Reunert Limited...Durban: Industrial Controls and Automation Boksburg: Solutions* Vereeniging – Factory* Duncanville* Power Installations (Parow)* Power Installations (Durban) Tank

Copyright sustainableIT® 2015 1

Reunert Limited

Greenhouse Gas Assessment for the financial year ending 30 September

2015

3rd December 2015

The Carbon Report | powered by sustainableIT®


Table of Contents

Greenhouse Gas Assessment 1 October 2014 to 30 September 2015 ................................................... 3

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

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

Scope 1 and Scope 2 exclusions ........................................................................................................ 13

Scope 3 clarification .......................................................................................................................... 13

Greenhouse gas emission inventory detail with calculations ........................................................... 14

Greenhouse Gas Equivalencies ......................................................................................................... 26

Exposure to proposed carbon taxation ............................................................................................ 26

Understanding uncertainty and disclaimer .......................................................................................... 28

Contact details ...................................................................................................................................... 29

Abbreviations ........................................................................................................................................ 30

Glossary of terms .................................................................................................................................. 31

References ............................................................................................................................................ 32

Appendix A: Methodology .................................................................................................................... 33

Greenhouse Gas Protocol Corporate Accounting and Reporting Standard ..................................... 33

Guiding Principles ............................................................................................................................. 34

Appendix B: Base year and base year recalculation/adjustment policies ............................................ 36

Selection of base year ....................................................................................................................... 36

Base year adjustments ...................................................................................................................... 36


Greenhouse Gas Assessment 1 October 2014 to 30 September 2015

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 2015 based on the Greenhouse Gas Protocol Corporate Accounting and Reporting

Standard1, herein referred to as the GHG Protocol. Reunert Limited’s 2014/2015 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 PFY

Scope 1 6 099.97 -20%

Reunert Limited2 6034.42

Joint venture3 65.55

Scope 2 44 015.99 -14%

Reunert Limited2 40 245.04

Joint venture3 3 770.95

Total Scope 1 & 2 50 115.96 -15%

Reunert Limited2 46 279.46

Joint venture3 3 836.50

Scope 3 131 325.02 +49%

Total Scope 1, 2 & 3 181 440.98 +23%

1 See Appendix A.

2 Includes Reunert parent company and subsidiaries under financial control.

3 Refers to joint venture CBI-electric: Aberdare ATC Telecom Cables (Pty) Limited.


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

Table 2: Greenhouse gas emissions by Scope by entity

GHG emissions by entity by Scope

metric tonnes CO2e

Scope 1 Scope 2 Scope 3 Total

Electrical Engineering 5 233.41 36 450.69 123 294.99 164 979.10

ICT 354.71 1 517.67 6 674.40 8 546.78

Applied Electronics 493.91 5 219.46 1 004.47 6 717.84

Group Services 17.94 828.16 351.16 1 197.26

Reunert Limited 6 099.97 44 015.99 131 325.02 181 440.98

Percentage split of scope 1 + 2 12% 88%

Percentage split of total 3% 24% 72%

6099.97; 3%

44015.99; 24%

131325.02; 73%

2014/2015 GHG Inventory by Scope t CO2e

Scope 1

Scope 2

Scope 3


Table 3: Total greenhouse gas emissions by emissions source

GHG Emissions by Scope metric tonnes CO2e % increase/decrease

from PFY

Direct Scope 1 (3%) 6 099.97 -20%

Stationary fuel combustion 4 428.60 +17%

Stationary fuel non energy use 14.80 +4%

Mobile fuel combustion 1 656.57 -57%

Indirect Scope 2 (24%) 44 015.99 -14%

Purchased electricity 44 015.99 -14%

Total Scope 1 & 2 50 115.96 -15%

Indirect Scope 3 (72%) 131 325.02 +49%

Upstream leased assets 6 516.07 n/a

Material use 120 979.90 +43%

Water supply 115.01 -9%

Water treatment 548.71 +50%

Waste disposal 167.72 -38%

Business travel 2 997.61 +6%

Total Scope 1, 2 & 3 181 440.98 +23%


Figure 2: Greenhouse gas emissions by emission source

0 20 000 40 000 60 000 80 000 100 000 120 000 140 000

Scope 1

Scope 2

Scope 3

t CO2e

2014/2015 GHG Inventory by Emission Source t CO2e

Stationary fuel combustion Stationary fuel non energy use

Mobile fuel combustion Purchased electricity

Upstream leased assets: fuel combustion Upstream leased assets: purchased electricity

