Total carbon emission

796 734 CO2e

650 994 CO2e (2016)

36% Contractual logistics

20% Integrated timber

18% Chemical

17% Passenger transport

6% Automotive components

3% Integrated bedding

Scope 1
Contractual logistics
Passenger transport
Integrated timber
Chemical
Integrated bedding
Automotive components
61%
28%
7%
2%
1%
1%
fuel
Fuel
145 998 435 litres
OF DIESEL USED

= 467 234 CO2e

An overall increase of 18%
was recorded.
Year-on-year comparatives in diesel consumption are in line with operational outputs. The main reason for the overall CO2e increase is due to an increased use of LPG gas, and more accurate data on LPG consumption.
electricity
Electricity
310 491 725 kWh
OF ELECTRICITY USED

= 329 501 CO2e

An overall increase of 28%
was recorded.
This increase is due to the full year inclusion of the Autovest operations (acquired in April 2016) and 6 months inclusion of Safripol (acquisition effective January 2017).
Scope 2
Chemical
Integrated timber
Automotive components
Integrated bedding
Contractual logistics
Passenger transport
41%
39%
12%
4%
2%
1%

KAP is committed to proactively promote awareness of environmental management throughout the group and to maintain appropriate standards of environmental management in all its divisions.

Policy and approach

KAP recognises its responsibility to manage and, where possible, reduce its environmental impact and carbon emissions through managing fuel and energy efficiency, pollution reduction and water conservation measures. All divisions record data relating to energy consumption, waste management and water usage.

Targets are set at operational level within the businesses and are mostly aligned with the ISO 14001, OHSAS 18001 and NOSA requirements. Accredited auditors, including the SABS and Alexander Forbes Risk Services, monitor the achievement of objectives against the requirements of these standards.

The group is committed to managing and assessing targets that are set at operational level. Environmental impact assessments (EIAs) and the implementation of resultant environmental management plans (EMPs) are standard practice. Environmental incidents and complaints are continuously monitored and, when an incident is recorded, corrective action is a priority. There were no material incidents reported during the period under review. KAP has adopted an environmental policy that is supported, in turn, by divisional and/or operational policies.

Climate change

The group operates in industries where Scope 1 (fuel) and Scope 2 (energy) are the main contributors to carbon emissions. The group first calculated its carbon footprint in FY2012, when it participated for the first time in the Carbon Disclosure Project (CDP) and submitted its first public report to the CDP in May 2013. The group’s carbon footprint is calculated in accordance with the Greenhouse Gas Protocol (GHG). The group remains focused on monitoring its Scope 1 and 2 emissions and will concentrate its attention on the reporting requirements aimed at retaining its inclusion on the FTSE4Good Index.

Businesses focus on optimising operational efficiencies and continuously invest in new technologies to manage fuel consumption and energy use.

Fuel

Fuel usage is material in the diversified logistics division, and is key to its sustainability strategy. Fuel consumption is managed mostly through compliance with manufacturers’ maintenance standards, investment in new technology and improved efficiencies.

Fuel saving and efficiency are achieved through the optimum use of supply chain technologies and innovation, customer partnerships, replacing and recapitalising older technology in vehicles and equipment with new technology, the use of driver/operator behaviour monitoring technology and systems to reduce fuel consumption. All fuel usage is accounted for in the carbon footprint Scope 1 calculation.

Energy

Many of the divisional sites participated in programmes to install electricity meters and to monitor and manage electricity usage. The goal was to establish a reliable system throughout the group in preparation for the South African Power Conservation Programme’s (PCP) national 10% electricity reduction initiative. Findings at operational level (at selected locations) reported a saving in this regard. To mitigate costs and to recycle waste, PG Bison invested in a thermal energy plant that saves approximately R10 million per year.

Read more: Recycling waste into energy

Air, water and waste

All divisions have to comply with environmental regulations and many business licences are dependent on regulatory assessments and are measured against the National Environment Management: Air Quality Act (NEM AQA) in South Africa.

