Abstract
The Taskforce on Climate-Related Financial Disclosure (TCFD) provides a framework for the required information relating to risk mitigation of climate change by all entities. The Johannesburg Stock Exchange (JSE) incorporated the TCFD framework as a voluntary disclosure for all listed companies. Mining companies are, therefore, under pressure to disclose climate change to comply with the JSE requirements by providing a brief description of key environmental issues. Climate change disclosure positively impacts companies in maintaining their social license. The contents of this study are directly linked to accounting for sustainability. Sustainability reporting has become a very interesting topic for investors and other stakeholders, given the mineral extractions performed by mining companies. It is important for stakeholders and investors to quantify the effect that this extraction has on the environment. This study, thus, analyses mining companies’ compliance with the TCFD requirements, that is disclosures of climate related risks and opportunities by mining companies listed on the JSE. To achieve the outcome above, an empirical content analysis methodology was used to assess the sample of JSE listed mining companies. The content analysis of the study is further expanded into a disclosure index, which focusses on assessing the recommended disclosure of the four core elements and a thematic content analysis to assess the quality of the disclosures. The results highlighted that more than 65% of companies complied with the climate change recommended disclosure. Thirty five percent of the companies have not yet complied with the TCFD’s recommended disclosure guidance. This may be attributable to the fact that this is still voluntary disclosure. This document finds that improvements can be made in the disclosure of climate related risks to comply with the TCFD requirements and understanding of the risks and opportunities created by these mining companies. The improvements include the following: companies should report on the progress of climate-related issues annually, within the sample selected there are some companies that last assessed climate related issues in 2021. Detailed Scope 3 reporting can enhance transparency and address emissions along the value chain. Companies are still struggling with scope 3 emissions disclosure, based on the study only 50% of the sample disclosed scope 3 emissions, this is still an area of improvement.