Business travel Material use

Waste disposal Water supply

Water treatment


Table 4: Greenhouse gas emissions intensities4

metric tonnes CO2e

% increase or decrease from PFY

GHG Emissions Intensities by Entity

Sc 1 + 2 emissions

Sc 1 + 2 emissions

per m2 5

Sc 1 + 2 emissions

per FTE6 kWh/m2

Total emissions

per Rm revenue

Sc 1 + 2 emissions

per Rm revenue

Electrical Engineering 41 684.11

0% 0.28

17.63

-5% 243.65

+3% 40.02 +14%

10.11 -12%

ICT 1 872.38

-82% 0.13 0.93

-77% 120.71

-22% 2.49

+55% 0.55 -65%

Applied Electronics 5 713.37

-12% 0.18 6.96

-16% 174.06

-15% 6.21 -30%

5.29 -18%

Group Services 846.10 +187%

0.04 14.84 +197%

46.54 -70%

52.05 +138%

36.79 +100%

Reunert Limited 50 115.96

-15% 0.23 9.52

-9% 194.28

-9% 20.96 +63%

5.79 +12%

Table 5: Greenhouse gas emissions totals by greenhouse gas7

metric tonnes CO2e

Emissions by greenhouse gas CO2 CH4 N2O

Scope 1 direct emissions 6 080.33 7.88 11.76

Scope 2 indirect emissions 44 015.99

Total Scope 1 & 2 emissions 50 096.32 7.88 11.76

4 Percentage increase or decrease from previous year should be treated with caution as the previous year’s

Scope 2 emissions included Scope 3 purchased electricity in upstream leased assets.

5 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.

Comparison with previous year not appropriate as previous years’ assessments included all sites regardless of

control in area intensity emissions calculations.

6 FTE made up of permanent employees only.

7 Individual greenhouse gas factors not universally available for scope 3 emission sources.


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 6: Organisational boundary

Methodology Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (Revised)8

Reporting period 1 October 2014 to 30 September 2015

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 place9

Number of FTE employees 5 26410

Area of facilities All occupied sites: 258 675 m2

Company owned/controlled sites: 207 961 m2

Verification No third party verification

8 See Appendix A.

9 See Appendix B.

10 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 3: 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*

Durban: Low Voltage

Lesotho

Solutions - Centurion

Australia

America

Johannesburg: Industrial Controls and

Automation*

Port Elizabeth: Low Voltage Eastern Cape

Reunert Limited


Low Voltage

South Africa

Lesotho

USA

Australia

African Cables

Telecom Cables (50%)

