Orica Ltd

InfluenceMap Score
D-
Performance Band
43%
Organisation Score
41%
Relationship Score
Modifications to InfluenceMap Scoring
Sector:
Materials
Head​quarters:
Melbourne, Australia
Official Web Site:
Wikipedia:

Climate Lobbying Overview: Orica appears broadly supportive of action on climate change, although the company's engagement on climate policy has been mixed and limited. The company’s top-line messaging through its primary channels appears to be largely positive, however, it is a member of numerous trade associations that mainly have a negative engagement with climate policy and it's position on the future energy-mix does not appear to align with the IPCC.

Top-line Messaging on Climate Policy: In November 2020, Orica published its climate policy where it recognizes that human activities are causing global temperatures to increase and supports the additional goal of the Paris agreement to pursue efforts to limit temperature rise further to 1.5° Celsius relative to pre-industrial levels. However, Orica states that climate change policy must not affect the competitiveness between trading nations and indicates that special consideration must be given to emissions-intensive, trade-exposed businesses. Additionally, Orica’s CEO Alberto Calderon was reportedly asked by a shareholder to comment on the 2 degrees Celsius scenario at the companies 2017 AGM, he replied saying “it doesn’t seem that the world is heading that way”.

Engagement with Climate-Related Regulations: Orica appears to have a limited engagement with climate-related regulations. However, in its 2020 sustainability report, Orica does advocate for the use of ‘open and transparent’ international carbon markets in the ‘responsible advocacy’ section. Orica also reportedly encouraged an agreement to be made for the National Energy Guarantee (NEG) but its position on the greenhouse gas emission reduction targets was not clear.

Positioning on Energy Transition:While Orica’s top-line messaging on climate is largely positive, it’s communications surrounding the future of the energy-mix appears to be less so. In its 2020 sustainability report, it suggests that the demand for thermal coal will increase in the near-medium term and highlights the current limitations of carbon-capture and storage. However, this is an improvement on its 2016 sustainability report that supported Australia’s suitability to meet the increasing demand’s for coal from Asia and suggests that in a carbon-constrained future, Australian coal is desirable as it is of high quality. In 2020, Alberto Calderon reportedly stated he supported '100%' the Morrison governments ‘gas-fired’ recovery plan as it would lead to a more competitive price for gas.

Industry Association Governance: Orica discloses a list of it’s memberships to industry associations as a part of its 2020 sustainability report. However, it does not disclose the industry associations climate change policy positions nor does it give any indication if the company is aligned or misaligned with its industry associations on climate change policy. Orica is a direct member of the World Coal Association and associate members of NSW Mineral Council, both of which are engaged in obstructive lobbying on climate policy. Orica’s Vice President Supply Chain APA sits on the board of the Energy Users Association of Australia that appears to show limited support for action on climate change.

QUERIES
DATA SOURCES
Main Web Site Social Media CDP Responses Legislative Consultations Media Reports CEO Messaging Financial Disclosures EU Register
Communication of Climate Science
1 NS NA NS NS -1 NS NA
Alignment with IPCC on Climate Action
1 NS NA NS NS NS NS NA
Supporting the Need for Regulations
0 NS NA NS NS NS NS NA
Support of UN Climate Process
1 NS NA NS NS NS NS NA
Transparency on Legislation
-1 NA -1 NA NA NA NS NA
Carbon Tax
0 NS NS NS NS NS NS NA
Emissions Trading
1 NS -1 NS NS NS NS NA
Energy and Resource Efficiency
NS NS NS NS NS NS NS NA
Renewable Energy
NS NS NS NS NS NS NS NA
Energy Transition & Zero Carbon Technologies
-2 NS NS NS -1 0 NS NA
GHG Emission Regulation
NS NS NS NS 0 NS NS NA
Disclosure on Relationships
-1 NA -2 NA NA NA NS NA
Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
49%
 
49%
 
22%
 
22%
 
75%
 
75%
 
24%
 
24%
 
31%
 
31%
 
38%
 
38%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.