Konica Minolta GHG Inventory Report FY 2014

Transcription

1 Konica Minolta GHG Inventory Report FY August Tel : Fax: BALLYOAKS OFFICE PARK LACEY OAK HOUSE, 2ND FLOOR 35 BALLYCLARE DRIVE PO BOX BRYANSTON 2021 PROMETHIUM CARB ON (PTY) Ltd / Reg no: 2005/018622/07 / Directors / H Immink, RT Louw, HJ Swanepoel

2 Press Release 1 Climate change is one of the most important environmental challenges facing governments, organisations and individuals today. Pressure is mounting world-wide for business to reduce the impact of their activities on the environment, and in particular the volume of greenhouse gases they produce. Konica Minolta s business strategy is in line with this movement towards the low carbon economy. As part of its environmental and sustainability awareness, Konica Minolta South Africa (KMSA) has calculated its sixth consecutive carbon footprint since This places KMSA in a good position to track its greenhouse gas emissions, as well as highlights areas with reduction opportunities. KMSA s carbon footprint consists of both direct and indirect emissions. Direct emissions (such as combustion of fuels) resulted in 559 tco 2e. Energy indirect emissions, arising from electricity usage, came to 1,386 tco 2e and 3,736 tco 2e from other indirect emissions (for instance business travel). This year, FY 2014, Konica Minolta s greenhouse gas emissions amounted to 5,681 tco 2e. This is a decrease in emissions from the previous year of 13%. A three step process is required to obtain a carbon neutral status. The calculation of Konica Minolta s carbon footprint is the first step in this process. Following this, emission reduction initiatives are carried out where possible, and the remaining emissions offset by offset projects. In line with its carbon neutral strategy, Konica Minolta has once again supported Food & Trees for Africa (FTFA), to continue taking a stand against climate change. KMSA has offset its carbon footprint, both direct and indirect emissions by planting 15,396 fruit and indigenous trees, reducing KMSA s impact on global warming. KMSA s credible carbon neutral claim was obtained by submitting its carbon footprint and offsetting report to The Carbon Protocol of South Africa. After comparing the carbon footprint and offset project, The Carbon Protocol issued KMSA with its carbon neutral certification (logo seen to the right). 1 Format suitable for use in internal newsletter. This was written assuming KMSA will complete the steps to offset their carbon emissions and gain carbon neutral status. i

3 Table of Contents 1. Introduction Approach Principles to GHG inventory calculations Development of the Corporate GHG Inventory Organisational boundary Operational Boundary Identification of GHG sources GHG Quantification Methodology Data Collection and quality Emission Factors Base Year Emissions Data Quality Results and Discussion KMSA GHG Inventory for FY Direct GHG Emissions (Scope 1) Energy Indirect GHG Emissions (Scope 2) Other Indirect GHG Emissions (Scope 3) Tracking and Comparing KMSA s GHG Emissions Comparative Analysis Direct (Scope 1) GHG Emissions Comparison Energy Indirect (Scope 2) GHG Emissions Comparison Other Indirect (Scope 3) GHG Emissions Comparison Initiatives carried out by KMSA to reduce their Impact on the Environment Carbon Offsets and Carbon Neutrality Conclusions and Recommendations References Annex 1: Activity Data for GHG Inventory Calculation ii

4 1. Introduction Konica Minolta South Africa (KMSA) offers a comprehensive range of products and services within the document imaging and management business. KMSA is wholly owned by the Bidvest Group, an international company listed on the JSE. KMSA has 17 branches and 49 dealerships throughout South Africa. KMSA values environmental, social and economic sustainability, recognising that climate change is a key sustainable development issue. In line with their values KMSA has voluntarily calculated their greenhouse gas (GHG) inventory, also known as a carbon footprint, for FY 2014 (01 July June 2014). A GHG inventory is the total amount of carbon dioxide and other GHG emissions (expressed in carbon dioxide equivalents, CO 2e) for which an organisation or site is responsible, or over which it has control. KMSA understands that the first step in managing the issue of climate change is to have a well maintained GHG inventory. KMSA has been calculating their GHG inventory since FY 2009, their base year, allowing for a good analysis, comparison and tracking of performance. KMSA has calculated their GHG inventory for six consecutive years thus in this report a year on year comparison is carried out for emissions from KMSA. The greenhouse gas inventory calculation presented in this report will allow KMSA to assess the breakdown of their emissions and to make strategic decisions as to how to reduce their footprint. The report will further assist KMSA with suggestions to further develop their GHG inventory in coming years, so as to look into the life cycle of their business emissions, both upstream and downstream of the business. By knowing its carbon emissions, KMSA can anticipate its carbon tax exposure which is expected to come into place in South Africa in But what is 1 tonne of CO 2e? A return trip by car from Cape Town to Harare One return business class flight from Miami to New York Burning 370 litres of diesel The monthly electricity of an average household in South Africa 1

