www.promethium.co.za | Tel : +27 11 706 8185 | Fax: +27 86 589 3466 BALLYOAKS OFFICE PARK | LACEY OAK HOUSE , 2ND FLOOR | 35 BALLYCLARE DRIVE | PO BOX 131253 | BRYANSTON 2021
PROMETHIUM CARBON (PTY) Ltd / Reg no: 2005/018622/07 / Directors / H Immink, RT Louw, HJ Swanepoel
Konica Minolta GHG Inventory
Report FY 2014
25 August 2014
i
Press Release1
Climate change is one of the most important environmental challenges facing governments, organisations
and individuals today. Pressure is mounting world-wide for business to reduce the impact of their activities
on the environment, and in particular the volume of greenhouse gases they produce. Konica Minolta’s
business strategy is in line with this movement towards the low carbon economy.
As part of its environmental and sustainability awareness, Konica Minolta South Africa (KMSA) has
calculated its sixth consecutive carbon footprint since 2009. This places KMSA in a good position to track
its greenhouse gas emissions, as well as highlights areas with reduction opportunities.
KMSA’s carbon footprint consists of both direct and indirect emissions. Direct emissions (such as
combustion of fuels) resulted in 559 tCO2e. Energy indirect emissions, arising from electricity usage, came
to 1,386 tCO2e and 3,736 tCO2e from other indirect emissions (for instance business travel). This year, FY
2014, Konica Minolta’s greenhouse gas emissions amounted to 5,681 tCO2e. This is a decrease in emissions
from the previous year of 13%.
A three step process is required to obtain a carbon neutral status. The calculation of Konica Minolta’s
carbon footprint is the first step in this process. Following this, emission reduction initiatives are carried
out where possible, and the remaining emissions offset by offset projects.
In line with its carbon neutral strategy, Konica Minolta has once again supported Food & Trees for Africa
(FTFA), to continue taking a stand against climate change. KMSA has offset its carbon footprint, both
direct and indirect emissions by planting 15,396 fruit and indigenous trees, reducing KMSA’s impact on
global warming.
KMSA’s credible carbon neutral claim was obtained by submitting its carbon
footprint and offsetting report to The Carbon Protocol of South Africa. After
comparing the carbon footprint and offset project, The Carbon Protocol issued
KMSA with its carbon neutral certification (logo seen to the right).
1 Format suitable for use in internal newsletter. This was written assuming KMSA will complete the steps to offset their carbon emissions and gain carbon neutral status.
ii
Table of Contents
1. Introduction ......................................................................................................................................................... 1
2. Approach .............................................................................................................................................................. 2
2.1. Principles to GHG inventory calculations ............................................................................................ 2
3. Development of the Corporate GHG Inventory .......................................................................................... 3
3.1. Organisational boundary .......................................................................................................................... 3
3.2. Operational Boundary............................................................................................................................... 4
3.2.1. Identification of GHG sources ...................................................................................................... 5
4. GHG Quantification .......................................................................................................................................... 6
4.1. Methodology .............................................................................................................................................. 6
4.2. Data Collection and quality ...................................................................................................................... 6
4.3. Emission Factors ....................................................................................................................................... 7
4.4. Base Year Emissions ................................................................................................................................. 8
4.5. Data Quality ............................................................................................................................................... 8
5. Results and Discussion ...................................................................................................................................... 9
5.1. KMSA GHG Inventory for FY2014...................................................................................................... 9
5.2. Direct GHG Emissions (Scope 1) ........................................................................................................ 10
5.3. Energy Indirect GHG Emissions (Scope 2) ....................................................................................... 10
5.4. Other Indirect GHG Emissions (Scope 3) ......................................................................................... 11
6. Tracking and Comparing KMSA’s GHG Emissions ................................................................................. 15
6.1. Comparative Analysis 2009 - 2014 ....................................................................................................... 16
6.2. Direct (Scope 1) GHG Emissions Comparison ................................................................................. 17
6.3. Energy Indirect (Scope 2) GHG Emissions Comparison ................................................................ 18
6.4. Other Indirect (Scope 3) GHG Emissions Comparison .................................................................. 19
7. Initiatives carried out by KMSA to reduce their Impact on the Environment ...................................... 20
8. Carbon Offsets and Carbon Neutrality ......................................................................................................... 20
9. Conclusions and Recommendations ............................................................................................................. 21
References ................................................................................................................................................................... 22
Annex 1: Activity Data for GHG Inventory Calculation .................................................................................... 23
1
1. Introduction
Konica Minolta South Africa (KMSA) offers a comprehensive range of products and services within the
document imaging and management business. KMSA is wholly owned by the Bidvest Group, an
international company listed on the JSE. KMSA has 17 branches and 49 dealerships throughout South
Africa.
KMSA values environmental, social and economic sustainability, recognising that climate change is a key
sustainable development issue. In line with their values KMSA has voluntarily calculated their greenhouse
gas (GHG) inventory, also known as a carbon footprint, for FY 2014 (01 July 2013 – 30 June 2014). A
GHG inventory is the total amount of carbon dioxide and other GHG emissions (expressed in carbon
dioxide equivalents, CO2e) for which an organisation or site is responsible, or over which it has control.
