GREENHOUSE GAS INVENTORY

Transcription

1 GREENHOUSE GAS INVENTORY 2017 BIDCORP 2017 CARBON FOOTPRINT REPORT October Final Tel: VODACOM +27 (0) CARBON FOOTPRINT REPORT 08 MAY Draft Version 1

2 2 TABLE OF CONTENTS ABBREVIATIONS AND GLOSSARY OF TERMS 3 ACKNOWLEDGEMENTS 5 REPORT OVERVIEW EXECUTIVE SUMMARY 6 SECTION A 7 1. INTRODUCTION 7 2. COMPANY DESCRIPTION 9 SECTION B 11 SECTION C REQUIRED INFORMATION METHODOLOGY, EXCLUSIONS AND ASSUMPTIONS 13 SECTION D INFORMATION ON BIDCORP S EMISSIONS 14 SECTION E ILLUSTRATED SUMMARY COMPARISON OF EMISSIONS AND INTENSITY 17 SECTION F NEXT STEPS FOR BIDCORP 19 CONTACT INFORMATION 20 REFERENCE LIST 21 APPENDIX A 22 INFORMATION ON CARBON FOOTPRINTING 22 APPENDIX B 23 BIDFOOD AUSTRALASIA CARBON FOOTPRINT 23 APPENDIX C 24 BIDFOOD UK CARBON FOOTPRINT 24 APPENDIX D 25 BIDFOOD EUROPE CARBON FOOTPRINT 25 APPENDIX E 26 BIDFOOD EMERGING MARKETS CARBON FOOTPRINT 26 BIDCORP 2017 CARBON FOOTPRINT REPORT October Final version

3 3 ABBREVIATIONS AND GLOSSARY OF TERMS Base year A historical year used as a base line to compare year-on-year emissions CO2 Carbon dioxide CO2e Carbon dioxide equivalent standardisation of all greenhouse gases to reflect the global warming potential relative to carbon dioxide Defra United Kingdom Department of Environment, Food and Rural Affairs Direct emissions Greenhouse gas emissions from facilities/sources owned or controlled by a reporting company, e.g., generators, fugitive emissions, vehicle fleets Downstream emissions GHG emissions related to manufactured and/or sold goods and services, e.g., endof-life treatment of sold products, transportation and distribution of sold products and franchises Emission factors Specific value used to convert activity data into greenhouse gas emission values, presented in specific units, e.g., kgco2/km travelled FTEs Full-time employees Fugitive emissions Unintended escaping of GHG emissions from equipment or activity, e.g., airconditioning gas leak, or methane emission from coal mining FY Financial year, often compared to the calendar year (CY) GHG Greenhouse gas GHG Protocol Uniform methodology used to calculate the carbon footprint of an organisation. Developed by the World Business Council for Sustainable Development and the World Resources Institute GWP Global Warming Potential an indication of the global warming effect of a greenhouse gas in comparison to the same weight of carbon dioxide BIDCORP 2017 CARBON FOOTPRINT REPORT October Final version

4 4 Indirect emissions Intensity Greenhouse gas emissions from facilities/sources that are not owned or controlled by the reporting company, but for which the activities of the reporting company are responsible, e.g., purchasing of electricity A metric to compare CO2e emissions, expressed in terms of another metric, e.g., CO2e per FTE, area, income or tonnes of product Off-road mobile fuel All fuel emissions from vehicles used on-site, e.g., forklifts, tractors On-road mobile fuel All fuel emissions from vehicles used off-site, e.g., passenger vehicles, delivery vehicles Outside of Scopes Emissions accounted for by the direct CO2 impact of burning biomass and biofuels because the Scope 1 impact of these fuels has been determined to be a net 0. This also includes fugitive emissions outside of the GHG Protocol Scope 1 emissions Emissions resulting from equipment owned or controlled by a reporting company Scope 2 emissions Scope 3 emissions Emissions resulting from consumption of electricity, steam or heat purchased by a reporting company Emissions resulting from indirect activities, excluding Scope 2, of a reporting company, e.g., commuting travel, business travel, paper consumption Upstream emissions Indirect GHG emissions that occur in the life cycle of a material/product, up to the point of sale by the producer sometimes referred to as cradle-to-gate emissions, e.g., waste generated in operations, business travel and employee commuting Verification The act of reviewing, inspecting or testing by an independent third-party, in order to establish and document that a product, service or system meets regulatory or technical standards WBCSD World Business Council for Sustainable Development BIDCORP 2017 CARBON FOOTPRINT REPORT October Final version

