Environmental stewardship > Energy and climate change
Energy and climate change
Our production processes depend on both electrical and
thermal energy, generating direct and indirect greenhouse
gas (GHG) emissions across the value chain. Upstream,
agriculture consumes energy for machinery, irrigation and
the production of fertilisers and pesticides, with methane
emissions from rice and livestock farming. Manufacturing
and processing are our most energy-intensive stages,
producing direct emissions from fossil fuels – coal, gas,
diesel and polyfuels – used to power boilers and generators
as needed, with additional indirect emissions from grid-supplied
electricity.
Though we do not manufacture packaging, its production
contributes to our scope 1 (direct), scope 2 (indirect) and
scope 3 (upstream and downstream) emissions. Further
emissions arise from product distribution (transportation
fuels), consumer energy use (e.g. cooking and refrigeration)
and waste disposal, which produces methane and
consumes energy in waste management.
Our board and Exco are increasingly aware of climate
change as a key business issue, influenced by new
legislation – including the anticipated carbon tax increases
and the Climate Change Act – rising costs, frequent power
cuts in South Africa and evolving sustainability disclosure
requirements. We are committed to achieving net zero for
our scopes 1 and 2 emissions by 2050, recognising the
particular impact on our agricultural supply chain.
Management
Our energy and climate change initiatives prioritise energy
security, energy efficiency and GHG reduction, supported
by environmental management processes that include
efficiency audits, process optimisation, equipment upgrades
and routine maintenance.
We have established 2030 emissions reduction targets
aligned with the science-based target initiative (SBTi) to
advance our commitment to net zero by 2050. We also
participate in the We Mean Business coalition and NBI's
Just Transition initiative.
We are targeting a 45% reduction in scope 1 and 2
emissions by 2030, based on a 2021 baseline. Annual
performance targets drive year-on-year progress toward
these longer-term goals. In 2024, our targets included a
3% reduction in electrical energy intensity, a 15% reduction
in thermal energy intensity and an 8% reduction in absolute
emissions, with short-term incentives (STI) for executives
tied to emissions reduction outcomes (see here).
Energy efficiency
Energy efficiency initiatives are ongoing across our sites,
led by our process optimisation team and focused on
high-consumption locations.
Electrical energy intensities are notably high at Snacks and
Treats (S&T) plants, where we aim for year-on-year efficiency
gains, while high energy consumption at milling sites
presents further opportunities for improvement. Limited
metering capacity has restricted progress in this area;
however, smart metering systems have been implemented
at key plants, including Boksburg, HPC and RFT mills.
These systems enhance the accuracy of onsite data
recording and serve as validation against municipal bills.
We have coal-fired boilers at nine manufacturing sites,
including high emitters such as Culinary Boksburg, LAF,
King Foods and Musina, which remain the focus of our
optimisation efforts. Recent improvements in boiler
management have delivered efficiency gains.
Emissions reduction
Our clean energy plan includes the installation of solar and
other renewable solutions at 35 manufacturing plants by
2030, enhancing energy security while supporting
decarbonisation. Currently, four of our sites – Hennenman
Mill (Free State), King Foods (North West), Beverages
Roodekop and Home and Personal Care (HPC) in Gauteng
– have solar installations under power purchase agreements
with independent producers.
We are actively pursuing projects to reduce direct emissions
from fossil fuel combustion (including coal, gas, diesel and
polyfuels). In our Bakeries division, we plan to replace
paraffin with cleaner fuel alternatives and we have engaged
external providers to review various fuel sources, including
renewable options, for potential use across our sites.
Additionally, we are exploring renewable energy wheeling
partnerships with local solar and wind developers to amplify
the decarbonisation impact of our onsite solar installations.
Emissions reporting
We report scope 1 and 2 GHG emissions to the Department
of Forestry, Fisheries and the Environment (DFFE) in
compliance with legal requirements and publish these
figures in our sustainability report. These emissions figures
are not yet independently assured, nor do they currently
account for scope 3 emissions.
