Environmental stewardshipDownload pdf version
 |
 |
 |
 |
 |
WE REDUCE OUR ENVIRONMENTAL FOOTPRINT
Healthy ecosystems are the foundation of a secure food supply. We rely directly on this natural capital to create value through our business, and are concerned about ecological decline in the food systems where we operate and from where we source agricultural commodities.
Addressing our environmental impacts is of vital importance to protecting the ability of our business to create value over the long term. Our aim is to better meet the needs of a more environmentally aware consumer, in line with our business strategy and growth agenda. By prioritising environmental stewardship in our manufacturing and sourcing programmes, we can reduce our impact on natural systems while achieving higher operational efficiencies and lower production costs.
We are committed to significantly reducing our environmental footprint through the development and deployment of innovative technologies, practices and products.
Our key initiatives to deliver on this commitment:
- Optimise energy consumption through integrated and environmentally friendly energy options
- Optimise water consumption through the evaluation of water reuse opportunities and responsible effluent discharges
- Implement circular-economy initiatives that stimulate sustainable economic opportunities
- Providing innovative packaging solutions that minimise environmental impact
- Developing innovative products with reduced environmental impact
- Leveraging our brand and marketing activities to inspire positive behaviour change in consumers.
We have robust environmental policies and procedures in place, and have allocated dedicated responsibilities and lines of accountability for all our material environmental concerns. Our environmental policy framework aligns with all relevant environmental legislation and supports our compliance activities.
Our manufacturing excellence department is responsible for the operational execution of our environmental strategy and implementation of our ISO 14001 environmental management systems. All of our plants are ISO 14001 certified, and all sites that were audited by SGS and SABS this year, retained their certification.
We are exploring the redesign of our products to be more environmentally friendly. This process relies on the findings of product LCAs, which we have conducted on part of our portfolio. We have identified solutions for our brands, and these are still under evaluation. LCAs are currently very expensive, and we are engaging with the University of Cape Town (UCT) and the CSIR in regards to the more cost-effective LCA tools they are developing.
Training is a key part of our drive to continually improve, and in 2021 we continued building the environmental capabilities of our team. Eight employees successfully completed a comprehensive resource-efficiency training programme. The members of our team that have undertaken training to become energy management system experts all passed their exams. We also ran e-learning programmes for facilities management, carbon footprint analysis, water and energy efficiency.
We optimise our energy use and reduce our emissions
It is clear that the impacts of climate change pose significant risks to business and society. Urgent action is required from companies to take a lead in societal mitigation efforts, and adapt business models and operations for resilience in a low-carbon economy.
We are committed to optimising our energy use and reducing our GHG emissions through more efficient systems and technologies, as well as the prioritisation of renewable energy where possible.
Our key energy-efficiency installations this year included: Germiston bakeries: New air compressor installed, conversion of polyfuel to gas (oven heating); Roodekop beverages: power factor correction at substations; Culinary Boksburg: 5% improvement of condensate return (boiler efficiency); and Snacks & Treats (Jacobs): new energy-efficient chiller installed. We have also made light-emitting diode (LED) lighting substitutions at various sites across the group.
We continue to optimise our supply chain (see IR) and are engaging with our suppliers to improve energy-efficiency and reduce GHG emissions. We have completed life cycle analyses (LCA), including product carbon footprint, across part of our portfolio and continue to expand on this. We are currently working with our logistics partners to reduce energy use and emissions through improved route planning. We are also investigating energy and emissions reduction opportunities in our distribution centres, including through LED lighting and renewable energy installations.
In 2019, we set targets to achieve a 10% decrease in energy intensity and a 25% reduction in GHG emissions by the year 2030 (from a 2019 baseline). We are also exploring the development of circular energy-generation initiatives that make use of renewable energy and our by-products. We have set a target to source 20% of our energy from renewable sources by 2030. This target is aligned with our targets to reduce energy intensity and emissions. The following facilities have been identified as pilot sites for our independent power purchase agreement (PPA) initiative: HPCB, Beverages, King Foods and Hennenman for 2022. This will also include solar installations at these units.
In 2021, we recorded reductions in absolute energy consumption (kWh), energy intensity (kWh/tonne), and absolute water consumption (kℓ). The disruption of our operations due to Covid-19 has contributed to these reductions, but our performance nonetheless highlights the positive impact of our resource efficiency cleaner production (RECP), energy management, water efficiency, and zero waste-to-landfill programmes. Progress on some of our key initiatives has been negatively affected by Covid-19.
Our 2021 carbon emissions:
| GHG emissions (tCO2e) | 2021 | 2020 | |
| Scope 1 (direct) | 210 042 | 350 143 | |
|---|---|---|---|
| Scope 2 (indirect) | 231 140 | 280 633 | |
| Total scope 1 and 2 emissions | 441 182 | 630 775 | |
| Total GHG emissions | 441 182 | 630 775 |
In 2021, we recorded an absolute energy reduction of 20,4% from the previous year, and a 2,7% decrease in energy intensity (kWh/tonne). We recorded a 30% reduction in our absolute direct carbon emissions and a 14,5% reduction in GHG emissions intensity (CO2/tonne) from the previous year. This significant reduction in direct carbon emissions was driven primarily driven by reduced production.
Our emissions calculations include both stationary and mobile combustion (emissions from owned vehicles), and our figures have been externally verified by Catalyst. The sites which contributed the most to our absolute emissions in 2021, include Culinary Boksburg, Snacks & Treats and LAF (our Deciduous Fruit business). Emissions are relatively high at these sites, due to energy intensive production processes that depend on the operation of large boilers (in excess of 10MW).
Having completed our maiden carbon tax submission in 2020, we are currently in the process of quantifying our carbon budgets up until the year 2025. Our intention is to maintain the current year-on-year trend of decreasing our GHG emissions to reduce our climate change impact and lower our carbon tax liability.
