Reunert Limited...Individual greenhouse gas factors not available for scope 3 emission sources. 1...

Copyright sustainableIT® 2016 1

Reunert Limited

Greenhouse Gas Assessment for the financial year ending 30 September

2016

29th December 2016

The Carbon Report | powered by sustainableIT®


Table of Contents

Greenhouse Gas Assessment 1 October 2015 to 30 September 2016 ................................................... 3

Executive Summary ............................................................................................................................. 3

Inventory boundary and scope of assessment ................................................................................... 8

Scope 1 and Scope 2 exclusions ........................................................................................................ 12

Greenhouse gas emission calculation detail ..................................................................................... 13

Greenhouse Gas Equivalencies ......................................................................................................... 22

Exposure to proposed carbon taxation ............................................................................................ 23

Understanding uncertainty and disclaimer .......................................................................................... 24

Contact details ...................................................................................................................................... 25

References ............................................................................................................................................ 26


Greenhouse Gas Assessment 1 October 2015 to 30 September 2016

Executive Summary The Reunert group manages a diversified portfolio of businesses in the fields of electrical

engineering, information and communication technologies and defence and allied technologies.

Established in 1888 and first listed on the JSE in 1948, Reunert Limited is a leading South African

company. The group is listed in the industrial goods and services (electronic and electrical

equipment) sector of the JSE. The group operates mainly in South Africa with minor operations

situated in Australia, Lesotho, Sweden, USA and Zimbabwe. Reunert currently manages three main

operating segments: Electrical Engineering, Information Communication Technologies (ICT) and

Applied Electronics.

This report reflects the greenhouse gas emissions of Reunert Limited for the financial year ending 30

September 2016 based on the Greenhouse Gas Protocol Corporate Accounting and Reporting

Standard, herein referred to as the GHG Protocol. Reunert Limited’s 2015/2016 greenhouse gas

emissions by scope were as follows:

Table 1: Total greenhouse gas emissions by Scope

GHG Emissions by Scope metric tonnes CO2e % increase/decrease from

2015

Scope 1 6 161.14 +1%

Reunert Limited 5 993.96

Joint venture 167.18

Scope 2 45 426.56 +3%


Joint venture 4 439.32

Total Scope 1 & 2 51 587.69 +3%


Joint venture 4 606.50

Scope 3 425 859.52 +224%

Total Scope 1, 2 & 3 477 447.22 +163%

Notes: 1. Reunert Limited includes Reunert parent company and subsidiaries under financial control. 2. Joint venture refers to joint venture CBI-electric: Aberdare ATC Telecom Cables (Pty) Limited.


Figure 1: Graph illustrating distribution of total greenhouse gas emissions by scope.

6161.14, 1% 45426.56, 10%

425859.52, 89%

2015/2016 GHG Inventory by Scope Tonnes of CO2e

Scope 1

Scope 2

Scope 3


Table 2: Greenhouse gas emissions by Scope, emission source and company

t CO2e % inc/

dec from 2015

Emission sources Electrical Engineering

ICT Applied Electronics

Group Services

Total Reunert Limited

Total Scope 1 5 022.20 667.65 447.67 23.62 6 161.14 +1%

Stationary fuel combustion 3 710.09 46.35 6.20 0.80 3 763.43 -15%

Stationary fuel non-energy 16.64 16.64 +12%

Mobile fuel combustion 1 295.47 621.30 441.47 22.82 2 381.07 +44%

Percentage Scope 1 82% 11% 7% 0.4%

Total Scope 2 37 341.35 1 021.70 5 438.92 1 624.59 45 426.56 +3%

Purchased electricity (location based)

37 341.35 1 021.70 5 438.92 1 624.59 45 426.56 +3%

Percentage Scope 2 82% 2% 12% 4%

Total Scope 1 & Scope 2 42 363.55 1 689.34 5 886.59 1 648.21 51 587.69 +3%

Total Scope 3 418 642.41 5 719.72 1 319.91 177.49 425 859.52 +224%

Purchased goods, services:

Material use 111 236.82 9.67 61.51 111 308.00 -8%

Outsourced warehousing 280.75 280.75 N/A

Water supply 58.52 24.42 28.64 5.28 116.85 +2%

Transport and distribution 304 571.64 0.02 304 571.66 N/A

Waste generated:

Water treatment 384.70 49.41 319.13 9.11 762.35 +39%

Waste disposal 256.28 11.43 25.45 0.05 293.21 +75%

Business travel 183.72 1 907.18 316.00 163.06 2 569.96 -14%

Upstream leased assets:

Mobile fuel 69.26 69.26 +53%

Purchased electricity 1 950.73 3 367.61 569.16 5 887.49 -9%

Percentage Scope 3 98% 1% 0.3% 0.04%

Total Scope 1, 2 & 3 461 005.96 7 409.06 7 206.51 1 825.69 477 447.22 +163%


Figure 2: Greenhouse gas emissions by emission source

Figure 3: Greenhouse gas emissions by emission source by year

0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 450 000

Scope1

Scope2

Scope3

t CO2e

2015/2016 GHG Inventory by Emission Source

Stationary fuel combustion Stationary fuel non energy useMobile fuel combustion Purchased electricityUpstream leased assets: fuel combustion Upstream leased assets: purchased electricityBusiness travel Material useOutsourced warehousing Waste disposalWater supply Water treatment

0 50 000 100 000 150 000 200 000 250 000 300 000

2015

2016

t CO2e

GHG Emissions by year

Transport and distribution Water treatmentWater supply Waste disposalOutsourced warehousing Material useBusiness travel Upstream leased assets: purchased electricityUpstream leased assets: fuel combustion Purchased electricityMobile fuel combustion Stationary fuel non energy use


Table 3: Greenhouse gas emissions intensities

metric tonnes CO2e

% increase or decrease from 2015

GHG Emissions Intensities by Entity

Sc 1 + 2 emissions

Sc 1 + 2 emissions

per m2 1

Sc 1 + 2 emissions

per FTE2 kWh/m2

Total emissions

per Rm

revenue3

Sc 1 + 2 emissions

per Rm revenue

Electrical Engineering 42 363.55

+2% 0.29 +5%

15.15 -14%

263.73 +8%

112.28 +181%

10.32 +2%

ICT 1 689.34

-10% 0.10

-25% 0.92 -1%

113.88 -6%

2.22 -11%

0.51 -8%

Applied Electronics 5 886.59

+3% 0.18 -3%

5.93 -15%

167.81 -4%

4.79 -23%

3.91 -26%

Group Services 1 648.21

+95% 0.07

+84% 27.02 +82%

73.69 +58%

86.94 +67%

78.49 +113%


+3% 0.24 +5%

9.07 -5%

209.15 +8%

53.26 +154%

5.75 -1%

Table 4: Greenhouse gas emissions totals by greenhouse gas

metric tonnes CO2e

Emissions by greenhouse gas CO2 CH4 N2O

Scope 1 direct emissions 6 138.51 9.43 13.20

Scope 2 indirect emissions 45 426.56

Total Scope 1 & 2 emissions 51 565.07 9.43 13.20

Notes: 1. Individual greenhouse gas factors not available for scope 3 emission sources.

