FirstRand Ltd. Carbon Footprint. Feedback 06 June 2008

Transcription

1 FirstRand Ltd Carbon Footprint Feedback 06 June 2008

2 1. Agenda Terms of Reference and approach Establishing Boundaries Greenhouse Gas Emissions in Context FirstRand Ltd Group Summary FirstRand Business Units Recommendations The Way Forward Expected Benefits Emission reduction opportunities Conclusion PricewaterhouseCoopers Slide 2

3 2. Terms of Reference Establishment of FirstRand s carbon footprint and report to management, highlighting strengths and weaknesses of the calculated footprint, and identification of emission reduction opportunities PricewaterhouseCoopers Slide 3

4 2. Our Approach Phased Sound methodology - based on Greenhouse Gas Reporting Protocol and ISO Encourage internal FirstRand interaction and ownership - Essential for long term management PwC to provide technical support but data collection will be FirstRand s responsibility Improvement and iteration 3. Manage 2. Develop 1. Plan Assign Resources Design GHG Inventory Collect data Calculate emissions Set target Reduce emissions Report results PricewaterhouseCoopers Slide 4

5 3. Establishing Boundaries The carbon footprint or greenhouse gas inventory is designed in two stages: 1. Setting the Organisational Boundary - Deciding on Business Units inclusion/exclusion 2. Setting the Activity Boundary by identifying activities that cause direct or indirect emissions: - Electricity use - Business travel - Product distribution - Heating and cooling of buildings - Employee commuting PricewaterhouseCoopers Slide 5

6 3. Establishing Boundaries The final scope discussed and agreed with representatives of FirstRand during workshops held on 14 February 2008 and 03 March The organizational boundary includes the following companies under FirstRand Ltd s control, namely: FirstRand Bank, First National Bank, Rand Merchant Bank, Momentum, and Wesbank. PricewaterhouseCoopers Slide 6

7 3. Establishing Boundaries The following emissions, as agreed with FirstRand, would be accounted for in the inventory: Scope 1 direct emissions: Emissions from the amount of diesel used in generators. Emissions from fuel used or kilometres travelled from business travel in vehicles owned by FirstRand, e.g. a fleet of vehicles Scope 2 indirect emissions: Emissions from electricity used in buildings owned or controlled by FirstRand. Scope 3 indirect emissions: Emissions from electricity used in buildings leased by FirstRand; and Emissions from the amount of paper consumed. PricewaterhouseCoopers Slide 7

8 4. Greenhouse Gas Emissions in Context Entity World Units (tons) 49,000 million United States only Citigroup (global) HSBC Royal Bank of Scotland FirstRand Group Nedbank Group 6,000 million 1 million 897, , ,138 87,575 PricewaterhouseCoopers Slide 8

9 5. FirstRand Ltd Group Summary Electricity Use, 337,391, 98.0% Travel, 5,545, 1.6% Paper Consumption, 608, 0.2% Fuel Use, 594, 0.2% Figure 1. Total FirstRand Ltd Group greenhouse gas emissions in metric tonnes of CO 2 e, split per source. PricewaterhouseCoopers Slide 9

10 5. FirstRand Ltd Group Summary First National Bank 77% FirstRand 10% Rand Merchant Bank 5% Wesbank 3% Momentum 5% Figure 2. Total FirstRand Ltd Group greenhouse gas emissions in metric tonnes of CO2e, split per business unit. PricewaterhouseCoopers Slide 10

11 5. Business Travel (Scope 1) Scope 1 emissions include emissions from business travel in vehicles such as company cars (fleets) or corporation jets that are owned or controlled by FirstRand. Table 1. FirstRand Group Scope1 fuel consumption use and distance travelled data provided Division Data Collected Petrol consumed (l) Diesel consumed (l) Distance travel (km) FirstRand Data not provided Data not provided Data not provided Rand Merchant Bank Momentum First National Bank Wesbank Total 16,884 N/A (distance data provided Data combined with Wesbank 2,135,502 2,152,386 10,351 N/A (distance data provided Data combined with Wesbank 107, , , ,306 Data combined with Wesbank 24, 054, ,126,769 PricewaterhouseCoopers Slide 11

