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Firms increase carbon transparency as SA moves to make practice mandatory

22nd October 2009

By: Terence Creamer
Creamer Media Editor

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South African resources and industrial groups, many of which are involved in what would be considered highly carbon-intensive business activities, featured strongly in the top 15 positions of the 2009 Carbon Disclosure Project (CDP) report, which was topped by banking group Nedbank.

The report, which was released at a function in Cape Town on Wednesday evening, estimated South Africa's total emissions at about 440-million tons, with the largest direct emitters being Eskom (220-million tons); Sasol (61-million tons), ArcelorMittal South Africa (12,4-million tons), BHP Billiton (4,5-million tons), and Anglo American (3,4-million tons).

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Environmental Affairs Minister Buyelwa Sonjica said that, as a high carbon emitter, South Africa had the responsibility to demonstrate leadership on the continent.

"Such leadership must be accompanied by target setting, measurement and verification of performance," Sonjica said, adding that greenhouse gas (GHG) emission reporting would soon be made mandatory, with penalties for noncompliance.

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This year's report was viewed as especially relevant, coming as it did ahead of the international climate-change negotiations, which would take place in Copenhagen, Denmark, in December.

It also indicated, that despite the country's "developing" status, large South African companies were becoming increasingly resigned to the fact that carbon disclosure and mitigation would become a "stay-in-business" imperative, particularly for exporters.

In fact, 68% of the JSE's top 100 companies participated in the 2009 report, up from 59% in 2008, with 87% of respondents also disclosing their GHG emissions, up from 77% in 2008.

The response rate positioned South Africa fifth internationally, with the local CDP forming part of a far larger global CDP report.

Banking group Nedbank came in ahead of industrial holdings group Bidvest and retailer Woolworths, which jointly shared second spot. BHP Billiton, Gold Fields and Sappi, AngloGold Ashanti, Santam, Dimension Data, Old Mutual, Sanlam, Anglo Platinum, Exxaro Resources, Northam Platinum, Netcare Holdings and Sasol followed these leaders.

The South African CDP 2009, which was managed and coordinated by the National Business Initiative, was the South Africa's third separate country report, and formed part of the Global CDP report.

Key changes from 2008 and 2009 included: an increase in the number of companies with GHG emissions and/or energy reduction targets; the larger focus on energy efficiency measures; the emergence of some climate adaptation strategies; and the growing awareness of the risks and opportunities of climate change.

In addition, 54 companies (86% of respondents) reported having a board committee or executive body with responsibility for climate change, while 19 companies (30%) provided incentives to management on achievement of climate change goals.

The report found that, for most South African companies, electricity usage remained a dominant source of emissions, highlighting the significance of Eskom's coal-heavy generation mix and the impact a change to that mix could have on reducing emissions.

 

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