ICT

Nashua OA Franchises*

South Africa

Sweden

PanSolutions

Nashua Communication

s

Applied Electronics

Communications

Radar Systems

Fuchs Electronics

Solutions

RC&C Manufacturing

Group Services


Bloemfontein: Low Voltage Free State

Durban: Industrial Controls and Automation

Boksburg: Solutions*

Vereeniging – Factory*

Duncanville*

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

Lyttleton Manor: Nashua Tswane 2

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

Durban: Nashua Ltd Copy Shop

Durban: Nashua Ltd Warehouse

Nashua North: Ferndale

Nashua Prodoc: Sweden

Nashua Winelands: Olive Grove

New Germany: PanSolutions*

Midrand: Pansolutions Warehouse

Midrand: Pansolutions Holdings

Parow: Nashua Communications*

Midrand: Nashua Communications*

Nelspruit: Nashua Communications

Westville: Nashua Communications

Port Elizabeth: Nashua Communications*

Sandton: ECN Regional POP

Riverhorse Valley: ECN Durban POP

Randburg: ECN Regional POP

Centurion: ECN Regional POP

Midrand: ECN Nashua Mobile POP*

Port Elizabeth: ECN Port Elizabeth POP

Bloemfontein: ECN Bloemfonten POP

Greenstone: ECN Greenstone POP

Midrand: ECN Offices

Midrand: ECN Reunert Park*

Applied Electronics

New Germany: Reutech Communications*

Reutech Communications North*

Stellenbosch: Reutech Radar Systems*

RCC Manufacturing Factory*

Midrand: Reutech Solutions*

Alrode: Fuchs*

Group Services

Boksburg: ARGO*

Boksburg: Other*

Boksburg: Reapers*

Boksburg: Reunert College*

Wadeville Iveco SA*

Mabula, Bela-Bela*

Sterkspruit, Lydenburg*

Woodmead: Reunert Ltd


Owned facilities excluded from assessment due to immateriality

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 7: Operational scope

Greenhouse gases present in

boundary

Carbon dioxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Hydro fluorocarbons (HFCs)11

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

Upstream leased assets, including: Mobile fuel combustion in leased vehicles Purchased electricity in leased facilities

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

Waste disposal, including: Waste disposal of materials Water treatment

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

11

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

available data.


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 site Port Elizabeth: Nashua Communications due to lack of

available data.

Scope 3 clarification Emissions associated with the following emission sources are believed to be underestimated:

Upstream leased assets: Purchased electricity

Purchased electricity usage data is unavailable in 4 sites namely Port Elizabeth: Low Voltage Eastern

Cape, Power Installations (Durban), Tank Industries and Westville: Nashua Communications.

Water supply and treatment

Water supply and treatment are part reported.

Waste disposal

Waste disposal is part reported.


