CDP CDP 2014 Investor CDP 2014 Information Request
Sims Metal Management
Module: Introduction
Page: Introduction
CC0.1
Introduction
Please give a general description and introduction to your organization. Sims Metal Management (SimsMM) is the world's largest and leading global recycling company with operations in North America, Australasia, South Africa, Middle East (Dubai), Europe and India, supplemented by trading offices in Asia and the only recycling company to be selected as one of the 100 Most Sustainable Companies in the World by the World Economic Forum, for 5 consecutive years as well as being an index component in the Dow Jones Sustainability World Index. SimsMM operates predominantly in the secondary metal, plastics and electronics recycling industry, including secure data destruction and refurbishment of electronic equipment. Its core businesses include: - 1. Secondary ferrous metal recycling, which comprises the collection, mechanical processing and international trading of iron and steel secondary raw materials. - 2. Secondary non-ferrous metals recycling, which comprises the collection, processing and trading of other metal alloys and residues, principally aluminium, copper, brass, stainless steel and nickel bearing materials. - 3. Sims Recycling Solutions (SRS), which comprise the provision of environmentally responsible solutions for re-use, security and disposal of post-consumer electronic and electrical products. - 4. Secondary processing, comprising one small value-added processing facilities for the melting, refining and recovery of precious metals in the USA; the reclamation, beneficiation and reprocessing of plastics. - 5 Sims Municipal Recycling - recycling around 1000 tonne/day of municipal waste from New York City and 6 - Landfill Management Services (LMS) a 50% owned JV being Australia's leading supplier of renewable energy and carbon abatement, specialising in the recovery of land fill methane and its conversion into renewable energy. Following the introduction of carbon legislation in Australia, LMS accounted in F13 for more than half of the Australian Carbon Credits issued,generating more than 340,000MWh of renewable energy and abating an estimated 2 million tonnes of CO2.
CC0.2
Reporting Year
Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been
offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).
Enter Periods that will be disclosed
Fri 01 Jul 2011 - Sat 30 Jun 2012
Sun 01 Jul 2012 - Sun 30 Jun 2013
CC0.3
Country list configuration
Please select the countries for which you will be supplying data. This selection will be carried forward to assist you in completing your response.
Select country
Australia
New Zealand
Papua New Guinea
United Kingdom
Sweden
Netherlands
Germany
Belgium
United States of America
Canada
CC0.4
Currency selection
Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. AUD ($)
CC0.6
Modules
As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sectors, companies in the oil and gas industry, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco sectors should complete supplementary questions in addition to the main questionnaire. If you are in these sectors (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email [email protected]. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx.
Further Information
Module: Management
Page: CC1. Governance
CC1.1
Where is the highest level of direct responsibility for climate change within your organization?
Individual/Sub-set of the Board or other committee appointed by the Board
CC1.1a
Please identify the position of the individual or name of the committee with this responsibility
SHEC – (Safety, Health, Environment, Community) Committee of the Sims Metal Management Board of Directors The SHEC Committee is chaired by Jim Thompson - an independent non Executive Director and consists of CEO Dan Dienst and 2 other independent non-executive directors (Chris Renwick & Heather Ridout) and 1 non-independent non-executive director Mr. Sukagawa, retiring in April 2013 and replaced by Tom Sato also non-executive director. The SHEC Committee of the Board is supported by three Regional SHEC Committees (North America, APAC and Europe) as well as the Global Director, Sustainability, Peter Netchaef who reports directly to the CEO,
CC1.2
Do you provide incentives for the management of climate change issues, including the attainment of targets?
Yes
CC1.2a
Please provide further details on the incentives provided for the management of climate change issues
Who is entitled to benefit from these incentives?
The type of incentives
Incentivized performance indicator
Other: Environment/sustainability managers
Monetary reward Development and meeting of energy reduction targets
Energy managers Monetary reward Development and implementation of energy reduction initiatives
Business unit managers Monetary reward Meeting of energy target reductions
Facility managers Monetary reward Meeting of energy reduction targets
Further Information
Page: CC2. Strategy
CC2.1
Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities
Integrated into multi-disciplinary company wide risk management processes
CC2.1a
Please provide further details on your risk management procedures with regard to climate change risks and opportunities
Frequency of monitoring
To whom are results
reported
Geographical
areas considered
How far into the future are risks
considered?
Comment
Six-monthly or more frequently
Individual/Sub-set of the Board or committee appointed by the Board
all areas of the Company operations
1 to 3 years
While 1-3 years are the direct scrutiny of impacts, longer term issues are considered in terms of likely operational and financial impacts. However, the longer the period, the greater the uncertainty surrounding likely outcomes.
CC2.1b
Please describe how your risk and opportunity identification processes are applied at both company and asset level
Each operating region (Asia Pacific/Europe/NA has for several years had in place a formal energy efficiency team, which monitors and report on energy initiatives in accordance with set targets and consistent with the Company's Energy Hierarchy of efficiency, replacement and offsets. Reporting on these parameters form part of reporting under the Safety, Health, Environment and Community umbrella, is applied at operational level and monitored by the regional SHEC Directors under the guidance of the Global Director - Sustainability.
CC2.1c
How do you prioritize the risks and opportunities identified?
The risks and opportunities are evaluated on a return on investment basis. It is part of the Company's articulated formal energy and carbon policy to adopt any project with a payback of less than 3 years. (See Energy and Carbon Policy on website: www.simsmm.com)
CC2.1d
Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future
Main reason for not having a process
Do you plan to introduce a process?
Comment
CC2.2
Is climate change integrated into your business strategy?
