CLIMATE-RELATED SCENARIO ANALYSIS DISCLOSURES BY JOHANNESBURG STOCK EXCHANGE BASIC RESOURCES COMPANIES – TOO HOT TO HANDLE

Johanna Nel; Leana Esterhuyse

doi:10.26533/eksis.v21i1.1613

Johanna Nel University of South Africa
Leana Esterhuyse University of South Africa https://orcid.org/0000-0003-0140-7980

DOI: https://doi.org/10.26533/eksis.v21i1.1613

Keywords: Climate Change, Corporate Reporting, IFRS S2, Scenario Analysis, Developing Economies, Basic Resources

Abstract

Introduction: This study investigates climate-related scenario analysis (CRSA) disclosures by Johannesburg Stock Exchange (JSE)-listed basic resource companies, focusing on alignment with the Task Force on Climate-related Financial Disclosures (TCFD) and the International Sustainability Standards Board (ISSB)’s IFRS S2 standard.

Methods: A CRSA checklist was developed based on 23 IFRS S2-based disclosure items to evaluate alignment. Content analysis of 32 basic resource companies’ 2023 integrated and climate-related reports was conducted.

Results: While nine of the ten largest companies were fully aligned with IFRS S2, only half of the basic resource companies disclosed CRSA information. Smaller companies exhibited inconsistent alignment, reflecting potential resource and skills constraints. Larger companies responded more effectively to stakeholder expectations, using CRSA to signal strategic resilience to climate change.

Discussion: The findings suggest that resources and expertise strongly influence disclosure practices and highlight the need for capacity-building initiatives to support smaller companies in developing economies. This research expands the literature on CRSA by providing unique insights into South Africa and the challenges and opportunities faced by its basic resource companies. It contributes to understanding some of the drivers of CRSA practices and offers practical recommendations to improve alignment with emerging global standards.

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