12 5.1 Business Travel (Scope 1) Wesbank, 5,327, 96% FNB, 0, 0% FirstRand, 0, 0% RMB, 67, 1% Momentum, 151, 3% Figure 2. Total Group Scope 1 greenhouse gas emissions associated with business travel in metric tonnes of CO 2 e PricewaterhouseCoopers Slide 12

13 6. Fuel Use (Scope 1) Scope 1 emissions include emissions from the use of fuel in generators that are owned or controlled by FirstRand. Data Collected Out of the 581 leased and 301 owned buildings where data was supplied by the FirstRand group, 99 leased and 83 owned buildings contain generators. Direct fuel use data was obtained from only 6 buildings. Consequently, an average value of diesel consumption for generators were calculated as l/m 2 of buildings space and extrapolated across to the other buildings, which did contain generators and did not provide data. PricewaterhouseCoopers Slide 13

14 6.1 Fuel Use (Scope 1) FNB, 503, 85% FirstRand, 67, 11% RMB, 0, 0% Momentum, 25, 4% Wesbank, 0, 0% Figure 3. Total Group Scope 1 greenhouse gas emissions associated with fuel use in metric tonnes of CO 2 e. PricewaterhouseCoopers Slide 14

15 7. Electricity use (Scope 2 and 3) Scope 2 emissions include emissions from purchased electricity in buildings owned or controlled by FirstRand. Scope 3 emissions include emissions from purchased electricity in buildings leased by FirstRand. Table 2. List of number of buildings for which electricity data was received for the year January to December Business Number of buildings for which Unit electricity data was received (kwh) Number of buildings for which electricity data was received in Rand Value only (kwh) Rand Merchant Bank FirstRand First National Bank Wesbank Momentum Total Leased Owned Leased PricewaterhouseCoopers Slide Owned

16 7.1 Electricity use (Scope 2 and 3) FNB, 264,306, 78% FirstRand, 33,325, 10% RMB, 16,938, 5% Momentum, 17,278, 5% Wesbank, 5,543, 2% Figure 4. Total group Scope 2 and 3 greenhouse gas emissions Associated with electricity consumption in metric tonnes of CO 2 e. PricewaterhouseCoopers Slide 16

17 8. Paper (Scope 3) Scope 3 emissions include emissions from the use of paper by FirstRand. No extrapolation was done and all results are based on direct amounts of paper supplied by FirstRand. Only A4 and A3 copier paper is included in calculation as well as the boxes used to store and carry the respective reams of paper. Table 3. Total amount of paper used per division in kg and paper Consumption related greenhouse gas emissions in metric tonnes of CO 2 e Description Rand Merchant Bank FirstRand First National Bank Wesbank Momentum Total CO 2 e (Metric Tonnes) Paper Total (kg) 50, , , ,779 PricewaterhouseCoopers Slide 17

18 8.1 Paper (Scope3) Momentum, 348, 57% RMB, 144, 24% Wesbank, 116, 19% FNB, 0, 0% FirstRand, 0, 0% Figure 5. Total group Scope 3 greenhouse gas emissions associated with paper consumption in metric tonnes of CO 2 e. PricewaterhouseCoopers Slide 18

19 Individual Company Carbon Footprints PricewaterhouseCoopers Slide 19

20 9. FirstRand Bank Electricity Use, 33,325, 99.8% Travel, 0.00 Paper Consumption, 0, 0.0% Fuel Use, 67, 0.2% Figure 6. Total FirstRand Bank emissions profile for all Scope 1, 2 and 3 associated greenhouse gas emissions in metric tonnes of CO 2 e and percentage contribution to total PricewaterhouseCoopers Slide 20

