Bidvest Carbon Footprint
Report
FY2015 (1 July 2014 – 30 June 2015)
September 2015
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Executive Summary
Climate change is one of the most important environmental challenges facing governments, organisations
and individuals today. Pressure is mounting world-wide for business to reduce the impact of their activities
on the environment, and in particular the volume of greenhouse gases they produce. In addition, this shift
in the world environment to a low carbon economy creates both risks and opportunities for business in all
countries.
As part of environmental and sustainability awareness, Bidvest Group has calculated its individual
company specific GHG inventories for the financial year 2015 (1 July 2014 – 30 June 2015). The GHG
inventories have been calculated on a company level, as each company is responsible for its own
emissions. The potential impact of carbon pricing on these companies is dependent on the jurisdiction in
which they operate. Bidvest as a holding company has a small carbon footprint and is not responsible for
the emissions of each individual company.
Calculating Bidvest companies GHG inventories, places them in a good position to track their greenhouse
gas emissions. It also prepares for regulation and possible changes in legislation that may impact each
company. Bidvest companies will have to take cognisance and comply with the carbon pricing
requirements in each country of operation. This could be in the form of renewable energy levies, carbon
tax or cap and trade schemes. Other legislative requirements that should be kept in mind are mandatory
greenhouse gas reporting and carbon budget allocations.
The calculation of the GHG inventories showed that all companies within the Bidvest Group emit less
than 100 000 tCO2e each. The largest emitting company was “3663 First for foodservice” emitting
approximately 92 000 tCO2e in this reporting year. This was followed by “Bidvest Fisheries holdings (Pty)
Ltd” emitting approximately 83 000 tCO2e and the largest emitting South African company, “First
Garment Rental Head office” emitting approximately 39 000 tCO2e.
In expanding on their GHG reporting and moving forward on their journey towards a low carbon
economy it is recommended that Bidvest companies:
•
•
•
Continue to annually calculate their GHG inventory using most recently published emission factors;
Expand their reporting on other indirect emissions to understand the emissions in their value chain.
However, it should be noted that this is part of the voluntary reporting section of a company’s
GHG inventory; and
Implement energy management systems throughout the Bidvest Group to promote energy and thus
emission reductions, which relates to direct cost savings.
1
Table of Contents
1
Introduction ..........................................................................................................................................1
2
Approach...............................................................................................................................................2
3
2.1
Organisational Boundary............................................................................................................3
2.2
Operational Boundary ................................................................................................................3
2.3
Methodology ................................................................................................................................7
2.4
Data Quality and Assumption ...................................................................................................7
Results and Discussion .......................................................................................................................8
3.1
Company Specific GHG Inventory..........................................................................................8
3.2
Bidvest GHG Inventory Overview ........................................................................................ 12
3.3
Divisional GHG Inventory Overview ................................................................................... 16
4
Emissions Management .................................................................................................................... 23
5
Conclusions ........................................................................................................................................ 25
Appendix A: Company Specific GHG Inventory ................................................................................ 26
Appendix B: Emission Factors ................................................................................................................ 39
Appendix C: Assumptions ........................................................................................................................ 41
ii
1 Introduction
Bidvest is an international services, trading and distribution company listed on the South African JSE.
Bidvest is a holding company with numerous, diverse companies under its financial control and operating
across five continents. Bidvest continually strives to minimise their environmental impact and as such
Bidvest Group has been calculating its company carbon footprints since 2008.
Promethium Carbon calculated the GHG inventory for the various companies which constitute the
Bidvest Group Limited and compiled this GHG inventory report for this financial year. The report details
the GHG inventory analysis for the financial period 1 July 2014 – 30 June 2015. The Bidvest
communications manager, Kate Cunningham, was responsible for collating the GHG activity data.
The Bidvest Group comprises of various companies which are categorised into four main divisions,
namely Bidvest Corporate, Bidvest South Africa, Bidvest Namibia and Bidvest Foodservices. These
divisions are broken down further into subdivisions. The structural divisions of Bidvest Group is
presented in Figure 1 below:
Figure 1: Bidvest Group Limited Structure
1
This GHG inventory report is different from previous Bidvest GHG inventory reports. Previously Bidvest
has rolled up company GHG inventories into business divisions. However, it is more appropriate to
calculate the GHG inventories on a company level as each company is responsible for its own emissions.