KMSA understands that the first step in managing the issue of climate change is to have a well maintained
GHG inventory. KMSA has been calculating their GHG inventory since FY 2009, their base year, allowing
for a good analysis, comparison and tracking of performance. KMSA has calculated their GHG inventory
for six consecutive years thus in this report a year on year comparison is carried out for emissions from
KMSA.
The greenhouse gas inventory calculation presented in this report will allow KMSA to assess the breakdown
of their emissions and to make strategic decisions as to how to reduce their footprint. The report will further
assist KMSA with suggestions to further develop their GHG inventory in coming years, so as to look into
the life cycle of their business emissions, both upstream and downstream of the business. By knowing its
carbon emissions, KMSA can anticipate its carbon tax exposure which is expected to come into place in
South Africa in 2016.
But what is 1 tonne of CO2e?
A return trip by car from Cape Town to Harare
One return business class flight from Miami to New York
Burning 370 litres of diesel
The monthly electricity of an average household in South Africa
2
2. Approach
2.1. Principles to GHG inventory calculations
The Standard that specifies principles and requirements at the organization level for quantification and
reporting of greenhouse gas (GHG) emissions and removals is ISO 14064-1, “Specification with guidance at the
organization level for quantification and reporting of greenhouse gas emissions and removals”. It includes requirements
for the design, development, management, reporting and verification of an organization's GHG inventory.
The following are the basic principles used when performing a GHG inventory and are detailed in the ISO
14064-1:
RELEVANCE Ensure the GHG inventory appropriately reflects the GHG emissions of the
company and serves the decision-making needs of users – both internal and
external to the company.
COMPLETENESS Account for and report on all GHG emission sources and activities within the
chosen inventory boundary. Disclose and justify any specific exclusion.
CONSISTENCY Use consistent methodologies to allow for meaningful comparisons of emissions
over time. Transparently document any changes to the data, inventory boundary,
methods, or any other relevant factors in the time series.
TRANSPARENCY Address all relevant issues in a factual and coherent manner, based on a clear audit
trail. Disclose any relevant assumptions and make appropriate references to the
accounting and calculation methodologies and data sources used.
ACCURACY Ensure that the quantification of GHG emissions is systematically neither over
nor under actual emissions, as far as can be judged, and that uncertainties are
reduced as far as practicable. Achieve sufficient accuracy to enable users to make
decisions with reasonable assurance as to the integrity of the reported information.
Apart from the ISO 14064-1 Standard, the Greenhouse Gas Protocol was also used in the calculation of
the greenhouse gas inventory. The Greenhouse Gas Protocol provides further guidance on boundary
setting and the quantification of other indirect (scope 3) emissions.
3
3. Development of the Corporate GHG Inventory
In accordance with the ISO 14064-1, the GHG inventory is developed by:
Setting the boundaries of the inventory;
Identifying the GHG sources inside the boundary;
Establishing the quantification method that will be applied; and
Calculating the emissions.
This process is discussed in detail in subsequent sections.
3.1. Organisational boundary
An organisational boundary is the delineation of the facilities that are included in a company’s GHG
inventory. The boundary is important as it determines which GHG sources and sinks of the organisation
must be included in the footprint calculation, and which are excluded. This is illustrated through an example
in Figure 1 below.
Figure 1: Illustration of organisational and operational boundaries
The ISO standard and GHG Protocol defines two distinct approaches which can be used to define
organisational boundaries, the equity share and the control approaches. The control approach is split into
financial and operational control.
Equity share approach - Under this approach, a company would record its emissions according to (pro rata) the equity
share it holds in each operation, i.e. according to ownership. This is based on the assumption that the economic risks and
rewards for a company are comparable to its ownership share. There may be cases where equity share differs from ownership,
in which case the economic share a company has in an operation would override its share of ownership, to better reflect the risks
and rewards at stake.
Financial control approach - Under this approach a company would record emissions from facilities, sites or operations
over which it has financial control i.e. it has the ability to direct the financial and operating policies with a view to gaining
economic benefits from its activities. A company accounts for 100% of the emissions of those operations over which they have
financial control.
Operational control approach - Under this approach, a company would record emissions from facilities, sites or
operations over which it or one of its subsidiaries, has operational control i.e. the authority to introduce and implement its
operating policies at the operation. A company accounts for 100% of emissions from operations over which it or one of its
subsidiaries has operational control.
4
The operational control boundary approach has been selected for calculation of the Konica Minolta GHG
inventory. KMSA is accounting for 100% of the emissions from operations over which it has control.
KMSA’s operations include the head office, 17 branches and 49 dealerships.
3.2. Operational Boundary
An operational boundary is the delineation of the GHG sources (activities that emit GHG’s) and sinks
(activities that absorb GHG’s) that are included in a company’s GHG inventory.
The setting of operational boundaries is a two-step process:
Step 1: Identification of the emissions associated with the company’s business operation.
