Greenhouse Gas Assessment for the financial year ending 30 September 2013

Transcription

1 Reunert Limited Greenhouse Gas Assessment for the financial year ending 30 September 2013 The Carbon Report powered by sustainableit Copyright sustainableit

2 Table of Contents Table of Contents... 2 Abbreviations... 3 Glossary of terms... 4 Methodology... 5 Greenhouse Gas Assessment 1 st October 2012 to 30 th September Executive Summary... 7 GHG emission inventory boundary... 9 GHG emission inventory detail Total emissions Emissions totals breakdown Scope 1 detailed breakdown Scope 2 detailed breakdown Scope 3 detailed breakdown Understanding uncertainty Disclaimer Review and verification Contact details References Copyright sustainableit

3 Abbreviations CH 4 Methane CO 2 DEFRA FTE GHG GWP HFC IPCC N 2O NF 3 ODU PFC SF 6 Carbon dioxide Carbon dioxide equivalent UK Department for Environment, Food and Rural Affairs Full time equivalent (employee) Greenhouse gas Global warming potential Hydro chlorofluorocarbon Intergovernmental Panel on Climate Change Nitrous oxide Nitrogen trifluoride Oxidised during use Per fluorocarbons Sulphur hexafluoride WBCSD World Business Council for Sustainable Development WRI World Resources Institute Copyright sustainableit

4 Glossary of terms Boundaries The inventory boundaries to determine which emissions are accounted for and reported. Boundaries include organisational and operational. Carbon footprint The total greenhouse gas emissions caused directly and indirectly by an organisation, typically over a period of 12 months. Carbon dioxide equivalent standardisation of all measured greenhouse gases to reflect their warming equivalent to carbon dioxide (CO 2). This is used to report different greenhouse gases against a common basis. Direct emissions GHG emissions from facilities or sources owned or controlled by the reporting company e.g. company owned vehicles. Emissions The release of greenhouse gases into the atmosphere. Emission factor Conversion factor to translate activity data e.g. tonnes of fuel consumed into emissions. GHG Greenhouse gases. Under the GHG Protocol Standard seven gases are accounted for, namely carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride and nitrogen trifluoride. equivalent masses of different greenhouse gases relative to carbon dioxide. Indirect emissions emissions that are a consequence of the operations of the reporting company, but occur at sources owned or controlled by a third party company. Operational boundary The boundary to establish the operations and sources of emissions included in the GHG Inventory. Organisational boundary The boundary to establish business units or entities of an organisation included in the GHG Inventory. Reporting Period the period of time, typically a calendar or financial year for which the report covers. Scope 1 emission Direct emission from company-owned or controlled assets. Scope 2 emission Indirect emission from the consumption of purchased electricity. Scope 3 emission Indirect emission from activities associated with the activities of a third party company. Sequestration The uptake of CO 2 and storage of carbon in biological sinks. GHG offset Offsets are GHG reductions used to compensate for GHG emissions elsewhere. GHG Inventory A listing of the GHG emission sources that are attributable to the company. GHG Protocol Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. Global warming potential GWP is used to compare the impact of the emission of Copyright sustainableit