Greenhouse gas emission inventory detail with calculations Summary

Table 8: Emissions by emission source by company

t CO2e

Emission sources Electrical Engineering

ICT Applied Electronics

Group Services

Total

Total Scope 1 5 233.41 354.71 493.91 17.94 6 099.97

Stationary fuel combustion 4 387.60 1.88 38.93 0.20 4 428.60

Stationary fuel non energy use

14.80 14.80

Mobile fuel combustion 831.02 352.83 454.98 17.74 1 656.57

Total Scope 2 36 450.69 1 517.67 5 219.46 828.16 44 015.99

Purchased electricity 36 450.69 1 517.67 5 219.46 828.16 44 015.99

Total Scope 1 & Scope 2 41 684.11 1 872.38 5 713.37 846.10 50 115.96

Total Scope 3 123 294.99 6 674.40 1 004.47 351.16 131 325.02

Upstream leased assets: mobile fuel

45.28 45.28


1 629.11 4 657.15 184.53 6 470.79

Material use 120 917.00 12.10 50.81 120 979.90

Water supply 81.15 16.35 17.09 0.42 115.01

Water treatment 295.86 32.01 219.96 0.88 548.71

Waste disposal 148.49 15.23 0.26 3.75 167.72

Business travel 223.39 1 896.29 716.35 161.58 2 997.61


Direct emissions

Table 9: Scope 1 emissions by emission source by company

t CO2e



Group Services

Total

Total Scope 1 5 233.41 354.71 493.91 17.94 6 099.97

Stationary fuel combustion 4 387.60 1.88 38.93 0.20 4 428.60

Stationary fuel non energy use

14.80 14.80

Mobile fuel combustion 831.02 352.83 454.98 17.74 1 656.57

Percentage of scope 1 86% 6% 8% 0.3% 100%

Table 10: Calculation of stationary fuel combustion emissions

Emissions Source UOM Quantity /

Annum kg CO2e

per unit12

t CO2e

Stationary fuel combustion


4 387.60

Diesel (100% mineral diesel) lt 77 342 2.67614 206.98

Natural gas kWh 21 248 07313

0.18445 3 919.21

LPG kg 88 838 2.94264 261.42

ICT

1.88

Diesel (100% mineral diesel) lt 701 2.67614 1.88

Applied Electronics

38.93

Diesel (100% mineral diesel) lt 14 13414

2.67614 37.82

LPG kg 37615

2.94264 1.11

Group Services

0.20

LPG kg 67 2.94264 0.20

Total

4 428.60

12

UK Government conversion factors for Company Reporting, version 2.0, 2015

13 Conversion from 76,493 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 2.0, 2015

14 1997 litres of the total 14 134 litres estimated from fuel spend and an average fuel price of R10.89 per litre.

15 36 kg of the total 376 kg estimated from fuel spend and an average fuel price of R20.64 per kg.


Table 11: Calculation of stationary fuel non-energy use emissions

Emissions Source UOM Quantity / Annum t C/TJ

16 ODU

17 CO2/C t CO2e

Stationary fuel combustion

Electrical Engineering 14.80

Lubricant oil TJ 1.00918

20.00 0.200 3.66667 14.80

Total 14.80

Table 12: Calculation of mobile fuel combustion emissions


Annum kg CO2e

per unit19

t CO2e

Mobile fuel combustion



Petrol (100% mineral petrol) lt 206 837 2.29968 475.66

LPG kWh 133 17520

0.21468 28.59

ICT 352.83

Diesel (100% mineral diesel) lt 60 44121

2.67614 161.75

Petrol (100% mineral petrol) lt 82 56822

2.29968 189.88

Petrol vehicle (passenger average) km 6 279 0.19126 1.20

Applied Electronics 454.98



Petrol vehicle (passenger average) km 10 60423

0.19126 2.03

LPG kg 133 2.94264 0.39

Group Services 17.74



16

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

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

18 TJ calculated using a net CV TJ/Gg factor of 40.20. Source: IPCC Guidelines Chapter 1 of Volume 2 on Energy

19 UK Government conversion factors for Company Reporting, version 2.0, 2015

20 Conversion from 479 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 2.0, 2015

21 646 litres of the total 60 441 litres estimated from fuel spend and an average fuel price of R10.89 per litre.

22 18 664 litres of the total 82568 litres estimated from fuel spend and an average fuel price of R12.35 per litre.

23 5 199 litres of the total 10 604 litres estimated from fuel spend and an average fuel price of R12.35 per litre.


Total 1 656.57

Indirect emissions

Scope 2


t CO2e



Group Services

Total

Total Scope 2 36 450.69 1 517.67 5 219.46 828.16 44 015.99

Purchased electricity 36 450.69 1 517.67 5 219.46 828.16 44 015.99

Percentage of Scope 2 83% 3% 12% 2% 100%

Table 14: Calculation of purchased electricity emissions


Annum kg CO2e

per unit24

t CO2e



Purchased electricity kWh 36 089 797 1.01000 36 450.69

ICT 1 517.67


Applied Electronics 5 219.46



Purchased electricity kWh 819 963 1.01000 828.16

Total 44 015.99

Notes on purchased electricity consumption

Purchased electricity excluded at the site Port Elizabeth: Nashua Communications due to lack of

available data.

Reutech Communications North electricity usage was estimated based on rand value spend and an

assumed electricity cost of ZAR1.80 per kWh.

24

South African grid emission factor sourced from Eskom’s Annual Integrated Report, 2015.