Step 2: Classification of the emissions into three categories. These three categories are defined
according to ISO 14064 Part 1 as direct GHG emissions, energy indirect GHG emissions,
and other indirect GHG emissions, but are commonly referred to by The Greenhouse Gas
Protocol as Scope 1, Scope 2, and Scope 3 emissions.
Direct GHG emissions are emissions from sources that are owned or controlled by KMSA. Energy indirect
GHG emissions are emissions resulting from imported electricity consumed by Konica Minolta. Other
indirect GHG emissions are the emissions (excluding energy indirect GHG emissions) that occur because
of Konica Minolta’s activities, but occur at sources owned or controlled by another company. According
to the Greenhouse Gas Protocol, other indirect GHG emissions can be classified into two different
categories also graphically presented in Figure 2 below:
Upstream indirect GHG emissions (related to purchased or acquired goods and services); and;
Downstream indirect GHG emissions (related to sold goods and services).
Figure 2 illustrates the different sources of emissions, as well as the operational boundaries of an
organisation. The figure gives a breakdown of the various scopes, including examples of emissions
associated to each scope.
Figure 2: Illustration of different sources of emissions (The Greenhouse Gas Protocol: Corporate Value Chain Accounting and Reporting Standard)
5
3.2.1. Identification of GHG sources
The identification of greenhouse gas sources is a detailed process. This is to ensure that all significant
emission sources are identified for the GHG inventory calculation. The Greenhouse Gas Protocol Corporate
Value Chain (Scope 3) Accounting and Reporting Standard was applied in addition to ISO 14064 Part 1 to identify
and quantify emission sources.
The following sources were identified for Konica Minolta:
Scope 1 (Direct Emissions):
o Emissions from the combustion of fuels;
Diesel used in KMSA-owned vehicles (cars, motorbikes and delivery vehicles);
Petrol used in KMSA-owned vehicles (cars, motorbikes and delivery vehicles);
LPG combustion;
Scope 2 (Energy Indirect Emissions):
o GHG emissions from the generation of imported electricity consumed by the organization;
Scope 3 (Other Indirect Emissions2):
o Fuel and Energy related emissions;
Extraction, production and transportation of diesel, petrol and LPG;
Electricity transmissions and distribution losses;
o Business travel;
Domestic and international air travel;
Road travel by sales representatives and technician personnel in own vehicles.
2 The organization may quantify other indirect GHG emissions based on requirements of the applicable GHG programme, internal reporting needs or the intended use for the GHG inventory.
6
4. GHG Quantification
4.1. Methodology
The quantification methodology used is based on GHG activity multiplied by an appropriate documented
emission factor.
These conversion factors allow for activity data (e.g. litres of fuel used, number of kilometres driven) to be
converted into tonnes of carbon dioxide equivalent (CO2e).
As per international protocol all the GHG reporting is done as CO2 equivalent, i.e. including all greenhouse
gases and not only CO2. As per international protocol, all the greenhouse gases (GHG’s) are converted to
carbon dioxide equivalents using global warming potentials (GWP).
4.2. Data Collection and quality
This report is a compilation of the data available to date, based on the organisational and operational
boundary selected.
Data was collected and collated for this GHG inventory, by Laetitia Coetzer, Special Projects Manager of
KMSA.
Activity data x Emission Factor = Quantity of GHG Emissions
7
4.3. Emission Factors
Emission factors have been chosen in order of relevance and accuracy for the various emission sources.
In determination of emissions from electricity usage, the South African grid emission factor was calculated
in accordance with the guidelines provided by the Greenhouse Gas Protocol, using data from Eskom.
For globally applicable emission factors (e.g. Diesel, Petrol, LPG) the data sets from the United Kingdom’s
Department of Environment, Food and Rural Affairs: ‘Greenhouse gas conversion factors for company
reporting 2014: methodology paper for emission factors’ were used.
Table 1 below presented a list of emission factors used to quantify the emissions related to KMSA.
Table 1: Emission Factors used to quantify emissions
EMISSION FACTOR VALUE UNIT SOURCE
SCOPE 1 - EMISSION FACTORS
Diesel 2.669 kg CO2e per litre DEFRA Factors 2014
Petrol 2.300 kg CO2e per litre DEFRA Factors 2014
LPG 3.163 kg CO2e per kg DEFRA Factors 2014
SCOPE 2 - EMISSION FACTORS
South Africa electricity grid 0.996 tonnes CO2e/MWh
Promethium Carbon Calculation in
accordance with The Greenhouse Gas
Protocol using Eskom Data
SCOPE 3 - EMISSION FACTORS
3.3 PURCHASED GOODS AND SERVICES
Diesel 0.5785 kg CO2e per litre DEFRA Factors 2014
Petrol 0.4504 kg CO2e per litre DEFRA Factors 2014
LPG 0.3978 kg CO2e per kg DEFRA Factors 2014
South Africa electricity grid (T&D losses) 0.121 tonnes CO2e/MWh
Promethium Carbon Calculation in
accordance with The Greenhouse Gas
Protocol using Eskom Data
3.6. BUSINESS TRAVEL
Short-haul flights <3700 km (economy class) 0.0837 kg CO2 per p.km DEFRA Factors 2014
Long-haul flights >3700 km (business class) 0.2308 kg CO2 per p.km DEFRA Factors 2014
8
4.4. Base Year Emissions
According to ISO14064:1 (2006), an organisation needs to establish a historical base year for GHG
emissions and removals for comparative purposes. This allows for meaningful and consistent comparison
of emissions over time.
