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.

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Table of Contents

1 Introduction ..........................................................................................................................................1

2 Approach ...............................................................................................................................................2

2.1 Organisational Boundary ............................................................................................................3

2.2 Operational Boundary ................................................................................................................3

2.3 Methodology ................................................................................................................................7

2.4 Data Quality and Assumption ...................................................................................................7

3 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

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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

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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.

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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.

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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 DefinitionBidvest 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 - related activities (not included in

Extraction, production, and transportation of fuels and energy purchased or acquired by the reporting company in the reporting year, not

Included.

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Scope 3 Category Definition Bidvest FY 2015 GHG Inventory

scope 1 or 2) already accounted for in scope 1 or scope 2.

Upstream transportation and distribution

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.

Waste generated in operations

Disposal and treatment of waste generated in the reporting company’s operations in the reporting year.

Included.

Business travel

Transportation of employees for business-related 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 company (lessee) in the reporting year and not included in scope 1 and scope 2 – reported by lessee.

Unlikely to be material, not included.

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.

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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 year) at the end of their life.

Not included.

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):

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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

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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.

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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 Level 2 Concatenate Scope 1

emissions FY2015

% change in scope 1

emissions from FY2014

Scope 2 emissions

FY2015

Scope 3 emissions

FY2015

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

SA Bidvest South Africa

First Garment Rental Head office 39 115 � 5% 9 504 14 191

SA Bidvest South Africa Protea Coin Group 22 038 � 25% 3 007 5 616

SA Bidvest South Africa McCarthy 17 816 � 7% 26 275 9 290

UK Bidvest Corporate Ontime automotive 17 276 � 10% 1 366 4 035

Netherlands Bidvest Foodservice Deli XL Netherlands 15 431 � 3% 7 026 4 490

SA Bidvest South Africa

Total Facilities Management Company (TFMC)

15 138 � 247% 5 369 5 105

Australia Bidvest Foodservice Bidvest Australia 13 814 � 2% 47 160 6 589

SA Bidvest Foodservice Bidvest Foodservice HO 10 204 � 7% 20 580 5 354

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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

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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.

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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.

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.

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,

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except for Bidvest Namibia, is diesel combustion. Intermediate fuel oil is the largest contributor to direct emissions for Bidvest Namibia.

Figure 7: Direct emission per fuel type for each division in the Bidvest Group1

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.

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.

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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.

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%.

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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.

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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%).

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%).

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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%).

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%).

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Figure 14: Direct (scope 1) emissions for Bidvest Foodservice

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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%).

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%).

Figure 16: Other Indirect (scope 3) emissions for Bidvest Foodservice

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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.

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

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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.

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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.

Figure 22: Other Indirect (scope 3) emissions for Bidvest Corporate

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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.”

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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.