Each company, depending on where they operate, could be liable to pay carbon tax. Bidvest as a holding
company located in South Africa has a small carbon footprint and is currently not liable to pay carbon tax
under the proposed regulations. This report covers the GHG inventory for all the companies within the
Bidvest Group.
2 Approach
This GHG inventory report was compiled in accordance with three complementary internationally utilised
standards:
•
•
•
ISO 14064 Part 1: Specification with guidance at the organization level for quantification and
reporting of greenhouse gas emissions and removals;
Technical Report: ISO/TR 14069:2013 ‘Greenhouse gases – Quantification and reporting of
greenhouse gas emissions for organizations – Guidance for the application of ISO 14064-1; and
The Greenhouse Gas Protocol’s ‘A Corporate Accounting and Reporting Standard (Revised
Edition)’.
The use of international standards:
•
•
•
•
Enhances the environmental integrity of the carbon footprint;
Supports corporate risk management;
Facilitates the development of a GHG management strategy; and
Assists the development of GHG reduction projects and possible carbon credit opportunities.
The principles for the accounting of this GHG inventory are detailed below:
Table 1: Principles for GHG accounting and reporting
Relevant
The GHG inventory appropriately reflects the GHG emissions of Bidvest companies
and serves the decision-making needs of users.
Complete
The GHG inventory accounts for all GHG emission sources within Bidvest company’s
chosen inventory boundaries.
Consistent
Bidvest is to use a consistent methodology to allow for meaningful comparisons of
emissions over time.
Transparent
Bidvest is to disclose any relevant assumptions and make appropriate references to the
accounting and calculation methodologies and data sources used.
Accurate
Bidvest is to ensure that all uncertainties in the quantification of GHG emissions are
reduced as far as practical, and that the emissions are neither overstated nor understated.
2
The first step to the quantification of a GHG inventory is the selection of reporting boundaries. These
boundaries are important as they identify the GHG sources (activities that emit GHGs) that are to be
included in the inventory calculation. Two types of GHG inventory boundaries need to be set – an
organisational boundary and an operational boundary.
2.1 Organisational Boundary
An organisational boundary is defined as the boundary that determines the operations owned or
controlled by the reporting company. This boundary specifies the facilities that are included in the
reporting company’s GHG inventory.
Organisational boundaries can be set on two approaches: either the control approach, or the equity share
approach. Under the control approach, a company accounts for 100 percent of the GHG emissions over
which it has control. Under the equity share approach, a company accounts for its GHG emissions from
operations according to its share of equity in the operation.
The control approach can be further split into financial control and operational control. A company has
financial control over an operation if they have the ability to direct the financial and operating policies of
the operation with a view to gaining economic benefits. Alternatively, a company has operational control
over an operation if they have the full authority to introduce and implement operating policies at the
operation.
The organisational boundary for this GHG inventory has been set around each individual company which
constitute the Bidvest Group. The organisational boundary is set at operational control for the individual
Bidvest companies.
2.2 Operational or the reporting boundary
An operational boundary, or the reporting boundary, is the delineation of the GHG sources (activities that
emit GHGs) that are included in the Bidvest companies’ GHG inventory. The setting of this boundaries is
a two-step process:
Step 1:
Identification of the emission sources associated with the company’s operations.
Step 2:
Classification of the emission sources into three categories. These three categories are
defined according to ISO 14064 Part 1 as direct GHG emissions, energy indirect GHG
emissions, and other indirect GHG emissions, but are commonly referred to by the
Greenhouse Gas Protocol as Scope 1, Scope 2, and Scope 3 emissions.
Direct GHG emissions (Scope 1) are emissions from sources that are owned or controlled by the Bidvest
companies. Energy indirect GHG emissions (Scope 2) are from the consumption of grid electricity by
each of the Bidvest companies.
3
Other indirect GHG emissions (Scope 3) are the emissions (other than energy indirect GHG emissions)
that occur as a result of the activities of the Bidvest companies, but occur at sources owned or controlled
by another company. According to the Greenhouse Gas Protocol, other indirect GHG emissions can be
classified into two different categories:
•
•
Upstream indirect GHG emissions (related to purchased or acquired goods and services);
Downstream indirect GHG emissions (related to sold goods and services).
These emission categories are illustrated in the figure below.
Figure 2: Illustration of the different sources of emissions (The Greenhouse Gas Protocol: Corporate Value Chain
Accounting and Reporting Standard).