5 5 ACKNOWLEDGEMENTS Carbon Calculated would like to thank Ashley Biggs for fielding all questions and coordinating the Bidcorp team for this carbon footprint report. DATE VERSION AMENDMENTS TO PREVIOUS VERSION APPROVED BY PREPARED BY Oct Draft v.i AMcAH Oct Draft v.ii Replace Bidfood UK heavy fuel oil with kerosene and diesel. AMcAH Nov Final NP BIDCORP 2017 CARBON FOOTPRINT REPORT October Final version

6 6 REPORT OVERVIEW EXECUTIVE SUMMARY Scope 1 Total Scope 2 Total Scope 1 & 2 Total Full-time employees (FTE) Revenue (Rm) Scopes 1 & 2 per FTE Scopes 1 & 2 per Rm Revenue Bidcorp 2017 Carbon Footprint Report October Final Version

7 7 SECTION A 1. INTRODUCTION This 2017 Carbon Footprint Report constitutes the first carbon footprint commissioned by Bidcorp from Carbon Calculated. In 2016, Bidcorp reported on its Scope 1 emissions only, excluding emissions from its refrigerant or air-conditioning equipment. These 2016 Scope 1 emissions are referenced in this report for year-on-year comparative purposes, but cannot be verified by Carbon Calculated. This report has been prepared using the Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard methodology. The GHG Protocol The GHG Protocol is the most widely used standard for mandatory and voluntary GHG reports and is compatible with other international GHG standards such as ISO It is derived from a multiple-stakeholder partnership of businesses, NGOs and governments led by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). In accordance with the GHG Protocol, clear organisational and operational boundaries have been defined and agreed to by Bidcorp, and the relevant activity data has been supplied. This report covers emissions from the business activities of Bidcorp, inclusive of all subsidiaries. The report covers full-time employees (FTEs) and 28 companies operating in 22 countries. The GHG-emitting activities covered by the report include direct emissions (referred to as Scope 1) resulting from fuel used by Bidcorp-owned and Bidcorp-controlled equipment (stationary fuels), and fleet vehicles (mobile fuels), as well as indirect emissions (referred to as Scope 2) from purchased electricity. While this report does not include Scope 1 emissions from Bidcorp-owned and Bidcorp-controlled refrigerant or air-conditioning equipment, future carbon footprint reports will include this information. Indirect emissions in the corporate supply chain, referred to as Scope 3 emissions, are not included in this year s report. Analysis will be conducted during the next financial year to determine whether any Scope 3 emissions will be included in future reports.

8 8 It is important to highlight that under the GHG Protocol the reporting of both direct emissions and indirect emissions resulting from purchased electricity is compulsory (Scopes 1 and 2). For a detailed breakdown of Scopes and emission categories refer to the infographic below. Carbon Calculated has gone to all reasonable lengths to ensure that the primary information provided by Bidcorp is correct, Carbon Calculated is not liable for any inaccuracies that this information might contain. This report, in its entirety, is intended for Bidcorp internal use only. Information may, however, be extracted for reporting purposes, such as for submission into international and/or national greenhouse gas registries and sustainability reporting. It may also be presented for third-party verification purposes.

9 9 2. COMPANY DESCRIPTION Bid Corporation Limited (Bidcorp) is an international food service company, comprising of 32 separate and autonomous companies operating in 22 countries across five continents. Originally part of the Bidvest group of companies, Bidcorp listed independently on the Johannesburg Stock Exchange (JSE) in May Bidcorp services a wide mix of small, medium and large customers with tailored solutions fit for the outlets purpose. The company upholds a decentralised business model, where each individual company operates autonomously. However, for the purposes of this report, each company was asked to provide standardised data relating to its carbon-emitting activities, allowing for this consolidated Bidcorp carbon footprint analysis. Companies covered by Bidcorp 2017 Carbon Footprint Report: Bidfood Australasia Bidfood Australia Bidfood New Zealand Bidfood UK Bidcorp Foodservice UK Cimandis Ltd. Bidcorp Logistics CD PCL Transport Bidfresh Bidfood Europe Bidfood Netherlands Bidfood Belgium Bidfood Czech Republic & Slovakia Bidfood Spain Guzmán Gastronomia S.L. DAC Italy Bidfood Baltics Bidfood Farutex Poland Bidfood Emerging Markets South America Bidcorp Brazil Bidcorp Chile Asia Angliss Greater China