1 Square meterage intensity includes the emissions sources: Scope 1 stationary fuel combustion, Scope 1 stationary non-

energy fuel use and Scope 2 purchased electricity in company owned and controlled sites.

2 FTE made up of permanent employees only.

3 Percentage increase or decrease from previous year should be treated with caution as additional Scope 3 emission

sources not measured in previous years were incorporated in the current year.


Inventory boundary and scope of assessment In accordance with the GHG Protocol, the organisational boundary and operational scope of the

assessment are defined in the tables below.

Organisational boundary

Table 5: Organisational boundary

Methodology Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (Revised)4

Reporting period 1 October 2015 to 30 September 2016

Organisational Entity Reunert Limited

Organisational Boundary Financial Control

Financial Control Reunert Limited has 100% financial control over all operations and entities unless specified. An exception to this applies to the joint venture CBI-electric: Aberdare ATC Telecom Cables (Pty) Limited of which it has 50% financial control.

Only franchises in which Reunert holds a majority share have been included in the scope. Franchises over which Reunert have no financial control are excluded from the scope of this assessment

Emissions reported reflect the percentage of financial control.

Base year YE 2015, no reduction targets in place5

Number of FTE employees 5 6866

Area of measured facilities All occupied sites: 245 469 m2

Company owned/controlled sites: 203 504 m2

Verification No third party verification

4 See Appendix A within attached appendices.

5 See Appendix B within attached appendices.

6 Number of employees is calculated based on the average number of permanent full time equivalent employees.


* Franchise operations over which Reunert Limited have ownership and financial control.

Figure 4: Organisational structure of Reunert Limited

Facilities included in assessment

*Indicates owned properties under financial control of Reunert Limited

Electrical Engineering

Johannesburg: Low Voltage - Head Office*

Cape Town: Industrial Controls and

Automation*

Cape Town: Low Voltage*

Lesotho

Australia

America

Boksburg: Solutions*

Vereeniging – Factory*

Duncanville*

Reu

ner

t Li

mit

ed

Group Services

Holdings Division

Reunert Management


Low Voltage

South Africa

Lesotho

USA

Australia

African Cables

Telecom Cables (50%)

Tank Industries

ICT

Nashua Office

Franchisees*

Sweden

Kopano Copier

Quince Capital

Pan Solutions

Nashua Communications

Nashua ECN

Applied Electronics

Reutech Communications

Onmigo

Reutech Radar

Fuchs

Reutech Solutions

RC&C Manufacturing


Power Installations (Parow)*

Power Installations (Durban)

Tank Industries

Brits (Joint Venture: 50% contribution)*

Information Communication Technologies

Woodmead: Nashua Limited

Midrand: Nashua Kopano*

Port Elizabeth: Nashua Ltd Algoa

Grahamstown

Port Elizabeth: Nashua Ltd Algoa*

Brooklyn: Nashua Tswane 1

Weltevreden Park: Nashua WestRand

Johannesburg: Nashua Central

Tygerberg: Nashua Ltd Tygerberg - Rosenpark

Tygerberg: Nashua Ltd Tygerberg -

Brackengate

Paarl: Nashua Ltd Paarl and West Coast

Cape Town - Nashua Ltd Cape Town

Durban: Nashua Ltd Pinetown

Durban: Nashua Ltd Warehouse

Nashua Prodoc: Sweden

Nashua Winelands: Olive Grove

Midrand: Pansolutions Warehouse

Midrand: Pansolutions Holdings

Parow: Nashua Communications*

Midrand: Nashua Communications*

Sandton: ECN Regional POP

Centurion: ECN Regional POP

Midrand: ECN Offices

Midrand: ECN Reunert Park*

Applied Electronics

New Germany: Reutech Communications*

Reutech Communications North*

Onmigo, Waltloo

Stellenbosch: Reutech Radar Systems*

RCC Manufacturing Factory*

Midrand: Reutech Solutions*

Alrode: Fuchs*

Group Services

Boksburg: ARGO*

Boksburg: Other*

Boksburg: Reunert College*

Wadeville Iveco SA*

Mabula, Bela-Bela*

Sterkspruit, Lydenburg*

Reunert Park*

Owned facilities excluded from assessment as deemed immaterial

Boksburg: Reapers*

Hoedspruit: 100 Ferret Street*

Lepalala: 34 Ellis Street*

Pietersburg: 65 Ireland Street*

Hoedspruit: 78 Duiker Street*

Boksburg: Vacant*

Midrand: WBS*

Rietfontein*


Operational scope

The activities listed in the table below form the operational scope of the assessment.

Table 6: Operational scope

Greenhouse gases present in

boundary

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydro fluorocarbons (HFCs)7

Immateriality guideline Emission source activities believed to make up less than 2.5% of

total emissions are believed to be immaterial.

GHG emissions sources included in assessment

Direct emissions Stationary fuel combustion in assets over which Reunert Limited has financial control

Stationary fuel non-energy use in assets over which Reunert Limited has financial control

Mobile fuel combustion in vehicles over which Reunert Limited has financial control

Indirect emissions Purchased electricity in facilities over which Reunert Limited has financial control

Purchased goods and services, including: Material use of input materials Outsourced warehousing services Water supply

Transportation and distribution

Waste disposal, including: Water treatment Waste disposal of materials

Business travel including : Air travel in commercial airlines Land travel in rental vehicles Land travel in employee owned and operated vehicles

Upstream leased assets, including: Mobile fuel combustion in leased vehicles

7 Fugitive HFC emissions from air conditioning are present but excluded due to immateriality and lack of available data.


Purchased electricity in leased facilities

Scope 1 and Scope 2 exclusions HFC fugitive emissions

Scope 1 fugitive emissions from air conditioning equipment have been excluded due to immateriality

and lack of available data.

Purchased electricity

Purchased electricity excluded at the sites Port Elizabeth: Nashua Communications and Reutech

Communications North due to lack of available data.