Other indirect GHG emissions (Scope 3) can be further broken down into 15 categories:
Scope 3 Category Definition
Bidvest FY 2015
GHG Inventory
Purchased goods
and services
(excluding fuel)
Extraction, production, and transportation of
goods and services purchased or acquired by
the reporting company in the reporting year.
Included.
Capital Goods
Extraction, production, and transportation of
capital goods purchased or acquired by the
reporting company in the reporting year.
Unlikely to be
material, not
included.
Fuel - and energy - Extraction, production, and transportation of
related activities
fuels and energy purchased or acquired by the
(not included in
reporting company in the reporting year, not
Included.
4
Scope 3 Category Definition
scope 1 or 2)
Upstream
transportation and
distribution
Bidvest FY 2015
GHG Inventory
already accounted for in scope 1 or scope 2.
Transportation and distribution of products
purchased by the reporting company between
a company’s tier 1 suppliers and its own
operations.
Outbound transportation and distribution
services that are purchased by the reporting
company are included in this category because
the reporting company purchases the service
(in vehicles not owned or operated by the
reporting company).
Not included.
Disposal and treatment of waste generated in
Waste generated in
the reporting company’s operations in the
operations
reporting year.
Included.
Business travel
Transportation of employees for businessrelated activities during the reporting year (in
vehicles not owned or operated by the
reporting company).
Included.
Employee
commuting
Transportation of employees between their
homes and their worksites during the
reporting year (in vehicles not owned or
operated by the reporting company).
Not included.
Upstream leased
assets
Operation of assets leased by the reporting
Unlikely to be
company (lessee) in the reporting year and not
material, not
included in scope 1 and scope 2 – reported by
included.
lessee.
Downstream
transportation and
distribution
Transportation and distribution of products
sold by the reporting company in the
reporting year between the reporting
company’s operations and the end consumer
(if not paid for by the reporting company),
including retail and storage (in vehicles and
facilities not owned or controlled by the
Not included.
5
Scope 3 Category Definition
Bidvest FY 2015
GHG Inventory
reporting company).
Processing of sold
product
Processing of intermediate products sold in
the reporting year by downstream companies
(e.g. manufacturers).
Not included.
Use of sold
product
End use of goods and services sold by the
reporting company in the reporting year.
Not included.
End -of-life
treatment of
products
Waste disposal and treatment of products sold
by the reporting company (in the reporting
Not included.
year) at the end of their life.
Downstream
leased assets
Operation of assets owned by the reporting
company (lessor) and leased to other entities
in the reporting year, not included in scope 1
and scope 2 – reported by lessor.
Unlikely to be
material, not
included.
Franchises
Operation of franchises in the reporting year,
not included in scope 1 and scope 2 –
reported by franchisor.
Unlikely to be
material, not
included.
Investments
Operation of investments (including equity
and debt investments and project finance) in
the reporting year, not included in scope 1 or
scope 2.
Unlikely to be
material, not
included.
The following is included, where relevant, for each of Bidvest companies’ GHG inventories:
• Direct GHG emissions (Scope 1):
The emissions related to the combustion of the following fuels:
Diesel
Petrol
Biodiesel
Coal
Heavy Fuel oil (HFO)
Intermediate Fuel Oils (IFO)
Liquefied natural gas (LNG)
Liquefied petroleum gas (LPG)
• Energy indirect GHG emission (Scope 2):
GHG emissions from the generation of imported electricity consumed by the
organization;
• Other indirect GHG emissions (Scope 3):
Fuel and Energy related emissions (not included in scope 1 or 2):
6
Extraction, production and transportation of diesel, petrol, biodiesel, coal,
HFO, IFO, LNG and LPG;
Electricity transmissions and distribution losses;
Business travel;
Local, regional and international air travel;
Accommodation in hotels;
Road travel in hired cars;
Purchased Goods and Services: the purchasing of paper for use in operations
Waste generated in operations: general waste produced by the companies and sent to
the landfill for disposal
2.3 Methodology
The methodology used to calculate the GHG inventory is based on GHG activity data multiplied by an
appropriate documented emission factor.
Activity Data:
The activity data for Bidvest’s FY 2015 GHG inventory calculation were sourced from Kate Cunningham,
Bidvest Communications.