5 Methodology The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (herein referred to as the GHG Protocol) has directed the measurement and reporting of Reunert Limited s greenhouse gas emissions. Greenhouse Gas Protocol Corporate Accounting and Reporting Standard The Greenhouse Gas Protocol Initiative is a multi-stakeholder partnership of businesses, nongovernmental organisations, governments, and others convened by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). Launched in 1998 the initiative s mission is to develop internationally accepted greenhouse gas accounting and reporting standards for business and to promote their broad adoption worldwide. The GHG Protocol is widely regarded as the standard for corporate GHG accounting and company reporting. The protocol is analogous to the generally accepted financial accounting standards for companies consistent accounting and reporting practices. Audit boundaries Organisational and operational audit boundaries have been predefined by Reunert Limited. Organisational scope Organisational boundaries determine which facilities or operations, owned or controlled by the reporting company, are included in the GHG emission calculation. The organisational boundary of Reunert Limited s inventory has been based on equity. High level organisational boundary information is supplied in Figure 2 and Table 4 below. Operational Scope Operational boundaries determine which activities of the reporting company generate emissions, which of these activities should be included in the calculation, and how these activities should be classified (i.e. as Scope 1, Scope 2, Scope 3). The established organisational and operational boundaries together constitute a company s inventory boundary. Activities measured are categorised and listed in Table 4 below. Greenhouse Gases All emissions calculated have been accounted for in terms of carbon dioxide equivalent gases () as required by the GHG Protocol. Due to the varying ability of greenhouse gases to trap heat in the atmosphere, some are more harmful to the climate than others. Each greenhouse gas has a global warming potential (GWP), which refers to its heat trapping potential relative to that of CO 2. Copyright sustainableit

6 Greenhouse gas emissions are therefore typically reported as CO 2 equivalents () for consistency, allowing like for like comparisons. The seven main greenhouse gases covered by the GHG Protocol and reported as 1 are: Carbon dioxide (CO 2) Methane (CH 4) Nitrous oxide (N 2O) Hydro fluorocarbons (HFCs) Perflourocarbons (PFCs) Sulphur hexafluoride (SF 6) Nitrogen trifluoride (NF 3) In accordance with the GHG Protocol, greenhouse gas emissions have been categorised as direct and indirect; and grouped into Scopes for accounting and reporting. Direct Emissions Scope 1 Emissions are categorised as direct when they are generated from activities or sources within the reporting company s organisational boundary and which the company owns or controls. Under the protocol these are called Scope 1 emissions and are accounted for as such. Indirect Emissions Scope 2 and Scope 3 Indirect sources are those emissions related to the company s activities, but that are emitted from sources owned or controlled by a third party company. These are categorised as either Scope 2 emissions for purchased electricity or as Scope 3 for other non-owned or controlled emissions. 1 Global Warming potentials sourced from IPCC Second Assessment Report (SAR year) Copyright sustainableit

7 Greenhouse Gas Assessment 1 st October 2012 to 30 th September 2013 Executive Summary This report reflects Reunert Limited s greenhouse gas emissions calculations for the financial year ending 30 September The Reunert group manages a diversified portfolio of businesses in the fields of electrical engineering, information and communication technologies and defence and allied technologies. Established in 1888 and first listed on the JSE in 1948, Reunert Limited is a leading South African company. The group is listed in the industrial goods and services (electronic and electrical equipment) sector of the JSE (ticker symbol: RLO). The group operates mainly in South Africa with minor operations situated in Australia, Lesotho, USA and Zimbabwe. Reunert currently manages three main operating segments: CBI-electric, Nashua and Reutech. The greenhouse gas assessment has been based on the Corporate Accounting and Reporting Standard of the Greenhouse Gas Protocol (GHG Protocol). In accordance with the GHG Protocol, clear organisational and operational boundaries were defined and are recorded below. Table 1: Organisational boundary Organisational Entity Organisational Boundary Reunert Limited Equity Reporting period 1 st October th September 2013 Methodology Square meterage of facilities m 2 GHG Protocol Corporate Accounting and Reporting Standard In summary, Reunert Limited s 2012/2013 GHG emissions, by scope are recorded in Table 2 and Figure 1 below. Table 2: Total GHG emissions by scope Metric tonnes of GHG Inventory 2012/2103 Scope 1 Scope 2 Scope 3 Total CBI Electric Nashua Reutech Group Services Reunert Limited Percentage of scope % 85% - - Percentage of total 11% 66% 23% 100% Copyright sustainableit