Companies can choose a base year as the earliest relevant point in time for which they have reliable data.
KMSA’s base year is set to FY2009 (1 July 2008 – 30 June 2009) when they first carried out their GHG
inventory.
According to the standard the base year must be recalculated in future years under specific circumstances,
e.g.:
a) Changes in the reporting company structure that have a significant impact on the company’s base
year emissions. A structural change involves the transfer of ownership or control of emissions-
generating activities, and includes
Mergers, acquisitions and divestments;
Outsourcing and Insourcing of emitting activities.
b) Changes in calculating methodology or improvements in the accuracy of emission factors or
activity data that result in a significant impact on the base year emission data;
c) Discovery of significant errors, or a number of cumulative errors, that is collectively significant.
In this reporting year the base year emissions were recalculated due to slight improvements in the accuracy
of emission factors over the years, as well as an adjustment in distance from Johannesburg to Japan. The
different distance was material and thus the adjustment was made.
4.5. Data Quality
All the calculations were done based on information provided by KMSA. No verification of any values was
undertaken. The data was however screened for consistency with previous GHG inventory reports of
KMSA.
To improve data reliability, it is recommended that prior to public reporting, data is cross checked with
invoices or recorded data. Guidelines from the ISO-14064-3 Standard should be looked at to prepare for
verification.
9
5. Results and Discussion
This section presents KMSA’s GHG inventory for the 2014 financial year (01 July 2013 – 30 June 2014).
5.1. KMSA GHG Inventory for FY2014
KMSA’s GHG inventory consists of direct and indirect emissions categorised as Scope 1, 2 and 3
emissions. A summary of KMSA’s GHG inventory for FY 2014 is summarized below in Table 2:
Table 2: GHG inventory for KMSA, FY2014
GHG Inventory FY2014 (tCO2e)
Scope 1: Direct GHG emissions
Diesel combustion 213
Petrol combustion 341
LPG combustion 5
Scope 1 emissions 559
Scope 2: Energy indirect GHG emissions
Electricity 1386
Scope 2 emissions 1386
Scope 3: Other indirect GHG emissions
Fuel and energy related emissions not included in Scope 1 and 2
Diesel extraction, production and transportation 91
Petrol extraction, production and transportation 407
LPG extraction, production and transportation 0.7
Electricity transmission and distribution 168
Business travel
Diesel combusted in employee-owned vehicles 206
Petrol combusted in employee-owned vehicles 1738
Short haul flights 80
Long haul flights 1045
Scope 3 emissions 3736
KMSA’s GHG Inventory FY 2014: 5681
EMISSION INTENSITY (tCO2e/employee) 6.34
10
5.2. Direct GHG Emissions (Scope 1)
Direct (Scope 1) GHG emissions arise from sources owned or controlled by the reporting company.
KMSA’s direct emissions arise from the combustion of fuels: LPG, as well as the combustion of diesel and
petrol in KMSA-owned vehicles (cars, motorbikes and delivery vehicles).
Referring to Figure 3 the largest contributor to direct emissions from KMSA operations results from the
combustion of 148,275 litres of petrol, amounting to 341 tCO2e, 61% of direct emissions. Emissions related
to 79,773 litres of diesel combustion amount to 213 tCO2e, a contribution of 38% to direct emissions. The
portion of LPG combusted in KMSA operations is relatively small compared to that of petrol and diesel,
as such the emissions related to LPG combustion are significantly smaller. Combustion of 1,654kg of LPG
results in 5 tCO2e a 1% contribution to direct emissions from KMSA.
Figure 3: Direct Emissions from KMSA
5.3. Energy Indirect GHG Emissions (Scope 2)
Energy indirect (scope 2) emissions arise from the importing of electricity to KMSA operations for their
own use. The emissions are associated with the generation of purchased electricity. KMSA purchases
electricity from Eskom a predominantly coal-fired grid and thus with very high emissions associated to the
generation of each MWh. The grid emissions factor for South Africa is 0.996 tCO2e/MWh.
Energy indirect emissions from KMSA operations amount to 1,386 tCO2e as presented in Table 3 below
due to consumption of 1,390MWh of electricity in the reporting year:
Table 3: Energy indirect (scope 2) emissions from KMSA operations
Energy Indirect Emission Contributors tCO2e
Electricity 1 386
Energy Indirect Emissions (Scope 2): 1 386
341 tCO2ePetrol
combustion61%
213 tCO2eDiesel
combustion38%
5 tCO2eLPG combustion
1%
11
5.4. Other Indirect GHG Emissions (Scope 3)
Indirect emissions are emissions that occur as a result of your business, but are not under your direct
control. Indirect emissions are categorised into energy indirect emissions and other indirect emissions. The
calculation of other indirect (scope 3) emissions allows companies to assess their entire value chain
emissions impact and identify the most effective ways to reduce emissions.