Emission Factors:
The emission factors applied in the calculation of Bidvest’s FY 2015 GHG inventory are presented in
Appendix B. The chosen emission factors are in line with guidance provided by ISO 14064 Part 1, in that
these factors:
Are derived from a recognized origin;
Are appropriate for the GHG source concerned;
Are current at the time of quantification;
Take account of quantification uncertainty and are calculated in a manner intended to yield
accurate and reproducible results; and
Are consistent with the intended use of the GHG inventory.
2.4 Data Quality and Assumption
All GHG inventory calculations were based on data received directly from Bidvest. Apart from a high
level sanity check and comparison with previous years, no verification or assurance of the data source, or
results was conducted by Promethium.
Bidvest reported on four of the 15 scope 3 categories. These four are the material categories for which
data was available. As per ISO 14064-1, reporting on other indirect (scope 3) emissions is a voluntary
process. However improved scope 3 reporting is encouraged for future GHG inventories in order to
7
understand the emissions associated with the direct actions of the companies as well as the indirect
emissions up and down the value chain. In terms of risk assessment the value chain could provide more
exposed to either climate change regulations or direct climate change impact than the organisation itself.
3 Results and Discussion
3.1 Company Specific GHG Inventory
Company specific GHG inventories have been calculated as each company is responsible for their own
emissions. Depending on the jurisdiction in which each country is located they may potentially be
impacted by carbon pricing. A breakdown of the individual company specific GHG inventories is
presented in Appendix A. The direct emissions from the individual companies is represented graphically
in Figure 3.
Figure 3: Direct emissions of all Bidvest companies
Bidvest has a large number of companies within its structure, it is therefore important to highlight those
companies with the largest direct emissions. As such, the company specific GHG inventory list is refined
to produce the top 10 highest emitting companies within the Bidvest Group in term of direct (scope 1)
emissions, as presented graphically in Figure 4. These top 10 companies are also the companies with
emissions larger than 10 000 tCO2e.
8
Figure 4: Companies with direct emissions larger than 10 000 tCO2e.
A summary of the top 10 emitting companies within Bidvest is presented in Table 2. A summary of direct
emissions (scope 1), energy indirect emissions (scope 2) and other indirect emissions (scope 3) for each
company is presented in this table, prioritised from the descending order of direct emissions. An analysis
of the company’s direct emissions in comparison to last year’s emissions is given to show if the company
has increased or decreased emissions.
Table 2: Companies with direct GHG Inventories larger than 10 000 tCO2e
Country
Scope 1
emissions
FY2015
% change in
scope 1
emissions
from FY2014
Scope 2
emissions
FY2015
Scope 3
emissions
FY2015
Level 2
Concatenate
UK
Bidvest
Foodservice
3663 First for foodservice
91 582
50%
31 656
25 441
Namibia
Bidvest
Namibia
Bidvest Fisheries holdings
(PTY) LTD
82 991
13%
172
19 292
Bidvest
South Africa
Bidvest
South Africa
Bidvest
South Africa
Bidvest
Corporate
Bidvest
Foodservice
First Garment Rental
Head office
39 115
5%
9 504
14 191
Protea Coin Group
22 038
25%
3 007
5 616
McCarthy
17 816
7%
26 275
9 290
Ontime automotive
17 276
10%
1 366
4 035
Deli XL Netherlands
15 431
3%
7 026
4 490
Total Facilities
Management Company
(TFMC)
15 138
247%
5 369
5 105
Bidvest Australia
13 814
2%
47 160
6 589
Bidvest Foodservice HO
10 204
7%
20 580
5 354
SA
SA
SA
UK
Netherlands
SA
Australia
SA
Bidvest
South Africa
Bidvest
Foodservice
Bidvest
Foodservice
9
As the global environment moves towards a low carbon economy various risks and opportunities arise.
One of the risks relates to the pricing of carbon into the global economy; either in the form of a carbon
tax, or through cap and trade schemes. This directly relates GHG emissions to cost implications. As such
the GHG inventory analysis was categorised per country, as the potential impact of carbon pricing on
these companies is dependent on the jurisdiction in which they operate.
In addition there are draft regulation in South Africa on mandatory energy reporting. The draft regulations
state that the data providers will have to:
•
•
Provide energy data if exceeding a threshold of 180 Terajoules (TJ) of annual energy consumption;
Submit an Energy Management Plan in accordance with SANS 50001, if exceeding a threshold of
400TJ of annual energy consumption.