5 2. Approach 2.1. Principles to GHG inventory calculations The Standard that specifies principles and requirements at the organization level for quantification and reporting of greenhouse gas (GHG) emissions and removals is ISO , Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals. It includes requirements for the design, development, management, reporting and verification of an organization's GHG inventory. The following are the basic principles used when performing a GHG inventory and are detailed in the ISO : RELEVANCE COMPLETENESS CONSISTENCY TRANSPARENCY ACCURACY Ensure the GHG inventory appropriately reflects the GHG emissions of the company and serves the decision-making needs of users both internal and external to the company. Account for and report on all GHG emission sources and activities within the chosen inventory boundary. Disclose and justify any specific exclusion. Use consistent methodologies to allow for meaningful comparisons of emissions over time. Transparently document any changes to the data, inventory boundary, methods, or any other relevant factors in the time series. Address all relevant issues in a factual and coherent manner, based on a clear audit trail. Disclose any relevant assumptions and make appropriate references to the accounting and calculation methodologies and data sources used. Ensure that the quantification of GHG emissions is systematically neither over nor under actual emissions, as far as can be judged, and that uncertainties are reduced as far as practicable. Achieve sufficient accuracy to enable users to make decisions with reasonable assurance as to the integrity of the reported information. Apart from the ISO Standard, the Greenhouse Gas Protocol was also used in the calculation of the greenhouse gas inventory. The Greenhouse Gas Protocol provides further guidance on boundary setting and the quantification of other indirect (scope 3) emissions. 2

6 3. Development of the Corporate GHG Inventory In accordance with the ISO , the GHG inventory is developed by: Setting the boundaries of the inventory; Identifying the GHG sources inside the boundary; Establishing the quantification method that will be applied; and Calculating the emissions. This process is discussed in detail in subsequent sections Organisational boundary An organisational boundary is the delineation of the facilities that are included in a company s GHG inventory. The boundary is important as it determines which GHG sources and sinks of the organisation must be included in the footprint calculation, and which are excluded. This is illustrated through an example in Figure 1 below. Figure 1: Illustration of organisational and operational boundaries The ISO standard and GHG Protocol defines two distinct approaches which can be used to define organisational boundaries, the equity share and the control approaches. The control approach is split into financial and operational control. Equity share approach - Under this approach, a company would record its emissions according to (pro rata) the equity share it holds in each operation, i.e. according to ownership. This is based on the assumption that the economic risks and rewards for a company are comparable to its ownership share. There may be cases where equity share differs from ownership, in which case the economic share a company has in an operation would override its share of ownership, to better reflect the risks and rewards at stake. Financial control approach - Under this approach a company would record emissions from facilities, sites or operations over which it has financial control i.e. it has the ability to direct the financial and operating policies with a view to gaining economic benefits from its activities. A company accounts for 100% of the emissions of those operations over which they have financial control. Operational control approach - Under this approach, a company would record emissions from facilities, sites or operations over which it or one of its subsidiaries, has operational control i.e. the authority to introduce and implement its operating policies at the operation. A company accounts for 100% of emissions from operations over which it or one of its subsidiaries has operational control. 3

7 The operational control boundary approach has been selected for calculation of the Konica Minolta GHG inventory. KMSA is accounting for 100% of the emissions from operations over which it has control. KMSA s operations include the head office, 17 branches and 49 dealerships Operational Boundary An operational boundary is the delineation of the GHG sources (activities that emit GHG s) and sinks (activities that absorb GHG s) that are included in a company s GHG inventory. The setting of operational boundaries is a two-step process: Step 1: Step 2: Identification of the emissions associated with the company s business operation. Classification of the emissions into three categories. These three categories are defined according to ISO Part 1 as direct GHG emissions, energy indirect GHG emissions, and other indirect GHG emissions, but are commonly referred to by The Greenhouse Gas Protocol as Scope 1, Scope 2, and Scope 3 emissions. Direct GHG emissions are emissions from sources that are owned or controlled by KMSA. Energy indirect GHG emissions are emissions resulting from imported electricity consumed by Konica Minolta. Other indirect GHG emissions are the emissions (excluding energy indirect GHG emissions) that occur because of Konica Minolta s activities, but occur at sources owned or controlled by another company. According to the Greenhouse Gas Protocol, other indirect GHG emissions can be classified into two different categories also graphically presented in Figure 2 below: Upstream indirect GHG emissions (related to purchased or acquired goods and services); and; Downstream indirect GHG emissions (related to sold goods and services). Figure 2 illustrates the different sources of emissions, as well as the operational boundaries of an organisation. The figure gives a breakdown of the various scopes, including examples of emissions associated to each scope. Figure 2: Illustration of different sources of emissions (The Greenhouse Gas Protocol: Corporate Value Chain Accounting and Reporting Standard) 4