Air

A small number of the group’s manufacturing facilities are responsible for minimal stack emissions. These stack emissions occur mainly in the timber operations and specifically in the pole manufacturing plants. Emission levels from these operations continue to remain well within permitted levels.

Water

Through the group’s risk management structure, water management is reviewed on an operational level. Managing and reducing water usage are part of the operational processes where water usage is critical. Water is recycled and reused where possible.

Effluent and waste

Effluent and waste are highly regulated and regular site inspections are conducted by relevant government departments or standards authorities.

Effluent from the manufacturing operations is mainly treated at local authority treatment plants, where effluent quality is constantly monitored. Where large quantities of water are used, effluent plants are in place to clean the used water. In the timber operations, most of the water used in one process is captured, cleaned and recycled into another process. Waste water from the logistics operations is limited to the wash bays at the vehicle depots. The water used to wash the vehicles is cleaned and recycled.

Hazardous effluent may result from substances carried on behalf of customers, specifically in the logistics division. Unitrans has stringent policies in place and works closely with the relevant authorities to ensure any such effluent is disposed of responsibly. The operations have a robust risk management process in place to reduce the risk of harmful effects and spillages resulting from the transportation of hazardous materials. Should spillages occur, detailed procedures are followed to contain, clean and rehabilitate any exposed areas. Ongoing health and safety, and driver training play a vital role in mitigating these risks. During the year under review there were no significant incidences of spillage.

Divisional waste management and reduction initiatives are in place that sort, compact, re-use, recycle, sell and discard waste in a sustainable manner. Reducing waste and using recycled materials increases efficiencies and margins on manufactured products.

Read more: Implementing a zero waste priority

Hazardous residual waste is disposed of through certified processes and by specialist ethical and approved waste disposal companies. Each disposal is effected at approved dump sites against the issue of certificates in compliance with legislation and ISO standards.

Biodiversity/Forestry

While not a material issue for the group, biodiversity has:

  • an indirect impact through how we manage and monitor our own use and procurement of sustainable raw materials; and
  • a direct impact through the management of our plantations, forestry land and wood products.

The group aims to protect natural resources and areas of biodiversity. All our forests are managed according to the principles set out by the FSC (Forestry Stewardship Council) that call for responsible forest management and are international best practice guidelines.

The only area where our land ownership could have a direct effect on the biodiversity of the surrounding land is in our timber operations at the northern part of the Eastern Cape Forest cluster. The group has 52 069 ha of protected land and the PG Bison plantation at Ugie boasts six natural heritage sites.

Environmental policy

KAP Industrial is committed to proactively promoting awareness of environmental management throughout the group and to maintaining proper standards
of environmental management in all of its operations. Its policy is to ensure that group operations utilise environmentally acceptable practices that benefit the environment, shareholders, employees and the community at large. It will continuously aim towards improving the group’s environmental practices. Where viable,
the group will minimise the use of water and energy, emissions to air and water, and contain its production of waste.

KAP will strive to achieve this by its commitment, both at board and divisional level, to:

  • comply, as a minimum, non-negotiable requirements, with all environmental legislation, regulations, standards and codes of practice applicable to its operations;
  • measure and report, through group reporting structures, on compliance with applicable legislation and regulations and on performance against objectives and targets;
  • identify all significant environmental aspects relevant to its operations and to develop and implement appropriate environmental management strategies;
  • monitor new developments in environmental control and technology relevant to our operations; and
  • develop environmental awareness across the group through effective communication, training, consultation and interaction;
  • adopt environmental management as a key strategic objective.
  • set and use objectives and targets;

The group’s divisions may formulate separate divisional environmental policies to address specific issues. Such divisional policies shall incorporate the principles of this group environmental policy. The ultimate responsibility for group environmental matters rests with the KAP board.

KAP will publicly report, on an annual basis or more frequently should circumstances require, on the group’s progress on environmental matters and is committed to appropriate communications with internal and external stakeholders on any environmental matters of significance.

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