Yes
CC2.2a
Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process
Driving Customer Behaviour: Use of recycled materials is by far the most efficient way of reducing energy consumption and associated carbon emissions in manufacturing. Research by Imperial College, London show that the materials recycled by SimsMM in 2013 saved more than 12.9 million MWh of energy and avoided 13.4 million tonnes of CO2 being emitted, when compared with the use of virgin materials. This is enough to off-set the emissions of around 3.9 million average homes or roughly equivalent to that absorbed by 13.4 million trees, over a 100 year lifespan. This, combined with the international business and regulatory response to aspects of climate change is therefore driving an increased demand for recycled raw materials for SimsMM. With E-waste increasing at a rate of nearly 17 times that of traditional waste streams, there has also been a very significant rise in demand for recycling and refurbishment services to this sector as producers
increase their take-back responsibility and monitoring of their end of life or outdated electronic products that would otherwise end up in landfill. While some countries such as the UK and Europe have strong regulations, other countries have little or no legislation, but producer brands recognise this inconsistency in country legislation as a risk to their reputations and so are increasingly moving to behave in a consistent way - regardless of the regulatory requirements Accordingly, SimsMM has–significantly expanded- its processing capacity of E waste to meet this increasing demand by creating new facilities in Australia, the UK, Europe, India, North America, South Africa as well as the emerging markets in the Middle East (Dubai). There also continues to be an increase in the demand for most recycled metals including aluminium, as it significantly reduces the amount of energy required when compared to the processing of virgin raw materials. The prominent sustainability credentials of SimsMM, combined with access of energy efficient barge and port facilities in the City of New York, was also a significant factor in the Company winning the long term contract for the collection and processing of recyclables for that city Increased Baseline Costs of all Forms of Energy: The current and future trends for significant operational cost increases as a result of rising energy prices in all regions has led to a rigorous capital expenditure analysis process for all new capital expenditure in operational areas and transport that specifically includes the assessment of future energy costs as well as projected assessments of the likely reductions in payback time lines that result from such projected increases. This is seen specifically in the overhauling of the shredder programs in each region, investment in new hybrid technology for site equipment and the tracking and management of transportation contracts including requirements on external third parties to manage their energy consumption. Continuation of Merger and Acquisition Activity: There remain significant gains to be made with the consolidation of the recycling industry globally. Our M & A activity over the last decade has shown that we are focused on acquiring strategic assets that strengthen our access to recycling materials and markets but also allow us to take advantage of increasing the efficiency of income cost/benefit ratios and lower operating costs, including fuel efficiency. Increase in Investor interest: Over the last three years there has been a notable increase in investor interest in SimsMM, partly due to a growing understanding of SimsMM as a leading sustainable company (as reflected in our fifth year continued nomination by the World Economic Forum as one of the world’s100 most sustainable companies), but also because of increased investor recognition that SimsMM successfully has integrated the sustainability agenda into its business model, providing a solid risk management approach to all aspects of our business in an ever and fast changing world.. Investors also recognise that we are a growth organisation in an industry that will become even more important as countries, business and individuals adapt to the fundamental issues of a carbon (energy, water and other resources) constrained world. Other Industry Developments: P. Netchaef , SimsMM Global Director, Sustainability remain a member of the Australian Governments’ committee on the Stockholm Convention on POP’s as well as an adviser on several government initiatives on waste reduction and increased resource efficiency. Because of its prominent position as the world’s largest recycling company, the company is recognised as an important stakeholder and expert on resource efficiency, waste reduction and energy and carbon savings. SimsMM was honoured to be selected as “Carbon Performance Leader” as well as “Best of Sector” (materials) by the CDP among the ASX200 and NZ50 companies in 2012 as well as an index component in the Dow Jones Global Sustainability Index for the second time in 2013. Also selected for inclusion in the NYSE Euronext and Vigeo Index of the world's 120 most sustainable companies.
CC2.2b
Please explain why climate change is not integrated into your business strategy
CC2.3
Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)
Direct engagement with policy makers Trade associations Other
CC2.3a
On what issues have you been engaging directly with policy makers?
Focus of legislation
Corporate Position
Details of engagement
Proposed legislative solution
Carbon tax Support with major exceptions
SimsMM has significantly engaged with the UK Government on the CRC, which unfortunately has ended up as a simple tax, with proceeds going to consolidated revenue.
The ultimate purpose of a carbon tax is to punish poor energy behaviour. However, to achieve a transformation of energy delivery, the proceeds must be used to stimulate alternative energy sources that are sustainable and price competitive. Too often, proceeds are simply absorbed into general tax revenue, loosing both transparency and direct stimulus of the alternative energy sectors.
Energy efficiency
Support
SimsMM has an articulated hierarchy of energy use, based on efficiency, replacement with renewables and as a last resort, offsets and promotes this approach at all levels of engagement with policy makers.
Energy efficiency is in everybody's interest and should be incentivised. However, it very quickly becomes a diminishing return business and early movers should not be penalised. Equally, shareholding companies cannot spend shareholders money, where the return on investment cannot be justified
Clean energy generation
Support
SimsMM has a green energy company LMS, which supply significant green energy by converting landfill methane to renewable energy. LMS is recognised as an expert in its field and its expertise is keenly sought by government.
Abundant and clean energy is crucial for the continuation and sustainability of business, but the tendency of many governments to simply collect carbon tax revenue, without equal support for alternative energy sources, continues to mean that sustainable energy sources are not price competitive.
CC2.3b
Are you on the Board of any trade associations or provide funding beyond membership?
No
CC2.3c
Please enter the details of those trade associations that are likely to take a position on climate change legislation
Trade association
Is your position on climate change consistent with theirs?
Please explain the trade association's position
How have you, or are you attempting to, influence the position?
CC2.3d
Do you publically disclose a list of all the research organizations that you fund?
CC2.3e
Do you fund any research organizations to produce or disseminate public work on climate change?
CC2.3f
Please describe the work and how it aligns with your own strategy on climate change
CC2.3g
Please provide details of the other engagement activities that you undertake
SimsMM engages both directly and indirectly with policy makers through trade organisations, external third parties and NGO’s. In particular we pursue development of good legislative policy frameworks that encourage businesses to change behaviour to positively impact climate change risks and adopt energy efficient business practices. For example we continue to work with the UK Government on the continued development of the CRC scheme as well as on resource efficiency and associated energy benefits and how to remove government “red tape” which hinders efficient recycling. We engage actively with the Australian and US federal and
State Governments on the significant contribution that recycling and reuse of resources mean in terms of energy efficiency and the preservation/reuse of resources and our renewable energy company, LMS is a significant and prominent member in the renewable energy sector in Australasia. In broader support of industry efforts, the Company is a member of several relevant industry associations in the regions in which we operate and are constantly assessing the news and updates from these associations on political and industry developments in regard to new schemes for improvements in reporting, subsidies, new taxes and also industry improvements in business practices. Sims Recycling Solutions (UK) is the only recycling company to have achieved the Carbon Trust Standard, although we have discontinued our membership, since the changes implemented by the UK Government to the CRC has undermined this initiative. Other third party organisations: P. Netchaef, Global Director Sustainability is a member of the Australian Government delegation on the Stockholm Convention and also liaise with a number of senior government officials on matters of sustainable energy and resource efficiency. In all operating jurisdictions, SimsMM has close involvement with a number of key NGO organisations, ranging from smaller local interest groups to larger organisations such as The Bay Keeper (USA) and the Total Environment Centre (Australia).
CC2.3h
What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?
