Environment
Carbon footprint Pollution and emissions Energy-efficiency Product responsibility
Altron recognises that managing the environmental impact of its businesses is an important aspect of triple bottom line corporate responsibility. The ICT sector in which it operates is not classified as a high-impact industry, but Altron is nevertheless committed to understanding its potential environmental impact and reducing it where possible.
In quantifying how its businesses impact the environment Altron is guided by independently commissioned audits, international standards such as ISO 14001, local benchmarks such as the JSE SRI Index, environmental elements of the GRI’s G3 index and the relevant South African legal and regulatory frameworks. From the information gathered, we are cognisant that the Powertech group has by far the largest propensity for impacting the environment, and consequently many of the systems and responses relate largely to this group’s operations.
|
Collectively these have informed the identification of the Altron group’s most material environmental issues:
Carbon emissions
Energy use and efficiency
Pollution
Environmental impact of products and recycling thereof.
Reporting and compliance with legislation
The Altron group complies with all relevant environmental legislation and there were no significant environmental incidents, and no fines or prosecutions during the year under review.The environmental aspects and impacts have been identified and logged at each site and this information is captured into an Environment Management System (EMS), which details the targets and objectives set by management on an annual basis. In line with the requirements of ISO 14001 the EMS also provides a record for annual environmental performance audits. During the year, Altron’s Everest information management system was extended to facilitate group management of environmental impacts.
Name |
ISO 14001 |
ISO 18001 and other |
|||
| Arrow Altech Distribution |
Compliant but not accredited as it handles no hazardous substances |
ROHS compliant (the European standard for removal of harmful substances) | |||
| Altech Netstar | 70% of components received lead-free | ||||
| Altech UEC | System has been updated for ISO 14001 compliance. Audit has been undertaken and results are awaited for June 2009 |
ROHS compliant WEEE compliant | |||
| Aberdare Cables | Standford Road (Port Elizabeth) and Pietermaritzburg operations – ISO 14001 certified. Gauteng operation – accreditation delayed* |
BASEC certified ISO 18001 certified | |||
| Powertech Transformers | Certified | ISO 18001 certified | |||
| DPM Cape Town | Certified | ISO 18001 certified | |||
| Powertech Batteries | Certified | ISO 18001 certified | |||
| Battery Technologies | Expected end of 2010 | ISO 18001 certification expected end of 2010 | |||
| Crabtree | Expected end of 2010 | ISO 18001 certification expected end of 2010 | |||
| Powertech IST | Certified | ISO 18001 certified | |||
| The shaded cells show those companies within the group that achieved their ISO 14001 and/or their ISO 18001 certification in the year under review. |
|||||
While Altron has established a philosophy and value system that underlies the group’s overall responsibility towards the environment, individual operations develop their own approach and policy according to their specific impacts on the environment. The overall status of the group’s environmental health is fed to the group’s leadership via monthly reviews at individual company management level, and in turn via the risk management committees at divisional level.
Internally, the operations are guided by Altron group environmental policies regarding waste, pollution, product responsibility and energy efficiency. The Altron group conducts regular environmental risk assessments and holds monthly management review meetings, and further oversight is provided by internal audit, which conducts regular environmental risk assessments.
The company does not conduct environmental screening and audits on suppliers but its two main suppliers are ISO 14001 accredited and those that are not, are required to conduct their business in a manner that is not environmentally harmful.
External surveys
External surveys on the status of compliance with environmental legislation, as well as environmental impacts, are conducted by independent environmental consultants, M.S. Alexander & Associates. Any additional issues not picked up by internal review are raised and presented to the board on a quarterly basis. Altron has responded to the various findings and recommendations from such surveys in the following ways:- Aberdare
- Top management executives will be appointed as per ISO 14001 recommendation
- A stand-alone environmental policy statement, separate from the the safety statement will be formalised
- The company will obtain written contracts for waste removal to avoid illegal dumping as “safe disposal” certificates are not considered adequate
- The company will tackle the the legacy issue of ground / oil pollution at Aberdare Long Street
- Ensure all refrigerants and air conditioners are R22 CHCIF2 free.
To facilitate improved environmental management, Aberdare SHERQ is using the ISO 14001:2000 standard as a guideline and the company has compiled an in-depth legal compliance checklist for each site to complete.
- Crabtree
- Safe disposal certificates will be made readily available
- Respirators will be more efficiently cleaned of dry lead oxide
- Waste removal contracts will be entered into
- Environmental matters were not included in SHE committee meetings and recorded the minutes - in future these will be included.
- General health and safety protective equipment will be better enforced
- Powertech Calidus Cape Town and Benrose: a waste removal contract is to be drawn up.
MS Alexander recommended that similar audits be conducted for Altech and Bytes in the year ahead.