8 Identification of GHG sources The identification of greenhouse gas sources is a detailed process. This is to ensure that all significant emission sources are identified for the GHG inventory calculation. The Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard was applied in addition to ISO Part 1 to identify and quantify emission sources. The following sources were identified for Konica Minolta: Scope 1 (Direct Emissions): o Emissions from the combustion of fuels; Diesel used in KMSA-owned vehicles (cars, motorbikes and delivery vehicles); Petrol used in KMSA-owned vehicles (cars, motorbikes and delivery vehicles); LPG combustion; Scope 2 (Energy Indirect Emissions): o GHG emissions from the generation of imported electricity consumed by the organization; Scope 3 (Other Indirect Emissions 2 ): o o Fuel and Energy related emissions; Extraction, production and transportation of diesel, petrol and LPG; Electricity transmissions and distribution losses; Business travel; Domestic and international air travel; Road travel by sales representatives and technician personnel in own vehicles. 2 The organization may quantify other indirect GHG emissions based on requirements of the applicable GHG programme, internal reporting needs or the intended use for the GHG inventory. 5

9 4. GHG Quantification 4.1. Methodology The quantification methodology used is based on GHG activity multiplied by an appropriate documented emission factor. Activity data x Emission Factor = Quantity of GHG Emissions These conversion factors allow for activity data (e.g. litres of fuel used, number of kilometres driven) to be converted into tonnes of carbon dioxide equivalent (CO 2e). As per international protocol all the GHG reporting is done as CO 2 equivalent, i.e. including all greenhouse gases and not only CO 2. As per international protocol, all the greenhouse gases (GHG s) are converted to carbon dioxide equivalents using global warming potentials (GWP) Data Collection and quality This report is a compilation of the data available to date, based on the organisational and operational boundary selected. Data was collected and collated for this GHG inventory, by Laetitia Coetzer, Special Projects Manager of KMSA. 6

10 4.3. Emission Factors Emission factors have been chosen in order of relevance and accuracy for the various emission sources. In determination of emissions from electricity usage, the South African grid emission factor was calculated in accordance with the guidelines provided by the Greenhouse Gas Protocol, using data from Eskom. For globally applicable emission factors (e.g. Diesel, Petrol, LPG) the data sets from the United Kingdom s Department of Environment, Food and Rural Affairs: Greenhouse gas conversion factors for company reporting 2014: methodology paper for emission factors were used. Table 1 below presented a list of emission factors used to quantify the emissions related to KMSA. Table 1: Emission Factors used to quantify emissions EMISSION FACTOR VALUE UNIT SOURCE SCOPE 1 - EMISSION FACTORS Diesel kg CO 2e per litre DEFRA Factors 2014 Petrol kg CO 2e per litre DEFRA Factors 2014 LPG kg CO 2e per kg DEFRA Factors 2014 SCOPE 2 - EMISSION FACTORS South Africa electricity grid SCOPE 3 - EMISSION FACTORS 3.3 PURCHASED GOODS AND SERVICES tonnes CO 2e/MWh Promethium Carbon Calculation in accordance with The Greenhouse Gas Protocol using Eskom Data Diesel kg CO 2e per litre DEFRA Factors 2014 Petrol kg CO 2e per litre DEFRA Factors 2014 LPG kg CO 2e per kg DEFRA Factors 2014 Promethium Carbon Calculation in South Africa electricity grid (T&D losses) tonnes CO 2e/MWh accordance with The Greenhouse Gas Protocol using Eskom Data 3.6. BUSINESS TRAVEL Short-haul flights <3700 km (economy class) kg CO 2 per p.km DEFRA Factors 2014 Long-haul flights >3700 km (business class) kg CO 2 per p.km DEFRA Factors