SimsMM Carbon and Climate Change Strategy is managed by a global Board Committee (Safety Health Environment and Community - SHEC) that ensures strategic alignment and a consistent approach and direction in each of regional teams. The 3 Regional SHEC Directors, conduct monthly update and progress meetings via telephone and meet annually face-to-face to discuss strategic direction and progress on formal action plans under the direction of the Global Director, Sustainability, Mr. Peter Netchaef. In addition, each region has a dedicated energy team, specifically tasked with providing targets and goals, consistent with the Company's energy hierarchy of efficiency, replacement and offsets and that these are aligned with operational practice. Results and progress is reported annually in the Company's public sustainability report.
CC2.3i
Please explain why you do not engage with policy makers
Further Information
Page: CC3. Targets and Initiatives
CC3.1
Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year?
Absolute and intensity targets
CC3.1a
Please provide details of your absolute target
ID
Scope
% of emissions in
scope
% reduction from base
year
Base year
Base year emissions
(metric tonnes CO2e)
Target year
Comment
Abs1 Scope 1+2
100% 15% 2009 272297 2020
This reduction target for SimsMM was revised following the merger of Sims Group with Metals Management Inc in 2008/09 FY. Our existing targets have been absolute reduction targets and while these have been achieved, we face problems going forward: Sims Metal Management has had spectacular growth over the last 10 years, mainly as a result of growth by acquisition and this trend continues. Absolute energy/carbon reduction is difficult to maintain in these circumstances. Therefore, the Company continues to examine a suitable metric going forward. Traditional energy/emission targets for our sector tend to evolve around emissions per EBIT or some similar financial indicator. As a recycling company, Sims Metal Management is subject to extreme commodity price variations that affect our earnings profile from year-to-year and hence this metric is inappropriate. Instead we are currently leaning towards metrics related to CO2 emission per sales tonnes and it is this metric we report on in our Annual Sustainability Report. For the purpose of continuity and for the purpose of this submission, we have chosen to report against both metrics.
Abs2 Scope 1
100% 15% 2009 122660 2020
This reduction target for SimsMM was revised following the merger of Sims Group with Metals Management Inc in 2008/09 FY. Our existing targets have been absolute reduction targets and while these have been achieved, we face problems going forward: Sims Metal Management has had spectacular growth over the last 10 years, mainly as a result of growth by acquisition and this trend continues. Absolute energy/carbon reduction is difficult to maintain in these circumstances. Therefore, the Company continues to examine a suitable metric going forward. Traditional energy/emission targets for our sector tend to evolve around emissions per EBIT or some similar financial indicator. As a recycling company, Sims Metal Management is subject to extreme commodity price variations that affect our earnings profile from year-to-year and hence this metric is inappropriate. Instead we are currently leaning towards metrics related to CO2 emission per sales tonnes
ID
Scope
% of emissions in
scope
% reduction from base
year
Base year
Base year emissions
(metric tonnes CO2e)
Target year
Comment
and it is this metric we report on in our Annual Sustainability Report. For the purpose of continuity and for the purpose of this submission, we have chosen to report against both metrics.
Abs3 Scope 2
100% 15% 2009 149636 2020
This reduction target for SimsMM was revised following the merger of Sims Group with Metals Management Inc in 2008/09 FY. Our existing targets have been absolute reduction targets and while these have been achieved, we face problems going forward: Sims Metal Management has had spectacular growth over the last 10 years, mainly as a result of growth by acquisition and this trend continues. Absolute energy/carbon reduction is difficult to maintain in these circumstances. Therefore, the Company continues to examine a suitable metric going forward. Traditional energy/emission targets for our sector tend to evolve around emissions per EBIT or some similar financial indicator. As a recycling company, Sims Metal Management is subject to extreme commodity price variations that affect our earnings profile from year-to-year and hence this metric is inappropriate. Instead we are currently leaning towards metrics related to CO2 emission per sales tonnes and it is this metric we report on in our Annual Sustainability Report. For the purpose of continuity and for the purpose of this submission, we have chosen to report against both metrics.
CC3.1b
Please provide details of your intensity target
ID
Scope
% of emissions in scope
% reduction from base
year
Metric
Base year
Normalized base year emissions
Target year
Comment
Int1 Scope 1+2
100% 15% metric tonnes CO2e per
2009 0.24 2020 Emissions of CO2 per tonne rose slightly from 18kg in F12 to just under 0.20 in F13. This reflected decreased efficiency in
ID
Scope
% of emissions in scope
% reduction from base
year
Metric
Base year
Normalized base year emissions
Target year
Comment
metric tonne of product
production due to lower throughput volumes. This notwithstanding, the target has been exceeded for some years.
Int2 Scope 1+2
100% 15% Other: GJ per tonne of product sold
2009 0.25 2020
Energy consumption per tonne rose slightly from 0.188GJ/tonne in F12 to 0,206 GJ/tonne in F13. This reflected decreased efficiency in production due to lower throughput volumes. This notwithstanding, the target has been exceeded for some years.
CC3.1c
Please also indicate what change in absolute emissions this intensity target reflects
ID
Direction of change
anticipated in absolute Scope 1+2 emissions
at target completion?
% change anticipated in absolute Scope 1+2 emissions
Direction of change
anticipated in absolute Scope 3 emissions at
target completion?
% change anticipated in absolute
Scope 3 emissions
Comment
Int1 Decrease No change
Based on the base year of 2009, the adopted 15% reduction target represents a scope1 and 2 CO2 reduction of 40,845 tonnes. However, as mentioned above, this target was achieved several years ago and has been bettered. Emissions in F13 were 253,657 tonnes, compared to 319,256 tonnes in the base year of 2009. This is a total reduction of 65,599 tonnes of CO2 emissions to date.
CC3.1d
For all of your targets, please provide details on the progress made in the reporting year
ID
% complete
(time)
% complete (emissions)
Comment
Abs1 100% 100%
The total CO2 emissions for F13 was 253,657 tonne and for F12 it was 256,215 tonnes, a further reduction of 1 percent. The emissions for both years are below the base year of 2009, and hence the target has been fully achieved. This aside and as noted in CC3.1a, absolute targets are not ideal going forward. Sims Metal Management has had spectacular growth over the last 10 years, mainly as a result of growth by acquisition and this trend continues. Absolute energy/carbon reduction makes little sense in these circumstances. Therefore, the Company is currently examining a suitable metric going forward. Traditional energy/emission targets for our sector tend to evolve around emissions per EBIT or some similar financial indicator. As a recycling company, Sims Metal Management is subject to extreme commodity price variations that affect our earnings profile from year-to-year and hence this base metric is also inappropriate. Instead we are currently leaning towards metrics related to CO2 emission per sales tonnes as it reflects operational activity and it is this metric we report on in our Annual Sustainability Report.