Carbon footprint
|
Following the position paper on climate change drafted and adopted by the Altron board last year, Altron embarked on a new journey towards formulating a policy for group-wide implementation. The first step in this process involved contracting the services of external auditing firm, PriceWaterhouseCoopers (PWC), to conduct an environmental impact assessment and carbon footprint survey of the entire company. PWC initially ran workshops with management from the various operations to provide an understanding of climate change and what it means to the operations and to Altron specifically to explain carbon credits and how these can be traded to generate revenue and to outline the methodology, approach and way forward for calculating the Altron group’s carbon footprint. Altron also participated in the Carbon Disclosure Project in South Africa, a worldwide project under the auspices of the United Nations to determine and report carbon emissions.
Following this preparation process, PWC were contracted in 2008 to conduct an environmental impact assessment and calculate the carbon footprint (GHG inventory) of the entire Altron group. Data collection for the carbon footprint exercise was managed internally by Altron, with support and advice provided by PWC. The following measurements were used to guide data collection:- Direct measured or calculated production-related emissions (including fuel and electricity usage)
- Air travel
- Car Travel (taking into account total fuel use, type of fuel, distance travelled, average fuel efficiency of vehicle and highway versus city traffic efficiency).
PWC compiled the results, providing Altron with the following picture of its carbon footprint
Overview of Altron’s Carbon Footprint
Reporting period: 1 March 2008 to 28 February 2009 (base year assessment). Operational boundary: Altron Head Office, Altech (excluding international operations), Bytes (excluding international operations, Bytes Healthcare Solutions, Intelleca and NOR Paper), and Powertech (excluding Dynamic Battery Services (UK)).Scope and emissions estimates: The ISO 14064-1 Greenhouse Gas (GHG) Standard and the Greenhouse Gas Protocol were applied. Information included in the calculations included data on distances travelled and types of vehicles in Altron’s business fleet and fuel use in the various production processes and services rendered, to determine the scope 1-direct emissions (those that Altron has direct control over the use of). Whereas, the calculation of scope 2 and 3 (indirect emissions) included data on electricity consumption, paper use and flights taken for business purposes, due to a lack of available data for road travel (ie, kilometres travelled by employees to perform Altron’s business), this estimate was omitted from the base year assessment.
Total carbon emissions: The carbon footprint is estimated at 132 481 metric tonnes of carbon dioxide equivalents (CO2e), and the graph below (Figure 1) provides an indication of the Altron group carbon footprint, broken down per business unit. Powertech, at 70%, is the most significant contributor, followed by Bytes (16%), Altech (13%) and Altron head office (1%).
Total carbon emissions per source: Altron group’s greenhouse gas emissions were calculated per source category and are reported according to scope:
Altron’s total greenhouse gas emissions per source are represented graphically in Figure 2. It is evident that electricity consumption is the most significant contributor to Altron’s total carbon footprint at about 87%, followed by business fleet travel at nearly 7%, fuel use and paper consumption at nearly 3%, each and business air travel, which makes up just over 1%.
Carbon emissions per business unit: The contribution of each of Altron’s principal subsidiaries to the total carbon footprint of 132 481 metric tonnes of CO2e is listed below:
At present (May 2009) Certified Emission Reduction (CER), also known as “carbon credits” are trading at about €15/tonne. Therefore, the Altron group’s total carbon footprint of 132 481 metric tonnes of CO2e was assigned a monetary value of roughly R23 060 000 (converted at R11.60 for €1) and represents the rand value required to offset Altron’s carbon footprint.
The carbon footprint estimate of 132 481 metric tonnes of CO2e represents a fair reflection of Altron’s carbon footprint for the base year assessment. Full reliance was placed on data provided by Altron and its subsidiaries, as no data verification or audit procedures were conducted by PricewaterhouseCoopers prior to analysis and carbon footprint calculations.
A robust carbon management strategy for Altron would contribute significantly to identifying risks associated with GHG constraints in the future, and indentifying opportunities in energy reduction, cost-saving and potential to participate in carbon trading markets.
The setting of GHG targets and the effective management of all greenhouse gas emissions data leads to a more accurate and complete carbon footprint calculation. A standardised carbon data management system for the whole Altron group will ensure that the recording and collection of data is done efficiently, roles and responsibilities for data collection and collation are defined, targets for effective mitigation strategies are set, and emission reduction projects are managed.
Engaging employees
The company also embarked on an interactive employee participation and education programme, launching a Carbon Footprint brand, dedicated website with definitions, FAQ’s, projects and a library. The group participated in the WWF Earth Hour project during the year. Bytes Technology Business Park in Midrand launched Green Project to provide information, suggestions and best practices to staff as consumers to enable them to make ‘greener’ decisions when purchasing normal day-to-day items. Pollution and emissions
As the major manufacturing group of Altron, Powertech actively manages, among others, environmental impacts, hazardous waste, air and water pollution and emissions from its operations. Surveys conducted at all Aberdare Cables manufacturing plants in 2008 identified certain minor air pollution problem areas, which have been addressed with the installation of additional extraction units. Follow-up surveys confirmed that the operation is now compliant with South African and United Nations legislation. Aberdare is drawing up a new, comprehensive emissions and pollution policy in line with international best business practice, which will go beyond compliance with the Air Pollution Act of 2006.