8 2012/2013 GHG Inventory by Scope Metric tonnes of CO 2 e ; 11% ; 23% Scope 1 Scope ; 66% Scope 3 Figure 1: Graph illustrating distribution of total GHG emissions by scope Table 3: Emissions intensity Metric tonnes of GHG Inventory 2012/2103 Gross emissions Emissions per m 22 Emissions per FTE 3 Kwh/m2 Emissions per Rm revenue Scope 1+2 emissions per Rm revenue CBI Electric Nashua Reutech Group Services Reunert Limited Square meterage intensity includes stationary fuel combustion, stationary non energy fuel use and purchased electricity only. 3 FTE made up of permanent employees. Copyright sustainableit

9 Low Voltage African Cables Telecom Cable (50%) Nashua OA Franchises Mobile Pan Solutions Nashua Communications Communications Radar Systems Fuchs Electronics RC&C Manufacturing GHG emission inventory boundary Reporting Period The period for which emissions data has been gathered and reported is the financial year 1 st October 2012 to 30 th September Organisational scope Figure 2: Organisational structure of Reunert Limited Reunert Limited holds 100% equity in all entities unless specified. Reunert Limited Group Service s CBI Electric Nashua Reutech Copyright sustainableit

10 Operational scope The gases and activities listed in the table below form the operational scope of the assessment. Table 4: Operational boundaries Greenhouse gases included Carbon dioxide (CO 2) Methane (CH 4) Nitrous oxide (N 2O) Kyoto greenhouse gases present and excluded Kyoto greenhouse gases not present Hydro fluorocarbons (HFCs) Perflourocarbons (PFCs) Sulphur hexafluoride (SF 6) Nitrogen trifluoride (NF 3) GHG emissions sources included in assessment Direct emissions Stationary fuel combustion Stationary fuel non-energy use Mobile fuel combustion Indirect emissions Purchased electricity Purchased goods and services, including: Material use of input materials Water supply Waste disposal, including: Waste disposal of materials Water treatment Business travel Copyright sustainableit

11 GHG emission inventory detail The total GHG inventory of Reunert Limited for the reporting period is metric tonnes of, made up as follows: Direct Emissions Table 5: Scope 1 emissions Metric tonnes CBI Electric Nashua Reutech Group Services Total Emission sources Total Scope Stationary fuel combustion Stationary fuel non energy use Mobile fuel combustion Percentage of scope 1 60% 33% 7% 0.2% 100% Indirect Emissions Table 6: Scope 2 emissions Metric tonnes CBI Electric Nashua Reutech Group Services Total Emission sources Total Scope Purchased electricity Percentage of scope 2 78% 12% 9% 1% 100% Copyright sustainableit

12 Table 7: Scope 3 emissions Metric tonnes CBI Electric Nashua Reutech Group Services Total Emission sources Total Scope Material use Water supply Waste disposal Water treatment Business travel Percentage of scope 3 68% 4% 28% 0.5% 100% Table 8: Scope 1 and scope 2 greenhouse gas emissions by greenhouse gas 4 Metric tonnes CO 2 CH 4 N 2O Emission sources Scope Stationary fuel combustion Stationary fuel non energy use Mobile fuel combustion Scope Purchased electricity Total scope 1 and scope Breakdown of greenhouse gas factors not universally available for scope 3 emission sources Copyright sustainableit

13 Total emissions Table 9: GHG accounting of emissions Scope Metric tonnes of Scope Scope Total Scope 1 & Scope Total Scope 1, 2 & Figure 3: Emissions profile by emission source activity 2012/2013 GHG Inventory by Emission Source Metric tonnes of CO2e Scope 3 Scope 2 Scope Metric tonnes of CO 2 e Stationary fuel combustion Stationary fuel non energy use Mobile fuel combustion Purchased electricity Business travel Material use Waste disposal Water supply Water treatment Copyright sustainableit

14 Emissions totals breakdown Table 10: Detailed breakdown of total emissions by company, scope and emission source activity Metric tonnes CBI Electric Nashua Reutech Group Services Total Emission sources Scope 1 Scope Stationary fuel combustion Stationary fuel non energy use Mobile fuel combustion Scope 2 Scope Purchased electricity Scope 1 + Scope Scope 3 Scope Material use Water supply Waste disposal Water treatment Business travel Total all scopes Copyright sustainableit