10 10 Angliss Singapore Africa Middle East Turkey Bidfood (Pty) Ltd. Bidfood Ltd. (Botswana) Crown Food Ingredients Zambia Crown Food Group Chipkins Puratos Al Diyafa Horeca Trade UAE Horeca KSA Cherrypik Trading Gourmet Partners Horeca Bahrain Horeca Oman Note: The corporate operations for Bidcorp in South Africa, United Kingdom and China are not included in the report. These are small administration offices, and considered immaterial in terms of size and potential carbon footprint impact.

11 11 SECTION B Table 1: OVERVIEW OF BIDCORP 2017 GREENHOUSE GAS EMISSIONS REPORTING PERIOD: 01 July June 2017 CARBON FOOTPRINT CALCULATION CONDUCTED ON: Bidcorp Group of Companies METHODOLOGY: Greenhouse Gas Protocol Corporate Accounting and Reporting Standard GHG CONSOLIDATION APPROACH: Operational control Company Intensity Metrics Total full-time equivalent Bidcorp employees Total full-time Bidcorp employees covered by report Percentage Bidcorp employees covered by report 99.90% Total square metreage of office space reported Total revenue (Rm) Scope 1 Direct Emissions Metric tonnes of CO 2e Stationary fuel Fugitive emissions Mobile fuel TOTAL SCOPE 1 EMISSIONS Scope 2 Indirect Emissions Location-based Market-based 0.00 TOTAL SCOPE 2 EMISSIONS TOTAL SCOPE 1 & 2 EMISSIONS Scope 1 & 2 emissions per full-time employee (tco 2e/FTE) Scope 1 & 2 emissions per square metre of building (tco 2e/m 2 ) Scope 1 & 2 emissions per Rm Revenue 2.66

12 12 SECTION C 3. REQUIRED INFORMATION 3.1. INVENTORY BOUNDARIES ORGANISATIONAL BOUNDARY Organisational boundaries are established on either the control approach or the equity share approach. Under the control approach, a company accounts for all emissions by entities and activities that are controlled by the organisation. Under the equity share approach, a company accounts for its GHG emissions from operations according to its share of equity in the operation. Bidcorp reports on all emissions using the operational control approach OPERATIONAL BOUNDARY Operational Boundaries Operational boundaries determine the actual operational activities of the reporting company that generate emissions; which of these activities should be included in the calculation; and how these activities should be classified (i.e., direct or indirect emissions). Greenhouse Gas (GHG) emissions resulting from the following activities have been calculated: Scope 1 Direct Emissions Stationary fuel (emissions from stationary equipment, such as generators, boilers, etc.) Mobile fuel (fleet vehicles) Scope 2 Indirect Emissions Purchased electricity (location-based) 3.2. REPORTING PERIOD The reporting period of this report is 01 July June 2017.

13 BASE YEAR Base-year Calculations A base year is the historical year against which a reporting company s emissions are tracked and compared over time. It is typically the earliest relevant point in time for which a company has reliable data. Bidcorp has completed one carbon footprint report, in 2016, which accounted for only Scope 1 emissions. For a historical record of Bidcorp s emissions, see Table 5 (p.17). 4. METHODOLOGY, EXCLUSIONS AND ASSUMPTIONS This carbon footprint report has been completed using the GHG Protocol. The following emissions exclusions are noted: Scope 1 Direct Emissions Bidcorp Corporate operations. Refrigerants and air-conditioning gas refills from all operations. Scope 2 Indirect Emissions Bidcorp Corporate operations. Market-based electricity emissions. All electricity emissions are calculated according to the location methodology, and national electricity emission factors are used. Renewable electricity for operations, other than Bidfood UK and Bidfood Europe. Scope 3 Indirect Emissions All emissions relating to Bidcorp s supply chain are excluded from this report. Outside of scopes Non-Kyoto greenhouse gases All emissions that might be considered outside of scopes have been excluded from this report.