Greenhouse gas emission calculation detail Direct emissions

Table 7: Calculation of stationary fuel combustion emissions

Emissions Source UOM Quantity /

Annum kg CO2e

per unit8 t CO2e

Stationary fuel combustion


3 710.09

Diesel (100% mineral diesel) lt 80 508 2.67620 215.46

Natural gas kWh 18 126 6819 0.18400 3 335.25

LPG lt 5 1.50502 0.01

LPG kg 54 176 2.94178 159.37

ICT

46.35

Diesel (100% mineral diesel) lt 209 2.67620 0.56

LPG kg 15 564 2.94178 45.78

Applied Electronics

6.20


LPG kg 678 2.94178 1.99

Group Services

0.80

LPG kg 272 2.94178 0.80

Total

3 763.43

Table 8: Calculation of stationary fuel non-energy use emissions

Emissions Source UOM Quantity / Annum t C/TJ

10 ODU

11 CO2/C t CO2e

Stationary fuel non-energy use

Electrical Engineering 16.64

Oil TJ 0.13612

20.00 0.200 3.66667 1.99

Lubricants TJ 0.99913

20.00 0.200 3.66667 14.65

Total 16.64

8 UK Government conversion factors for Company Reporting, version 1.0, 2016.

9 Conversion from 65,256 GJ to kWh based on a factor of 277.78 kWh/GJ. Gross CV factor applied to kWh. Source: UK

Government conversion factors for Company Reporting, version 1.0, 2016.

10 Carbon content factor. Source: IPCC Guidelines Chapter 1 of Volume 2 on Energy.

11 Oxidised during use factor. Source: IPCC Guidelines Chapter 1 of Volume 2 on Energy.

12 3 378 lt oil converted to TJ using density factor of 1 and a net CV TJ/Gg factor of 40.20. Source: CDP Conversion of fuel

data January 2014, IPCC Guidelines Chapter 1 of Volume 2 on Energy.

13 24 843 kg lubricant converted to TJ using a net CV TJ/Gg factor of 40.20. Source: IPCC Guidelines Chapter 1 of Volume 2

on Energy.


Table 9: Calculation of mobile fuel combustion emissions


Annum kg CO2e

per unit14

t CO2e

Mobile fuel combustion



Petrol (100% mineral petrol) lt 323 783 2.30250 745.51

LPG kg 11 257 2.94178 33.12

ICT 621.30


Diesel (100% mineral diesel) lt (derived) 26 68015

2.67620 71.40


Petrol (100% mineral petrol) lt (derived) 158 79716

2.30250 365.63

Applied Electronics 441.47



Group Services 22.82



Total 2 381.07

Indirect emissions

Scope 2

Table 10: Calculation of purchased electricity emissions


Annum kg CO2e

per unit17

t CO2e

Purchased electricity – location based


Purchased electricity kWh 37 341 348 1.00000 37 341.35

ICT 1 021.70






Total 45 426.56

14

UK Government conversion factors for Company Reporting, version 1.0, 2016.

15 26 680 litres estimated from fuel spend and an average fuel price of R10.35 per litre.


17 South African grid emission factor sourced from Eskom’s Annual Integrated Report, 2016.


Notes: 1. Purchased electricity is excluded in sites where usage is believed to be immaterial and data is unavailable. This includes the sites Port Elizabeth: Nashua Communications and Reutech Communications North. Emissions are therefore underestimated.

Scope 3

Table 11: Calculation of material use emissions


Annum kg CO2e

per unit18

t CO2e

Material use


Paper tn 195.47 939.00000 183.54

Copper tn 12 073.82 3 771.00000 45 530.37

Aluminum tn 6 463.05 3 771.00000 24 372.18

Steel tn 651.07 3 771.00000 2 455.17

Galvanised Steel tn 7 075.90 3 771.00000 26 683.22

PVC tn 3 164.78 3 340.00000 10 855.20

Brass tn 108.96 3 771.00000 410.88

Recycled Copper tn 252.24 1 493.00000 376.59

Recycled Aluminum tn 197.33 1 493.00000 294.61

Recycled Steel tn 17.20 1 493.00000 25.68

Recycled Galvanised Steel tn 33.07 1 493.00000 49.38

ICT 9.67

Paper tn 10.29 939.00000 9.67


Paper tn 5.05 939.00000 4.74

Copper tn 5.04 3 771.00000 18.99

Steel tn 7.48 3 771.00000 28.19

PVC tn 0.38 3 340.00000 1.30

Nickel tn 1.75 3 771.00000 6.60

Recycled Aluminum tn 0.03 1 493.00 0.04

Recycled Steel tn 0.20 1 493.00 0.30

Recycled Paper tn 1.98 683.00 1.35

Total 111 308.00

18

Materials sourced from primary material production. Recycled materials sourced from closed loop recycling. UK



Table 12: Calculation of outsourced warehousing services emissions


Annum kg CO2e

per unit19

t CO2e

Outsourced services

ICT 280.75

Purchased electricity: DSV Solutions kWh 280 752 1.00000 280.75

Total 280.75

Table 13: Calculation of water supply emissions


Annum kg CO2e

per unit20

t CO2e

Water supply


Municipal water supply kl 170 129 0.34400 58.52

ICT 24.42




Group Services 5.28


Total 116.85

Table 14: Calculation of upstream transport and distribution emissions


Annum kg CO2e

per unit21

t CO2e

Third party transport and distribution


Road Van tonne.km 9 364 464 0.57739 5 406.95

Road Articulated tonne.km 3 449 759 431 0.08672 299 163.14

Shipping tonne.km 98 0.01315 0.00

Air transport tonne.km 1 339 1.15763 1.55


Road Van tonne.km 12 0.57739 0.01

Air transport tonne.km 13 1.15763 0.02

Total 304 571.66

19

South African grid emission factor sourced from Eskom’s Annual Integrated Report, 2016.




Table 15: Calculation of water treatment emissions


Annum kg CO2e

per unit22

t CO2e

Water treatment


Municipal effluent kl 543 357 0.70800 384.70

ICT 49.41




Group Services 9.11


Total 762.35

Notes

Effluent estimated to be 50% of water supply in 12 sites where effluent data unavailable23.