15 Scope 1 detailed breakdown Table 11: Detailed breakdown of stationary fuel combustion Quantity / Annum kg per unit Total kg Metric tonnes Factor 5 Emissions Source Unit Stationary fuel combustion CBI Electric Diesel (Stationary) lt Gas (Stationary) 6 kwh LPG (Stationary) 7 lt Nashua Diesel (Stationary) lt Petrol (Stationary) lt Reutech Diesel (Stationary) lt Gas (Stationary) 6 kwh LPG (Stationary) 7 lt Group Services 0.56 LPG (Stationary) 7 lt Total UK Government conversion factors for Company Reporting, version 1.1, Natural gas conversion from GJ: GJ to tonnes based on a gross CV factor of GJ/tonne, tonnes to kwh based on a gross CV factor of kwh/kg. Source: UK Government conversion factors for Company Reporting, version 1.1, LPG conversion from kilograms: Kilograms to litres based on a density factor of 1968 litres/tonne. Source: UK Government conversion factors for Company Reporting, version 1.1, 2013 Copyright sustainableit

16 Table 12: Detailed breakdown of non-energy stationary fuel use Quantity / Annum Carbon Content Factor tonne C/TJ 8 ODU Factor 9 CO 2/C Factor 10 Metric tonnes CO 2 Metric tonnes Emissions Source Unit Stationary fuel combustion CBI Electric Lubricant Oil (Stationary) 11 TJ Lubricants and Coolants (Stationary) 11 TJ Reutech 0.02 Lubricant Oil (Stationary) 11 TJ Total Source: IPCC Guidelines Chapter 1 of Volume 2 on Energy 9 Source: IPCC Guidelines Chapter 1 of Volume 2 on Energy 10 Source: IPCC Guidelines Chapter 1 of Volume 2 on Energy 11 Lubricant oil conversion from litres: Litres to kilograms based on a density factor of 0.88 kg/lt. Source: Castrol Lubricating Oil Magna Range Product Sheet Weight to energy conversion: Gg to TJ based on a net CV factor of TJ/Gg. Source: IPCC Guidelines Chapter 1 of Volume 2 on Energy. Copyright sustainableit

17 Table 13: Detailed breakdown of mobile fuel combustion Quantity / Annum kg per unit Total kg Metric tonnes Factor 12 Emissions Source Unit Mobile fuel combustion CBI Electric Diesel (Vehicle) lt Petrol (Vehicle) lt LPG (Vehicles) 13 kwh Nashua Diesel (Vehicle) lt Petrol (Vehicle) lt Reutech Diesel (Vehicle) lt Petrol (Vehicle) lt Group Services Diesel (Vehicle) lt Petrol (Vehicle) lt Total UK Government conversion factors for Company Reporting, version 1.1, LPG conversion from GJ: GJ to kwh based on a gross CV factor of kwh/gj. Source: UK Government conversion factors for Company Reporting, version 1.1, Gross CV kg CO2e per kwh factor applied to LPG. Copyright sustainableit

18 Scope 2 detailed breakdown Table 14: Detailed breakdown of purchased electricity Quantity / Annum kg per unit Total kg Metric tonnes Factor 15 Emissions Source Metric Purchased electricity CBI Electric Purchased electricity kwh Purchased electricity: Lesotho kwh Purchased electricity: Australia kwh Purchased electricity: USA kwh Nashua Purchased electricity kwh Reutech Purchased electricity kwh Group Services Purchased electricity kwh Total South African grid emission factor calculated using NBI s proposed methodology and applying updated figures sourced from Eskom s Annual Integrated Report, The South African grid emission factor has been applied to Lesotho. Australia and USA emission factors sourced from UK Government conversion factors for Company Reporting, version 1.1, Copyright sustainableit

