Grindrod

Grindrod’s transition plan sets out an intention to monitor its Scope 1 and 2 emissions and commits to setting targets to move towards net-zero emissions in the long term, but the company does not disclose when it aims to achieve these objectives. The company should develop a long-term 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 towards longer-term goals.

Grindrod does not report freight transport activity, emissions intensity or scope 1 and 3 emissions data. Without this data, it is not possible to assess the company’s past emissions trends or to assess the company’s alignment with its 1.5°C pathway. As a result, the assessment could not evaluate whether the company is projected to reduce its emissions intensity at a rate required by its 1.5°C pathway and whether it will remain within its future carbon budget. Grindrod acknowledges the impact fossil fuel combustion has on climate change, but does not publish plans to increase the share of low-carbon vehicles in its fleet.

Grindrod has a low-carbon transition plan, which aims to integrate metrics and targets into its business strategy, monitor and review its environmental risk variables, along with allocating resources to achieve its targets. However, Grindrod did not conduct a climate scenario analysis to inform its transition plan or ensure its ambition is sufficient for a 1.5°C pathway. Grindrod does not incentivise low-carbon performance through executive compensation. The company can improve the likelihood of a successful low-carbon transition by aligning its incentives with its decarbonisation commitments.

Grindrod does not appear to be actively developing any business models for a low-carbon future. Grindrod is aiming to participate in the just transition to a low-carbon economy and utilise renewable energy opportunities. Where new low-carbon business models are present to support these low-carbon objectives and the company’s transition to a 1.5°C pathway, Grindrod should transparently disclose the profitability, current size, potential growth and deployment schedule to substantiate the development of the business model.

Grindrod has not set any emissions targets, despite discussing its commitment to monitor its scope 1 and 2 emissions to minimise the company’s emissions.

Grindrod’s transition plan aims to report progress made on its environmental targets, monitor risk variables, make financial provisions to achieve its targets and integrate metrics and targets into the company’s business strategy. However, the plan lacks quantitative details, targets or a timeframe.

Grindrod is using its existing assets to implement cargo diversification including moving away from coal transportation. Grindrod conducted climate change risk and vulnerability analysis and developed a Climate Change and Environmental Policy, also prioritising monitoring scope 1 and 2 emissions.

Grindrod’s scope 1 and scope 3 emissions decreased by 46% between 2016-2020 and by 12% between 2018-2020, respectively. Grindrod does not disclose sufficient activity or scope 1 and 3 emissions data between 2015-2020 to provide a meaningful assessment of its historical emissions intensity trend.

Grindrod aims to operate in a changing world and has published a transition plan, but the company does not demonstrate any action to support this. Grindrod lacks targets, does not disclose any supporting financial content and due to insufficient data, its past performance could not be assessed.

No evidence was found of the company’s commitment 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 engagement 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 reskill- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- 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.

The company expects its business relationships to respect the ILO fundamental rights at work, and it offers a grievance mechanism to workers and external stakeholders. However, no other policies or commitments of the company related to the respect for human rights were found in the public domain. This includes the necessary policies and systems to ensure the respect for basic human rights in the operations and supply chain.

The company is committed to respecting the health and safety of its workers and expects its suppliers to do the same. The company is also committed to women’s empowerment. However, the company can strengthen its disclosure on these topics and other key decent work issues that ensure secure, safe and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision-making.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. The company does have a policy prohibiting bribery and corruption and prohibits making political contributions. However, the company can strengthen its commitments and disclosures on these and other key ethical business topics, including taxation.