reported | 26 846,66 | Not Reported | 221,84 | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported |
Total Direct Energy Consumption (Gigajoules, GJ) – i.e., from non-renewable fuels burned (e.g., diesel, petrol, etc.) | 7 077 000 | 6 379 200 | Not Reported | 115 200 | Not Reported | 3 900 387 | Not Reported | Not Reported | 341 313 500 | Not Reported |
Percentage of Direct Energy Consumption from renewable fuels | 0,0% | 28,5% | 0,0% | 11,1% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% | 0,0% |
Total Volume of Electricity Purchased (MWh) - excluding self-generated from solar, wind or other sources | 3 816 944 | Not Reported | 34 503 | 216 000 | Not Reported | 1 116 866 | Not Reported | Not Reported | 7 233 889 | 161 633 |
Total Volume of Electricity Self-Generated (MWh) - i.e., from solar, wind or other sources | 0 | Not Reported | 0 | 3 537 | Not Reported | Not Reported | Not Reported | Not Reported | 11 218 611 | 2 601 |
Total Volume of Electricity Consumed (MWh) - Purchased + Self-Generated - Calculated | 3 816 944 | 0 | 34 503 | 219 537 | 0 | 1 116 866 | 0 | 0 | 18 452 500 | 164 234 |
Percentage of Electricity Consumed that was Self-Generated | 0,0% | 0,0% | 0,0% | 1,6% | 0,0% | 0,0% | 0,0% | 0,0% | 60,8% | 1,58% |
Electricity Efficiency: Average Electricity Consumed per Person Hour Worked (kWh/PHW) | 53,16 | 0,00 | 1,29 | 3,38 | 0,00 | 37,36 | 0,00 | 0,00 | 140,97 | 1,93 |
Total Energy Efficiency: Total Direct Energy & Indirect Energy Consumed per Person Hour Worked (kJ/PHW) | 289,94 | 0,00 | 0,00 | 13,98 | 0,00 | 264,96 | 0,00 | 0,00 | 3 114,90 | 0,00 |
Energy Spend as a percentage of total operational spend | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported |
Total Carbon Emissions (Tonnes CO2e) - Scope 1 | 592 | 325 000 | 973 | 11 000 | 6 508 | 308 399 | 11 282 | 6 331 | 56 972 000 | 7 660 |
Carbon Emissions (Tonnes CO2e) - Scope 2 | 3 930 | 393 000 | 35 538 | 6 000 | 153 268 | 825 170 | 18 402 | 6 900 | 7 088 000 | 154 513 |
Carbon Emissions (Tonnes CO2e) - Scope 3 | Not Reported | Not Reported | 1 955 | 1 097 000 | 7 189 | 4 103 038 | Not Reported | Not Reported | 38 470 000 | 1 540 |
Total Carbon Emissions (Tonnes of Carbon Dioxide equivalents, CO2e) - Reported | 4 522 | Not Reported | 38 465 | 1 113 934 | 166 964 | 5 236 608 | Not Reported | Not Reported | 102 530 000 | 163 713 |
Volume of carbon emissions offset via the purchase of carbon credits (Tonnes) | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | 4 300 000 | Not Reported |
Rand value of spend on carbon offset projects | Not Reported | Not Reported | Not Reported | 20 796 000 | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported |
Total Volume of Water Consumed (Kilolitres, or Kl) - New Purchases and/or Abstractions (excluding recycled water used) | 42 600 000 | 3 760 000 | Not Reported | 660 035 | Not Reported | Not Reported | Not Reported | Not Reported | 138 050 000 | 362 623 |
Water Efficiency: Average Volume of Water (Litres) Consumed per Person Hour Worked (l/PHW) | 593,315 | 39,604 | 0,000 | 10,168 | 0,000 | 0,000 | 0,000 | 0,000 | 1 054,622 | 4,263 |
Total Volume of Non-Hazardous Waste Disposed (Tonnes) | 990 | 11 930 | Not Reported | 12 930 | Not Reported | Not Reported | Not Reported | Not Reported | 180 000 | 262 |
Total Volume of Hazardous Waste Disposed (Tonnes) | 760 | Not Reported | Not Reported | 2 481 | Not Reported | Not Reported | Not Reported | Not Reported | 319 000 | 0,81 |
Total Volume of Waste sent for Recycling (Tonnes) | 18 079 | Not Reported | 34 | 4 792 | Not Reported | 35 | Not Reported | Not Reported | 125 000 | 21 |
Percentage of Waste disposed of that is sent for recycling | 66,0% | 78,9% | Not Reported | 31,1% | Not Reported | Not Reported | Not Reported | Not Reported | 25,1% | 7,3% |
Rand value of investments in projects to improve Energy Efficiency | Not Reported | Not Reported | Not Reported | Not Reported | 15 560 000 000 | Not Reported | Not Reported | Not Reported | Not Reported | 2 470 000 000 |
Rand value of investments in projects to improve Water Efficiency | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | 2 190 000 000 |
Rand value of investments in projects to improve Waste Efficiency | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported |
Total Number of Environmental Incidents (Level 1, 2 and/or 3) | 95 | 0 | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | 4 | Not Reported |