Table 16: Calculation of waste disposal emissions


Annum kg CO2e

per unit24

t CO2e

Waste disposal


General Waste

Commercial and Industrial Waste tn 723.80 199.00000 144.04

WEEE tn 39.40 21.00000 0.83

Newsprint and Magazines tn 0.24 21.00000 0.01

Brown Grades (incl. Cardboard) tn 61.74 21.00000 1.30

Mixed Grades tn 29.75 21.00000 0.62

Polyethylene terephthalate (PETE) tn 268.95 21.00000 5.65

Other plastics tn 208.88 21.00000 4.39

Ferrous tn 423.69 21.00000 8.90

Non-ferrous tn 375.52 21.00000 7.89

Other tn 320.35 199.00000 63.75

Hazardous Waste

Waste containing Mercury tn 0.33 199.00000 0.06

Asbestos containing Waste tn 0.00 199.00000 0.00

Waste Oils tn 2.60 21.00000 0.05

22


23 Approximately 50% of urban and industrial drainage is returned for reuse. CSIR referencing DEAT, 2006.

24 Materials sourced from primary material production. Recycled materials sourced from closed loop recycling. UK



Solvents without halogens and Sulphur tn 8.65 199.00000 1.72

Mixed WEEE tn 4.92 21.00000 0.10

Oil Contaminated Waste tn 84.27 199.00000 16.77

Pathological Waste tn 0.05 199.00000 0.01

Infectious Waste and Sharps tn 0.16 199.00000 0.03

Miscellaneous tn 0.85 199.00000 0.17

ICT 11.43

General Waste


Waste of Electric and Electronic Equipment (WEEE) tn 24.42 21.00000 0.51

Brown Grades (incl. Carboard) tn 0.14 21.00000 0.00

White Grades tn 0.53 21.00000 0.01


Glass tn 0.02 21.00000 0.00

Other tn 7.18 199.00000 1.43

Hazardous Waste

Mixed WEEE tn 0.51 21.00000 0.01


General Waste


Commercial and Industrial Waste (recycled) tn 6.26 21.00000 0.13

Mixed WEEE tn 1.80 21.00000 0.04

Brown Grades (incl. Cardboard) tn 0.22 21.00000 0.00

White Grades tn 6.73 21.00000 0.14

Mixed Grades tn 5.73 21.00000 0.12


Glass tn 4.10 21.00000 0.09

Ferrous tn 2.56 21.00000 0.05

Non-ferrous tn 0.38 21.00000 0.01

Other tn 1.66 199.00000 0.33

Hazardous Waste

Waste Oils tn 0.20 21.00000 0.00

Mixed WEEE tn 2.01 21.00000 0.04

Lead Batteries tn 0.14 65.00000 0.01

Waste containing Mercury tn 0.46 199.00000 0.09

Chemical Waste tn 0.40 199.00000 0.08

Group Services 0.05

General Waste

White Grades tn 2.35 21.00000 0.05

Total 293.21

Notes: 1. Waste disposal is part reported and therefore emissions are believed to be underestimated.


Table 17: Calculation of business travel emissions


Annum kg CO2e

per unit25

t CO2e

Business travel in non-company owned assets


Vehicle rental 1.47

Vehicle Rental CO2e gm 1 471 864 1.47

Air travel 150.11

Domestic Economy Class p.km 587 320 0.14735 86.54

Domestic Premium Economy p.km 33 449 0.14735 4.93

Domestic Business/First Class p.km 1 004 0.14735 0.15

Short-haul Economy Class p.km 241 624 0.08728 21.09

Short-haul Economy+ Class p.km 50 473 0.08905 4.49

Short-haul First/Business Class p.km 1 518 0.13091 0.20

Long-haul Economy Class p.km 333 734 0.07249 24.19

Long-haul Economy+ Class p.km 73 373 0.11599 8.51

Reimbursed land travel 32.14



ICT 1 907.18

Vehicle rental 10.16


Vehicle Rental Medium km 2 094 0.18909 0.40

Air travel 228.97








Long-haul Business Class p.km 97 661 0.21022 20.53

Long-haul First Class p.km 20 852 0.28996 6.05

Reimbursed land travel 1 668.06



Petrol (100% mineral petrol) lt (derived) 133 455 2.30250 307.28


Vehicle rental 10.02


Air travel 305.05


25

Air travel factors provide for a distance uplift of 8% to compensate for uplift and planes not flying using the most direct

route however do not account for radiative forcing. UK Government conversion factors for Company Reporting, version

1.0, 2016.



Domestic Business/First Class p.km 35 554 0.14735 5.24




Long-haul Economy Class p.km 1 349 879 0.07249 97.86




Unknown vehicle (passenger ave) km 4 960 0.18695 0.93


Vehicle rental 2.63

Vehicle Rental CO2e gm 696 638 0.70

Vehicle Rental Small km 5 825 0.15581 0.91

Vehicle Rental Medium km 5 426 0.18909 1.03

Air travel 151.11






Long-haul First Class p.km 20 852 0.28996 6.05




Total 2 569.96

Notes: 1. Small vehicle refers to petrol vehicle up to 1.4lt, or diesel vehicle up to 1.7lt 2. Medium vehicle refers to petrol vehicle 1.4 - 2.0lt, or diesel vehicle 1.7 - 2.0lt.

Table 18: Calculation of mobile fuel combustion emissions in upstream leased assets


Annum kg CO2e

per unit26

t CO2e


ICT 69.26


Diesel (100% mineral diesel) lt (derived) 15 39227

2.67620 41.19


Total 69.26

26




Table 19: Calculation of purchased electricity emissions in upstream leased assets


Annum kg CO2e

per unit28

t CO2e



Purchased electricity kWh 5 879 1.00000 5.88

Purchased electricity: Lesotho kWh 1 849 353 1.00000 1 849.35

Purchased electricity: Australia kWh 108 135 0.81000 87.59

Purchased electricity: USA kWh 15 336 0.51552 7.91

ICT 3 367.61


Purchased electricity: Sweden kWh 208 500 0.01325 2.76


Purchased electricity kWh 569 160 1.00000 569.16

Total 5 887.49

Notes: 1. Purchased electricity is excluded in sites where usage is believed to be immaterial and data is unavailable. Emissions are therefore underestimated.

28

South African grid emission factor sourced from Eskom’s Annual Integrated Report, 2016. The South African grid

emission factor has been applied to Lesotho. Australian grid emission factor sourced from Australian Government National

greenhouse accounts, August 2016. US grid emission factor sourced from EPA Emission Factors for Greenhouse Gas

Inventories, November 2015. Sweden emission factors sourced from Ecometrica, 2016.


Greenhouse Gas Equivalencies Reunert Limited’s total footprint is equivalent to each of the following statements29:

100 853

Passenger vehicle use for one year

70 503

Homes’ electricity use for one year

2 543

Railcars worth of coal burned

151 521

Tons of waste recycled instead of landfilled

12 373 591

Carbon sequestered by tree seedlings over 10 yrs

451 954

Carbon sequestered annually by acres of US forest

29

Source: EPA Equivalencies Calculator http://www2.epa.gov/energy/greenhouse-gas-equivalencies-calculator


Exposure to proposed carbon taxation Based on the Draft Carbon Tax Bill released by National Treasury in November 2015, Reunert Limited

should allow for the following taxation:

1. Direct taxation on the combustion of natural gas if combustion installation exceeds 10MW.

2. Increased fuels spend as carbon tax on liquid fuels will be added to the current fuel levy.

3. Increased costs in up- and downstream transport related activities such as business travel

and logistics.

Taking into account revenue recycling measures, the tax has been designed to ensure that its overall

impact will, in the initial phase, be neutral on the price of electricity. Financial exposure would

therefore only include that of tax on fuel.

Based on this year’s fuel-dependant activities, the estimated financial impact of taxation is shown in

the table below.