14 14 SECTION D 5. INFORMATION ON BIDCORP S EMISSIONS 5.1. TOTAL SCOPE 1 & 2 EMISSIONS The GHG Protocol requires carbon footprint calculations to include all direct emissions under Scope 1 and indirect emissions from purchased electricity under Scope 2 as compulsory reporting. All emissions are calculated using emission factors and reported as carbon dioxide equivalent gases (CO 2e), as required by the GHG Protocol. Emission factors used in the calculations are available on request. The greenhouse gases covered by this calculation are carbon dioxide (CO 2), methane (CH 4), nitrous oxide (N 2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF 6) and nitrogen trifluoride (NF 3). Carbon Dioxide Equivalent (CO 2e) A standard unit for measuring emissions from various greenhouse gases based upon their global warming potential in relation to that of carbon dioxide. Emission Factors Emission factors convert operational activity data (e.g., kilometres driven, kilowatt hours of purchased electricity) into a value indicating the GHG emissions generated by that particular activity reported as carbon dioxide equivalent (CO2e). Table 2: BIDCORP DIRECT SCOPE 1 EMISSIONS IN 2017 Description Units Total consumption Metric tonnes of CO2e emissions Stationary fuel Fugitive emissions Mobile fuel Litres diesel in equipment Litres kerosene Kilograms LPG Kilograms LNG Total Total Litres diesel Litres petrol

15 15 Litres - biodiesel Kilograms LPG Total Table 3: BIDCORP INDIRECT SCOPE 2 EMISSIONS FROM PURCHASED ELECTRICITY IN 2017 Description Kilowatt hours Total consumption Metric tonnes of CO2e emissions Purchased electricity Australasia Location-based Market-based Location-based Purchased electricity UK Market-based Renewable electricity Location-based Purchased electricity Europe Market-based Renewable electricity Purchased electricity Emerging markets Location-based Market-based Total purchased electricity Figure 1: Bidcorp Scope 2 emissions in 2017 by Division in tco 2 e Europe Emerging markets UK Australasia

16 16 SECTION E 6. ILLUSTRATED SUMMARY 6.1. ILLUSTRATED OVERVIEW OF RESULTS OF EMISSIONS BY SCOPE FOR BIDCORP 2017 Table 4: SUMMARY OF BIDCORP S EMISSIONS IN 2017 BY SCOPE Description Metric tonnes of CO2e emissions Scope Scope Scope 3 Outside of Scopes Total GHG emissions Figure 2: Bidcorp's emissions in tonnes of CO 2 e by Scope in % Scope 1: Scope 2: %

17 17 7. COMPARISON OF EMISSIONS AND INTENSITY This is the first year Carbon Calculated has worked with Bidcorp. The aim has been to collect the most detailed and accurate data possible and to further extend the operational and organisational boundary. Table 5, provides a comparison of Bidcorp s carbon footprint over the past two years of reporting ( ). Table 5: COMPARISON OF BIDCORP S EMISSIONS OVER 2 YEARS ( ) Indicators Full-time employees (FTE) Stationary fuel Not Mobile fuel differentiated Fugitive emissions TOTAL SCOPE TOTAL SCOPE Figure 3: Bidcorp's comparative emissions between years ( ) by Scope Scope 1 Scope 2 Scope 3 Outside of scopes

18 WATER CONSUMPTION The GHG Protocol does not require water usage to be recorded in a carbon inventory. However, the incorporation of water consumption is recommended as an awareness-raising tool. Total municipal water consumed by Bidcorp in 2017 totalled kilolitres. Table 6: BIDCORP WATER CONSUMPTION IN KILOLITRES BETWEEN Region Bidfood Australasia Bidfood UK Bidfood Europe Bidfood Emerging Markets TOTAL INFORMATION ON OFFSETS Bidcorp has not offset any of its GHG emissions through either the purchasing of renewable energy or any other appropriate offsetting mechanism.