11 4.4. Base Year Emissions According to ISO14064:1 (2006), an organisation needs to establish a historical base year for GHG emissions and removals for comparative purposes. This allows for meaningful and consistent comparison of emissions over time. Companies can choose a base year as the earliest relevant point in time for which they have reliable data. KMSA s base year is set to FY2009 (1 July June 2009) when they first carried out their GHG inventory. According to the standard the base year must be recalculated in future years under specific circumstances, e.g.: a) Changes in the reporting company structure that have a significant impact on the company s base year emissions. A structural change involves the transfer of ownership or control of emissionsgenerating activities, and includes Mergers, acquisitions and divestments; Outsourcing and Insourcing of emitting activities. b) Changes in calculating methodology or improvements in the accuracy of emission factors or activity data that result in a significant impact on the base year emission data; c) Discovery of significant errors, or a number of cumulative errors, that is collectively significant. In this reporting year the base year emissions were recalculated due to slight improvements in the accuracy of emission factors over the years, as well as an adjustment in distance from Johannesburg to Japan. The different distance was material and thus the adjustment was made Data Quality All the calculations were done based on information provided by KMSA. No verification of any values was undertaken. The data was however screened for consistency with previous GHG inventory reports of KMSA. To improve data reliability, it is recommended that prior to public reporting, data is cross checked with invoices or recorded data. Guidelines from the ISO Standard should be looked at to prepare for verification. 8

12 5. Results and Discussion This section presents KMSA s GHG inventory for the 2014 financial year (01 July June 2014) KMSA GHG Inventory for FY2014 KMSA s GHG inventory consists of direct and indirect emissions categorised as Scope 1, 2 and 3 emissions. A summary of KMSA s GHG inventory for FY 2014 is summarized below in Table 2: Table 2: GHG inventory for KMSA, FY2014 GHG Inventory FY2014 (tco 2e) Scope 1: Direct GHG emissions Diesel combustion 213 Petrol combustion 341 LPG combustion 5 Scope 1 emissions 559 Scope 2: Energy indirect GHG emissions Electricity 1386 Scope 2 emissions 1386 Scope 3: Other indirect GHG emissions Fuel and energy related emissions not included in Scope 1 and 2 Diesel extraction, production and transportation 91 Petrol extraction, production and transportation 407 LPG extraction, production and transportation 0.7 Electricity transmission and distribution 168 Business travel Diesel combusted in employee-owned vehicles 206 Petrol combusted in employee-owned vehicles 1738 Short haul flights 80 Long haul flights 1045 Scope 3 emissions 3736 KMSA s GHG Inventory FY 2014: 5681 EMISSION INTENSITY (tco2e/employee)

13 5.2. Direct GHG Emissions (Scope 1) Direct (Scope 1) GHG emissions arise from sources owned or controlled by the reporting company. KMSA s direct emissions arise from the combustion of fuels: LPG, as well as the combustion of diesel and petrol in KMSA-owned vehicles (cars, motorbikes and delivery vehicles). Referring to Figure 3 the largest contributor to direct emissions from KMSA operations results from the combustion of 148,275 litres of petrol, amounting to 341 tco 2e, 61% of direct emissions. Emissions related to 79,773 litres of diesel combustion amount to 213 tco 2e, a contribution of 38% to direct emissions. The portion of LPG combusted in KMSA operations is relatively small compared to that of petrol and diesel, as such the emissions related to LPG combustion are significantly smaller. Combustion of 1,654kg of LPG results in 5 tco 2e a 1% contribution to direct emissions from KMSA. 5 tco2e LPG combustion 1% 341 tco2e Petrol combustion 61% 213 tco2e Diesel combustion 38% Figure 3: Direct Emissions from KMSA 5.3. Energy Indirect GHG Emissions (Scope 2) Energy indirect (scope 2) emissions arise from the importing of electricity to KMSA operations for their own use. The emissions are associated with the generation of purchased electricity. KMSA purchases electricity from Eskom a predominantly coal-fired grid and thus with very high emissions associated to the generation of each MWh. The grid emissions factor for South Africa is tco 2e/MWh. Energy indirect emissions from KMSA operations amount to 1,386 tco 2e as presented in Table 3 below due to consumption of 1,390MWh of electricity in the reporting year: Table 3: Energy indirect (scope 2) emissions from KMSA operations Energy Indirect Emission Contributors tco 2e Electricity Energy Indirect Emissions (Scope 2):