21 10. First National Bank Electricity Use, 264,306, 99.8% Travel, 0, 0.0% Paper Consumption, 0, 0.0% Fuel Use, 503, 0.2% Figure 7. Total First National Bank emissions profile for all Scope 1, 2 and 3 associated greenhouse gas emissions in metric tonnes of CO2e and percentage contribution to total PricewaterhouseCoopers Slide 21

22 11. Wesbank Electricity Use, 5,543, 51% Travel, 5,327, 48% Fuel Use, 0, 0% Paper Consumption, 116, 1% Figure 8. Total Wesbank emissions profile for all Scope 1, 2 and 3 associated greenhouse gas emissions in metric tonnes of CO2e and percentage contribution to total PricewaterhouseCoopers Slide 22

23 12. Rand Merchant Bank Electricity Use, 16,938.24, 99% Paper Consumption, , 1% Travel, 66.88, 0% Fuel Use, 0.00, 0% Figure 9. Total greenhouse gas emissions for Rand Merchant Bank associated with business Processes in metric tonnes of CO2e. PricewaterhouseCoopers Slide 23

24 13. Momentum Electricity Use, 17,278, 97.1% Travel, 151, 0.9% Paper Consumption, 348, 2.0% Fuel Use, 25, 0.1% Figure 10. Total greenhouse gas emissions for Momentum associated with business Processes in metric tonnes of CO 2 e. PricewaterhouseCoopers Slide 24

25 14. Sum up on calculation Considering the first year of its development footprint reflects a fair reflection of FirstRand s greenhouse gas impact Electricity use data from FNB contributed significantly Material deviations over time not expected PricewaterhouseCoopers Slide 25

26 15. Accuracy improvements going forward Increase the scope of the boundary of the carbon footprint. This will Outsurance, as well as the FNB operations in Botswana, Namibia and Lesotho are included in the calculation. Ensure that data for the current identified emission sources is completed for all business units. Identify and include all remaining buildings under FirstRand s control in the calculation. Include emissions from business travel in vehicles owned by employees, as well as business travel in aeroplanes (regarded as Scope 3 by the Greenhouse Gas Protocol) in the next round of calculations. PricewaterhouseCoopers Slide 26

27 16. The Way Forward To leverage the work completed - consider the development of a robust carbon management strategy: - Policy and Planning - Roles and responsibilities for data collection and collation are defined, - Recording and collection of data (units, factors, controls) - Integration with existing systems (IS014001) - Targets for effective mitigation strategies are set, and - Emission reduction projects are managed. Improvement of other sustainability information used in the annual report PricewaterhouseCoopers Slide 27

28 17. Expected Benefits Lead to cost savings through improved energy management, the identification of energy saving technologies and potential emission reduction projects such as CDM projects. Licence to operate - open new markets through, for example, the positioning of low-carbon products and services. Improve brand management and enhance stakeholder relations. Improve sustainability reporting. Must be integrated with existing environmental and energy efficiency initiatives to leverage greatest benefits PricewaterhouseCoopers Slide 28

29 18. Emission reduction opportunities 1. Engineered solutions: Involve the use of technology, including energy efficiency measures: - Lighting - HVAC - Servers and PC s 2. Behavioural changes: Involves the use of education, including training and outreach change behaviour regarding energy use 3. Offsetting activities: Involves investing in offset activities such as reforestation projects All need to be considered in the context of a robust carbon management strategy PricewaterhouseCoopers Slide 29

30 19. Conclusion 1. A good representation of FirstRand s carbon footprint anticipated no significant changes 2. Accuracy and reliability of footprint can be improved by increasing scope 3. A robust carbon management strategy will build on existing work and provide significant benefits PricewaterhouseCoopers Slide 30

31 Questions and Way Forward Thank you Simon Clarke Manager: Sustainable Business Solutions PricewaterhouseCoopers PricewaterhouseCoopers Inc. All rights reserved. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. PricewaterhouseCoopers Inc is an authorised financial services provider. Slide 31