CC3.1e
Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years
CC3.2
Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party?
Yes
CC3.2a
Please provide details of how the use of your goods and/or services directly enable GHG emissions to be avoided by a third party
The use of secondary raw materials in preference to virgin is one of the most effective ways of reducing energy consumption and the associated GHG emissions. As the world's largest recycling company, the use of materials recycled by SimsMM makes a very significant contribution to a global reduction in CO2 emissions. Using data compiled by the Imperial College in London, the ferrous, non-ferrous, plastics, electronics and other materials collected and recycled by SimsMM in 2013 avoided 13.4 million tonnes of CO2 equivalent being released to the atmosphere through the use by third parties of our products, a ratio of 1 in 53.
CC3.3
Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and implementation phases)
Yes
CC3.3a
Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings
Stage of development
Number of projects
Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)
Under investigation 5
To be implemented* 2 80
Implementation commenced* 1 58.3
Implemented* 2 8554.6
Not to be implemented 1
CC3.3b
For those initiatives implemented in the reporting year, please provide details in the table below
Activity type
Description of activity
Estimated annual CO2e
savings (metric
tonnes CO2e)
Annual monetary
savings (unit currency - as specified in
CC0.4)
Investment required (unit currency - as specified in
CC0.4)
Payback period
Estimated lifetime of
the initiative,
years
Comment
Transportation: fleet Replacement to more fuel efficient trucks - US
541.4 1-3 years 5-10 years
Low carbon energy installation
Installation of Solar arrays - Brooklyn and Claremont US
93.0 1-3 years 10 plus years
Transportation: fleet Replacement of fork lift truck with Hybrid units - UK
58.3 4-10 years
Energy efficiency: Processes
Process optimisation at various sites in the UK and Australia.
7920.2 4-10 years
CC3.3c
What methods do you use to drive investment in emissions reduction activities?
Method
Comment
Compliance with regulatory requirements/standards
Within Australia there is a requirement under the Energy Efficiency Opportunities Act to implement energy efficiency measures that have a less than 3 year payback period. This payback period has been adopted as a guideline within our internal energy policy also. The UK encourages energy efficiency through the CRC legislation which requires our businesses in the UK to pay a tax on energy per MWh
Dedicated budget for energy efficiency
As a recycling company, all of the company's operational expenditure is targeted at better recovery resulting in energy efficiency achieved by use of our products by our customers. In F13, approximately $25 million of capital expenditure was directly targeted at improving energy and operational efficiencies. However, SimsMM is a publicly listed company and as such management is obliged to ensure the most efficient allocation of shareholder's funds. Energy efficiency is as a consequence subject to the same evaluation criteria as applies to all investments. As articulated in our Energy and Carbon
Method
Comment
Policy (available on www.simsmm.com ) it is company policy to approve energy/carbon efficient measures with a payback of 3 years and less
Dedicated budget for low carbon product R&D
As a recycling company, all products that SimsMM produce result in very significant carbon emissions reduction, as they are used in preference to virgin ore, new plastics and by extending life of existing electronic components and products. The total carbon savings from the use of our products in 2013 were a staggering 13.4 million tonnes of CO2, enough to offset the total emissions profile of many smaller countries. It can therefore reasonably be argued that the Group's entire operating budget is invested in carbon emissions reduction.
Partnering with governments on technology development
In the USA there have been municipal incentive programs to introduce alternate renewable energy sources. The UK is also working with Government on energy efficiency measures, including ongoing trials of the UK’s first hydrogen powered fork trucks and the replacement program of operating equipment, including hybrid machinery, smart metering of energy and water at our facilities and automated energy systems.
Financial optimization calculations
In all regions, the company has dedicated energy teams, which directly and regularly interface with the operational teams. This occurs at planning as well as operational levels, when new equipment is planned or when retro fitting of existing equipment takes place. With power being a significant and increasing cost component, the teams work on optimisation models for equipment, taking into account existing and projected power costs, peak demand periods and reducing power consumption where operationally possible and beneficial.
CC3.3d
If you do not have any emissions reduction initiatives, please explain why not
Further Information
Page: CC4. Communication
CC4.1
Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s)
Publication
Page/Section reference
Attach the document
In mainstream financial reports (complete) Annual Sustainability Report
In other regulatory filings (complete) NGER and EEO act reporting (Australia)
In other regulatory filings (complete) CRC reporting (UK)
In voluntary communications (complete) Reporting to Dow Jones Sustainability Index
In voluntary communications (complete) Vigeo NYSE Euronext
In voluntary communications (complete) TruCost
Further Information
Module: Risks and Opportunities
Page: CC5. Climate Change Risks
CC5.1
Have you identified any climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply
Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments
CC5.1a
Please describe your risks driven by changes in regulation
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
Carbon taxes
SimsMM is not an energy intensive user by comparison to most industry sectors and hence the overall impact of carbon taxes on operational cost, while noticeable is relatively low. The company is not directly affected by the Australian Carbon tax legislation, nor the European carbon trading scheme, and at the present time, carbon taxes looks unlikely at a federal US level. The company is captured by the UK CRC legislations, with direct costs in the order of £350,000 (F12).
Increased operational cost
Direct Virtually certain
Low
Fuel/energy taxes and regulations
Fuels are a major contributor to our overall CO2 emissions profile. We anticipate that there will be an increase in both the cost of electricity and fuel in all jurisdictions in which we operate. For example: Fuel costs in Australia and Europe have risen by approximately 20% over the last 3 years, a trend we expect to continue. Apart from these direct commercial rises, flow-on costs from the carbon tax in Australia has increased costs in Australia
Increased operational cost
Direct Very likely Medium
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
by approximately Aus$1.5 million and is expected to be slightly higher this year at Aus$2 million..
Uncertainty surrounding new regulation
The implications of the UK CRC scheme are well understood and accounted for as part of our operational costs. In the US, the present political climate seems unlikely to give rise to carbon taxes. In Australia, SimsMM is not captured under the current legislation, but it remains to be seen what a likely change of government will do following the federal election in September, 2013. The opposition has vowed to abolish the current carbon tax.
Increased operational cost
Direct Unlikely Low
CC5.1b
Please describe your risks that are driven by change in physical climate parameters
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
Uncertainty of physical risks
Potential to damage of operational buildings due to
Inability to do business
Direct About as likely as not
Low
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
extreme weather events, but with a diverse infrastructure material for processing is simply re-diverted and overall impact is low as demonstrated during the recent severe floods in Australia and the US.
Change in precipitation extremes and droughts
Access and cost of water for shredders in Australia, where water use can be restricted in long periods of drought. However, SimsMM is not a large user of water and hence this is not a major operational exposure.