Other atmospheric emissions
Beyond GHG emissions, our coal-fired boilers contribute to air pollutants, including nitrogen oxides (NOx), sulphur
oxides (SOx) and particulate matter (PM10). In South Africa, these emissions are regulated under the National
Environmental Management: Air Quality Act (AQA), which requires us to register four boilers as controlled emitters at
three sites and submit annual reports to the Department of Forestry, Fisheries and the Environment (DFFE). In 2024,
we developed a strategy to improve boiler management and operational performance. Moving forward, our focus will
be on maintaining efficient boiler management and exploring alternative fuel options. We remained compliant with
national air quality standards across all regulated pollutants for these boilers.
Atmospheric emissions
2021
2022
2023
2024
AQA limit
NOx emissions (MG/NM3)
548
553
631
319
1 100
SOx emissions (MG/NM3)
910
836
809
681
2 800
PM10 emissions coal (MG/NM3)
76
45
46
251
250
Carbon tax
Our carbon tax obligation for 2024 is projected to be
approximately R4,85 million (2023: R6,72 million), factoring
in both a 19,5% tax increase and a reduction in our GHG
emissions this year. The pending Climate Change Act will
further require adherence to a GHG budget, with potential
penalties for budget exceedances. We are exploring
additional decarbonisation options to reduce both
emissions and long-term financial exposure.
Performance
In 2024, our total energy consumption was 2 729 284 GJ,
with 24% grid electricity and 0,3% from renewable sources
(onsite solar installations). We did not meet our annual
targets for reducing electrical and thermal energy intensity
in line with our 2030 goals. Absolute electrical energy
consumption decreased by 6%, while electrical energy
intensity (kWh/tonne) rose by 2,7% compared to the
previous year. Absolute thermal energy consumption
decreased by 11,9%, with a 3,2% decrease in thermal
energy intensity (GJ/tonne).
Our absolute scope 1 and 2 GHG emissions were 401 662
tCO2e, a 9,1% reduction from the previous year, with
GHG emissions intensity (CO2/tonne) decreasing by 0,5%.
This reduction is attributed to improved operational control
of our boilers, particularly during lower production demand.
Our emissions calculations cover both stationary sources,
including generator use and mobile combustion from
owned vehicles. Additional performance metrics are
available in the sustainability data table in the appendix.
Our 2024 carbon emissions
GHG emissions (tCO2e)
2024
2023
2022
Scope 1* (direct)
174 441
203 904
199 799
Scope 2* (indirect)
227 222
237 794
239 625
Total scope 1 and 2 emissions*
401 662
441 699
439 423
* Our 2023 emissions figures have been restated this year, due to a calculation error picked up during this year's reporting cycle
Energy and climate change
Our production processes depend on both electrical and thermal energy, generating direct and indirect greenhouse gas (GHG) emissions across the value chain. Upstream, agriculture consumes energy for machinery, irrigation and the production of fertilisers and pesticides, with methane emissions from rice and livestock farming. Manufacturing and processing are our most energy-intensive stages, producing direct emissions from fossil fuels – coal, gas, diesel and polyfuels – used to power boilers and generators as needed, with additional indirect emissions from grid-supplied electricity.
Though we do not manufacture packaging, its production contributes to our scope 1 (direct), scope 2 (indirect) and scope 3 (upstream and downstream) emissions. Further emissions arise from product distribution (transportation fuels), consumer energy use (e.g. cooking and refrigeration) and waste disposal, which produces methane and consumes energy in waste management.
Our board and Exco are increasingly aware of climate change as a key business issue, influenced by new legislation – including the anticipated carbon tax increases and the Climate Change Act – rising costs, frequent power cuts in South Africa and evolving sustainability disclosure requirements. We are committed to achieving net zero for our scopes 1 and 2 emissions by 2050, recognising the particular impact on our agricultural supply chain.
Management
Our energy and climate change initiatives prioritise energy security, energy efficiency and GHG reduction, supported by environmental management processes that include efficiency audits, process optimisation, equipment upgrades and routine maintenance.
We have established 2030 emissions reduction targets aligned with the science-based target initiative (SBTi) to advance our commitment to net zero by 2050. We also participate in the We Mean Business coalition and NBI's Just Transition initiative.