These thresholds would apply directly to the laundry division of Bidvest, specifically First Garment
Rental Head office, with a coal fired boiler for steam generation within their operation. The coal
consumption of First Garment Rental Head office, in the reporting year, amounted to approximately
370 TJ of energy. Thus according to the draft regulations, First Garment Rental Head office may have
to report their energy data to the Department of Energy in South Africa, but would not be required to
develop an energy management plan.
3.1.1 Potential carbon pricing within jurisdictions
A summary of the relevant carbon pricing mechanisms for the countries within which the Bidvest
companies operate are as follows:
South Africa: National Treasury has announced that a carbon tax will be implemented by 2016. The
essence of this tax is that each registered tax paying entity in South Africa will be liable to pay carbon tax
on its direct greenhouse gas emissions. The tax rate has been set at R120 per ton of CO2 equivalent with
the first 60% of emissions not being taxable, and some relief measures such as trade exposure. In practice,
companies will pay between R24 and R48 per ton of CO2 on their direct emissions. The financial impact
of the tax can be mitigated to some extent (between 5-10%) by offsetting emissions with carbon credits.
The implementation of the carbon tax means that each company in the Bidvest Group will have to assess
its direct emissions and pay the tax on those emissions. Operations with no direct emissions (such as
Bidvest Corporate) will not be liable to pay carbon tax. Companies in the Group will also face increased
costs due to pass-through of carbon taxes. The electricity pricing legislation in SA allows Eskom to pass
through all taxes paid. The impact of this is that the electricity price will be increased by around 5 cents per
kWhr due to the implementation of the carbon tax. The prices of other raw material and inputs, such as
logistics, may also increase as a result of the implementation of the carbon tax.
Countries that form Part of the Southern African Power Pool (SAPP): These countries include
Botswana, Democratic Republic of the Congo, Mozambique and Namibia. No carbon tax is on the
horizon for these countries, but companies operating in these countries may face increased electricity
10
prices due to the carbon tax in South Africa and the impact thereof on the electricity bought through the
SAPP.
Australia: The carbon pricing mechanism (which made provision for a carbon tax and a cap and trade
scheme) has been repealed by the Australian Government. This scheme has however been replaced by the
Direct Action Plan (DAP). The DAP makes provision for companies that emit more than their “business
as usual” emissions to pay a financial penalty. The size of the penalties will be on a sliding scale relating to
the size of the business and the extent to which they exceed their ‘business as usual’ levels. There is
however no details yet on the levels of the penalties. Companies operating in Australia should keep this in
mind when planning their business activities and expansion. The lower threshold is 25 000 tCO2e for a
facility and 50 000 tCO2e for a company as reported to the National Greenhouse Gas and Energy
Reporting scheme.
European Union: Companies operating in Belgium, Czech Republic, Lithuania, Netherlands, Poland,
Slovakia and the United Kingdom fall under both the European Union Emission Trading Scheme ( EU
ETS) as well as domestic carbon taxes. Such countries must consult the National Allocation Plans (NAP)
of the countries in which they operate to determine if they are covered by the ETS. They should also
adhere to local legislation such as domestic carbon taxes and regulatory reporting requirements.
Ghana: The Ghanaian Renewable Energy Act has been promulgated in 2011, but its framework and
application are still being established. In 2014, feed-in tariffs for renewable energy in Ghana were
published to provide an incentive for businesses to invest in renewable energy projects. This would
comply with the goal of achieving 10% renewable energy of the total energy production for Ghana by
2020.
Other African countries: Companies operating in Kenya and Tanzania countries do not face a carbon
pricing obligation in the near future.
China: China has pilot emission trading schemes operating in the following regions: Beijing, Guangdong,
Hubei, Shanghai, Shenzhen, and Tianjin. The country has announced that it will introduce a national
trading scheme as part of the 13th five year plan that will be published in 2016. Companies operating in
China must take cognisance of these developments. Especially energy intensive companies will be affected,
thereby indirectly raising the cost of energy intensive products such as metal packaging.
New Zealand: Companies operating in New Zealand must comply with the requirements of the New
Zealand Emission Trading Scheme (NZ ETS). The current carbon price is virtually zero and the design
moderates the economy-wide impact. There is however an increased focus on reducing transport
emissions and slowing deforestations. A possible change of government in 2017 could make the NZ ETS
more stringent.
Other Countries: Companies operating in Singapore and the United Arab Emirates must keep abreast of
any developments that might lead to the implementation of carbon tax in those countries.