Increased operational cost
Direct About as likely as not
Low
CC5.1c
Please describe your risks that are driven by changes in other climate-related developments
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated Financial
Implications
Management
method
Cost of
management
Uncertainty in market signals
SimsMM relies on market signals that encourage and support other businesses and individuals to recycle material or purchase recycled materials. While uncertainty from
Reduced demand for goods/services
Direct About as likely as not
Low
Risk driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated Financial
Implications
Management
method
Cost of
management
government legislation is ever present, the continuing and universal increase in energy cost, continue to drive the use of recycled materials in preference to virgin
CC5.1d
Please explain why you do not consider your company to be exposed to risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure
CC5.1e
Please explain why you do not consider your company to be exposed to risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure
CC5.1f
Please explain why you do not consider your company to be exposed to risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure
Further Information
Page: CC6. Climate Change Opportunities
CC6.1
Have you identified any climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply
Opportunities driven by changes in other climate-related developments
CC6.1a
Please describe your opportunities that are driven by changes in regulation
Opportunity driver
Description
Potential impact
Timeframe
Direct/Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
CC6.1b
Please describe the opportunities that are driven by changes in physical climate parameters
Opportunity driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
CC6.1c
Please describe the opportunities that are driven by changes in other climate-related developments
Opportunity driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
Reputation
SimsMM as the largest recycler in the world is the recycler of choice for industry and governments in our current jurisdictions of the USA, Asia Pacific and Europe including UK. As the impact of increased energy costs affects primary and secondary manufacturing, the demand for energy efficient secondary raw materials increase.
Increased demand for existing products/services
1 to 3 years
Direct Very likely Low-medium
Reputation
While the continued financial turmoil in the world affects the company's short term performance, there is significant interest and support for SimsMM and
Increased stock price (market valuation)
1 to 3 years
Direct Very likely Medium
Opportunity driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
its business activities. As Governments continue to legislate in regard to waste management financial institutions will become interested in both the debt and equity aspects of the SimsMM growth strategy.
Changing consumer behaviour
Individuals and businesses are becoming more aware of the need to use the earth's resources in a careful and cost efficient way and are increasing their recycling behaviour without regulatory intervention
Increased demand for existing products/services
3 to 6 years
Direct Likely Medium
Changing consumer behaviour
Globally business will be anticipating ways in which they can use recycled materials. We are looking at product innovation - especially increasing the reclaiming of raw materials from e waste, including increased plastics recovery and value. This is well underway, with recycling recoveries from for example motor vehicles nearing 90%. This
Increased demand for existing products/services
1 to 3 years
Indirect (Supply chain)
More likely than not
Medium
Opportunity driver
Description
Potential impact
Timeframe
Direct/ Indirect
Likelihood
Magnitude of impact
Estimated financial
implications
Management
method
Cost of
management
compares to historical recoveries 15 years ago of around 75-80%.
CC6.1d
Please explain why you do not consider your company to be exposed to opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure
As the largest recycling company in the world, the Company's operations are already closely aligned with political and social outcomes. These have been well established over many decades and while further regulation potentially could achieve higher recycling outcomes, these are already very high, with mandated recycling targets such as in the EU already above 85% and rising. Further demands on recovery are limited by technology and costs.
CC6.1e
Please explain why you do not consider your company to be exposed to opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure
As a highly diversified company with more than 260 operations across major continents, the company's operations are only affected by physical climate parameters to a limited extent as demonstrated by the limited effects on operational activity from the large climate events in the US and Australia recently. Rising water levels, may potentially effect some of the company's port facilities, but these effects have been studied and have been shown to be relatively slow, easily monitored and mitigated if necessary. Interestingly, the devastation often associated with large catastrophic climate events actually tend to generate availability of scrap and secondary raw material for recycling.
CC6.1f
Please explain why you do not consider your company to be exposed to opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure
Further Information
Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading
Page: CC7. Emissions Methodology
CC7.1
Please provide your base year and base year emissions (Scopes 1 and 2)
Base year
Scope 1 Base year emissions (metric tonnes
CO2e)
Scope 2 Base year emissions (metric
tonnes CO2e)
Tue 01 Jul 2008 - Tue 30 Jun 2009
122660 149636
CC7.2
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
Please select the published methodologies that you use
Australia - National Greenhouse and Energy Reporting Act
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)
CC7.2a
If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions
USA EPA E Grid coefficients 2010
CC7.3
Please give the source for the global warming potentials you have used
Gas
Reference
CO2 IPCC Fourth Assessment Report (AR4 - 100 year)
CC7.4
Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page
Fuel/Material/Energy
Emission Factor
Unit
Reference
Further Information
Emission factors used for calculation of scope 1 & 2 are on the 3rd tab of the attached Excel Energy waste & water Co2 calcs V6 LFM.xls
Attachments
https://www.cdp.net/sites/2014/28/17028/Investor CDP 2014/Shared Documents/Attachments/InvestorCDP2014/CC7.EmissionsMethodology/Attached CDP Final energy waste water and Co2e calcs v 6 LFM.xlsx
Page: CC8. Emissions Data - (1 Jul 2011 - 30 Jun 2012)
CC8.1
Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory
Operational control
CC8.2
Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e
117886
CC8.3
Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e
138329
CC8.4
Are there are 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?
No
CC8.4a
Please provide details of the sources 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
excluded from this source
Explain why the source is excluded
CC8.5
Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations
Scope 1
emissions: Uncertainty
range
Scope 1
emissions: Main sources of uncertainty
Scope 1 emissions: Please expand on
the uncertainty in your data
Scope 2
emissions: Uncertainty
range
Scope 2
emissions: Main sources of uncertainty
Scope 2 emissions: Please expand on
the uncertainty in your data
More than 2% but less than or equal to 5%
Data Gaps Metering/ Measurement Constraints Data Management
Consumption data is collected across several regions which have multiple sites and multiple energy providers. Data is not calculated form financial invoices but from a separate data collection process in each region. Differences in process and methodology between regions exists
More than 2% but less than or equal to 5%
Data Gaps Metering/ Measurement Constraints Data Management
Consumption data is collected across several regions which have multiple sites and multiple energy providers. Data is not calculated form financial invoices but from a separate data collection process in each region. Differences in process and methodology between regions exists
CC8.6
Please indicate the verification/assurance status that applies to your reported Scope 1 emissions
No third party verification or assurance
CC8.6a
Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements
Type of verification or assurance
Attach the statement
Page/section reference
Relevant standard
Proportion of reported Scope 1 emissions verified (%)
CC8.6b
Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)
Regulation
% of emissions covered by the system
Compliance period
Evidence of submission
CC8.7
Please indicate the verification/assurance status that applies to your reported Scope 2 emissions
No third party verification or assurance
CC8.7a
Please provide further details of the verification/assurance undertaken for your Scope 2 emissions, and attach the relevant statements
Type of verification or assurance
Attach the statement
Page/Section reference
Relevant standard
Proportion of Scope 2 emissions verified (%)
CC8.8
Please identify if any data points other than emissions figures have been verified as part of the third party verification work undertaken
Additional data points verified
Comment
No additional data verified
At this stage Sims MM is not required to undertake verification for public/government reporting. SIMS MM sustainability agenda is primarily driven by introducing operational efficiency to our business and that the cost of verification is not seen as cost effective at this stage.