19 19 SECTION F 8. NEXT STEPS FOR BIDCORP 8.1. VERIFICATION OF GHG INVENTORY An independent verification party has not assured this report in its entirety. It is recommended that the carbon footprint report be verified SCIENCE-BASED TARGETS The Science Based Targets initiative is a partnership between CDP, 1 United Nations Global Compact (UNGC), World Resources Institute (WRI) and World Wildlife Fund (WWF). The initiative enables leading companies to set targets which will hold global warming below the 2 C threshold as directed by science and promoted through the Paris Agreement. 2. To date, 230 companies worldwide have committed to setting SBTs, including, inter alia, Coca Cola, Daimler, GlaxoSmithkline, Nestlé and Unilever. In addition, a number of South African companies including Exxaro, Pick n Pay, Tiger Brands, Tongaat Hulett, Woolworths and Mediclinic have also aligned with the initiative. Carbon Calculated recommends that Bidcorp consider adopting science-based reduction targets CARBON TAX As part of South Africa s ongoing efforts to move towards a low carbon economy and to meet South Africa s INDC targets, National Treasury has proposed a tax on local carbon emissions. The ultimate design of the South African tax is yet to be finalised. The anticipated initial implementation date was January However, in the latest South African Budget Speech of 22 February 2017, it was announced that a revised Carbon Tax Bill will be published for public consultation and tabled in Parliament later in This suggests that the carbon tax may come into play in early CDP (formally the Carbon Disclosure Project) is an independent not-for-profit organisation with the aim of seeking information on the risks and opportunities of the business presented by climate change and greenhouse gas emissions data from the world s largest companies. CDP has become the leading standard for carbon disclosure and process. The CDP website is the largest repository of corporate greenhouse gas emissions data in the world. 2 Accessed 07 April 2017.

20 20 It is important to keep in mind that those businesses which have identified themselves as not-liable for carbon tax during the first phase will still be required to submit environmental levy accounts regardless of whether any carbon tax payment is due CARBON CALCULATED S ADDITIONAL SERVICE OFFERINGS Carbon Calculated offers additional services to complement this Bidcorp 2017 Carbon Footprint Report: Feedback sessions, and/or presentations to executive and senior management Lunchtime talks to explain carbon to all levels of employees National GHG reporting requirements Calculation of potential carbon tax liability Realignment of baseline for previous year s carbon footprint (if required) Target setting guidance Scope 3 corporate value chain emissions calculations CONTACT INFORMATION Nici Palmer Carbon Calculated, Founding Member nici@carboncalculated.co.za Telephone: Cell: Alex Hetherington Carbon Calculated, Founding Member alex@carboncalculated.co.za Telephone: Cell: Ashley Biggs Bidcorp, Company Secretary ashley@bidcorp.co.za Telephone: Cell:

21 21 REFERENCE LIST Bidcorp, 2017, Limited Results for the Year Ended June , Johannesburg Eskom, 2017 Eskom Integrated Report 2017, Johannesburg, Eskom. Available from: (Accessed July 2017) Energy Research Centre, Technical background information to support the development of the mitigation component of South Africa s intended nationally determined contribution, including support required for mitigation. Energy Research Centre, University of Cape Town, Cape Town, South Africa Environmental Protection Agency (EPA), Emission Factors for Greenhouse Gas Inventories, April 2014 Washington DC, EPA Available from: (Accessed October 2017) Intergovernmental Panel on Climate Change, The Science of Climate Change, Contribution of Working Group 1 to the Second Assessment Report 1995, (Eds. JT Houghton et al). Cambridge University Press International Energy Agency, World CO2 Emissions from Fuel Combustion. IEA UK Department for Environment, Food and Rural Affairs (Defra), July Passenger Transport Emissions Factors, London (Accessed October 2016) World Resources Institute, June CO2 Emissions from Fuel Use in Facilities, Washington DC, WRI. Available at: (Accessed July 2011) World Resources Institute, June CO2 Emissions from Transport or Mobile Services, Washington DC, WRI. Available at: (Accessed July 2011) World Resources Institute, June Individual CO2 emissions from purchased electricity, heat and steam, Washington DC, WRI. Available at: (Accessed July 2011)