In June 2008 it appointed a new group SHERQ manager and changed the group and site SHERQ structure to integrate all aspects of safety, health, environment, risk and quality.
Emissions from Powertech Transformers underwent routine measurements during the year under review and were found to comply with legal limits. No significant incidents of water, air or soil pollution occurred. Dust emissions from grit-blasting and shot-blasting operations are controlled by filters. Boiler emissions are monitored and are within legal limits. Bunds and storm water oil separators have been constructed to contain oil spills. Storm water effluent is regularly monitored and has been found to be compliant with legislation. Soil pollution by oil spills on customers’ sites is cleaned up immediately by a specialist company, contracted by Powertech Transformers. The clean-up procedure and soil rehabilitation meets legal requirements.
Waste management is well defined. Waste is separated at source and all recyclable scrap is recycled. Hazardous waste disposal meets the Department of Water Affairs and Forestry’s (DWAF) minimum requirements.
Last year we highlighted polychlorinated biphenyls (PCBs) which were discovered during the ISO 14001 certification audit at Desta Power Matla’s (DPM) Epping plant. The company worked closely with the Department of Water and Energy Affairs to manage the situation and was granted its ISO 14001 accreditation.
The Booysens’ plant underwent a similar study and although there was no evidence of any PCBs in the ground samples, heavy metals were detected. These are thought to be more related to mining activities than transformer operations, but management has adopted a proposal to monitor the movement of the plume at the plant.
In line with its commitment made last year to monitor oil seepage at its plant, Powertech Calidus purchased additional spill kits and replenishes them on a continual basis, if and when they are used.
Last year we reported that lead powder was seeping from the waste disposal skip at Crabtree Electrical Accessories SA (Crabtree), in Wadeville, into the stormwater system when it rained. The lead waste has been removed to an area away from the stormwater drain system and drain sampling is being conducted on a regular basis. This has ensured that the seepage is no longer occurring.
In line with plans outlined last year, Powertech Batteries spent R130 000 on upgrading the scrubber systems at its battery factories in Port Elizabeth to reduce sulphuric acid atmospheric emissions. It has further committed R50 million to eliminate lead vapour from conventional grid casting. The project is progressing and new equipment has been installed.
At Powertech Batteries, groundwater and soil was monitored for contamination, and the latest results were all clear of sulphuric acid. Fume emission scrubbers are currently being upgraded to minimise contamination risks. During the year the operation compiled a plan to address any contamination at its Ophirton facility; if found, such contamination can now be traced back to its source, which is likely to be from past operations or from other businesses in the area.
Energy-efficiency
Government’s electricity rationing programme demands that the industrial sector cuts electricity usage by 10% – a direct impact on Altron’s businesses. The company is fully committed to reducing its energy consumption, and its group-wide Powersave@Altron initiative continues to educate and inform employees and operations on how to be more energy- efficient. During the year under review Altron’s energy consumption was 115 030 473 KwH. This year the group will be concentrating on reducing or eliminating the unnecessary use of office equipment, lighting systems, computers, heating and cooling systems. A formal reporting ‘pack’ will be developed alongside the evaluation of Eskom’s Baseline Proposal.
Altron’s most significant energy-usage comes from companies in the Powertech stable. As part of the Aberdare Energy Co-ordination programme, Aberdare Cables is working with Eskom and municipalities to establish a controlled “on demand” energy reduction programme whereby the operation will reduce demand for a controlled period by limiting the use of high consumption equipment.
Aberdare monitors energy consumption on a monthly basis and have introduced ‘recorders’ to provide more accurate information. However, benchmarking is difficult as some municipalities with older networks (Gauteng in particular) cannot offer accurate data. Furthermore, the company expects electricity usage to be dramatically affected by the global economic crisis, which means that historical data comparisons will be unreliable.
Energy usage and performance forms part of the group SHERQ internal audit program. Formal and ad hoc checks are carried out by the respective general managers with their site-based engineers, while factory engineers offer support to geographically aligned branches. Energy control forms part of the monthly management meetings.
The company circulates monthly training awareness material to all energy co-ordinators in the group. Group SHERQ also sends out awareness material to all concerned. Energy discussions take place at the SHERQ committee meetings, and energy graphs and targets are updated monthly and made available on our company intranet.