11
3.2 Bidvest GHG Inventory Overview
As an overview of the Bidvest Group, various graphs have been drawn up to show which division
contributes the largest to GHG emissions. A summary of direct emissions across the divisions is presented
in Figure 5. It is seen that the division Bidvest Foodservice contributes 175 344 tCO2e to direct emissions,
amounting to 39% of the Bidvest Group. This is closely followed by the Bidvest South Africa Division
which contributes 38% or 167 257 tCO2e towards direct emissions.
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Figure 5: Summary of direct (scope 1) emissions per Bidvest division
Direct emissions comprise of emission generated through the combustion of various fuel sources within
the Bidvest Group. A summary of the fuel sources contributing to the direct emission are presented in
Figure 6. Emissions from diesel combustion account for the largest contribution (62%) to direct
emissions, amounting to 281 338 tCO2e in FY2015. Intermediate fuel oil is the second largest contributor
to direct emissions, of 63 829 tCO2e, followed by emissions from petrol combustion of 61 286 tCO2e.
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Figure 6: Direct (scope 1) emissions per fuel type
A summary of the fuel sources contributing to the direct emissions from each Bidvest division is
presented in Figure 7 below. The fuel with the largest contribution to direct emissions for most divisions,
12
except for Bidvest Namibia, is diesel combustion. Intermediate fuel oil is the largest contributor to direct
emissions for Bidvest Namibia.
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Figure 7: Direct emission per fuel type for each division in the Bidvest
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A summary of energy indirect (scope 2) emissions per Bidvest division is presented in Figure 8. This
summarises the emissions from the consumption of grid connected electricity. It is seen that Bidvest
South Africa contributes 50% or 165 128 tCO2e to the scope 2 emissions. This is partly due to the
emission intensive South African grid which is mainly run on coal fired power stations.
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Figure 8: Summary of energy indirect (scope 2) emissions per Bidvest division
The Bidvest Foodservice division makes up the other 50% of the energy indirect emissions, amounting to
164 628 tCO2e.
The other indirect emissions, which are attributed to the upstream and downstream emissions in the value
chain of the Bidvest companies, are presented per division in Figure 9. Similar to the scope 1 and scope 2
1
Direct emissions from biodiesel include the emissions from CH4 and N2O. The CO2 component is deemed zero.
13
emissions it is seen that Bidvest South Africa is a large contributor of emissions, amounting to
106 676 tCO2e (53%) of the scope 3 emissions. Bidvest Foodservice contributes 63 171 tCO2e (31%)
towards scope 3 emissions. Bidvest Namibia contributes 26 369 tCO2e (13%) and Bidvest Corporate
contributes 5886 tCO2e (3%) towards scope 3 emissions.
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Figure 9: Summary of other indirect (scope 3) emissions per Bidvest division
The other indirect (scope 3) emissions are categorised into 15 categories, following guidance from the
GHG Protocol. Of these 15 categories, four have been included in the Bidvest company GHG inventory,
due to materiality and data availability. The four categories covered are emissions from:
•
•
•
•
Fuel and energy- related activities (not covered in scope 1 and 2): Extraction, production, and
transportation of fuels and energy purchased or acquired by the reporting company, not already
accounted for in scope 1 or scope 2.
Purchased goods and services: Extraction, production, and transportation of goods and services
purchased or acquired by the reporting company.
Waste generated in operations: Disposal and treatment of waste generated in the reporting
company’s operations.
Business travel: Transportation of employees for business-related activities during the reporting
year (in vehicles not owned or operated by the reporting company).
A breakdown of the scope 3 emission categories for each Bidvest Division is presented in Figure 10. The
largest contributor to scope 3 emissions are the emissions from fuel- and energy-related activities,
accounting for 62% followed by purchased goods and services (paper purchasing) accounting for 14%.
Emissions from waste generated in operations accounts for 13% and emissions from business travel
accounts for 11%.
14
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Figure 10: Other indirect (scope 3) emissions per category per Bidvest Division
There is room for improvement in the reporting of other indirect emissions for the Bidvest companies.
Some of the other indirect emission categories that were not included in the FY 2015 calculation but may
have a significant impact, (recommended to be reported on in years to come), include emissions related to:
• Upstream transport and distribution – emissions related to the transport of purchased goods to the
Bidvest Company’s operations from suppliers (in vehicles not owned by the Bidvest Company but
paid for by the Bidvest Company).
• Employee commuting – emissions related to employees commuting from home to work and back
daily.
