Central Energy Fund

CEF has not set any emissions reduction targets, and does not disclose plans to develop any. The company does not report any emissions data. CEF should develop a long-term climate target that aligns with its 1.5°C pathway and covers its scope 1, 2, and 3 emissions. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

Although CEF’s recent scope 1, 2, and 3 emissions intensity has slightly decreased in recent years, this is still not aligned with the annual decrease of 4% that would be needed to align with its decarbonisation pathway. In the next five years, CEF’s scope 1, 2, and 3 emissions intensity is expected to increase, as the company’s share of oil, compared to gas, is expected to increase. The company is still committed to expanding its oil, gas and coal exploration and production portfolio. There is no evidence to suggest CEF offers energy efficiency services to its clients.

There is no evidence to suggest that CEF has implemented oversight of climate change mitigation within its executive board or that any members of its board hold expertise in the low-carbon transition. The company’s limited consideration of climate change at the executive level is reflected in its strategy, which is focused on expanding its gas and coal portfolios. Valuable climate-change insight at board level could present CEF with the opportunity to develop resilient low-carbon business models outside of its current oil, gas and coal focus.

CEF has not set any emissions targets. The company has not developed a vision of what its business will look like in a low-carbon future. The company is aiming to expand its gas portfolio and has plans to drive its upstream exploration and production development. The CEF Group is investing in strategic coal ventures and is still committed to expanding its coal exploration activities.

CEF does not have a low-carbon transition plan and there is no evidence to suggest it intends to develop one in the near future. The company has no scoreable climate targets and does not currently report any emissions data. However, CEF is a 25% shareholder in the Redstone Concentrated Solar Power (CSP) plant. This USD 710 million project is the first of its kind in South Africa. The Redstone 100 megawatt (MW) CSP project, which is expected to be complete in 2023, is expected to generate 480,000 megawatt hours (MWh) per year.

CEF does not report its group capital expenditure (CapEx) towards low-carbon technologies. CEF discloses its total research and development (R&D) spend during this reporting year. However, CEF does not report what proportion, if any, is currently invested in climate change mitigation technology R&D. The CEF Group should establish a time-bound action plan that outlines its financial commitments to allow a company-wide transition to a low-carbon economy.

CEF’s scope 1 and 2 emissions intensity has slightly decreased in recent years. However, this is not aligned with the annual decrease of approximately 10% that would be needed to align with its decarbonisation pathway. CEF is still heavily reliant on fossil fuel activities and has not yet committed to stopping oil, gas or coal exploration and expansion. CEF obtains a significant amount of revenue from its coal sales. Revenue from coal sales in 2022 were USD 40 million.

CEF is expected to remain within its 1.5°C carbon budget between 2022 and 2050. However, this is an estimate based on its current reserves. Between 2025-2030, CEF’s upstream gas scope 3 emissions are expected to increase significantly due to the opening of a new offshore conventional gas field. CEF does not have a transition plan and does not report its emissions. As CEF has not set any climate targets, there is no evidence to suggest the company is prepared for a low-carbon transition.

No evidence was found that the company commits to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. No public commitment by the company was found stating its intention to re-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain. However, the company does have a channel available for external stakeholders to report their grievances related to the company.

The company commits to worker health and safety, however there is no evidence the company commits to gender equality. Furthermore, there is no evidence that it discloses information on collective bargaining fundamentals. The company does, however, disclose some workforce diversity fundamentals. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

There is no evidence that the company commits to personal data protection, and it has policies regarding anti-bribery and anti-corruption, responsible tax practices and responsible lobbying and political engagement. However, the company can strengthen its disclosure on these subjects.