19 Scope 3 detailed breakdown Table 15: Detailed breakdown of material use Quantity / Annum Primary material production Factor 16 kg per unit Open loop Reused source Factor Factor Closed loop source Metric tonnes Total kg Factor 17 Emissions Source Unit Material use CBI Electric Paper tn Copper tn Aluminium tn Steel tn Galvanised Steel tn PVC tn Brass tn Nashua Paper tn Recycled Paper tn Recycled Aluminium tn Reutech Paper tn UK Government conversion factors for Company Reporting, version 1.1, UK Government conversion factors for Company Reporting, version 1.1, 2013 Copyright sustainableit

20 Copper tn Steel tn PVC tn Brass tn Nickel tn Group Services 3.33 Paper tn Total Copyright sustainableit

21 Table 16: Detailed breakdown of municipal water supply Quantity / Annum kg per unit Total kg Metric tonnes Factor 18 Emissions Source Unit Water supply CBI Electric Municipal Water Consumption kl Nashua Municipal Water Consumption kl Reutech Municipal Water Consumption kl Group Services 0.57 Municipal Water Consumption kl Total UK Government conversion factors for Company Reporting, version 1.1, 2013 Copyright sustainableit

22 Table 17: Detailed breakdown of waste disposal kg per unit Open Closed loop loop Factor 19 Factor 20 Total kg Metric tonnes Reuse Landfill Quantity / Emissions Source Unit Annum Factor Factor 21 Waste disposal CBI Electric General Waste Commercial and Industrial Waste tn Waste of Electric and Electronic Equipment (WEEE) tn Brown Grades (incl. Cardboard) tn White Grades tn Mixed Grades tn Other plastics tn Ferrous tn Non-ferrous tn Other tn Hazardous Waste Solid Waste containing Mercury tn Mixed Batteries tn Waste Oils tn Oil Contaminated Waste (kg) tn UK Government conversion factors for Company Reporting, version 1.1, UK Government conversion factors for Company Reporting, version 1.1, UK Government conversion factors for Company Reporting, version 1.1, 2013 Copyright sustainableit

23 Contaminated Scrap Metal Waste (kg) tn Infectious Waste and Sharps tn Chemical Waste (kg) tn Miscellaneous (kg) tn Nashua General Waste Commercial and Industrial Waste tn Waste of Electric and Electronic Equipment (WEEE) tn Newsprint and Magazines tn Brown Grades (incl. Cardboard) tn White Grades tn Mixed Grades tn Polyethylene terephthalate (PETE) tn Other plastics tn Glass tn Ferrous tn Non-ferrous tn Other tn Hazardous Waste Mixed WEEE tn Reutech 9.32 General Waste Commercial and Industrial Waste tn Waste of Electric and Electronic Equipment (WEEE) tn White Grades tn Mixed Grades tn Other plastics tn Glass tn Copyright sustainableit

24 Ferrous tn Non-ferrous tn Hazardous Waste Lead Batteries tn Pathological Waste tn Group Services 0.03 General Waste Newsprint and Magazines tn White Grades tn Hazardous Waste Mixed Batteries tn Total Copyright sustainableit

25 Table 18: Detailed breakdown of municipal water treatment Quantity / Annum kg per unit Total kg Metric tonnes Factor 22 Emissions Source Unit Water treatment CBI Electric Municipal Effluent / Sewage kl Nashua Municipal Effluent / Sewage kl Reutech Municipal Effluent / Sewage kl Group Services 1.18 Municipal Effluent / Sewage kl Total UK Government conversion factors for Company Reporting, version 1.1, 2013 Copyright sustainableit