Table 20: Calculation of carbon tax exposure on direct emission sources

Emissions t CO2e

Effective tax rate Cost per annum

Cost implication of direct taxation

Scope 1 stationary fuel (natural gas) 3 129.98 R 48.00 R 150 239

Cost implication of increased fuel levy

Scope 1 liquid fuels 2 296.03 R 48.00 R 110 209

Total direct costs R 260 448

High level estimate on the cost implication of an increased fuel levy on business travel and 3rd

party logistics

Scope 3 business travel 2 569.96 R 48.00 R 123 358

Scope 3 downstream transportation and distribution 304 571.66 R 48.00 R 14 619 440

Total indirect costs R 14 742 798

Notes: 1. Emissions totals on which calculations are based differ from reported emissions as they have been based on the emissions factors put forward by National Treasury. 2. Effective tax rate based on a tax rate of R120 per tonne CO2e with a 60% basic tax-free threshold. 3. With the exception of business travel and 3rd party downstream transportation and distribution, the financial impact on up- and downstream emission sources which may be affected has not been calculated.


Understanding uncertainty and disclaimer

There are uncertainties associated with greenhouse gas inventories which can be broadly categorised into scientific uncertainty and estimation uncertainty. Scientific Uncertainty

Scientific uncertainty arises when the science of the actual emission and/or sequestration process is

not sufficiently understood and the emission factor is uncertain. For example, many of the direct and

indirect emissions factors associated with global warming potential for emission estimates involve

scientific uncertainty. Analysing and quantifying such scientific uncertainty is extremely problematic

and is beyond the scope of most company’s inventory efforts. The emissions factors used in this

report are based on reliable sources and all are referenced throughout the document, however, all

are subject to scientific uncertainty.

Estimation Uncertainty

Estimation uncertainty arises any time greenhouse gas emissions are quantified. Therefore all

emission or removal estimates are associated with estimation uncertainty. Estimation uncertainty

can be further classified into two types: model uncertainty and parameter uncertainty.

Model uncertainty refers to the uncertainty associated with the mathematical equations (i.e.

models) used to characterise the relationships between various parameters and emission

processes. For example, model uncertainty may arise either due to the use of an incorrect

mathematical model or inappropriate parameters (i.e. inputs) in the model. Like scientific

uncertainty, estimating model uncertainty is beyond the scope of most company’s inventory

efforts. Any model uncertainty is beyond the scope of this report.

Parameter uncertainty refers to the uncertainty associated with quantifying the parameters

used as inputs (e.g. activity data, emission factors, or other parameters) to estimation models.

Parameter uncertainties can be evaluated through statistical analysis, measurement equipment

precision determinations, and expert judgment.

This report is based on activity data gathered by the client. sustainableIT bears no responsibility for

the accuracy of the primary data provided by Reunert Limited. The primary data that this report has

been based on has not been verified.


Contact details

Carina de Klerk

Investor Relations and Communications

Reunert Limited

Nashua Building

Woodmead North Office Park

54 Maxwell Drive

Woodmead

Sandton

T +27 11 517 9000

E [email protected]

Teresa Legg

GHG Assessor

The Carbon Report

1st Floor, Convention Towers

Cnr of Walter Sisulu and Heerengracht Streets

Foreshore

Cape Town

T +27 21 403 6411

E [email protected]

www.thecarbonreport.co.za

mailto:[email protected]

http://www.thecarbonreport.co.za/


References

Australia Government, 2016. Australian Government National greenhouse accounts, August 2016.

Ecometrica, 2016.

Environmental Protection Agency, 2015. EPA Emission Factors for Greenhouse Gas Inventories,

November 2015.

Environmental Protection Agency (US). Greenhouse Gas Equivalencies calculator.

http://www2.epa.gov/energy/greenhouse-gas-equivalencies-calculator.

Eskom, 2016. Eskom Annual Integrated Report 2016.

Intergovernmental Panel on Climate Change. IPCC Guidelines Chapter 1 of Volume 2 on Energy.

National Treasury, 2015. Draft Carbon Tax Bill.

UK Government, 2016. UK Government conversion factors for Company Reporting, version 1.0, 2016.

World Resources Institute. Hot Climate, Cool Commerce. A service sector guide to greenhouse gas

management.

World Resources Institute and World Business Council for Sustainable Development. The

Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (Revised Edition).

World Resources Institute. GHG Protocol guidance on uncertainty assessment in GHG inventories

and calculating statistical parameter uncertainty.


Reunert Limited

Greenhouse Gas Emissions figures for GRI and CDP reporting for the

financial year ending 30 September 2016

29th November 2016

The Carbon Report | powered by sustainableIT®


Appendix C: CDP CDP Climate: Question response relevant to GHG emission calculation

CDP Climate: Question response relevant to GHG emission calculation

Q# Question

7.1 Please provide your base year and base year emissions (Scopes 1 and 2)

Base year 2015

Scope 1 base year emissions (metric tonnes CO2e) 6 099.97

Scope 2 base year emissions (metric tonnes CO2e) 44 015.99

7.2 Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)

7.3 Please give the source for the global warming potentials you have used

CO2

IPCC Fourth Assessment Report (AR4 - 100 year)

CH4


N2O


7.4 Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data

Fuel/Material/Energy

Emission Factor Unit Reference

Diesel/Gas oil 2.67620

kg CO2e per litre

UK Government conversion factors for company reporting, 2016 v1.0

Motor gasoline 2.30250

kg CO2e per litre


Liquefied petroleum gas (LPG) 2.94178

kg CO2e per kg


Liquefied petroleum gas (LPG) 1.50502

kg CO2e per litre


Natural gas 0.18400

Other: kg CO2e per kWh


Electricity (RSA) 1.00000

metric tonnes CO2e per MWh

Eskom Annual Integrated Report, 2016

8.1 Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Financial control

8.2 Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

6 161.14

8.3a

Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2, location based: 45 426.56


8.4

Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure?

Source

Relevance of Scope 1 emissions from this source

Relevance of Scope 2 emissions from this source

Explain why the source is excluded

Scope 1 fugitive emissions from HVAC

Not relevant

immaterial

Scope 2 purchased electricity excluded at sites Port Elizabeth: Nashua Communications and Reutech Communications North

lack of data

9.2 Please indicate which other Scope 1 emissions breakdowns you are able to provide 9.2a By business division

Business division

Scope 1 emissions

(metric tonnes CO2e)


ICT 667.65



10.1 Do you have Scope 2 emissions sources in more than one country or region?

No

10.2 Please indicate which other Scope 2 emissions breakdowns you are able to provide 10.2

a By business division

Business division

Scope 2, location-

based (metric tonnes CO2e)


ICT 1 021.70



11.3 Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

29 581.21

11.3a Please complete the table by breaking down the total “Fuel” figure entered above by fuel type

Fuels MWh

Diesel/Gas oil 4 408.63

Motor gasoline 5 996.49

Liquefied petroleum gas (LPG) 1 049.41

Natural gas 18 126.68


11.5 Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total electricity consumed (MWh)

Consumed electricity that is purchased (MWh)

Total electricity produced (MWh)

Total renewable electricity produced (MWh)

Consumed renewable electricity that is produced by company (MWh)