14 5.4. Other Indirect GHG Emissions (Scope 3) Indirect emissions are emissions that occur as a result of your business, but are not under your direct control. Indirect emissions are categorised into energy indirect emissions and other indirect emissions. The calculation of other indirect (scope 3) emissions allows companies to assess their entire value chain emissions impact and identify the most effective ways to reduce emissions. The GHG Protocol proposes 15 categories of other indirect emissions, from both upstream and downstream of an organization. Refer back to Figure 2 for examples of upstream and downstream emissions related to an organisation. Two of the fifteen categories were analysed in the FY 2014 GHG inventory of KMSA. The fifteen categories are summarised in Table 4 below, with reference to which Scope 3 categories are likely to be material to KMSA s business: Table 4: Breakdown of categories for Other Indirect (Scope 3) emissions. Category Category description Value (tco 2e) Business Travel Transportation of employees for business-related activities (in vehicles not owned or operated by the reporting company). 3,069 Fuel- and Extraction, production, and transportation of fuels and energy energy-related purchased or acquired by the reporting company. activities 667 Purchased goods and services Capital Goods Upstream transport and distribution Waste generated in operations Employee commuting Upstream leased assets Downstream transportation and distribution Processing of sold products Use of sold products End-of-life treatment of sold products Extraction, production, and transportation of goods and services purchased or acquired by the reporting company. Extraction, production, and transportation of capital goods purchased or acquired by the reporting company. Transportation and distribution of products purchased by the reporting company between a company s tier 1 suppliers and its own operations (in vehicles not owned or controlled by the reporting company). Transportation and distribution services that are purchased by the reporting company including inbound and outbound logistics and transportation and distribution between a company's own facilities (in vehicles and facilities not owned or controlled by the reporting company). Disposal and treatment of waste generated in the reporting company s operations Transportation of employees between their homes and their worksites Operation of assets leased by the reporting company (lessee) and not included in scope 1 and scope 2 reported by lessee. Transportation and distribution of products sold by the reporting company in the reporting year between the reporting company s operations and the end consumer (if not paid for by the reporting company), including retail and storage (in vehicles and facilities not owned or controlled by the reporting company). Processing of intermediate products sold in the reporting year by downstream companies (e.g. manufacturers). This category includes emissions from the end use of goods and services sold by the reporting company i.e. electricity usage related to use of printers. Waste disposal and treatment of products sold by the reporting company at the end of their life. Not quantified likely to be material Not quantified unlikely to be material Not quantified - likely to be material Not quantified unlikely to be material Not quantified unlikely to be material Not quantified - unlikely to be material Not quantified likely to be material Not relevant Not quantified - likely to be material Not quantified - unlikely to be material 11

15 Category Category description Value (tco 2e) Operation of assets owned by the reporting company (lessor) Downstream Not quantified - unlikely and leased to other entities, not included in scope 1 and scope 2 leased assets to be material reported by lessor. Franchises Operation of franchises, not included in scope 1 and scope 2 reported by franchisor. Not relevant Investments Operation of investments (including equity and debt investments and project finance), not included in scope 1 or scope 2. Not relevant The two categories reported on by KMSA in FY 2014 are further analysed in the figures below. Figure 4 compares the emissions from the two categories, business travel and fuel and energy related emissions (emissions associated with the extraction, production and transportation of the fuels/electricity). Business travel amounts to 3,069 tco2e, 82% of the other indirect emissions reported on in this reporting year. Fuel and energy related emissions amount to tco2e, 18% of the other indirect emissions reported by KMSA in this reporting year. Other Indirect (Scope 3) Emissions: 3069 tco2e Business Travel 82% tco2e Fuel and Energy related 18% Figure 4: Other indirect (scope 3) emissions reported by KMSA in FY

16 Figure 4 is further broken down into speicifc emissions in each of the categories, fuel and energy related emissions (Figure 5) and business travel related emissions (Figure 6). Fuel and Energy related Emissions 0.7 tco2e LPG 0.1% 91 tco2e Diesel 14% 407 tco2e Petrol 61% 168 tco2e Electricity T&D losses 25% Figure 5: Breakdown of fuel and energy related emissions Analysing Figure 5 the emissions from fuel and energy related extraction, production and transportation, presented in order of magnitude, include that of: Petrol extraction, production and transportation: 407 tco2e (61%) Electricity transmission and distribution losses: 168 tco2e (25%), Diesel extraction, production and transportation: 91 tco2e (14%); and LPG production, extraction and transportation: 0.7 tco2e (0.1%) Petrol contributes the major portion due to the large petrol consumption throughout the KMSA operations requiring the production of 903,906 litres for their consumption. Comparing this to diesel of which only 157,019 litres are consumed throughout the KMSA operations. Business Travel related Emissions 206 tco2e Diesel combusted in employee-owned vehicles 7% 80 tco2e Short haul flights 2% 1738 tco2e Petrol combusted in employeeowned vehicles 57% 1045 tco2e Long haul flights 34% 13