The GHG Protocol proposes 15 categories of other indirect emissions, from both upstream and
downstream of an organization. Refer back to Figure 2 for examples of upstream and downstream
emissions related to an organisation. Two of the fifteen categories were analysed in the FY 2014 GHG
inventory of KMSA. The fifteen categories are summarised in Table 4 below, with reference to which Scope
3 categories are likely to be material to KMSA’s business:
Table 4: Breakdown of categories for Other Indirect (Scope 3) emissions.
Category Category description Value (tCO2e)
Business Travel Transportation of employees for business-related activities (in vehicles not owned or operated by the reporting company).
3,069
Fuel- and energy-related activities
Extraction, production, and transportation of fuels and energy purchased or acquired by the reporting company.
667
Purchased goods and services
Extraction, production, and transportation of goods and services purchased or acquired by the reporting company.
Not quantified – likely to be material
Capital Goods Extraction, production, and transportation of capital goods purchased or acquired by the reporting company.
Not quantified – unlikely to be material
Upstream transport and distribution
Transportation and distribution of products purchased by the reporting company between a company’s tier 1 suppliers and its own operations (in vehicles not owned or controlled by the reporting company).
Not quantified - likely to be material
Transportation and distribution services that are purchased by the reporting company including inbound and outbound logistics and transportation and distribution between a company's own facilities (in vehicles and facilities not owned or controlled by the reporting company).
Waste generated in operations
Disposal and treatment of waste generated in the reporting company’s operations
Not quantified – unlikely to be material
Employee commuting
Transportation of employees between their homes and their worksites
Not quantified – unlikely to be material
Upstream leased assets
Operation of assets leased by the reporting company (lessee) and not included in scope 1 and scope 2 – reported by lessee.
Not quantified - unlikely to be material
Downstream transportation and distribution
Transportation and distribution of products sold by the reporting company in the reporting year between the reporting company’s operations and the end consumer (if not paid for by the reporting company), including retail and storage (in vehicles and facilities not owned or controlled by the reporting company).
Not quantified – likely to be material
Processing of sold products
Processing of intermediate products sold in the reporting year by downstream companies (e.g. manufacturers).
Not relevant
Use of sold products
This category includes emissions from the end use of goods and services sold by the reporting company i.e. electricity usage related to use of printers.
Not quantified - likely to be material
End-of-life treatment of sold products
Waste disposal and treatment of products sold by the reporting company at the end of their life.
Not quantified - unlikely to be material
12
Category Category description Value (tCO2e)
Downstream leased assets
Operation of assets owned by the reporting company (lessor) and leased to other entities, not included in scope 1 and scope 2 – reported by lessor.
Not quantified - unlikely to be material
Franchises Operation of franchises, not included in scope 1 and scope 2 – reported by franchisor.
Not relevant
Investments Operation of investments (including equity and debt investments and project finance), not included in scope 1 or scope 2.
Not relevant
The two categories reported on by KMSA in FY 2014 are further analysed in the figures below. Figure 4
compares the emissions from the two categories, business travel and fuel and energy related emissions
(emissions associated with the extraction, production and transportation of the fuels/electricity). Business
travel amounts to 3,069 tCO2e, 82% of the other indirect emissions reported on in this reporting year. Fuel
and energy related emissions amount to 666.7 tCO2e, 18% of the other indirect emissions reported by
KMSA in this reporting year.
Other Indirect (Scope 3) Emissions:
Figure 4: Other indirect (scope 3) emissions reported by KMSA in FY 2014
3069 tCO2eBusiness Travel
82%
666.7 tCO2eFuel and Energy
related18%
13
Figure 4 is further broken down into speicifc emissions in each of the categories, fuel and energy related
emissions (Figure 5) and business travel related emissions (Figure 6).
Fuel and Energy related Emissions
Figure 5: Breakdown of fuel and energy related emissions
Analysing Figure 5 the emissions from fuel and energy related extraction, production and transportation,
presented in order of magnitude, include that of:
Petrol extraction, production and transportation: 407 tCO2e (61%)
Electricity transmission and distribution losses: 168 tCO2e (25%),
Diesel extraction, production and transportation: 91 tCO2e (14%); and
LPG production, extraction and transportation: 0.7 tCO2e (0.1%)
Petrol contributes the major portion due to the large petrol consumption throughout the KMSA operations
requiring the production of 903,906 litres for their consumption. Comparing this to diesel of which only
157,019 litres are consumed throughout the KMSA operations.