45 492.05 45 426.56 65.49 65.49 65.49

14.1 Please provide data on sources of Scope 3 emissions that are relevant to your organization

Sources of Scope 3 emissions

Evaluation status

metric tonnes CO2e Methodology

Purchased goods and services Relevant, calculated

111 705.60

Includes 'cradle to gate' emissions in consumption of procured materials, supply of municipal water and outsourced warehousing services. Mass of materials such as paper, aluminium, steel, galvanised steel and PVC were recorded in kilograms and converted to tonnes to apply the relevant emission factor from the UK Government conversion factors for Company Reporting, v1.0, 2016. Material use conversion factors are based on their origin i.e. comprised of primary material or recycled materials. For primary materials these factors cover the extraction, primary processing, manufacture and transportation of materials to the point of sale. For secondary materials, the factors cover sorting, processing, manufacture and transportation to the point of sale. Municipal water supply sourced from municipal accounts was recorded in kilolitres and an emission factor from UK Government conversion factors for Company Reporting, v1.0, 2016 was applied. Outsourced warehousing services emissions calculated using the purchased electricity in kWh used


within the warehouse site. Grid emissions factor applied sourced from Eskom Annual Integrated Report 2016.

Capital goods

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Upstream transportation and distribution

Relevant, calculated

304 571.66

Includes emissions from outbound logistics. Emissions calculated using tonne.km (tonne x kilometre) of product transported, by mode transported. Emission factors sourced from the UK Government conversion factors for Company Reporting, v1.0, 2016 were applied.

Waste generated in operations

Relevant, calculated

1 055.56

Includes waste disposal emissions of end of life disposal of different materials using a variety of different disposal methods, and treatment of municipal water. Various waste types are recorded in kilograms and converted to tonnes to apply the relevant emission factor. Waste emission factors were sourced from the UK Government conversion factors for Company Reporting, v1.0, 2016, and applied according to open loop recycling, closed loop recycling or landfill waste disposal method. Municipal water effluent sourced from municipal accounts was recorded in kilolitres and an emission factor from UK Government conversion factors for Company Reporting, v1.0, 2016 was applied.


Business travel Relevant, calculated

2 569.96

Business Travel includes emissions from rental vehicles, air travel and reimbursed land travel in employee vehicles. Rental vehicle emissions were provided by the car rental agency in a combination of grams of CO2e or kilometers travelled by car size. For kilometers travelled by car size the relevant kg CO2e per km emission factor sourced from the UK Government conversion factors for Company Reporting, v1.0, 2016 was applied. Air travel activity was provided by the travel agency in a combination of grams of CO2e and passenger miles/kilometers flown. Where passenger kilometers were provided flights were grouped by length (domestic, regional and long haul) and class to apply the appropriate kg CO2e per pkm emission factor, sourced from the UK Government conversion factors for Company Reporting, v1.0, 2016. The emission factors apply an 8% uplift factor. The factors applied exclude the influence of non-CO₂ climate change effects of aviation. Reimbursed land travel in employee vehicles data is made up of a combination of fuel spend, litres of fuel used (by fuel type) and kilometers travelled. Where only fuel spend information was available volume of fuel was estimated using annual average fuel price. Emissions from volume of fuel and kilometers travelled were calculated using the appropriate kg CO2e per kg fuel or kilometer travelled, sourced from the UK Government conversion factors for Company Reporting, v1.0, 2016.

Employee commuting Relevant, not yet calculated


Upstream leased assets Relevant, calculated

5 956.75

Includes fuel usage in leased assets and vehicles and purchased electricity in leased sites. Fuel use emissions calculated from a combination of litres of fuel consumed and kilometers travelled, using the appropriate emission factor sourced from UK Government conversion factors for Company Reporting, v1.0, 2016. Purchased electricity emissions calculated from kwh purchased electricity. Grid emissions factors applied sourced from Eskom Annual Integrated Report 2016 for Southern Africa, Australian Government National greenhouse accounts August 2016 for Australia, EPA Emission Factors for Greenhouse Gas Inventories November 2015 for US and Ecometrica 2016 for Sweden.

Investments

Downstream transportation and distribution

Processing of sold products

Use of sold products

End of life treatment of sold products

Downstream leased assets

Franchises

Other (upstream)

Other (downstream)


Appendix D: GRI G4 G4 Sustainability Reporting Guidelines: Question response relevant to GHG emission calculation

Q#

Question G4-

EN3

ENERGY CONSUMPTION WITHIN THE ORGANIZATION

a

Report total fuel consumption from non-renewable sources in joules or multiples, including fuel types used.

TJ

Diesel 15.87

Petrol 21.59

Natural gas 65.26

LPG 3.78

Total 106.49

c Report in joules, watt-hours or multiples, the total:

kwh

Electricity consumption 45 492.05

e Report total energy consumption in joules or multiples.

TJ

Total energy 270.26

f Report standards, methodologies, and assumptions used.

Technical Guidelines for Monitoring, Reporting and Verification of Greenhouse Gas Emissions by Industry, South Africa, Department of Environmental Affairs

g Report the source of the conversion factors used.

Technical Guidelines for Monitoring, Reporting and Verification of Greenhouse Gas Emissions by Industry, South Africa, Department of Environmental Affairs

G4-EN5

ENERGY INTENSITY

a Report the energy intensity ratio.

Business unit Energy per Rm

revenue

TJ

CBI Electric 0.05

Nashua 0.00

Reutech 0.02

Group Services 0.30

Total Reunert Ltd 0.03

b Report the organization-specific metric (the ratio denominator) chosen to calculate the ratio.

TJ energy per Rm revenue

Metric Rm revenue

c

Report the types of energy included in the intensity ratio: fuel, electricity, heating, cooling, steam, or all.


Fuel and electricity

d Report whether the ratio uses energy consumed within the organization, outside of it or both.

Energy consumed within the organisation

G4-EN15

DIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 1)

a

Report gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent, independent of any GHG trades, such as purchases, sales, or transfers of offsets or allowances.

Metric tonnes CO2e

Scope 1 emissions 6 161.14

Business unit

Stationary fuel combustion


Stationary fuel non-

energy use Total

Metric tonnes CO2e

Electrical Engineering 3 710.09 1 295.47 16.64 5 022.20

ICT 46.35 621.30 667.65

Applied Electronics 6.20 441.47 447.67

Group Services 0.80 22.82 23.62

Total Reunert Ltd 3 763.43 2 381.07 16.64 6 161.14

b Report gases included in the calculation (whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all).

Gases

CO2

CH4

N20

c

Report biogenic CO2 emissions in metric tons of CO2 equivalent separately from the gross direct (Scope 1) GHG emissions.

not applicable / 0

e Report standards, methodologies, and assumptions used.

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) Calculations based on published factors including: Liquid fuel: kg CO2e per litre fuel Liquid fuel: kg CO2e per kg fuel Gaseous fuel: kg CO2e per kwh Gaseous fuel: kg CO2e per kg

f

Report the source of the emission factors used and the global warming potential (GWP) rates used or a reference to the GWP source.