Scope 3


t CO2e



Group Services

Total

Total Scope 3 123 294.99 6 674.40 1 004.47 351.16 131 325.02

Upstream leased assets: mobile fuel

45.28 45.28


1 629.11 4 657.15 184.53 6 470.79

Material use 120 917.00 12.10 50.81 120 979.90

Water supply 81.15 16.35 17.09 0.42 115.01

Water treatment 295.86 32.01 219.96 0.88 548.71

Waste disposal 148.49 15.23 0.26 3.75 167.72

Business travel 223.39 1 896.29 716.35 161.58 2 997.61

Percentage of Scope 3 94% 5% 1% 0.3% 100%

Table 16: Calculation of mobile fuel combustion emissions in upstream leased assets


Annum kg CO2e

per unit25

t CO2e

Mobile fuel combustion

ICT 45.28


Petrol (100% mineral petrol) lt 7 69926

2.29968 17.70

Petrol vehicle (passenger average) km 11 925 0.19126 2.28

Total 45.28

25


26 3,953 Litres of the 7,699 litres of petrol was estimated based on rand value spend and an assumed petrol

cost of ZAR12.35 per litre.


Table 17: Calculation of purchased electricity emissions in upstream leased assets


Annum kg CO2e

per unit27

t CO2e




Purchased electricity: Lesotho kWh 1 442 388 1.01000 1 456.81

Purchased electricity: Australia kWh 153 420 0.81360 124.82

Purchased electricity: USA kWh 18 012 0.49845 8.98

ICT 4 657.15


Purchased electricity: Sweden kWh 232 108 0.01650 3.83



Total 6 470.79

Notes on purchased electricity consumption

Purchased electricity excluded at the sites Low Voltage Eastern Cape Port Elizabeth, Power

Installations Durban, Tank Industries and Westville: Nashua Communications due to lack of available

data.

For the sites Bloemfontein: Low Voltage Free State, Lyttleton Manor: Nashua Tshwane 2, Cape Town

- Nashua Ltd Cape Town, Nashua Winelands: Olive Grove and Midrand: ECN Offices electricity usage

was estimated based on rand value spend and an assumed electricity cost of ZAR1.80 per kWh.

Electricity usage for the ECN POP sites was estimated based on 2014 data.

27

South African grid emission factor sourced from Eskom’s Annual Integrated Report, 2015. The South African

grid emission factor has been applied to Lesotho. Australia, USA and Sweden emission factors sourced from

UK Government conversion factors for Company Reporting, version 2.0, 2015.


Table 18: Calculation of material use emissions


Annum kg CO2e

per unit28

t CO2e

Material use


Paper tn 436.08 939.00000 409.47

Copper tn 14 402.30 3 771.00000 54 311.06

Aluminum tn 4 456.08 3 771.00000 16 803.88

Steel tn 837.97 3 771.00000 3 159.97

Galvanised Steel tn 7 831.31 3 771.00000 29 531.87

PVC tn 3 068.41 3 340.00000 10 248.49

Brass tn 90.85 3 771.00000 342.58

Recycled Copper tn 2 528.28 1 493.00000 3 774.73

Recycled Aluminum tn 1 155.72 1 493.00000 1 725.49

Recycled Steel tn 39.36 1 493.00000 58.76

Recycled Galvanised Steel tn 319.70 1 493.00000 477.31

Recycled PVC tn 29.88 2 456.00000 73.39

ICT 12.10

Paper tn 12.88 939.00000 12.10


Paper tn 6.00 939.00000 5.64

Copper tn 5.69 3 771.00000 21.48

Steel tn 4.93 3 771.00000 18.57

PVC tn 0.38 3 340.00000 1.26

Brass tn 0.02 3 771.00000 0.09

Nickel tn 1.00 3 771.00000 3.77

Total 120 979.90

28

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

UK Government conversion factors for Company Reporting, version 2.0, 2015.


Table 19: Calculation of water supply emissions


Annum kg CO2e

per unit29

t CO2e

Water supply


Municipal water supply kl 235 892 0.34400 81.15

ICT 16.35




Group Services 0.42


Total 115.01

Note on water consumption

In 1 site effluent data was available while water supply data was lacking. In this case supply was

estimated double that of effluent30.