CC8.9
Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?
No
CC8.9a
Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2
Further Information
At this stage Sims MM is not required to undertake verification for public/government reporting. SIMS MM sustainability agenda is primarily driven by introducing operational efficiency to our business and that the cost of verification is not seen as cost effective at this stage.
Page: CC8. Emissions Data - (1 Jul 2012 - 30 Jun 2013)
CC8.1
Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory
Operational control
CC8.2
Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e
111133
CC8.3
Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e
142526
CC8.4
Are there are 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?
No
CC8.4a
Please provide details of the sources 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
excluded from this source
Explain why the source is excluded
CC8.5
Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations
Scope 1
emissions: Uncertainty
range
Scope 1
emissions: Main sources of uncertainty
Scope 1 emissions: Please expand on
the uncertainty in your data
Scope 2
emissions: Uncertainty
range
Scope 2
emissions: Main sources of uncertainty
Scope 2 emissions: Please expand on
the uncertainty in your data
More than 2% but less than or equal to 5%
Data Gaps Metering/ Measurement Constraints Data Management
Consumption data is collected across several regions which have multiple sites and multiple energy providers. Data is not calculated form financial invoices but from a separate data collection process in each region. Differences in process and methodology between regions exists
More than 2% but less than or equal to 5%
Data Gaps Metering/ Measurement Constraints Data Management
Consumption data is collected across several regions which have multiple sites and multiple energy providers. Data is not calculated form financial invoices but from a separate data collection process in each region. Differences in process and methodology between regions exists
CC8.6
Please indicate the verification/assurance status that applies to your reported Scope 1 emissions
No third party verification or assurance
CC8.6a
Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements
Type of verification or assurance
Attach the statement
Page/section reference
Relevant standard
Proportion of reported Scope 1 emissions verified (%)
CC8.6b
Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS)
Regulation
% of emissions covered by the system
Compliance period
Evidence of submission
CC8.7
Please indicate the verification/assurance status that applies to your reported Scope 2 emissions
No third party verification or assurance
CC8.7a
Please provide further details of the verification/assurance undertaken for your Scope 2 emissions, and attach the relevant statements
Type of verification or assurance
Attach the statement
Page/Section reference
Relevant standard
Proportion of Scope 2 emissions verified (%)
CC8.8
Please identify if any data points other than emissions figures have been verified as part of the third party verification work undertaken
Additional data points verified
Comment
No additional data verified
At this stage Sims MM is not required to undertake verification for public/government reporting. SIMS MM sustainability agenda is primarily driven by introducing operational efficiency to our business and that the cost of verification is not seen as cost effective at this stage.
CC8.9
Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?
No
CC8.9a
Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2
Further Information
At this stage Sims MM is not required to undertake verification for public/government reporting. SIMS MM sustainability agenda is primarily driven by introducing operational efficiency to our business and that the cost of verification is not seen as cost effective at this stage.
Page: CC9. Scope 1 Emissions Breakdown - (1 Jul 2011 - 30 Jun 2012)
CC9.1
Do you have Scope 1 emissions sources in more than one country?
Yes
CC9.1a
Please break down your total gross global Scope 1 emissions by country/region
Country/Region
Scope 1 metric tonnes CO2e
Australia 23536
New Zealand 1078
Papua New Guinea 207
United Kingdom 15970
Sweden 247
Netherlands 805
Germany 826
Belgium 24
United States of America 74902
Canada 291
CC9.2
Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)
By business division
CC9.2a
Please break down your total gross global Scope 1 emissions by business division
Business division
Scope 1 emissions (metric tonnes CO2e)
Sims Metal 109157
Sims SRS 8729
CC9.2b
Please break down your total gross global Scope 1 emissions by facility
Facility
Scope 1 emissions (metric tonnes CO2e)
Latitude
Longitude
CC9.2c
Please break down your total gross global Scope 1 emissions by GHG type
GHG type
Scope 1 emissions (metric tonnes CO2e)
CC9.2d
Please break down your total gross global Scope 1 emissions by activity
Activity
Scope 1 emissions (metric tonnes CO2e)
CC9.2e
Please break down your total gross global Scope 1 emissions by legal structure
Legal structure
Scope 1 emissions (metric tonnes CO2e)
Further Information
Page: CC9. Scope 1 Emissions Breakdown - (1 Jul 2012 - 30 Jun 2013)
CC9.1
Do you have Scope 1 emissions sources in more than one country?
Yes
CC9.1a
Please break down your total gross global Scope 1 emissions by country/region
Country/Region
Scope 1 metric tonnes CO2e
Australia 22812
New Zealand 1157
Papua New Guinea 283
United Kingdom 16240
Sweden 286
Netherlands 854
Germany 1019
Belgium 30
United States of America 67882
Canada 570
CC9.2
Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)
By business division
CC9.2a
Please break down your total gross global Scope 1 emissions by business division
Business division
Scope 1 emissions (metric tonnes CO2e)
Sims Metals 100795
Sims SRS 10338
CC9.2b
Please break down your total gross global Scope 1 emissions by facility
Facility
Scope 1 emissions (metric tonnes CO2e)
Latitude
Longitude
CC9.2c
Please break down your total gross global Scope 1 emissions by GHG type
GHG type
Scope 1 emissions (metric tonnes CO2e)
CC9.2d
Please break down your total gross global Scope 1 emissions by activity
Activity
Scope 1 emissions (metric tonnes CO2e)
CC9.2e
Please break down your total gross global Scope 1 emissions by legal structure
Legal structure
Scope 1 emissions (metric tonnes CO2e)
Further Information
Page: CC10. Scope 2 Emissions Breakdown - (1 Jul 2011 - 30 Jun 2012)
CC10.1
Do you have Scope 2 emissions sources in more than one country?