Rand value of spend on Climate Change Mitigation | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported | Not Reported |
Company Name | Anglo American Platinum | British American Tobacco | Capitec | Compagnie Financière Richemont | First Rand | MTN | Naspers | Prosus N.V | Sasol | Standard Bank |
---|---|---|---|---|---|---|---|---|---|---|
Rand Value of Corporate Social Investment (CSI) Reported | 1 174 000 000 | 256 221 000 | 66 000 000 | 623 880 000 | 338 000 000 | 159 000 000 | Not Reported | Not Reported | 526 200 000 | 217 854 690 |
CSI Spend as a percentage of Total Revenue Generated | 0,5% | 0,0% | 0,4% | 0,3% | 0,4% | 0,1% | 0,0% | 0,0% | 0,6% | 0,2% |
Rand Value of CSI Spend on Basic Needs & Social Development, including Nutrition and/or Feeding Programmes | 400 000 000 | 30 909 200 | 23 000 000 | 199 641 600 | 43 940 000 | 9 873 900 | Not Reported | 194 902 500 | 144 000 000 | 0 |
Rand Value of CSI Spend on Education | 80 000 000 | 2 000 000 | 93 582 000 | 294 060 000 | 61 437 600 | Not Reported | Not Reported | 156 700 000 | 89 927 070 | |
Rand Value of CSI Spend in Environmental Management Projects | Not Reported | 115 909 500 | Not Reported | 18 716 400 | 0 | 0 | Not Reported | Not Reported | 13 200 000 | 0 |
Rand Value of CSI Spend on Skills Development, including Adult Basic Education & Training (ABET) | Not Reported | Not Reported | Not Reported | Not Reported | 0 | 0 | Not Reported | Not Reported | 175 700 000 | 0 |
Rand Value of CSI Spend on Small Business Development Projects | Not Reported | 108 182 200 | Not Reported | Not Reported | 0 | 0 | Not Reported | 3 748 125 | 18 100 000 | 6 421 281 |
Rand Value of CSI Spend on Other | 603 000 000 | 108 182 200 | 1 600 725 | 56 149 200 | 0 | 84 397 200 | Not Reported | Not Reported | 18 500 000 | 18 407 513 |
Does the report include a comprehensive discussion of returns on CSI? | Partial | No | No | Partial | Yes | Partial | Partial | Partial | Yes | Yes |
Rand Value of Enterprise Development Spend | 112 000 000 | Not Reported | 37 000 000 | Not Reported | 259 000 000 | Not Reported | Not Reported | Not Reported | 728 500 000 | 140 0 000 |
Data analysis method
Results
Keyword | Stage of Sustainability |
---|---|
Carrying Capacity | 4 |
Consumption Degrowth | 4 |
Natural Systems | 4 |
Planetary Boundaries | 4 |
Co-evolutionary | 5 |
Eco-centric | 5 |
No growth | 5 |
Eco-efficiency | 5 |
Eco-ethic | 5 |
Year | Sustainability Reports | Annual Reports | ||||
---|---|---|---|---|---|---|
2008 | Risk | Technology | Growth | Cost | Profit | Market |
2009 | Risk | Market | Regulation | Market | Profit | Cost |
2010 | Risk | Market | Strategy | Cost | Market | Profit |
2011 | Risk | Market | Strategy | Cost | Market | Risk |
2012 | Risk | Market | Strategy | Risk | Market | Cost |
2013 | Risk | Industry | Market | Risk | Market | Profit |
2014 | Risk | Industry | Compliance | Risk | Market | Strategy |
2015 | Risk | Industry | Market | Market | Risk | Cost |
2016 | Risk | Customer | Compliance | Risk | Market | Cost |
2017 | Risk | Customer | Market | Risk | Market | Cost |
2018 | Risk | Customer | Market | Risk | Market | Growth |
2019 | Risk | Strategy | Market | Risk | Market | Cost |
2020 | Risk | Strategy | Customer | Risk | Market | Cost |
2021 | Risk | Strategy | Market | Risk | Market | Growth |
Biosphere |
Chemical Pollution |
Ocean Acidification |
Freshwater Consumption |
Land System Change |
Phosphorous |
Aerosols |
Democratic Quality |
Income Equality |
Planetary Boundaries Key Words | Co-occurrence Words | ||
---|---|---|---|
Ozone | Compliance | Risk | Industry |
Biodiversity | Risk | Partnerships | Ecosystems |
Biosphere | |||
Chemical Pollution | |||
Climate Change | Risk | Strategy | Cost |
CO2 | Cost | Sales | Market |
Ocean Acidification | |||
Freshwater Consumption | |||
Land System Change | |||
Nitrogen | Risk | Compliance | |
Phosphorus | |||
Aerosols | |||
Life Expectancy | Legal | Cost | Money |
Nutrition | Partnerships | Risk | Cost |
Sanitation | Partnerships | Industry | Strategy |
Access to Energy | Growth | Resilience | Efficiency |
Education | Market | Customer | Growth |
Social Support | Cost | Risk | Market |
Democratic Quality | |||
Equality | Growth | Legal | Compliance |
Employment | Cost | Market | Risk |
Income Equality |
Discussion
Biosphere |
Chemical Pollution |
Ocean Acidification |
Freshwater Consumption |
Land System Change |
Phosphorous |
Aerosols |
Democratic Quality |
Income Equality |