UK Government conversion factors for Company Reporting, 2016 v1.0. GWP rates based on IPCC Fourth Assessment Report (AR4 - 100 year)


g

Report the chosen consolidation approach for emissions (equity share, financial control, operational control).

Financial control

G4-EN16

ENERGY INDIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 2)

a

Report gross energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent, independent of any GHG trades, such as purchases, sales, or transfers of offsets or allowances.

Metric tonnes CO2e

Scope 2 emissions – location based 45 426.56

Business unit


Metric tonnes CO2e


ICT 1 021.70



Total Reunert Ltd 45 426.56

b Report gases included in the calculation, if available.

Gases

CO2

e Report standards, methodologies, and assumptions used.

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) Calculations based on published kg CO2e per kwh factors by country.

f

Report the source of the emission factors used and the global warming potential (GWP) rates used or a reference to the GWP source.

South African grid emission factor sourced from Eskom’s Annual Integrated Report, 2016. The South African grid emission factor has been applied to Lesotho.

g

Report the chosen consolidation approach for emissions (equity share, financial control, operational control).

Financial control

G4-EN17

OTHER INDIRECT GREENHOUSE GAS (GHG) EMISSIONS (SCOPE 3)

a

Report gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent. Exclude any GHG trades, such as purchases, sales, or transfers of offsets or allowances.

Metric tonnes CO2e

Scope 3 emissions 425 859.52


Business unit

Upstream leased assets

Purchased goods and

services

Waste generated

in operations

Business travel

Transport and

distribu-tion Total

Metric tonnes CO2e

Electrical Engineering 1 950.73 111 295.35 640.98 183.72

304 571.64

418 642.41

ICT 3 436.86 314.83 60.84 1 907.18 5 719.72

Applied Electronics 569.16 90.15 344.58 316.00 0.02 1 319.91

Group Services 5.28 9.15 163.06 177.49

Total Reunert Ltd 5 956.75 111 705.60 1 055.56 2 569.96

304 571.66

425 859.52

b Report gases included in the calculation, if available.

Gases

CO2

CH4

N20

d Report other indirect (Scope 3) emissions categories and activities included in the calculation.

Upstream leased assets

Fuel combustion in leased assets and vehicles and purchased electricity in leased buildings

Purchased goods and services

Material use of paper, metals and plastics and municipal water supply; and outsourced warehousing service

Waste generated in operations

Waste disposal of commercial and industrial waste, paper, glass, metals, oils, electric and electronic equipment, batteries and plastics and treatment of effluent

Business travel

Business travel in rental motor vehicles, commercial airlines and employee vehicles

Transportation and distribution Outbound logistics of product

f Report standards, methodologies, and assumptions used.

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) Calculations based on a combination of emissions data supplied and published factors including: Fuel use in upstream leased assets: kg CO2e per litre fuel by fuel type and kg CO2e per km travelled by vehicle engine type and size Purchased electricity in upstream leased assets: kg CO2e per kWh by country Material use: kg CO2e per tonne product used by source of material Water supply: kg CO2e per kl of water supplied Outsourced warehousing: kg CO2e per kwh used Waste disposal: kg CO2e per tonne waste disposed of by material and disposal method Water treatment: kg CO2e per kl of effluent Air travel: kg CO2e per pkm travelled (excluding radiative forcing) by distance category and class Land travel: kg CO2e per km travelled by vehicle engine type and size, kg CO2e per litre fuel by fuel type Transportation and distribution: kg CO2e per tonne.km transported


g

Report the source of the emission factors used and the global warming potential (GWP) rates used or a reference to the GWP source, if available.

South African grid emission factor sourced from Eskom’s Annual Integrated Report, 2016. Australian grid emission factor sourced from Australian Government National greenhouse accounts, August 2016. US grid emission factor sourced from EPA Emission Factors for Greenhouse Gas Inventories,

November 2015. Sweden emission factors sourced from Ecometrica, 2016. All other factors sourced from UK Government conversion factors for Company Reporting, 2016 v1.0. GWP rates based on IPCC Fourth Assessment Report (AR4 - 100 year)

G4-EN18

GREENHOUSE GAS (GHG) EMISSIONS INTENSITY

a Report the GHG emissions intensity ratio.

Business unit

Metric tonnes CO2e per m

2

Metric tonnes CO2e per FTE

Metric tonnes

CO2e per Rm

revenue

Metric tonnes CO2e

Electrical Engineering 0.29 15.15 10.32

ICT 0.10 0.92 0.51

Applied Electronics 0.18 5.93 3.91

Group Services 0.07 27.02 78.49

Total Reunert Ltd 0.24 9.07 5.75

b Report the organization-specific metric (the ratio denominator) chosen to calculate the ratio.


2


Metric tonnes

CO2e per Rm

revenue

Metric m

2

FTE (permanent employees)

Rm revenue

c

Report the types of GHG emissions included in the intensity ratio: direct (Scope 1), energy indirect (Scope 2), other indirect (Scope 3).


2


Metric tonnes

CO2e per Rm

revenue

GHG emissions

Direct stationary fuel combustion

+ Scope 2 Scope 1 +

Scope 2 Scope 1 +

Scope 2

d Report gases included in the calculation.

Gases

CO2

CH4


N20

Abbreviations

CH4 Methane

CC Carbon content

CO2 Carbon dioxide

CO2e Carbon dioxide equivalent

FTE Full time employee

GHG Greenhouse gases

GWP Global warming potential

HCFC Hydro chlorofluorocarbon

HFC Hydro fluorocarbon

HVAC Heating, ventilation and air conditioning

IPCC Intergovernmental Panel on Climate Change

N2O Nitrous oxide

NF3 Nitrogen trifluoride

ODU Oxidised during use

PFC Perfluorocarbons

SF6 Sulphur hexafluoride

UOM Unit of measure

WBCSD World Business Council for Sustainable Development

WRI World Resources Institute


Glossary of terms

Boundaries – The inventory boundaries to

determine which emissions are accounted and

reported by the company. Boundaries can

include organisational, operational and

geographic.

Carbon footprint – The total greenhouse gas

emissions caused directly and indirectly by an

organisation, typically over a period of 12

months.

CO2e – Carbon dioxide equivalent – The

universal unit of measurement to indicate the

global warming potential (GWP) of each of the

reported greenhouse gases, expressed in

terms of the GWP of one unit of carbon

dioxide. It is used to evaluate greenhouse

gases against a common basis.

Direct emissions – GHG emissions from

sources that are owned or controlled by the

reporting company.

Emissions – The release of greenhouse gases

into the atmosphere.

Emission factor – A factor allowing GHG

emissions to be estimated from a unit of

available activity data and absolute GHG

emissions.

Greenhouse gases (GHG) –Under this

Standard GHGs are the seven gases listed in

the Kyoto Protocol, namely carbon dioxide,

methane, nitrous oxide, hydrofluorocarbons,

perfluorocarbons, sulphur hexafluoride and

nitrogen trifluoride.

