Environment

Carbon emissions

The Group continues to focus on environmentally friendly business practices. Many of these initiatives make good business sense in that they form part of the Group’s continuing drive to improve efficiencies. The new development at Super Park has included energy efficient lighting, solar electricity generation and heating and the re-use of waste water for the Truck Wash. The Group continues to replace office lights with LED lights for further electricity saving. During the current year total emissions increased as a result of the inclusion of acquisitions.

The Group continues to ensure that its vehicles are properly maintained and not overloaded. Along with continuous driver training, this ensures that carbon emissions from all vehicles meet manufacturers’ specifications. Unfortunately the Group has no control over the Fuel Emission Standards. Currently South African Fuel complies with “Euro-2 Standard”. Europe is on “Euro-5 Standard”. It is unclear when South Africa will move to the “Euro-5 Standard”.

SG Fleet has had a carbon reduction programme in place since 2008. In that period SG Fleet has achieved a 24.8% (2016: 13.3%) reduction in emissions measured as per 1 000 cars against a target of 20%.

During the 2015, 2016 and 2017 financial years ended 30 June, the Group reported that its carbon emissions were as follows:

Description  1 July 2014
to 30 June 2015
Total C02e tonnes 
1 July 2015
to 30 June 2016
Total C02e tonnes 
1 July 2016
to 30 June 2017
Total
C02e tonnes 1,4 
Change
FY2016
to FY2017  % 
 
Road travel 2  216 607  203 480  247 360  21.56 
Electricity  53 568  54 451  61 700  13.31 
Other 3  1 307  2 456  3 016  22.80 
Total  271 482  260 387  312 076  19.85 
CO2e tonnes per R1 billion turnover  16 415  10 941  11 027  (00.01) 

Notes:

1 These figures include SG IN tIME and the Western Cape Dealerships for the first time.
2 The increase in Road Travel Emissions results from increases in kilometers travelled in SG Coal. In addition there were increases in Dealerships UK as a result of increased sales and services at the dealerships.
3 Includes generator fuel, air travel, hotels, waste and water. This figure increased in FY2017 as a result of increased international travel following the expansion into new geographical areas and additional locations as a result of acquisitions included for the first time.
4 The figures in the table do not include EAG and Legend Logistics, which will be reported from 1 July 2017.


This data is used to implement programmes to control, mitigate and reduce where possible the carbon emissions used by the Group. Road travel comprises the most material element of the Group’s carbon footprint and as a result of having no control over Fuel Emission Standards, the Group does not believe there is any benefit in setting emission reduction targets. The Group recognises both the financial and environmental benefits of ongoing carbon emission reduction and will continue to look for opportunities to reduce its carbon footprint.

Despite adding 27 locations from which carbon data is collected for the year, there is a marginal increase in CO2e emissions per R1 billion of turnover from FY2016 to FY2017. This is a result of the Groups’ efforts to reduce CO2e emissions within the business units.