• Downstream transport and distribution – emissions related to transport of sold products to end
customers (in vehicles not owned by the Bidvest Company nor paid for by Bidvest Company).
• Use of sold products – emissions related to the end use of goods and services sold by the
reporting company in the reporting year.
• End of life treatment – emissions related to waste disposal and treatment of products sold.
15
3.3 Divisional GHG Inventory Overview
This section of the report will give an analysis per Bidvest division, which will provide a summary of the
subsectors contributing to the emissions of the divisions.
3.3.1 Bidvest South Africa
Within the Bidvest South Africa division there are various subsectors which contribute toward the
emissions. Summary of the scope 1 emissions is presented in Figure 11. It is seen that the largest
contributors to scope 1 emissions include Bidvest Services (31%), Bidvest Rental and Products (26%) and
Bidvest Freight (15%).
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Figure 11: Direct (scope 1) emissions for Bidvest South Africa
A summary of the emissions from electricity consumption, scope 2 emissions, for Bidvest South Africa is
presented in Figure 12. The large contributors to scope 2 emissions are Bidvest Freight (26%), Bidvest
Paper Plus (17%) and Bidvest Automotive (15%).
16
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Figure 12: Energy indirect (scope 2) emissions for Bidvest South Africa
A summary of the scope 3 emissions (limited to 4 categories of indirect emissions only) within the Bidvest
South Africa division are presented in Figure 13. The largest contributors to scope 3 emissions for this
division are Bidvest Paper Plus (27%), Bidvest Freight (20%) and Bidvest Services (14%).
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Figure 13: Other indirect (scope 3) emissions for Bidvest South Africa
3.3.2 Bidvest Foodservice
The direct emissions within the Bidvest Foodservice division is largely attributed to the Europe
subdivision, amount to 74% of the emissions. Direct emissions from the Asia-Pacific subdivision accounts
for 15% of the emissions, followed by the Bidvest Food Southern Africa subdivision (11%).
17
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Figure 14: Direct (scope 1) emissions for Bidvest Foodservice
18
Energy indirect (scope 2) emissions for Bidvest Foodservice is attributed largely by the Europe subdivision
of 66 728 tCO2e (40%), the Asia-Pacific subdivision of 63 741 tCO2e (39%) and then the Bidvest Food
Southern Africa subdivision of 34 660 tCO2e (21%).
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Figure 15: Energy Indirect (scope 2) emissions for Bidvest Foodservice
Similarly the scope 3 emissions are largely attributed by the Europe subdivision of 38 318 tCO2e (61%),
the Asia-Pacific subdivision of 13 031 tCO2e (20%) and then by the Bidvest Food Southern Africa
subdivision of 11 823 tCO2e (19%).
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Figure 16: Other Indirect (scope 3) emissions for Bidvest Foodservice
19
3.3.3 Bidvest Namibia
Direct emissions attributed to the Bidvest Namibia division comprises largely of emissions from the
Fisheries Holdings subdivisions, amounting in 96% of the emissions or 82 992 tCO2e. The subdivisions
Commercial Holdings and Corporate make up less than 5% of the emissions.
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Figure 17: Direct (scope 1) emissions for Bidvest Namibia
Scope 2 emissions within the Bidvest Namibia division, presented in Figure 18, is largely attributed to
emissions from the Commercial Holdings subdivision, 374 tCO2e (68%). In addition 172 tCO2e are
attributed to the Fisheries Holdings subdivision (31%) and only 6 tCO2e are attributed by the Corporate
subdivision.
Figure 18: Energy Indirect (scope 2) emissions for Bidvest Namibia
20
Scope 3 emissions comprise of 19 293 tCO2e from the Fisheries Holdings subdivision (73%), along with
6 957 tCO2e from the Commercial Holdings subdivision (26%) and 121 tCO2e by the Corporate
subdivision, as seen in Figure 19 below.
Figure 19: Other Indirect (scope 3) emissions for Bidvest Namibia
3.3.4 Bidvest Corporate
The Bidvest Corporate division contributes the smallest portion of emissions within the Bidvest Group.
The direct emissions from the Bidvest Corporate division are mainly attributed to by the subdivision of
Ontime Automotive, amounting to 17 276 tCO2e. A small portion of emissions are attributed by the
Bidvest Wits Football Club and Corporate Services subdivisions as is seen in Figure 20 below.
