Environment

Carbon emissions

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 Standards”. Europe is on “Euro-5 Standards”. It is not known when South Africa will move to the “Euro-5 Standard”.

During the 2016, 2017 and 2018 financial years ended 30 June, the Group reported that its carbon emissions were as follows:

Description 1 July 2015 to
30 June 2016
Total
1 July 2016 to
30 June 2017
Total
1 July 2017 to
30 June 2018
Total
Change
FY2017 to
FY2018
C02e tonnes C02e tonnes C02e tonnes %
Road travel Note 2 203 480 247 360 276 184 11.65
Electricity 54 451 61 700 71 969 16.64
Other Note 3 2 456 3 016 3 664 21.49
Total 260 387 312 076 351 817 12.73
CO2e tonnes per R1 billion revenue 10 034 10 446 9 865 (5.56)
1. These figures included Ader, EAG and Legend Logistics for the first time.
   
2. The increase in Road Travel Emissions results from increases in kilometers travelled in SG Coal and the addition of Legend Logistics. There were increases in Dealerships UK and inTime as a result of the increased number of locations as a result of the acquisitions mentioned in 1 above.
   
3. Includes generator fuel, air travel, hotels, waste and water. This figure increased in FY2018 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.

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 42 locations from which carbon data is collected for the year, there was a pleasing decrease in total CO2e emissions per R1 billion of revenue from FY2017 to FY2018. This is a result of the Groups’ continuing efforts to reduce in CO2e emissions within the business units.