CARBON DISCLOSURE

The RCL FOODS 2015 Carbon Footprint Report constitutes the second carbon footprint commissioned by RCL FOODS and should be compared against the previous carbon footprint calculations from 2014. Both reports have been prepared using the Greenhouse Gas (“GHG”) Protocol Corporate Accounting and Reporting Standard methodology. The 2015 Carbon Footprint Report is used as the baseline carbon footprint calculation as this is the first full year of ownership under RCL FOODS of all subsidiaries.

The GHG-emitting activities covered by the report include direct emissions resulting from stationary fuel used by RCL FOODS-owned or controlled equipment, air-conditioning gas refills, corporate aircraft and mobile fuels from fleet vehicles; indirect emissions from purchased electricity (referred to as Scope 1 and 2 emissions respectively); and selected indirect emissions resulting from RCL FOODS’ business travel activities (car rental, flights and accommodation), upstream transportation and distribution (third-party vehicle fleet), travel claims by employees, the consumption of office paper and consumption of electricity using biomass feedstock (referred to as Scope 3 emissions). It is important to highlight that under the GHG Protocol, the reporting of both direct emissions and indirect emissions resulting from purchased electricity are compulsory. All other indirect emissions are reported on a voluntary basis.

In the 2010 Carbon Disclosure Leadership Index, the Group achieved 84,0% and joint seventh position in the SA top 100 companies. Due to a recent reduction in market capitalisation, the Group was not included in the 2011, 2012 and 2013 samples, however, we continued to participate in Remgro’s submission of the Carbon Disclosure Project (“CDP”) by providing information on our greenhouse gas emissions.

RCL FOODS has prepared an independent submission as part of the 2015 CDP and have combined information for Foodcorp, Rainbow, TSB (12 months inclusion versus six months inclusion in the 2014 report) and Vector as part of the submission.

CARBON FOOTPRINT TRENDS

RCL FOODS has been tracking its carbon footprint in accordance with the GHG Protocol and deem this as an acceptable method to measure its impact on climate change and keep track of mitigating strategies. Each of the Group’s subsidiaries is tasked to measure Scope 1 and 2 emissions. Selected Scope 3 emissions are measured by Rainbow, TSB and Vector have been included in Foodcorp’s measurements for the first time in 2015.

Scope 1 and 2 emissions have risen as a result of the increase in reporting boundaries and include a full year’s results for Foodcorp and TSB. The Scope 1 and 2 emissions for 2011 to 2015 are shown below.

  2011 2012 2013 2014 2015 2016*
Scope 1 134 014 125 407 161 911 397 452 544 877 531 255
Scope 2 308 179 323 248 321 186 539 576 554 791 546 468
Scope 3 57 613 57 268 58 022 65 187 50 805 60 967
Total 499 806 505 923 541 119 1 002 215 1 150 473 1 138 690

The graph above shows the contribution of each subsidiary to the Group’s Scope 1 and 2 carbon footprint.

CARBON EMISSIONS INTENSITY

Setting up carbon emission intensity measures assists in benchmarking similar operations within the Group and in establishing the impacts of carbon emission mitigation projects.

Foodcorp’s carbon intensity was measured and compared for the first time during 2014 and 2015. Due to a slight decrease in energy consumption and overall tons of product, the carbon intensity remained unchanged at 0,21 tons of tCO2e per ton of product produced.

Rainbow and Vector measure a combined carbon intensity based on ton of product sold. While the absolute Scope 1 and 2 carbon footprint increased by 20,0% from 2011 to 2014, Scope 1 and 2 carbon emissions per ton of product sold reduced from 0,61 tCO2e in 2011 to 0,54 tCO2e in 2015.

TSB has seen a reduction in CO2 intensity per ton of product produced from 0,28 tCO2e/ton to 0,21 tCO2e/ton due to a significant carry-over of cane following a workers’ strike in 2014, as well as an increase in electricity produced and consumed through co-generation.

GREENHOUSE GAS EMISSION REDUCTION GOALS AND TARGETS

Emission reduction action plans, goals and targets are valuable as they illustrate our plans to reduce emissions, while performance tracking highlights progress with regard to targets. As a Group we will review our climate change mitigation strategy, targets and action plans during the next year to incorporate Foodcorp and TSB. The table below shows RCL FOODS’ action plans, targets and performance.

CARBON EMISSION AND WATER REDUCTION TARGETS
  ACTION PLANS LONG-TERM
REDUCTION
TARGETS
2015 TARGETS PERFORMANCE
(2015 versus 2014)
2016 TARGETS
 
  • Manage Group Sustainability report and carbon disclosure project
  • Measurement systems to be in place measuring at least Scope 1 and Scope 2 carbon emissions in all areas of the Group
  • Participate in CDP
  • Participated in CDP as part of Remgro submission
  • Participate in CDP
 
  • Add specific carbon reduction targets to Group divisional SIA’s and monitor monthly
  • As of 2011, reduce carbon emissions by 34% by 2020
  • Reduce emissions intensity per ton produced by 5% (Rainbow and Vector)
  • Compared to the 2010 base year RCL FOODS has increased Scope 1 and 2 emissions by 148%
  • Reduce emissions intensity per rand turnover by 5%.
  • Review and revise carbon emission reduction strategy by division
  • Improve monitoring and management
  • Undergo energy efficiency assessments
  • Consider energy efficient equipment upgrades
  • Co-ordinate and manage energy consumption reduction projects
  • As of 2011, reduce grid generated electricity by 30% by 2020
  • Compared to the 2011 base year, by 2020 we aim to reduce use of fossil fuels by 10%
  • Compared to the 2011 base year, by 2020 we aim to reduce vehicle emissions by 20% and increase vehicle fuel economy by 20%
  • Reduce electricity per ton produced by 5%
  • Reduce coal consumption per ton produced by 5%
  • Reduce diesel consumption per ton delivered by 3%
  • Reduced electricity by 5,75%
  • Total coal consumption increased by 48% (due to full year inclusion of TSB consumption)
  • Total diesel consumption increased by 27,7% (due to full year inclusion of TSB)
  • Reduce electricity per ton produced by 5%
  • Reduce coal consumption per ton produced by 5%
  • Reduce diesel consumption per ton delivered by 3%
 
  • Study feasibility of co-generation projects (Waste-to- Energy, PV Solar and Wind) and re-define
  • Pay-back model
  • As of 2011, reduce grid generated electricity by 30% by 2020
  • Roll out one renewable energy pilot project
  • Two pilot projects rolled out and committed to proceeding with one Waste-to- Energy project of scale
  • Implement Waste to Value project and complete EIA, Construction and Commissioning phases
  • Add specific water reduction targets to Group divisional SIA’s and monitor monthly
  • Co-ordinate and manage water consumptio reduction projects
  • Implement water efficiency projects where feasible
  • Reduce water intensity (l/bird) by 40% from 2011 to 2020
  • Reduce water intensity by 5% in each division of RCL FOODS
  • Water consumption decreased by 0,2%
  • Reduce water intensity by 5% in each area of RCL FOODS’ business