KAP believes in being the change and leaving the world a better place.
KAP believes in being the change and leaving the world a better place.
We drive resource efficiency in our operations and adopt strategies, practices and technologies to use natural resources in a responsible and sustainable manner and to minimise our impact on the environment. This not only ensures the long-term sustainability of our operations, but also enables us to deliver fit-for-purpose products and services at the lowest cost.
Our Scope 1 and 2 emissions for the year were 935 995 tCO2e (FY22: 978 737 tCO2e)
PG Bison’s operations* absorbed 557 511 tCO2e for the 2022 calendar year
Our electricity consumption for the year was 379 280 MWh (FY22: 391 847 MWh)
Our diesel consumption for the year was 118 million litres (FY22: 128 million litres)
We withdrew 6 220 megalitres of water (FY22: 6 296 megalitres)
We disposed of 11 864 tonnes of waste (FY22: 12 252 tonnes)
We purchased 11 713 tonnes of waste for internal use (FY22: 9 642 tonnes)
* Through its plantations and production of wood-based panels.
The ultimate responsibility for environmental matters resides with our board, who have collective responsibility and accountability for legislative and regulatory compliance, including the management of environmental risks and opportunities. Our divisional boards are responsible for environmental matters at a divisional level. Our group environmental policies and procedures are supported by environmental management systems including, where relevant, ISO certification for some divisions. The identification and management of environmental risks are integrated into our groupwide ERM framework, which is overseen by our audit and risk committee, a board subcommittee.
Our energy strategy is aimed at mitigating supply risks and future cost escalations, becoming energy independent (where possible) to ensure sustainability and evaluating opportunities to create value from our energy generation. Read more in Risks and opportunities on page 35. This will support a lowering in our energy costs and GHG emissions over time. During the year, we focused on the following initiatives:
Improved energy measurements systems: We concluded the implementation of digital measuring of electricity for all our material sites, which has resulted in an improvement in the accuracy of our energy measurements. We have also commenced with the installation of meters to measure steam and natural gas usage, utilising the same electronic platform.
Energy-efficiency programmes: We have appointed an independent specialist to conduct energy-efficiency studies on our material sites with the objective of identifying opportunities to reduce consumption. This includes the deployment of technology to improve the quality of electricity supplied to our sites, which improves energy efficiency and reduces consumption. While good progress has been made with our energy-efficiency programmes, we anticipate that it will take 12 to 24 months to implement all identified opportunities.
Renewable energy: Our progress to increase our renewable energy capacity and usage includes the following:
Sustainable energy supply: We have designed microgrids for each of our major sites to facilitate a blended supply of energy from available sources for sustainable and economic energy supply.
Our electricity consumption for the year was 379 280 MWh, a 3% reduction compared to last year. PG Bison and Safripol consume the most electricity in the group, accounting for 40% and 46% of consumption respectively. The reduction in electricity consumption during the year was mainly due to lower production at Safripol, including the 38-day shutdown of the PET plant, and the impact of loadshedding on some of our operations. The 9% decrease in electricity consumption from FY19 to FY23 was largely due to lower production at Safripol and the upgrade of the PG Bison Mkhondo particleboard plant, which resulted in improvements in energy efficiency.
We did not make use of renewable energy during the period as the PV plants mentioned above were not yet in production.
Diesel consumption across our divisions was 118 million litres for the year, a 9% reduction from the prior year, mainly due to lower volumes and kilometres travelled by Unitrans. Unitrans also lost a major contract in the prior year. The 29% reduction in group diesel consumption since FY19 is largely attributable to a continued decline in volumes at Unitrans with a resultant decrease in kilometers travelled from 384 million kilometres in FY19 to 265 million kilometres in FY23.
Unitrans is the biggest consumer of diesel in our group (96% of our total consumption) and is pursuing a reduction in its fuel consumption by:
We recognise the impact of climate change on the planet, and support the global climate change goals outlined in the United Nations Framework Convention on Climate Change and the Paris Agreement, which aim to stabilise GHG concentrations at a level that would significantly reduce the risks and impacts of climate change. Climate change-related risks have the potential to impact our operations and employees through extreme weather events (droughts and floods), increased wildfires, water constraints and increased temperatures.
We are committed to managing responsibly the reduction of our Scope 1 and 2 emissions by investing in renewable energy and technology that can improve our energy efficiency and fuel consumption. We are also in the process of improving our understanding of our climate change risks.
Group electricity consumption (MWh)
Divisional contribution to group electricity consumption
Group diesel consumption (kilolitres)
Our carbon footprint is determined in line with the GHG Protocol Corporate Accounting and Reporting Standard. We use emission factors from the Intergovernmental Panel on Climate Change 2006 Guidelines and the 2021 Technical Guidelines for Monitoring, Reporting and Verification of Greenhouse Gas Emissions by Industry of the Department of Forestry, Fisheries and Environment (‘DFFE’). Our GHG emissions are verified each year by an independent third-party.