Business Travel related Emissions
407 tCO2ePetrol61%
168 tCO2eElectricity T&D losses
25%
91 tCO2eDiesel14%
0.7 tCO2eLPG0.1%
1738 tCO2ePetrol
combusted in employee-
owned vehicles57%
1045 tCO2eLong haul flights
34%
206 tCO2eDiesel combusted in
employee-owned vehicles
7%
80 tCO2eShort haul flights
2%
14
Figure 6: Breakdown of emissions related to business travel
Analysing Figure 6 the emissions related to business travel, presented in order of magnitude, include that
of:
Petrol combusted in employee owned vehicles: 1,738 tCO2e (57%)
Emissions related to long haul flights: 1,045 tCO2e (34%),
Diesel combusted in employee owned vehicles: 206 tCO2e (7%); and
Emissions related to short haul flights: 80 tCO2e (2%)
Petrol combusted in employees owned vehicles amount to 755,631 litres and diesel combusted in employee
owned vehicles amounts to 77,246 litres. Long haul flights are classified as flights to Japan, these flights
were taken as a distance of 13,550km from Johannesburg. It was given that 334 flights between Japan and
Johannesburg were taken in this reporting year. Short haul flights included those between Johannesburg
and Cape Town at 1,260kms, of which 718 flights were taken as well as those between Johannesburg and
Windhoek at 1,360kms, of which 38 flights were taken.
There is room for improvement in the reporting of other indirect emissions for KMSA. Some of the other
indirect emission categories that were not included in the KMSA FY 2014 but may have a significant impact,
(recommended to be reported on in years to come), include emissions related to:
Purchased goods and services – the emissions related to the production and transportation of
equipment (printers and office systems) and any other purchased goods by KMSA;
Capital goods – emissions related to the extraction, production, and transportation of capital goods,
as an example, if KMSA purchased any delivery vehicles in the reporting year;
Upstream transport and distribution – emissions related to the transport of purchased goods to
KMSA operations from suppliers, as well as transport of sold products (printers/office systems)
to end customers (in vehicles not owned by KMSA but paid for by KMSA).
Waste generated in operations – emissions produced from the waste generated at KMSA
operations (waste water and municipal solid waste).
Employee commuting – emissions related to employees commuting from home to work and back
daily.
Downstream transport and distribution – emissions related to transport of sold products
(printers/office systems) to end customers (in vehicles not owned by KMSA nor paid for by
KMSA).
Use of sold products – emissions related to electricity demand of printers and office systems, paper
usage of printers/office systems and toner/ink usage in printers/office systems.
End of life treatment – emissions related to the process of how printers and office systems are
discarded after end of life.
15
6. Tracking and Comparing KMSA’s GHG Emissions
KMSA have been tracking their GHG emissions since FY 2009 and were thus able to supply Promethium
Carbon with their GHG inventory for the past six years. This is highly advantageous and allows a year on
year comparison and tracking of KMSA’s GHG inventory. It allows KMSA to evaluate performance over
the years and identify opportunities for reduction in GHG emissions. In this section a year on year
comparison over the past six years is carried out.
In order to carryout meaningful GHG inventory comparisons it is critical that consistent GHG accounting
approaches, emission factors, inventory boundaries, and calculation methods are applied for a credible
emissions comparison. In FY 2013 a restatement of the FY 2009 GHG inventory data was carried out in
order to align the calculation methodology after considerable improvements had been made to GHG
reporting standards.
During the calculation of the FY 2014 other indirect emissions it was found that the distance reported for
a flight from Johannesburg to Japan had been captured as 5,195km in all previous calculations. This value
was however amended as the correct distance from Johannesburg to Japan is 13,549km. Due to the change
all previous years other indirect emissions related to long haul flights were amended.
Furthermore, due to improvements in the accuracy of emission factors the base year GHG inventory was
recalculated.
16
6.1. Comparative Analysis 2009 - 2014
A year on year comparison of KMSA’s GHG inventory is presented below in Table 5. It is seen that the
GHG inventory of KMSA (looking at direct and indirect emissions) has decreased over the previous year.
There is a decrease of 13%. This is due to the decrease in other indirect emissions, the number of long haul
flights decreased significantly as well as the diesel and petrol consumption in employee owned vehicles for
business travel.
However, direct emissions increased by 12% increase and energy indirect emissions increased by 0.2%. The
large increase in direct emissions comes as a result of increased diesel combustion (increase of 3,990 litres)
and petrol combustion (increase of 20,320 litres). A comparison of emission intensity (tCO2e/employee)
shows KMSA’s emissions per employee have followed a steady downward trend over the years. KMSA’s
emission intensity has decreased by 11.8% in FY 2014.
Table 5: Year on Year Comparison of KMSA GHG Inventory
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
(tCO2e) (tCO2e) (tCO2e) (tCO2e) (tCO2e) (tCO2e)
Scope 1: Direct GHG emissions
Diesel combustion 134 113 111 197 202 213
Petrol combustion 273 238 270 294 294 341
LPG combustion 3.97 4.09 6.43 4.75 4.81 5.23
Scope 1 Emissions 412 355 388 496 501 559
Scope 2: Energy indirect GHG emissions
Electricity 2 550 2 331 1 910 1 643 1 383 1 386
Scope 2 Emissions 2 550 2 331 1 910 1 643 1 383 1 386
Scope 3: Other indirect GHG emissions
Fuel and energy related emissions not included in Scope 1 and 2
Diesel extraction, production and transportation 87 74 72 128 132 91
Petrol extraction, production and transportation 453 394 448 487 487 407
LPG extraction, production and transportation 0.5 0.5 0.8 0.6 0.6 0.7
Electricity transmission and distribution 292 267 219 188 159 168
Business travel
Diesel combusted in employee-owned vehicles 269 227 223 395 406 206
Petrol combusted in employee-owned vehicles 2037 1772 2015 2192 2192 1738
Short haul flights 68 91 121 105 71 80
Long haul flights 966 694 1026 1295 1226 1045
Scope 3 Emissions 4 174 3 519 4 125 4 791 4 673 3 736
KMSA’s GHG inventory: 7 136 6 205 6 423 6 930 6 558 5 681
Emission Intensity (tCO2e/employee) 9.72 8.20 8.12 7.83 7.19 6.34
17
6.2. Direct (Scope 1) GHG Emissions Comparison
A comparison of direct GHG emissions shows an upward trend over the past four years. In the last
reporting year the direct emissions of KMSA have increased by 12%. This increase is due to the slight
increase in fuel combusted by KMSA in FY 2014. Diesel consumption increased by 5%, petrol
consumption increased by 16% and LPG consumption increased by 9%. Figure 7 below shows the
comparison of direct GHG emissions from FY 2009 to FY 2014.