- Goals
During the year ahead, the group has plans to:- Set office equipment to automatically switch to sleep mode
- Turn off electricity consumers when not in use,
- Install motion detectors so lights are automatically turned off when no one is present,
- Eliminate unnecessary external lighting and install motion detectors on certain outdoor security lighting,
- Turn off general lighting during the day where daylight is adequate and provide task specific lighting,
- Keep light bulbs and fixtures clean. Dirty fixtures reduce light intensity by as much as 25 percent,
- Optimise heating, ventilation and air conditioning systems (including burners and flues) to make sure they run as efficiently as possible. Regarding boilers, we are considering reviewing alternate sources of steam energy,
- Check heating/cooling ducts for leaks,
- Use programmable controls on air conditioners, geysers to minimise usage when not essential, or continued use after hours, with a switch off capability “on demand”
- Install low-flow showerheads on shower facilities,
- Turn off PCs when not in use for more than one hour. Ensure that PCs and workstations are operating in the “sleep” mode when not in use for more than five minutes. Screen-savers do not really save energy,
- Use controls that turn off shared printers, copiers, fax machines when not in use,
- Develop a formal reporting “pack” alongside the evaluation of Eskom’s Base line Proposal.
Powertech IST Otokon has developed PowerStatus™ (desktop electricity demand status software) as part of its Energy management software suite (EC Win). PowerStatus™ adds value to the existing energy monitoring systems by providing the status of Otokon’s actual energy consumption against its budget for each integration period.
Product responsibility
In pursuit of cradle-to-grave responsibility, Powertech has assessed the potential impacts of its products and devised solutions to ensure that they do not harm society at large, or the environment at any point in their life cycle. Following up on issues raised last year, we can report the following:
The cables produced by Aberdare Cables are traditionally wound on wooden drums which are treated with pesticide, in order to meet international requirements designed to prevent the transmission of pests across borders. However, due to the harmful nature of the pesticides and the resultant environmental impacts, the company has undertaken to discontinue the use of pesticides with immediate effect, and is investigating alternates that are not harmful to the environment.
Ensuring that its batteries are disposed of in an environmentally responsible manner is one of Powertech Batteries’ key priorities. During the year it started the process of devising a long-term term strategy to ensure ‘cradle to grave’ stewardship of batteries. This will ultimately allow products to be traceable through the raw materials used, until they are recycled.
This is an ambitious project. In the meantime the company manages battery waste by collecting and replacing batteries on a ‘one-to-one’ exchange. It has maintained a collection rate of over 100% in the automotive industry, and has increased its collection rate to 100% in the industrial industry (up from 40%-50%) by encouraging clients to return old products and by buying back old products for recycling. Lower sales may also have contributed to the improved industrial collection figures.
Although it is difficult to ensure that customers adhere to health and safety requirements regarding battery disposal, the following progress has been made:- Battery Technologies are moving towards ‘maintenance free’ products,
- Industrial customers are offered a service plan so they do not have to maintain their products,
- The company is promoting battery collection and recycling in the other parts of Africa in which it operates, and where necessary engages third parties to process the batteries,
- Various business managers provide monthly battery collection reports to their executives.
Waste and recycling for Aberdare from March 2008 to February 2009
 |
|
|
|
|
|
|
|
Type of material |
Tonnes |
||
|
|
|
|
|
|
|
|
| Hazardous waste | 121.3 |
||
| Grease drums | 80.5 | ||
| Other | 40.8 | ||
| Non-hazardous waste | 79.6 |
||
| Waste for recycling and re-use | 2352.2 |
||
| Copper | 1070.2 | ||
| Paper | 20.5 | ||
| Galv. Wire | 129.4 | ||
| PVC | 543.7 | ||
| Metal | 352.0 | ||
| Other | 236.4 | ||
Conclusion
This report has categorised its impacts into 23 material issues which we currently believe to pose the greatest impact on the long-term sustainability of our businesses. Since our last report – for the prior year – some issues have become more important, while others, being largely resolved, are now less material to the group. Clearly sustainability is not a finite challenge that finds a quick resolution, but a responsibility that will demand continuous engagement, adaption of policy, new indicators of performance and innovative approaches, in order to mitigate impacts and progress our goals.Where our vision and targets are clear, such as our mission to transform against the dti CoGP, the Altron group has made steady and sure progress. In other areas, we are still working on management systems and measurement protocols, essential tools and navigational markers required to help us progress on this journey. We are committed to sound and sustainable practices in all aspects of our business, balancing – in these straightened economic circumstances – the rigours of cost containment, efficiencies, and sound business practices with the expectations of all our stakeholders. Next year, as we improve our ability to manage sustainability, so will the quality of our reporting improve. More indicators will be defined and we will report more accurately on our progress against the most material issues affecting the Altron group.
Completing our report on social, environmental and economic impacts (the triple bottom line) is Altron’s detailed corporate governance report. Corporate governance report