Table 20: Calculation of water treatment emissions


Annum kg CO2e

per unit31

t CO2e

Water treatment


Municipal effluent kl 417 884 0.70800 295.86

ICT 32.01




Group Services 0.88


Total 548.71

Notes on water treatment

In 9 sites water supply data was available while effluent data was lacking. In these cases effluent was

estimated at 50% of water supply32.

29


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

31 UK Government conversion factors for Company Reporting, version 2.0, 2015

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


Table 21: Calculation of waste disposal emissions


Annum kg CO2e

per unit33

t CO2e

Waste disposal


General Waste

Commercial and Industrial Waste tn 923.58 93.00000 85.89

WEEE tn 50.71 21.00000 1.06

Brown Grades (incl. Cardboard) tn 40.84 21.00000 0.86

Mixed Grades tn 35.74 21.00000 0.75

Other plastics tn 700.72 21.00000 14.72

Ferrous tn 297.90 21.00000 6.26

Non-ferrous tn 301.12 21.00000 6.32

Other tn 208.83 93.00000 19.42

Hazardous Waste

Solid Waste containing Mercury tn 1.31 93.00000 0.12

Mixed batteries 0.11 65.00000 0.01

Waste Oils tn 0.89 21.00000 0.02

Solvents without halogens and Sulphur tn 13.31 93.00000 1.24

Mixed WEEE tn 6.56 21.00000 0.14

Oil Contaminated Waste tn 120.88 93.00000 11.24

Bitumous waste tn 3.89 93.00000 0.36

Pathological Waste tn 0.05 93.00000 0.005

Infectious Waste and Sharps tn 0.15 93.00000 0.01

Chemical Waste tn 0.01 93.00000 0.001

Miscellaneous tn 0.63 93.00000 0.06

ICT 15.23

General Waste


WEEE tn 29.42 21.00000 0.62

White Grades tn 4.71 21.00000 0.10

Mixed Grades tn 11.04 21.00000 0.23

Other tn 12.73 93.00000 1.18

Hazardous Waste

Mixed WEEE tn 0.90 21.00000 0.02


General Waste


Brown Grades (incl. Cardboard) tn 0.41 21.00000 0.01

White Grades tn 2.68 21.00000 0.06

Mixed Grades tn 0.35 21.00000 0.01

Polyethylene terephthalate tn 0.10 21.00000 0.002

33

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



(PETE)