Figure 7: Year-on-year comparison of KMSA direct GHG emissions
0
100
200
300
400
500
600
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
GH
G e
mis
sio
ns (
tC
O2e)
Year-on-year Direct GHG Emissions
Diesel combustion Petrol combustion LPG combustion
14%
decrease 9% increase
28% increase
12% increase
1% increase
18
6.3. Energy Indirect (Scope 2) GHG Emissions Comparison
An analysis on the year on year change of energy indirect emissions (electricity) shows a steady downward
trend. The decreased is due to a move of certain branches to ‘greener’ buildings and the installation of
energy efficient lighting (assisted by Eskom subsidies). However over the past year a very slight increase of
0.19% in emissions from electricity was calculated. This increase is not due to an increase in consumption
of electricity, but rather to the increase in emissions related to the production of an MWh of electricity. In
FY 2013 the emission factor related to consumption of 1MWh of electricity was 0.994 tCO2e/MWh and
in FY 2014 the emission factor increased to 0.9964 tCO2e/MWh. Refer to Figure 8 below for the
comparison of emissions related to electricity from FY 2009 to FY 2014.
Figure 8: Year-on-year comparison of KMSA Energy Indirect GHG Emissions
0
500
1 000
1 500
2 000
2 500
3 000
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
GH
G e
mis
sio
ns (
tCO
2e)
Year-on-year Energy Indirect GHG Emissions
16%
decrease
9% decrease 18%
decrease
14%
decrease
0.19%
increase
19
6.4. Other Indirect (Scope 3) GHG Emissions Comparison
An analysis of other indirect GHG emissions resulting from KMSA operations have fluctuated over the six
year period. Figure 9 below presents KMSA’s other indirect emissions from FY2009 to FY2014. From this
figure it is seen that the largest contributor to other indirect emissions for KMSA operations is due to the
combustion of petrol in employee-owned vehicles as part of KMSA’s business travel. The other indirect
emission sources listed in order of magnitude are:
Combustion of petrol in employee owned vehicles for business travel;
Air travel, long haul flights (Johannesburg to Japan);
Extraction, production and transportation of petrol;
Combustion of diesel in employee owned vehicles for business travel;
Electricity transmission and distribution loses;
Air travel, short haul flights (Johannesburg to Cape Town and Johannesburg to Windhoek);
Extraction, production and transportation of diesel; and
Extraction, production and transportation of LPG.
Figure 9: Year-on-year comparison of KMSA Other Indirect GHG emissions
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014
GH
G e
mis
sio
ns (
tCO
2e)
Year-on-year Other Indirect GHG Emissions
Petrol combusted in employee-owned vehicles Long haul flights
Petrol extraction, production and transportation Diesel combusted in employee-owned vehicles
Electricity transmission and distribution Short haul flights
Diesel extraction, production and transportation LPG extraction, production and transportation
16%
decrease
17%
increase
16%
increase
20%
decrease
2%
decrease
20
7. Initiatives carried out by KMSA to reduce their
Impact on the Environment
KMSA is aware of their environmental impact and strives to be sustainable in carrying out all their
operations. On this front KMSA have undertook various initiatives in order to reduce their waste produced
by their operations.
Following their goal of having “zero waste”, KMSA is pursuing recycling all waste. KMSA is actively finding
opportunities to reduce the volumes of externally discarded waste by incorporating internal recycling
initiatives, as well as making efficient use of available resources. All equipment, toner bottles, toner
cartridges, imaging units, and the carcass’ of printer bodies are first stripped of any useful parts to be used
in refurbishing other printers and the waste is then sent for recycling through Desco’s electronic recycling
process. Desco estimates to recycle about 97% of the electronic waste they process. As part of KMSA’s
Social Corporate Investment Program their refurbished printer systems are donated to schools to improve
resources in the local communities.
On the recycling front KMSA are looking into further viable possibilities and sustainable solutions for
disposal of toner cartridges. A new initiative that is in the feasibility phase is looking into recycling of colour
toners. KMSA have found that the use of the toner powder can be used for the colouring of plastics.