17 Figure 6: Breakdown of emissions related to business travel Analysing Figure 6 the emissions related to business travel, presented in order of magnitude, include that of: Petrol combusted in employee owned vehicles: 1,738 tco2e (57%) Emissions related to long haul flights: 1,045 tco2e (34%), Diesel combusted in employee owned vehicles: 206 tco2e (7%); and Emissions related to short haul flights: 80 tco2e (2%) Petrol combusted in employees owned vehicles amount to 755,631 litres and diesel combusted in employee owned vehicles amounts to 77,246 litres. Long haul flights are classified as flights to Japan, these flights were taken as a distance of 13,550km from Johannesburg. It was given that 334 flights between Japan and Johannesburg were taken in this reporting year. Short haul flights included those between Johannesburg and Cape Town at 1,260kms, of which 718 flights were taken as well as those between Johannesburg and Windhoek at 1,360kms, of which 38 flights were taken. There is room for improvement in the reporting of other indirect emissions for KMSA. Some of the other indirect emission categories that were not included in the KMSA FY 2014 but may have a significant impact, (recommended to be reported on in years to come), include emissions related to: Purchased goods and services the emissions related to the production and transportation of equipment (printers and office systems) and any other purchased goods by KMSA; Capital goods emissions related to the extraction, production, and transportation of capital goods, as an example, if KMSA purchased any delivery vehicles in the reporting year; Upstream transport and distribution emissions related to the transport of purchased goods to KMSA operations from suppliers, as well as transport of sold products (printers/office systems) to end customers (in vehicles not owned by KMSA but paid for by KMSA). Waste generated in operations emissions produced from the waste generated at KMSA operations (waste water and municipal solid waste). Employee commuting emissions related to employees commuting from home to work and back daily. Downstream transport and distribution emissions related to transport of sold products (printers/office systems) to end customers (in vehicles not owned by KMSA nor paid for by KMSA). Use of sold products emissions related to electricity demand of printers and office systems, paper usage of printers/office systems and toner/ink usage in printers/office systems. End of life treatment emissions related to the process of how printers and office systems are discarded after end of life. 14

18 6. Tracking and Comparing KMSA s GHG Emissions KMSA have been tracking their GHG emissions since FY 2009 and were thus able to supply Promethium Carbon with their GHG inventory for the past six years. This is highly advantageous and allows a year on year comparison and tracking of KMSA s GHG inventory. It allows KMSA to evaluate performance over the years and identify opportunities for reduction in GHG emissions. In this section a year on year comparison over the past six years is carried out. In order to carryout meaningful GHG inventory comparisons it is critical that consistent GHG accounting approaches, emission factors, inventory boundaries, and calculation methods are applied for a credible emissions comparison. In FY 2013 a restatement of the FY 2009 GHG inventory data was carried out in order to align the calculation methodology after considerable improvements had been made to GHG reporting standards. During the calculation of the FY 2014 other indirect emissions it was found that the distance reported for a flight from Johannesburg to Japan had been captured as 5,195km in all previous calculations. This value was however amended as the correct distance from Johannesburg to Japan is 13,549km. Due to the change all previous years other indirect emissions related to long haul flights were amended. Furthermore, due to improvements in the accuracy of emission factors the base year GHG inventory was recalculated. 15

19 6.1. Comparative Analysis A year on year comparison of KMSA s GHG inventory is presented below in Table 5. It is seen that the GHG inventory of KMSA (looking at direct and indirect emissions) has decreased over the previous year. There is a decrease of 13%. This is due to the decrease in other indirect emissions, the number of long haul flights decreased significantly as well as the diesel and petrol consumption in employee owned vehicles for business travel. However, direct emissions increased by 12% increase and energy indirect emissions increased by 0.2%. The large increase in direct emissions comes as a result of increased diesel combustion (increase of 3,990 litres) and petrol combustion (increase of 20,320 litres). A comparison of emission intensity (tco 2e/employee) shows KMSA s emissions per employee have followed a steady downward trend over the years. KMSA s emission intensity has decreased by 11.8% in FY Table 5: Year on Year Comparison of KMSA GHG Inventory Scope 1: Direct GHG emissions FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 (tco 2e) (tco 2e) (tco 2e) (tco 2e) (tco 2e) (tco 2e) Diesel combustion Petrol combustion LPG combustion Scope 1 Emissions Scope 2: Energy indirect GHG emissions Electricity Scope 2 Emissions Scope 3: Other indirect GHG emissions Fuel and energy related emissions not included in Scope 1 and 2 Diesel extraction, production and transportation Petrol extraction, production and transportation LPG extraction, production and transportation Electricity transmission and distribution Business travel Diesel combusted in employee-owned vehicles Petrol combusted in employee-owned vehicles Short haul flights Long haul flights Scope 3 Emissions KMSA s GHG inventory: Emission Intensity (tco 2e/employee)