GHG offset – Offsets are GHG reductions used

to compensate for GHG emissions elsewhere.

GHG Inventory – A quantified list of an

organisations GHG emissions and sources.

GHG Protocol – Greenhouse Gas Protocol

Corporate Accounting and Reporting

Standard.

Global warming potential – a factor describing the degree of harm to the atmosphere of one unit of a given GHG relative to one unit of CO2. Indirect emissions – emissions that are a

consequence of the operations of the

reporting company, but occur at sources

owned or controlled by another company.

Operational boundary – The boundaries that

determine the direct and indirect emissions

associated with operations owned or

controlled by the reporting company.

Organisational boundary – The boundary that

determines the operations owned or

controlled by the reporting company,

depending on the consolidation approach

taken.

Reporting Period – the period of time,

typically a calendar or financial year, the

report covers.

Scope 1 emissions – Direct emissions from

sources that are owned or controlled by the

reporting company.

Scope 2 emissions – Indirect emissions

associated with the generation of electricity,

heating/cooling and steam purchased for own

consumption.

Scope 3 emissions – Indirect emissions other

than those covered in Scope 2.

Sequestered atmospheric carbon – Carbon

removed from the atmosphere by biological

sinks and stored in plant tissue.


Appendix A: Methodology

The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (Revised) (herein

referred to as the GHG Protocol) has directed the greenhouse gas emissions measurement and

reporting process.

Greenhouse Gas Protocol Corporate Accounting and Reporting Standard The Greenhouse Gas Protocol Initiative is a multi-stakeholder partnership of businesses, non-

governmental organisations, governments, and others convened by the World Resources Institute

(WRI) and the World Business Council for Sustainable Development (WBCSD). Launched in 1998 the

initiative’s mission is to develop internationally accepted greenhouse gas accounting and reporting

standards for business and to promote their broad adoption worldwide.

The GHG Protocol’s Standard is the most widely used standard for mandatory and voluntary GHG

programs. The standard is analogous to the generally accepted financial accounting standards for

companies’ consistent accounting and reporting practices.

Organisational boundary

Organisational boundaries determine which business units are included in the GHG inventory.

An organisational boundary can be established using one of three approaches: operational control,

financial control or equity control.

Operational Scope

Operational boundaries determine which activities generate emissions and how these activities

should be categorised (i.e. as Scope 1, Scope 2, Scope 3).

The established organisational and operational boundaries together constitute a company’s

inventory boundary.

The GHG Protocol requires that Scope 1 and Scope 2 are included. Scope 1 and Scope 2 emissions

present but not included must be disclosed with a justification for exclusion. Reporting Scope 3 is

voluntary and recommended where material.

Greenhouse Gases

All emissions calculated are reported in carbon dioxide equivalent (CO2e). Because GHGs vary in

their ability to trap heat in the atmosphere, some are more harmful to the climate than others. Each

greenhouse gas has a global warming potential (GWP), which refers to its heat trapping ability

relative to that of CO2. Greenhouse gases are therefore often reported as CO2 equivalents (CO2e),

allowing like for like comparisons.

The Standard covers the accounting and reporting of the greenhouse gases covered by the Kyoto

Protocol:

• Carbon dioxide (CO2)


• Methane (CH4)

• Nitrous oxide (N2O)

• Hydro fluorocarbons (HFCs)

• Perflourocarbons (PFCs)

• Sulphur hexafluoride (SF6)

• Nitrogen trifluoride (NF3)

Greenhouse gas emissions are categorised as direct and indirect; and grouped into Scopes for

accounting and reporting.

Direct Emissions – Scope 1

Direct GHG emissions are emissions from sources that are owned or controlled by the company, for

example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.

Direct GHG emissions are called Scope 1 emissions and are accounted for as such.

Indirect Emissions – Scope 2 and Scope 3

Indirect GHG emissions are emissions that are a consequence of the activities of the company, but

occur at sources owned or controlled by another company. Indirect GHG emissions are categorised

as either Scope 2 emissions for purchased electricity or Scope 3 for all indirect emissions, for

example, travel on commercial airlines, paper use, etc.

Guiding Principles Assessments are produced under the following guiding principles of the GHG Protocol:

Relevance

The GHG inventory appropriately reflects the GHG emissions of the company and serves the

decision-making needs of users – both internal and external to the company.

Completeness

All GHG emission sources and activities within the chosen inventory boundary are accounted for and

reported. Exclusions are disclosed and justified.

Consistency

Consistent methodologies are applied that allow for meaningful comparisons of emissions over time.

Any changes to the data, inventory boundary, methods, or any other relevant factors in the time

series are transparently documented.

Transparency


All relevant issues have been addressed in a factual and coherent manner, and are based on a clear

audit trail. Relevant assumptions are disclosed and appropriate references to the accounting and

calculation methodologies and data sources used are made.

Accuracy

The quantification of GHG emissions is systematically neither over nor under actual emissions, as far

as can be judged, and uncertainties are reduced as far as practicable. Where we believe accuracy

has been compromised it is documented in the report.


Appendix B: Base year and base year recalculation/adjustment

policies

Selection of base year The following has been considered in selecting and stating 2015 as base year for future emissions

tracking:

The availability of reliable emissions data.

A single year is representative of the company’s typical emissions profile.

The base year can confidently be used as a basis for setting and tracking progress towards a

GHG target.

Base year adjustments When tracking an organisation’s emissions over time, it is important to compare like with like.

Therefore, in the event of structural or other changes the base year emissions may need to be

recalculated.

In accordance with the GHG Protocol, The Carbon Report recommends that base year emissions are

adjusted in the event of:

Structural changes such as mergers, acquisition and divestments; where the facility existed

in the base year.

Outsourcing and in-sourcing of emitting activities where activities where not reported in the

base year under scope 2 or 3.

Changes in calculation methodology or improvements in the accuracy of emissions factors or

activity data; where significant.

Discovery of significant errors.

Organic growth or organic decline does not necessitate adjustments to the baseline.

The Carbon Report recommends the following readjustment policies:

Structural changes

A company that acquires, mergers with or divests of another company should include; or exclude in

the case of divestment; the emission sources from the acquired, merged of divested company in the

acquiring/divesting company’s base year inventory (and current year inventory) where the base year

falls prior to the structural change.

Where a structural change occurs in the middle of a reporting year, the GHG Protocol recommend

that emissions are not pro-rated, and total annual emissions are applied to the full base year and the

full reporting year.


Methodology Changes

For a change in calculation methodology, we recommend that the GHG Inventory from the base year

forward is updated.

Changes due to an updated emissions factor will become necessary when the emission factor data

becomes available. A change in an emission factor will cause an update to the year the emission

factor applies to.

If an error has occurred, and its impact on emissions is significant, we recommend it is corrected and

the change noted.

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