We are targeting a 45% reduction in scope 1 and 2 emissions by 2030, based on a 2021 baseline. Annual performance targets drive year-on-year progress toward these longer-term goals. In 2024, our targets included a 3% reduction in electrical energy intensity, a 15% reduction in thermal energy intensity and an 8% reduction in absolute emissions, with short-term incentives (STI) for executives tied to emissions reduction outcomes (see here).
Energy efficiency
Energy efficiency initiatives are ongoing across our sites, led by our process optimisation team and focused on high-consumption locations.
Electrical energy intensities are notably high at Snacks and Treats (S&T) plants, where we aim for year-on-year efficiency gains, while high energy consumption at milling sites presents further opportunities for improvement. Limited metering capacity has restricted progress in this area; however, smart metering systems have been implemented at key plants, including Boksburg, HPC and RFT mills. These systems enhance the accuracy of onsite data recording and serve as validation against municipal bills.
We have coal-fired boilers at nine manufacturing sites, including high emitters such as Culinary Boksburg, LAF, King Foods and Musina, which remain the focus of our optimisation efforts. Recent improvements in boiler management have delivered efficiency gains.
Emissions reduction
Our clean energy plan includes the installation of solar and other renewable solutions at 35 manufacturing plants by 2030, enhancing energy security while supporting decarbonisation. Currently, four of our sites – Hennenman Mill (Free State), King Foods (North West), Beverages Roodekop and Home and Personal Care (HPC) in Gauteng – have solar installations under power purchase agreements with independent producers.
We are actively pursuing projects to reduce direct emissions from fossil fuel combustion (including coal, gas, diesel and polyfuels). In our Bakeries division, we plan to replace paraffin with cleaner fuel alternatives and we have engaged external providers to review various fuel sources, including renewable options, for potential use across our sites. Additionally, we are exploring renewable energy wheeling partnerships with local solar and wind developers to amplify the decarbonisation impact of our onsite solar installations.
Emissions reporting
We report scope 1 and 2 GHG emissions to the Department of Forestry, Fisheries and the Environment (DFFE) in compliance with legal requirements and publish these figures in our sustainability report. These emissions figures are not yet independently assured, nor do they currently account for scope 3 emissions.
Other atmospheric emissions
Beyond GHG emissions, our coal-fired boilers contribute to air pollutants, including nitrogen oxides (NOx), sulphur oxides (SOx) and particulate matter (PM10). In South Africa, these emissions are regulated under the National Environmental Management: Air Quality Act (AQA), which requires us to register four boilers as controlled emitters at three sites and submit annual reports to the Department of Forestry, Fisheries and the Environment (DFFE). In 2024, we developed a strategy to improve boiler management and operational performance. Moving forward, our focus will be on maintaining efficient boiler management and exploring alternative fuel options. We remained compliant with national air quality standards across all regulated pollutants for these boilers.
Carbon tax
Our carbon tax obligation for 2024 is projected to be approximately R4,85 million (2023: R6,72 million), factoring in both a 19,5% tax increase and a reduction in our GHG emissions this year. The pending Climate Change Act will further require adherence to a GHG budget, with potential penalties for budget exceedances. We are exploring additional decarbonisation options to reduce both emissions and long-term financial exposure.
Performance
In 2024, our total energy consumption was 2 729 284 GJ, with 24% grid electricity and 0,3% from renewable sources (onsite solar installations). We did not meet our annual targets for reducing electrical and thermal energy intensity in line with our 2030 goals. Absolute electrical energy consumption decreased by 6%, while electrical energy intensity (kWh/tonne) rose by 2,7% compared to the previous year. Absolute thermal energy consumption decreased by 11,9%, with a 3,2% decrease in thermal energy intensity (GJ/tonne).
Our absolute scope 1 and 2 GHG emissions were 401 662 tCO2e, a 9,1% reduction from the previous year, with GHG emissions intensity (CO2/tonne) decreasing by 0,5%. This reduction is attributed to improved operational control of our boilers, particularly during lower production demand. Our emissions calculations cover both stationary sources, including generator use and mobile combustion from owned vehicles. Additional performance metrics are available in the sustainability data table in the appendix.
Our 2024 carbon emissions
* Our 2023 emissions figures have been restated this year, due to a calculation error picked up during this year's reporting cycle