Other plastics tn 1.36 21.00000 0.03

Glass tn 0.20 21.00000 0.004

Ferrous tn 2.02 21.00000 0.04

Non-ferrous tn 0.15 21.00000 0.003

Other tn 0.13 93.00000 0.01

Hazardous Waste

Liquid Waste containing Mercury tn 0.05 93.00000 0.005

Pathological Waste tn 0.004 93.00000 0.0004

Infectious Waste and Sharps tn 0.004 93.00000 0.0004

Miscellaneous tn 0.22 93.00000 0.02

Group Services 3.75

General Waste


WEEE tn 0.32 21.00000 0.01

White Grades tn 5.20 21.00000 0.11

Total 167.72

Note on waste disposal

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


Table 22: Calculation of business travel emissions


Annum kg CO2e

per unit34

t CO2e

Business travel in non-company owned assets


Vehicle Rental CO2e gm 11 900 585 11.90

Domestic Economy Class p.km 773 496 0.15757 121.88

Domestic Business/First Class p.km 3 307 0.15757 0.52

Short-haul Economy Class p.km 160 739 0.08795 14.14

Short-haul Economy+ Class p.km 3 972 0.08795 0.35

Short-haul First/Business Class p.km 2 115 0.13195 0.28

Long-haul Economy Class p.km 702 982 0.07339 51.59

Long-haul Economy+ Class p.km 29 167 0.11745 3.43

Long-haul Business Class p.km 89 583 0.21286 19.07

Diesel (100% mineral diesel) lt (derived) 60 2.67614 0.16

Petrol (100% mineral petrol) lt (derived) 33 2.29968 0.07

ICT 1 896.29


Vehicle Rental Small35

km 1 414 0.15374 0.22

Vehicle Rental Medium36

km 49 212 0.18797 9.25

Vehicle Rental Large37

km 196 044 0.24312 47.66

Domestic Economy Class p.km 1 131 625 0.15757 178.31




Long-haul Economy+ Class p.km 62 430 0.11745 7.33



Diesel (100% mineral diesel) lt (derived) 46 2.67614 0.12


Petrol (100% mineral petrol) lt (derived) 168 392 2.29968 387.25

Unknown fuel lt 163 897 2.29968 376.91

Unknown fuel lt (derived) 119 981 2.29968 275.92



Flight CO2e gm 41 058 0.04

Domestic Economy Class p.km 1 885 738 0.15757 297.14

34

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 2.0, 2015.

35 Petrol up to 1.4 lt, diesel up to 1.7lt

36 Petrol 1.4 - 2.0 lt, diesel 1.7 - 2.0 lt

37 Petrol > 2.0 lt, diesel > 2.0 lt


Domestic Business/First Class p.km 112 744 0.15757 17.77



Long-haul Economy Class p.km 3 486 436 0.07339 255.89


Long-haul First Class p.km 49 857 0.29361 14.64



Vehicle Rental Small38

km 2 941 0.15374 0.45

Vehicle Rental Medium39

km 4 074 0.18797 0.77

Domestic Economy Class p.km 717 260 0.15757 113.02





Diesel vehicle (passenger ave.) km 3 620 0.18232 0.66


Total 2 997.61

38

Petrol up to 1.4 lt, diesel up to 1.7lt.

39 Petrol 1.4 - 2.0 lt, diesel 1.7 - 2.0 lt.


Greenhouse Gas Equivalencies Reunert Limited’s total footprint is equivalent to each of the following statements40:

38 198

Passenger vehicle use for one year

24 957

Homes’ electricity use for one year

973

Railcars worth of coal burned

65 033

Tons of waste sent to the landfill

4 652 333

Carbon sequestered by tree seedlings over 10 yrs

148 722 Carbon sequestered annually by acres of US forest

Exposure to proposed carbon taxation Based on the Draft Carbon Tax Bill released by National Treasury in November 201541, Reunert

Limited should allow for the following taxation:

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

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

regime.

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 activity data on direct fuel combustion, the calculated financial impact of

taxation is shown in the table below.

40

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

41 National Treasury Draft Carbon Tax Bill, November 2015.

http://www.treasury.gov.za/public%20comments/CarbonTaxBill2015/Carbon%20Tax%20Bill%20final%20for%

20release%20for%20comment.pdf


Table 23: Calculation of carbon tax exposure on direct emission sources

Emissions42 t CO2e

Effective tax rate43

Cost per annum

Cost implication of direct taxation

Scope 1 stationary fuel (natural gas) 3 687.39 R 48.00 R 176 995

Cost implication of increased fuel levy

Scope 1 stationary liquid fuels 369.04 R 48.00 R 17 714

Scope 1 mobile liquid fuels 1 361.88 R 48.00 R 65 370

Total direct costs R260 079

Business travel cost implication of increased fuel levy

Scope 3 business travel 2 997.61 R 48.00 R 143 885

Total indirect costs R143 885

With the exception of business travel, the financial impact on up- and downstream emission sources

which may be affected has not been calculated.

42

Emissions totals differ from reported emissions as calculations have been based on the emissions factors put

forward by National Treasury. Mileage activity data has been excluded from these estimations.

43 Based on a tax rate of R120 per tonne CO2e with a 60% basic tax-free threshold.


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]

mailto:[email protected]

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


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.


References

UK Government, 2015. UK Government conversion factors for Company Reporting, version 2.0, 2015.

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

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

Eskom, 2015. Eskom Annual Integrated Report 2015.

National Treasury, 2015. Draft Carbon Tax Bill.

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

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.

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

and calculating statistical parameter uncertainty.


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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