Total carbon emission

1 004 052 CO2e

796 734 CO2e (2017)

carbon-emissions2
Scope 1
KAP’s major source of Scope 1 emissions is the fuel consumed by its Contractual Logistics and Passenger Transport businesses. These two divisions account for 87% of the Scope 1 emissions.
Contractual Logistics
Passenger Transport
Integrated Timber
Chemical
Integrated Bedding
Automotive Components
66%
20%
6%
5%
2%
1%
fuel1
Fuel
171 635 807 litres
of diesel used

= 607.088 CO2e

Scope 1 emissions increased primarily due to the acquisition of Lucerne Transport in September 2016, and the inclusion of Southern Star in December 2017.
Diesel consumption increased from
145 998 435 litres to 171 635 807 litres.
elec1
Electricity
379 096 391 kWh
of electricity used

= 396.964 CO2e

Electricity consumption increased from 310 491 725 kWh to 379 096 391 kWh as result of capacity expansion and acquisitions.
Scope 2
The majority of the Scope 2 emissions are attributable to the Chemical and Integrated Timber divisions, where volumes increased significantly through capacity upgrades and the inclusion of Safripol’s greenhouse gas emissions for a full year.
Chemical
Integrated Timber
Automotive Components
Integrated Bedding
Contractual Logistics
Passenger Transport
53%
33%
9%
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.

The company subscribes to the FTSE4Good Index and uses this as a framework to manage compliance and progress in the areas of environment, social and governance (ESG) against industry best practice. ESG targets have been integrated into employee remuneration structures.

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 and independent experts monitor the achievement of objectives against the requirements of these standards.

Where required, KAP has registered with the South African Department of Environmental Affairs to report on its greenhouse gas emissions.

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 for both current and future projects and expansions. 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.

KAP’s carbon footprint is calculated in accordance with the Intergovernmental Panel on Climate Change (IPCC) 2006 Guidelines and the ‘Technical Guidelines for Monitoring, Reporting and Verification of Greenhouse Gas Emissions by Industry.’ We measure all activities over which we have operational control.

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 segment 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

The divisional sites monitor and manage electricity usage to continuously improve efficiencies.

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.

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.

The environmental impact of discarded plastics has been widely publicised and public sentiment against the use of single-use plastics has recently gained momentum. KAP is committed to working constructively with relevant stakeholders to create a sustainable solution to the issue. KAP already supports a number of initiatives in this regard.

Biodiversity/Forestry

The group aims to protect natural resources and areas of biodiversity. All our forests are managed according to the principles set out by the Forestry Stewardship Council (FSC®) that call for responsible forest management and are international best practice guidelines. In this past year our NECF forests were awarded and FSC® certificate that is valid for five years.

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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