20 GHG emissions (tco 2 e) 6.2. Direct (Scope 1) GHG Emissions Comparison A comparison of direct GHG emissions shows an upward trend over the past four years. In the last reporting year the direct emissions of KMSA have increased by 12%. This increase is due to the slight increase in fuel combusted by KMSA in FY Diesel consumption increased by 5%, petrol consumption increased by 16% and LPG consumption increased by 9%. Figure 7 below shows the comparison of direct GHG emissions from FY 2009 to FY Figure 7: Year-on-year comparison of KMSA direct GHG emissions Year-on-year Direct GHG Emissions % decrease 9% increase 28% increase 1% increase 12% increase FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Diesel combustion Petrol combustion LPG combustion 17

21 GHG emissions (tco 2 e) 6.3. Energy Indirect (Scope 2) GHG Emissions Comparison An analysis on the year on year change of energy indirect emissions (electricity) shows a steady downward trend. The decreased is due to a move of certain branches to greener buildings and the installation of energy efficient lighting (assisted by Eskom subsidies). However over the past year a very slight increase of 0.19% in emissions from electricity was calculated. This increase is not due to an increase in consumption of electricity, but rather to the increase in emissions related to the production of an MWh of electricity. In FY 2013 the emission factor related to consumption of 1MWh of electricity was tco 2e/MWh and in FY 2014 the emission factor increased to tco 2e/MWh. Refer to Figure 8 below for the comparison of emissions related to electricity from FY 2009 to FY Year-on-year Energy Indirect GHG Emissions % decrease 18% decrease 14% decrease 16% decrease 0.19% increase FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Figure 8: Year-on-year comparison of KMSA Energy Indirect GHG Emissions 18

22 GHG emissions (tco 2 e) 6.4. Other Indirect (Scope 3) GHG Emissions Comparison An analysis of other indirect GHG emissions resulting from KMSA operations have fluctuated over the six year period. Figure 9 below presents KMSA s other indirect emissions from FY2009 to FY2014. From this figure it is seen that the largest contributor to other indirect emissions for KMSA operations is due to the combustion of petrol in employee-owned vehicles as part of KMSA s business travel. The other indirect emission sources listed in order of magnitude are: Combustion of petrol in employee owned vehicles for business travel; Air travel, long haul flights (Johannesburg to Japan); Extraction, production and transportation of petrol; Combustion of diesel in employee owned vehicles for business travel; Electricity transmission and distribution loses; Air travel, short haul flights (Johannesburg to Cape Town and Johannesburg to Windhoek); Extraction, production and transportation of diesel; and Extraction, production and transportation of LPG % decrease Year-on-year Other Indirect GHG Emissions 17% increase 16% increase 2% decrease 20% decrease FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Petrol combusted in employee-owned vehicles Petrol extraction, production and transportation Electricity transmission and distribution Diesel extraction, production and transportation Long haul flights Diesel combusted in employee-owned vehicles Short haul flights LPG extraction, production and transportation Figure 9: Year-on-year comparison of KMSA Other Indirect GHG emissions 19