Our Scope 1 and 2 emissions for the year were 935 995 tCO2e compared to 978 737 tCO2e in FY22. The lower emissions are largely a result of lower overall production volumes due to the negative effect on our customers’ operations of increased frequency of higher stages of loadshedding and softer consumer demand.
Scope 1 emissions make up 50% of our carbon footprint. At 79% of emissions, Unitrans is the biggest contributor to our Scope 1 emissions, due to the diesel used in its transport fleet.
Scope 2 emissions make up 50% of our carbon footprint, with Safripol and PG Bison contributing the majority of the emissions due to the electricity consumption at their plants.
PG Bison’s plantations are net absorbers of carbon. The division quantifies the carbon absorbed by its plantations and submits these metrics to the DFFE for approval for carbon tax purposes. The DFFE has approved the 157 332 tCO2e of carbon absorbed for the 2022 calendar year compared with 193 764 tCO2e in the 2021 calendar year. In addition to this, the carbon stored in our wood-based decorative panels produced at our operations in the 2022 calendar year was 400 179 tCO2e compared with 378 438 tCO2e in the 2021 calendar year. PG Bison’s carbon emissions were therefore fully offset by the carbon absorbed and stored through its own operations.
Group GHG emissions (tCO2e)
Divisional contribution to Scope 1 GHG emissions
Divisional contribution to Scope 2 GHG emissions
Most of our operations require process water for production. Our water strategy aims to optimise the consumption of water in our operations, to mitigate non-supply, and to increase the recycling of water.
Reliable measurement is a key element of our water strategy. We have made good progress over the period to improve the measurement and reporting on our water withdrawal and discharges and have developed water management plans at all our operations.
Our initiatives during the year included:
Our water withdrawals were largely unchanged from FY22, with PG Bison and Safripol withdrawing the most water at 83% and 14% respectively. Our water withdrawals have decreased by 14% since FY21. In FY18, PG Bison implemented a remediation process after the fires that affected the southern Cape in 2017. This water-deck remediation programme entailed packing the fire-affected logs in stacks and continually spraying the timber with water to prevent fungi and fauna from entering and damaging the timber. The water required was sourced from groundwater via boreholes. The water-deck remediation programme ended in FY21, and the water withdrawal returned to normal levels in FY22.
Our waste management strategy aims to reduce, reuse and recycle waste to reduce the amount of waste disposed of, with our target being zero waste to landfill.
Waste generation and disposal
Our divisions produce hazardous and non-hazardous waste in their production processes, approximately 90% being non-hazardous. A significant proportion of the non-hazardous waste generated is reused internally, with the remainder sent to third-party recyclers or disposed of at landfill sites or other facilities.
During the year, we disposed of 11 864 tonnes of waste in an environmentally responsible manner, a 3% reduction from the prior year. An increase in the internal reuse of waste at some sites contributed to the reduction in waste disposed. We also purchased 11 713 tonnes of waste (from external and internal suppliers), a 21% increase on the prior year, which we either used internally or processed for further use internally and externally.
The following initiatives illustrate our commitment to reduce, reuse and recycle waste:
We value the biodiversity of sensitive ecosystems and are committed to avoiding or minimising biodiversity impacts in the areas where we operate through our sustainable stewardship of resources.
PG Bison’s northeastern and southern Cape plantations are adjacent to areas of high biodiversity value. The division implements sustainable forestry practices and is committed to the sustainable management of the wildlife that resides in and adjacent to its plantations. PG Bison owns 96 157 hectares of land (FY22: 96 157 hectares), of which 44 747 hectares (FY22: 43 755 hectares) are cultivated forestry land. The remaining area is either used for agricultural activities or forms part of our protected biodiversity areas. We purchased 1 090 ha of plantations during the year, with the land still in the process of being transferred.
PG Bison’s northeastern Cape plantation accounts for 77% of its plantation area and is certified by the Forest Stewardship Council (‘FSC’). Our southern Cape plantation is also FSC certified. PG Bison is also a member of Forestry South Africa, which oversees the environmental standards for forestry in South Africa.
An environmental incident is an event that may cause harm or potential harm to an environmental receptor such as air, water, land, wildlife or a local ecosystem; or where our operational practices do not comply with applicable environmental legislation, regulations, standards and applicable codes of practice.
We had three environmental incidents during the year:
Number of environmental incidents
We prioritise the investigation of environmental incidents, followed by the implementation of corrective actions and the strengthening of the control environment. Where necessary, we use learnings to drive behavioural changes at an operational level. We treat incidents that are not resolved as ongoing matters, track the incidents in an environmental compliance register and address these at our divisional audit and risk committee meetings. These incidents are also reported at our compliance committee meetings with a view to ensuring oversight of actions taken.
We recognise the importance of sourcing materials and services responsibly, in line with our commitments to ethical labour practices, human rights and environmental performance. Our sourcing practices are guided by our supplier code of conduct, which sets out our principles and expectations regarding how existing and new suppliers of goods and services are to conduct business with us. Our divisions include the supplier code of conduct in their suppliers’ contracts, and some also include it in tender documentation or as an onboarding requirement.
Unitrans has certifications and accreditations according to the standards for relevant industries/sectors in which it operates, including: