To ensure alignment with our carbon emission reduction goals, a steering committee oversees energy management projects and activities. This helps us thoroughly understand risks and opportunities so that our operations can focus on managing energy consumption, carbon emissions and other climate change-related matters.
Exxaro measures, manages and reports energy and carbon data in terms of the Greenhouse Gas (GHG) Protocol. Our scope 1, 2 and 3 emissions are monitored and reported annually. We use the operating control accounting approach in reporting emissions.
The GHG Protocol provides a standard measurement platform to compare aggregate data nationally and internationally. South Africa has arguably set the most aggressive carbon abatement targets of any developing country. The country aims to reduce emissions by 34% below business as usual by 2020 and 42% by 2025. Our GHG emissions recorded over the past three financial years are shown in the following tables and graphs.
|Total scope 1 and 2||-5%||1 035||1 082||867|
|Year-on-year change (%)||-5||25||0|
|Scope 32||-2.4%||69 220||70 947||72 928|
|Year-on-year change (%)||+2.5%||+2.7%||5|
|1||Scope 2: Electricity-based emissions are derived from the grid emission factor for South Africa, which is 1.06tCO2e per megawatt hour (MWh).|
|2||Scope 3: Reported emissions based on use of product sold by Exxaro (representing over 96% of Exxaro's scope 3 emissions).|
|Carbon emissions by source||Year-on-year
|Year-on-year change (%)||3||18||2|
|Source proportion (%)||63||62||64|
|Year-on-year change (%)||3||19||3|
|Source proportion (%)||25||25||25|
|Fugitive emissions (ktCO2e)||-14%||117||136||93|
|Year-on-year change (%)||14||32||2|
|Source proportion (%)||11||13||11|
|Other sources (ktCO2e)||-11%||8||9||0|
|Year-on-year change (%)||11||96||74|
|Source proportion (%)||1||1||1|
The CDP, a UK-based organisation overseeing a global environmental disclosure system, receives data that provides valuable insights into corporate strategies and the journey towards environmental leadership. The system also helps channel investment to companies adhering to sustainable carbon and emissions management.
We have participated in the CDP climate change programme since 2008, supporting our reporting with a central data repository that records our energy consumption and intensity, carbon emissions measurement and cost performance at BU and group levels. The database is audited and assured externally every year. We have also participated in the CDP Water programme since 2010.
Reducing our energy consumption and improving our energy efficiency remains a high priority.
Therefore, we continue focusing on lowering our carbon footprint. In a fast-changing legislative environment, with the promulgation of carbon tax from 1 June 2019, reducing GHGs is a business imperative as it could affect our financial performance. Our carbon intensity continues to show a decreasing trend as we focus on managing our electricity and diesel consumption. We expect this trend to continue as we implement initiatives to support 2050 our carbon-neutrality target.
|GHG emissions in 2020||Scope 1
|Mpumalanga||208||243||19 120||19 573|
|Leeuwpan||54||27||3 622||3 704|
|Mafube||16||28||3 220||3 264|
|Matla||36||106||11 182||11 324|
|Limpopo||177||396||50 100||50 674|
|Grootegeluk||177||394||50 023||50 364|
|Corporate Centre, the conneXXion||0.02||1.6||2|
During 2020, the carbon intensity was 4.9ktCO2e/TTM compared to 5.4ktCO2e/TTM in 2019. This translates to a 9% decrease in carbon intensity due to energy efficiency projects at our BUs. The reduction in the number of employees working from the office due COVID-19 also contributed to the reduction.
Electricity and diesel intensities decreased in 2020, mainly due to energy efficiency projects in our operations, particularly at our largest operation, Grootegeluk. Based on production tonnages in 2020, electricity intensity decreased by 7% to 13MWh/kt (14MWh/kt in 2019) and diesel intensity decreased by 6% to 2 042 litres (L)/kt (2 183l/kt in 2019). The following projects currently underway at Grootegeluk avoided 1 088tCO2e in 2020:
The focus to 2021 will be to roll out energy management projects across the group to ensure that we can leverage on the direct benefits on the GHG reduction.