22 22 APPENDIX A INFORMATION ON CARBON FOOTPRINTING Direct and Indirect Emissions Under the GHG Protocol, 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. Indirect sources are those emissions related to the company s activities that are emitted from sources owned or controlled by another company, e.g., purchased electricity, rental cars, commercial airlines or paper. Scope 1 Emissions Emissions from sources owned or controlled by the reporting company, e.g., generators, refrigeration, airconditioning units. Scope 2 Emissions Emissions associated with the consumption of purchased electricity, heat or steam from a source that is not owned or controlled by the reporting company, e.g., an electricity utility such as Eskom. Scope 2 emissions are reported according to either the location-based or market-based approach. Location-based and Market-based The location-based method reflects the average emissions intensity of electricity grids on which energy consumption occurs, thus using the grid average emission factor. The market-based method reflects the emissions from electricity-generating sources that companies have purposefully chosen for example, energy from a wind farm which may be different from the electricity that is generated for the local grid. Different electricity suppliers and contracts emit more or less greenhouse gases depending on the energy source or technology resulting in a supplier-specific emission factor. Scope 3 Emissions Scope 3 emissions are indirect emissions, other than purchased electricity, heat or steam, which can be described as relevant to the activities of the reporting company, e.g., business travel, but which are emitted by sources in the reporting company s supply chain.

23 23 APPENDIX B BIDFOOD AUSTRALASIA CARBON FOOTPRINT Description Units Total consumption Metric tonnes of CO2e emissions Scope 1 Scope 2 Stationary fuel Fugitive emissions Mobile fuel Electricity Kilograms LPG Total 180 Total Litres diesel Litres petrol Kilograms LPG Total kwh purchased electricity kwh renewable electricity Total Total Scope 1 emissions Total Scope 2 emissions Total Scope 1&2 emissions Full-time employees Revenue (ZARm) Scope 1&2 emissions per fulltime employe (tco2e/fte) Scope 1&2 emissions per revenue: (tco2e/zarm) 2.40 * All decimal points, excluding ratio calculations, rounded up to nearest whole number.

24 24 APPENDIX C BIDFOOD UK CARBON FOOTPRINT Description Units Total consumption Metric tonnes of CO2e emissions Scope 1 Scope 2 Stationary fuel Fugitive emissions Mobile fuel Electricity Litres Diesel Litres - Kerosene Kilograms LNG Total 723 Total Litres diesel Litres petrol Total kwh purchased electricity kwh renewable electricity Total Total Scope 1 emissions Total Scope 2 emissions Total Scope 1&2 emissions Full-time employees Revenue (ZARm) Scope 1&2 emissions per fulltime employe (tco2e/fte) Scope 1&2 emissions per revenue: (tco2e/zarm) 2.67 * All decimal points, excluding ratio calculations, rounded up to nearest whole number.

25 25 APPENDIX D BIDFOOD EUROPE CARBON FOOTPRINT Description Units Total consumption Metric tonnes of CO2e emissions Scope 1 Scope 2 Stationary fuel Fugitive emissions Mobile fuel Electricity Litres Diesel Kilograms LPG Kilograms LNG Total Total Litres diesel Litres petrol Total kwh purchased electricity kwh renewable electricity Total Total Scope 1 emissions Total Scope 2 emissions Total Scope 1&2 emissions Full-time employees Revenue (ZARm) Scope 1&2 emissions per fulltime employe (tco2e/fte) Scope 1&2 emissions per revenue: (tco2e/zarm) 2.31 * All decimal points, excluding ration calculations, rounded up to nearest whole number.

26 26 APPENDIX E BIDFOOD EMERGING MARKETS CARBON FOOTPRINT Description Units Total consumption Metric tonnes of CO2e emissions Scope 1 Scope 2 Stationary fuel Fugitive emissions Mobile fuel Electricity Litres diesel Kilograms LPG 58 0 Kilograms LNG Total Total Litres diesel Litres petrol Litres - biodiesel Total kwh purchased electricity kwh renewable electricity Total Total Scope 1 emissions Total Scope 2 emissions Total Scope 1&2 emissions Full-time employees Revenue (ZARm) Scope 1&2 emissions per fulltime employe (tco2e/fte) Scope 1&2 emissions per revenue: (tco2e/zarm) 3.60 * All decimal points, excluding ratio calculations, rounded up to nearest whole number.