Yes
CC10.1a
Please break down your total gross global Scope 2 emissions and energy consumption by country/region
Country/Region
Scope 2 metric tonnes CO2e
Purchased and consumed electricity, heat, steam or cooling
(MWh)
Purchased and consumed low carbon electricity, heat, steam or cooling accounted for CC8.3 (MWh)
Australia 34646 33636
New Zealand 903 5421
Papua New Guinea 59 79
United Kingdom 19760 43960
Sweden 102 2356
Netherlands 1746 4662
Germany 2600 6040
Belgium 27 124
United States of America 77416 161255
Canada 1070 6401
CC10.2
Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)
By business division
CC10.2a
Please break down your total gross global Scope 2 emissions by business division
Business division
Scope 2 emissions (metric tonnes CO2e)
Sims Metals 118184
Sims SRS 20145
CC10.2b
Please break down your total gross global Scope 2 emissions by facility
Facility
Scope 2 emissions (metric tonnes CO2e)
CC10.2c
Please break down your total gross global Scope 2 emissions by activity
Activity
Scope 2 emissions (metric tonnes CO2e)
CC10.2d
Please break down your total gross global Scope 2 emissions by legal structure
Legal structure
Scope 2 emissions (metric tonnes CO2e)
Further Information
Page: CC10. Scope 2 Emissions Breakdown - (1 Jul 2012 - 30 Jun 2013)
CC10.1
Do you have Scope 2 emissions sources in more than one country?
Yes
CC10.1a
Please break down your total gross global Scope 2 emissions and energy consumption by country/region
Country/Region
Scope 2 metric tonnes CO2e
Purchased and consumed electricity, heat, steam or cooling
(MWh)
Purchased and consumed low carbon electricity, heat, steam or cooling accounted for CC8.3 (MWh)
Australia 37836 36734
New Zealand 997 5969
Papua New Guinea 103 139
United Kingdom 25048 55662
Sweden 128 2970
Netherlands 1769 4731
Germany 2908 6762
Belgium 27 122
United States of America 72734 151529
Canada 976 5844
CC10.2
Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)
By business division
CC10.2a
Please break down your total gross global Scope 2 emissions by business division
Business division
Scope 2 emissions (metric tonnes CO2e)
Sims Metals 114311
Sims SRS 28215
CC10.2b
Please break down your total gross global Scope 2 emissions by facility
Facility
Scope 2 emissions (metric tonnes CO2e)
CC10.2c
Please break down your total gross global Scope 2 emissions by activity
Activity
Scope 2 emissions (metric tonnes CO2e)
CC10.2d
Please break down your total gross global Scope 2 emissions by legal structure
Legal structure
Scope 2 emissions (metric tonnes CO2e)
Further Information
Page: CC11. Energy
CC11.1
What percentage of your total operational spend in the reporting year was on energy?
More than 0% but less than or equal to 5%
CC11.2
Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year
Energy type
MWh
Fuel 462724
Electricity 270462
Heat
Energy type
MWh
Steam
Cooling
CC11.3
Please complete the table by breaking down the total "Fuel" figure entered above by fuel type
Fuels
MWh
Motor gasoline 4931
Diesel/Gas oil 368028
Liquefied petroleum gas (LPG) 10307
Natural gas 79458
CC11.4
Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the Scope 2 figure reported in CC8.3
Basis for applying a low carbon emission factor
MWh associated with low carbon electricity, heat, steam or cooling
Comment
No purchases or generation of low carbon electricity, heat, steam or cooling accounted with a low carbon emissions factor
Further Information
Page: CC12. Emissions Performance
CC12.1
How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?
Decreased
CC12.1a
Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year
Reason
Emissions value
(percentage)
Direction of change
Comment
Emissions reduction activities
3.4 Decrease Emissions directly reduced as a function of targeted activities as outlined in section cc3.3a. specifically, new solar arrays in the USA, and more fuel efficient equipment employed in the USA and the UK. These activities resulted in a direct reduction of CO2 emissions of 8,613 tonnes in F13
Divestment
Acquisitions
Mergers
Change in output
Change in methodology
Change in boundary
Change in physical operating conditions
2.4 Increase
Due to a decrease in intake volumes and hence less efficient production ratio's, CO2 emissions increased by 6,055 tonnes across all operations. The net outcome being an overall reduction of only 2,558 tonnes across the Group as reflected in the total difference between F12 and F13 emissions of 256,215 tonnes and 253,657 tonnes respectively.
Unidentified
Other
CC12.2
Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue
Intensity figure
Metric numerator
Metric denominator
% change from
previous year
Direction of change
from previous
year
Reason for change
0.0000353 metric tonnes CO2e
unit total revenue
23.9 Increase
As explained in earlier sections, SimsMM operates in a highly volatile commodities industry where revenue is more a function of commodity price movements than operational activity. Accordingly SimsMM is not in favour of this as an intensity indicator and prefer other, more operationally relevant markers. However, for the purpose of this question, total revenue for F13 was $7.193 billion with a corresponding Scope 1+2 emissions of 253,657 tonnes. In F12 the revenue was $9.0 billion, with Scope 1+2 emissions at 256,215 tonnes, which provides for 0.0000353t/$ versus 0.0000285t/$ - an increase of 23.9% over F12
CC12.3
Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee
Intensity figure
Metric numerator
Metric denominator
% change from
previous year
Direction of change from
previous year
Reason for change
38.3 metric tonnes CO2e
FTE employee
4.9 Increase Operational activity is dominated by intake tonnes. One cannot run "half a truck" when intake tonnes are down by 50% and with a large and diversified employment structure, this is not a linear equation. While there were significant reductions in staff
Intensity figure
Metric numerator
Metric denominator
% change from
previous year
Direction of change from
previous year
Reason for change
during F13, many of these were not related to production and hence this metric is again not a good indicator of energy efficiency.
CC12.4
Please provide an additional intensity (normalized) metric that is appropriate to your business operations
Intensity figure
Metric numerator
Metric denominator
% change from
previous year
Direction of change
from previous
year
Reason for change
0.0198 metric tonnes CO2e
metric tonne of product
11.9 Increase
The secondary raw material that SimsMM produces save huge amounts of energy and hence CO2 emissions, but these are only realised when consumers choose our secondary raw materials in preference to virgin materials. As per previous entries, Sims has been impacted by lower intake and sales volumes as a result of the GFC and as a consequence, operational efficiency has been impacted. That should not detract from the company's ongoing commitment to reduce its operational CO2 footprint, which remains small at 19.8kg/sales tonne (F13) and 17.7kg/sales tonne in F12. It should be remembered that while the total operational activities of SimsMM in F13 gave rise to 253,657 tonnes of CO2 emissions, the materials produced saved more than 13.4 tonnes of CO2 being emitted to the atmosphere.