Figure 20: Direct (scope 1) emissions for Bidvest Corporate
The energy indirect emissions, comprise of emissions from the Ontime Automotive subdivision and the
BID Corporate Services subdivision, as presented in Figure 21. This amounts to 78% of the scope 2
emission at 1 366 tCO2e. In addition the BID Corporate Services subdivision contributes 22% of the
emissions at 381 tCO2e.
21
Figure 21: Energy Indirect (scope 2) emissions for Bidvest Corporate
The scope 3 emission from the Bidvest Corporate division comprise of 4 036 tCO2e attributed from the
Ontime Automotive subdivision (69%), along with 31% of emissions from the BID Corporate Services,
1 831 tCO2e. A small portion of these emissions are attributed to the Bidvest International (Isle of Man)
and the Bidvest Wits Football Club subdivisions.
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Figure 22: Other Indirect (scope 3) emissions for Bidvest Corporate
22
4 Emissions Management
Apart from coal and diesel, electricity consumption is the main contributor to GHG emissions. For this
reason it is important for each Bidvest company to manage their energy consumption in order to manage
their emissions. Managing energy consumption could lead to energy efficiency within a company, which
directly links to cost reductions. Implementing energy/emission saving projects will reduce the operating
costs for a company.
It is suggested that an energy management plan is generated for each company in order for them to
manage their GHG emissions. An energy management plan should cover all the facets of an organisation.
It is thus important that the implementation of an energy management plan always start within the
organisation’s management department. The first priority is for management to convey the message of the
importance of energy reduction and conservation throughout its organisation.
At the core of an organisation’s energy management plan lies the energy policy. The implementation of an
energy policy will result in a shared drive to reduce energy costs throughout the company. An Energy
Policy, based on the ISO 50001 standard on Energy Management Systems would contain the following
elements:
“The energy policy shall state the organization's commitment to achieving energy performance improvement. Top management
shall define the energy policy and ensure that it:
a) is appropriate to the nature and scale of the organization's energy use and consumption;
b) includes a commitment to continual improvement in energy performance;
c) includes a commitment to ensure the availability of information and of necessary resources to achieve objectives and
targets;
d) includes a commitment to comply with applicable legal requirements and other requirements to which the organization
subscribes related to its energy use, consumption and efficiency;
e) provides the framework for setting and reviewing energy objectives and targets;
f) supports the purchase of energy efficient products and services, and design for energy performance improvement;
g) is documented and communicated at all levels within the organization; and
h) is regularly reviewed, and updated as necessary.”
23
A proposed energy management system should follow the Plan - Do - Check - Act (PDCA) continual
improvement framework, as presented in ISO 50001. The PDCA continual improvement framework,
Figure 23, ensures that energy management is incorporated into everyday organizational practices.
Figure 23: Plan-Do-Check-Act approach for an Energy management system
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5 Conclusions
This report has documented the findings from the calculation of the Bidvest Group individual company’s
GHG inventories for financial year 2015 (1 July 2014 – 30 June 2015). The GHG inventories have been
calculated on a company level, as each company is responsible for their own emissions. The potential
impact of carbon pricing on these companies is dependent on the jurisdiction in which they operate.
Bidvest as a holding company has a small carbon footprint and is not responsible for the emissions of
each individual company.
Bidvest companies will have to take cognisance and comply with the carbon pricing requirements in each
country in which they operate. This could be in the form of renewable energy levies, carbon tax or cap
and trade schemes. Other legislative requirements that must be kept in mind may include issues such as
mandatory greenhouse gas reporting or carbon budget allocations.
The calculation of the GHG inventories showed that all companies within the Bidvest Group emit less
than 100 000 tCO2e per company. The largest emitting company was “3663 First for foodservice” emitting
approximately 92 000 tCO2e in this reporting year. This was followed by “Bidvest Fisheries holdings (Pty)
Ltd” emitting approximately 83 000 tCO2e and the largest emitting South African company, “First
Garment Rental Head office” emitting approximately 39 000 tCO2e.
In expanding on their GHG reporting and moving forward on their journey towards a low carbon
economy it is recommended that Bidvest companies:
•
•
•
Continue to annually calculate their GHG inventory using most recently published emission factors;
Expand their reporting on other indirect emissions to understand the emissions in their value chain.
However, it should be noted that this is part of the voluntary reporting section of a company’s
GHG inventory; and
Implementing energy management systems throughout the Bidvest Group to promote energy and
thus emission reduction, which relates to direct cost savings.
25