Instead of discarding this powder along with the cartridges KMSA are doing tests on the use of colour
toner powder for colouring plastics.
These initiatives show that KMSA hold environmental integrity and sustainability high on their list of values.
8. Carbon Offsets and Carbon Neutrality
As part of their offsetting programme KMSA have been planting trees since 2007 in collaboration with
Food & Trees for Africa (FTFA), a national social enterprise focused on greening, food security, climate
change action and sustainable natural resource use. Thus far KMSA have planted 18,178 fruit and
indigenous trees along with 4,600 bamboo plants.
In order to offset ones GHG emissions, with the aim to become carbon neutral, the steps outlined below
are to be followed:
1. Calculate your company’s GHG inventory;
2. Implement initiatives and actions to reduce GHG emissions where possible;
3. Implement carbon offsetting projects to compensate for the remaining emissions.
KMSA would like to offset their GHG emissions by continuing the collaboration with FTFA planting trees
in Limpopo, in line with their Limpopo conservation project. The quantity of trees to be planted follows
FTFA’s registered Verified Carbon Standard (VCS) project. The calculation is on the basis that 2.71 trees
should be planted for every 1 tonne of CO2e to be sequestered. Similarly if wanting to offset with bamboo
plants, the calculation is carried out on the basis that 1.7 bamboo plants should be planted to sequester 1
tonne of CO2e.
After calculation of KMSA’s FY 2014 GHG inventory, the direct and energy indirect GHG emissions of
KMSA’s operations amounted to 1,945 tCO2e during this reporting year. The GHG inventory of KMSA
taking into consideration direct and indirect emissions amounted to 5,681 tCO2e.
21
In the instance where KMSA wants to offset direct and energy indirect emissions a few offsetting options
are outlined below. These are an indication of amounts and may vary depending on assumptions made in
offset calculation:
1. Planting a combination of indigenous or fruit trees, an indicative amount of 5,271 trees
2. Planting bamboo plants an indicative amount of 3,307 plants
3. Planting a combination of trees and bamboo plants with a 50:50 split: an indicative amount of
2,636 trees and 1,654 bamboo plants
If KMSA would like to offset all their GHG emissions, direct, energy indirect and other indirect emissions,
a few offsetting options are outlined below. These are an indication of amounts and may vary depending
on assumptions made in offset calculation:
1. Planting a combination of indigenous or fruit trees, an indicative amount of 15,396 trees
2. Planting bamboo plants an indicative amount of 9,658 plants
3. Planting a combination of trees and bamboo plants with a 50:50 split: an indicative amount of
7,698 trees and 4,829 bamboo plants.
Once KMSA has carried out their chosen offset project they may engage with the
Carbon Protocol of South Africa, who will review and verify the GHG inventory
and carbon offsets chosen. After successful verification the carbon neutral logo
presented to the right is awarded and may be used for up to one year.
9. Conclusions and Recommendations
KMSA continues on their road to reducing their impact on the environment as well as following sustainable
business operations. In light of this, the calculation of KMSA’s FY 2014 GHG inventory, is their sixth
GHG inventory calculation.
This report has documented the findings from the calculation of KMSA’s GHG inventory for financial
year 2014 (1 July 2013 – 30 June 2014). The direct (scope 1) emissions from KMSA’s operations in this
financial year amounted to 559 tCO2e, this is an increase from last year of 12%. Energy indirect (scope 2)
emissions amounted to 1,386 tCO2e, relatively stable from the previous year. Other indirect (scope 3)
emissions amounted to 3,736 tCO2e, this is a decrease of 20% from the previous year, due to decreased
international travel and business road travel. In order to offset all their GHG emissions, KMSA will need
to plant 15,396 tCO2e.
In expanding on their GHG reporting and moving forward on their journey towards a low carbon economy
it is recommended that KMSA:
Continue annually calculating their GHG inventory using most recently published emission factors;
Expanding their reporting on other indirect emissions, as explained in section 5.4;
Performing a cross check analysis on data quality;
Potentially verify the GHG inventory to enhance credibility.
22
References
Department of Environmental Affairs. (2011). National Climate Change Response White Paper. Pretoria:
Government of the Republic of South Africa.
Intergovernmental Panel on Climate Change (IPCC). (2006). Guidelines for National Greenhouse Gas inventories.
Intergovernmental Panel on Climate Change (IPCC). (2014). IPCC Fifth Assessment Report.
World Resource Institute. (2004). The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard
(Revised Edition). Washington: World Business Council for Sustainable Development.
World Resource Institute. (2011). Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and
Reporting. USA: World Business Council for Sustainable Development.
23
Annex 1: Activity Data for GHG Inventory Calculation
Diesel Usage (l) Petrol Usage (l)
KMSA 79772.83 KMSA 148275.48
Other 77245.78 Other 755630.52
Total 157018.61 Total 903906
LPG Usage (kg) Electricity Usage
Total 1654 kWh 1390562
Distance of flight (km) No. of Flights Total Distance
International (JHB/Japan) 13549 334 4525366
Domestic (JHB/Cape Town) 1264 718 907552
Local (JHB/Windhoek) 1364 38 51832
Number of employees 896