Further Information
Page: CC13. Emissions Trading
CC13.1
Do you participate in any emissions trading schemes?
No, and we do not currently anticipate doing so in the next 2 years
CC13.1a
Please complete the following table for each of the emission trading schemes in which you participate
Scheme name
Period for which data is supplied
Allowances allocated
Allowances purchased
Verified emissions in metric tonnes CO2e
Details of ownership
CC13.1b
What is your strategy for complying with the schemes in which you participate or anticipate participating?
CC13.2
Has your organization originated any project-based carbon credits or purchased any within the reporting period?
No
CC13.2a
Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period
Credit origination
or credit purchase
Project type
Project identification
Verified to which standard
Number of credits (metric
tonnes of CO2e)
Number of credits (metric tonnes
CO2e): Risk adjusted volume
Credits cancelled
Purpose, e.g. compliance
Further Information
Page: CC14. Scope 3 Emissions
CC14.1
Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions
Sources of Scope 3 emissions
Evaluation status
metric tonnes CO2e
Emissions calculation methodology
Percentage of emissions calculated
using primary data
Explanation
Purchased goods and services
Not relevant, explanation provided
All crucial business functions are provided in house, including services and purchased goods, which is accordingly accounted for as a matter of course within our Scope 1 and 2 reporting. Where such goods and services fall distinctly outside our footprint, we consider that as a matter for the entity to report as part of their operational activities.
Capital goods Not relevant, explanation provided
All crucial business functions are provided in house, including services and purchased goods, which is accordingly accounted for as a matter of course within our Scope 1 and 2 reporting. Where such goods and services fall distinctly outside our footprint, we consider that as a matter for the entity to report as part of their operational activities.
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Not relevant, explanation provided
All crucial business functions are provided in house, including services and purchased goods, which is accordingly accounted for as a matter of course within our Scope 1 and 2 reporting. Where such goods and services fall distinctly outside our footprint, we consider that as a matter for the entity to report as part of their operational activities.
Sources of Scope 3 emissions
Evaluation status
metric tonnes CO2e
Emissions calculation methodology
Percentage of emissions calculated
using primary data
Explanation
Upstream transportation and distribution
Not relevant, explanation provided
All crucial business functions are provided in house, including services and purchased goods, which is accordingly accounted for as a matter of course within our Scope 1 and 2 reporting. Where such goods and services fall distinctly outside our footprint, we consider that as a matter for the entity to report as part of their operational activities.
Waste generated in operations
Not relevant, explanation provided
All crucial business functions are provided in house, including services and purchased goods, which is accordingly accounted for as a matter of course within our Scope 1 and 2 reporting. Where such goods and services fall distinctly outside our footprint, we consider that as a matter for the entity to report as part of their operational activities.
Business travel Not evaluated
Until boundary conditions are suitably clarified, we consider that the matter of CO2 emissions in the course of business travel is a matter for the provider to report, when SimsMM purchase such travel under normal commercial arrangements.
Employee commuting Not evaluated SimsMM does not provide or reimburse employee commuting and hence this does not come within our sphere of reporting
Upstream leased assets
Not relevant, explanation provided
SimsMM owns and operates all its assets, which all report under our footprint.
Downstream transportation and distribution
Not relevant, explanation provided
All crucial business functions are provided in house, including services, transportation and distribution, which is accordingly accounted for as a matter of course within our Scope 1 and 2 reporting. Where such goods and services fall distinctly outside our footprint, we consider that as a matter for the entity to report as part of their operational activities.
Processing of sold products
Relevant, calculated
The services and products provided by SimsMM during F13 saved in excess of 13.4 million tonnes of CO2. See Annual Sustainability Report F13 (www.simsmm.com)
Use of sold products Relevant, calculated
The services and products provided by SimsMM during F13 saved in excess of 13.4 million tonnes of CO2. See Annual Sustainability Report F13 (www.simsmm.com)
End of life treatment of sold products
Relevant, calculated
The services and products provided by SimsMM during F13 saved in excess of 13.4 million tonnes of CO2. See Annual Sustainability Report F13 (www.simsmm.com)
Sources of Scope 3 emissions
Evaluation status
metric tonnes CO2e
Emissions calculation methodology
Percentage of emissions calculated
using primary data
Explanation
Downstream leased assets
Not relevant, explanation provided
SimsMM owns and operates all its assets, which report under our footprint.
Franchises Not relevant, explanation provided
SimsMM does not have any franchises
Investments Not relevant, explanation provided
SimsMM is the world's largest recycler deriving income from operational activities, not investments.
Other (upstream) Not evaluated
Other (downstream) Not evaluated
CC14.2
Please indicate the verification/assurance status that applies to your reported Scope 3 emissions
No emissions data provided
CC14.2a
Please provide further details of the verification/assurance undertaken, and attach the relevant statements
Type of verification
or assurance
Attach the statement
Page/Section reference
Relevant standard
Proportion of Scope 3 emissions verified (%)
CC14.3
Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?
No, we don’t have any emissions data
CC14.3a
Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year
Sources of Scope 3
emissions
Reason for change
Emissions value
(percentage)
Direction of change
Comment
CC14.4
Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)
Yes, our suppliers Yes, our customers Yes, other partners in the value chain
CC14.4a
Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success
As the worlds' largest recycler, SimsMM provides crucial secondary raw materials and services to a large number of global customers. Most of these are crucially interested in their supply chain and its associated CO2 footprint. SimsMM works with all these customers as well as with the International Recycling Association (BIR), ISRI (USA) sponsoring detailed lifecycle analysis, to substantiate to customers and Government's the huge energy and CO2 savings that the use of recycled materials represent. This also includes the company's electronics recycling and re-use division, again the largest in the world.
CC14.4b
To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent
Number of suppliers
% of total spend
Comment
100000 Information is provided free of charge as part of our ongoing commitment to recycling. The company has 10's of thousands direct customers worldwide and in turn, many sub- customers
CC14.4c
If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data
How you make use of
the data
Please give details
We do not have any data
As explained earlier, all crucial business activities are controlled in house and thus accounted for as part of our Scope1 and 2 footprint. Where such services are provided to us on a normal commercial basis, we expect such suppliers to provide their energy and CO2 footprint as part of the services provided as part of those commercial arrangements.
CC14.4d
Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future
Further Information
Module: Sign Off
Page: CC15. Sign Off
CC15.1
Please provide the following information for the person that has signed off (approved) your CDP climate change response
Name
Job title
Corresponding job category
Peter Netchaef Acting Global Director, Sustainability Environment/Sustainability manager
Further Information
CDP 2014 Investor CDP 2014 Information Request