23 7. Initiatives carried out by KMSA to reduce their Impact on the Environment KMSA is aware of their environmental impact and strives to be sustainable in carrying out all their operations. On this front KMSA have undertook various initiatives in order to reduce their waste produced by their operations. Following their goal of having zero waste, KMSA is pursuing recycling all waste. KMSA is actively finding opportunities to reduce the volumes of externally discarded waste by incorporating internal recycling initiatives, as well as making efficient use of available resources. All equipment, toner bottles, toner cartridges, imaging units, and the carcass of printer bodies are first stripped of any useful parts to be used in refurbishing other printers and the waste is then sent for recycling through Desco s electronic recycling process. Desco estimates to recycle about 97% of the electronic waste they process. As part of KMSA s Social Corporate Investment Program their refurbished printer systems are donated to schools to improve resources in the local communities. On the recycling front KMSA are looking into further viable possibilities and sustainable solutions for disposal of toner cartridges. A new initiative that is in the feasibility phase is looking into recycling of colour toners. KMSA have found that the use of the toner powder can be used for the colouring of plastics. Instead of discarding this powder along with the cartridges KMSA are doing tests on the use of colour toner powder for colouring plastics. These initiatives show that KMSA hold environmental integrity and sustainability high on their list of values. 8. Carbon Offsets and Carbon Neutrality As part of their offsetting programme KMSA have been planting trees since 2007 in collaboration with Food & Trees for Africa (FTFA), a national social enterprise focused on greening, food security, climate change action and sustainable natural resource use. Thus far KMSA have planted 18,178 fruit and indigenous trees along with 4,600 bamboo plants. In order to offset ones GHG emissions, with the aim to become carbon neutral, the steps outlined below are to be followed: 1. Calculate your company s GHG inventory; 2. Implement initiatives and actions to reduce GHG emissions where possible; 3. Implement carbon offsetting projects to compensate for the remaining emissions. KMSA would like to offset their GHG emissions by continuing the collaboration with FTFA planting trees in Limpopo, in line with their Limpopo conservation project. The quantity of trees to be planted follows FTFA s registered Verified Carbon Standard (VCS) project. The calculation is on the basis that 2.71 trees should be planted for every 1 tonne of CO 2e to be sequestered. Similarly if wanting to offset with bamboo plants, the calculation is carried out on the basis that 1.7 bamboo plants should be planted to sequester 1 tonne of CO 2e. After calculation of KMSA s FY 2014 GHG inventory, the direct and energy indirect GHG emissions of KMSA s operations amounted to 1,945 tco 2e during this reporting year. The GHG inventory of KMSA taking into consideration direct and indirect emissions amounted to 5,681 tco 2e. 20

24 In the instance where KMSA wants to offset direct and energy indirect emissions a few offsetting options are outlined below. These are an indication of amounts and may vary depending on assumptions made in offset calculation: 1. Planting a combination of indigenous or fruit trees, an indicative amount of 5,271 trees 2. Planting bamboo plants an indicative amount of 3,307 plants 3. Planting a combination of trees and bamboo plants with a 50:50 split: an indicative amount of 2,636 trees and 1,654 bamboo plants If KMSA would like to offset all their GHG emissions, direct, energy indirect and other indirect emissions, a few offsetting options are outlined below. These are an indication of amounts and may vary depending on assumptions made in offset calculation: 1. Planting a combination of indigenous or fruit trees, an indicative amount of 15,396 trees 2. Planting bamboo plants an indicative amount of 9,658 plants 3. Planting a combination of trees and bamboo plants with a 50:50 split: an indicative amount of 7,698 trees and 4,829 bamboo plants. Once KMSA has carried out their chosen offset project they may engage with the Carbon Protocol of South Africa, who will review and verify the GHG inventory and carbon offsets chosen. After successful verification the carbon neutral logo presented to the right is awarded and may be used for up to one year. 9. Conclusions and Recommendations KMSA continues on their road to reducing their impact on the environment as well as following sustainable business operations. In light of this, the calculation of KMSA s FY 2014 GHG inventory, is their sixth GHG inventory calculation. This report has documented the findings from the calculation of KMSA s GHG inventory for financial year 2014 (1 July June 2014). The direct (scope 1) emissions from KMSA s operations in this financial year amounted to 559 tco 2e, this is an increase from last year of 12%. Energy indirect (scope 2) emissions amounted to 1,386 tco 2e, relatively stable from the previous year. Other indirect (scope 3) emissions amounted to 3,736 tco 2e, this is a decrease of 20% from the previous year, due to decreased international travel and business road travel. In order to offset all their GHG emissions, KMSA will need to plant 15,396 tco 2e. In expanding on their GHG reporting and moving forward on their journey towards a low carbon economy it is recommended that KMSA: Continue annually calculating their GHG inventory using most recently published emission factors; Expanding their reporting on other indirect emissions, as explained in section 5.4; Performing a cross check analysis on data quality; Potentially verify the GHG inventory to enhance credibility. 21

25 References Department of Environmental Affairs. (2011). National Climate Change Response White Paper. Pretoria: Government of the Republic of South Africa. Intergovernmental Panel on Climate Change (IPCC). (2006). Guidelines for National Greenhouse Gas inventories. Intergovernmental Panel on Climate Change (IPCC). (2014). IPCC Fifth Assessment Report. World Resource Institute. (2004). The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition). Washington: World Business Council for Sustainable Development. World Resource Institute. (2011). Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting. USA: World Business Council for Sustainable Development. 22

26 Annex 1: Activity Data for GHG Inventory Calculation Diesel Usage (l) Petrol Usage (l) KMSA KMSA Other Other Total Total LPG Usage (kg) Electricity Usage Total 1654 kwh Distance of flight (km) No. of Flights Total Distance International (JHB/Japan) Domestic (JHB/Cape Town) Local (JHB/Windhoek) Number of employees