26 Table 19: Business travel in non-company owned mobile assets Quantity / Annum kg per unit Total kg Factor 23 Metric tonnes Emissions Source Unit Business travel in non-company owned assets CBI Electric Vehicle Rental gm Domestic Economy Class p.km Domestic Business/First Class p.km Short-haul Economy Class p.km Short-haul First/Business Class p.km Long-haul Economy Class p.km Long-haul Economy+ Class p.km Long-haul Business Class p.km Nashua Vehicle Rental gm Flight gm Domestic Economy Class p.km Domestic Business/First Class p.km Short-haul Economy Class p.km Short-haul First/Business Class p.km Long-haul Economy Class p.km Long-haul Business Class p.km Reutech UK Government conversion factors for Company Reporting, version 1.1, Factors provide for a distance uplift of 8% to compensate for uplift and planes not flying using the most direct route however do not account for radiative forcing. Copyright sustainableit

27 Vehicle Rental gm Flight gm Domestic Economy Class p.km Domestic Business/First Class p.km Short-haul Economy Class p.km Short-haul First/Business Class p.km Long-haul Economy Class p.km Long-haul Business Class p.km Group Services Vehicle Rental gm Domestic Economy Class p.km Domestic Business/First Class p.km Short-haul Economy Class p.km Long-haul Economy Class p.km Long-haul Business Class p.km Total Copyright sustainableit

28 Understanding uncertainty There are uncertainties associated with greenhouse gas inventories which can be broadly categorised into scientific uncertainty and estimation uncertainty. Scientific Uncertainty Scientific uncertainty arises when the science of the actual emission and/or sequestration process is not sufficiently understood and hence the emission factor is uncertain. Analysing and quantifying such scientific uncertainty is extremely problematic and is beyond the scope of most company s inventory efforts. The emissions factors used in this report are based on reliable sources and all are referenced throughout the document, however, all are subject to scientific uncertainty. Estimation Uncertainty Estimation uncertainty arises any time greenhouse gas emissions are quantified. Therefore all emission estimates are associated with estimation uncertainty. Estimation uncertainty can be further classified into two types: model uncertainty and parameter uncertainty. Model uncertainty refers to the uncertainty associated with the mathematical equations (i.e. models) used to characterise the relationships between various parameters and emission processes. Like scientific uncertainty, estimating model uncertainty is beyond the scope of most company s inventory efforts. Any model uncertainty is beyond the scope of this report. Parameter uncertainty refers to the uncertainty associated with quantifying the parameters used as inputs (e.g. activity data, emission factors, or other parameters) to estimation models. Parameter uncertainties can be evaluated through statistical analysis, measurement equipment precision determinations, and expert judgment. This report is based on activity data gathered by Reunert Limited. Due to sustainableit s limited involvement in assessing Reunert Limited s greenhouse gas emissions activity data we are unable to estimate a confidence level. Disclaimer sustainableit bears no responsibility for the accuracy of the primary data provided by Reunert Limited. This primary data that this report has been based on has not been verified. Copyright sustainableit

29 Review and verification No third party verification function has been contracted for the 2012/2013 audit period. Copyright sustainableit

30 Contact details Carina de Klerk Investor Relations and Communications Reunert Limited Lincoln Wood Office Park 6-10 Woodlands Drive Woodmead 2191 Sandton Tel Fax Mobile Teresa Legg GHG Assessor sustainableit 1st Floor, Convention Towers Cnr of Coen Steytler and Heerengracht Streets Foreshore Cape Town T E teresa@sustainableit.co.za Copyright sustainableit

31 References UK Government. UK conversion factors for Company Reporting, version 1.1, Eskom. Eskom Annual Integrated Report Eskom, Intergovernmental Panel on Climate Change. IPCC Synthesis Report. Valencia, Spain: IPCC, NBI. South Africa s Grid Emission Factor. March NZBCSD. The Challenge of GHG Emissions: the why and how of accounting and reporting for GHG emissions: An Industry Guide, New Zealand Business Council for Sustainable Development, Auckland, World Resources Institute and World Business Council for Sustainable Development. The Greenhouse Gas Protocol. World Resources Institute. Short Guidance for Calculating Measurement and Estimation Uncertainty for GHG Emissions. World Resources Institute. Hot Climate Cool Commerce. Washington, WRI, Copyright sustainableit