AECI Ltd
Climate Impact & Sustainability Data (2020)
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:575375 tCO2e/year
Scope 1 Emissions:334225 tCO2e/year
Scope 2 Emissions:241150 tCO2e/year
Scope 3 Emissions:1036224 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:920278 MWh/year
Water Consumption:1872032 m3/year
Waste Generated:619357 tons/year
Carbon Intensity:0.000024 metric tons CO2e per ZAR of total revenue
ESG Focus Areas
- Climate Change
- Sustainability
- Resource Conservation
- Energy Efficiency
- Renewable Energy
Environmental Achievements
- Reduced Scope 1 and 2 emissions by 11% due to COVID-19 restrictions, divestments, and emission reduction efforts.
- Implemented several emission reduction projects, with more planned to meet 2025 targets.
Social Achievements
- AECI Plant Health received an environmental award for zero environmental incidents, 100% compliance, a new stormwater project, and progress on air emissions abatement projects.
Governance Achievements
- Established board-level oversight of climate-related issues, with responsibility delegated to the Social and Ethics Committee.
- Implemented an internal carbon price aligned with the South African carbon tax.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Reduce Scope 1 emissions by 20% by 2025
- Reduce Scope 2 emissions by 8% by 2025
- Increase renewable energy consumption by 8% by 2025
- Reduce potable water consumption by 25% by 2025
- Reduce effluent discharged to sea and sewer by 20% by 2025
Environmental Challenges
- Unstable electricity supply and infrastructure challenges.
- Unstable water supply due to infrastructure failures.
- Potential ban on certain chemical products.
- Extreme and unpredictable weather events.
- Additional regulatory compliance relating to CO2 emissions.
- Changing customer behavior towards low-carbon products.
- Disruptions to customers’ operations due to changing weather patterns.
Mitigation Strategies
- Developed a 2025 strategy framework with zero harm and sustainability at its core.
- Introduced emission reduction, energy efficiency, and renewable energy targets.
- Implemented emission reduction projects (e.g., secondary catalyst installation, waste methane gas use).
- Diversified portfolio and insured against risks.
- Developed new products and services (e.g., SupPlant, Biocult).
- Invested in R&D for low-carbon products and services.
- Engaged with authorities on proposed regulations.
- Registered AECI Mining Explosives as an Independent Power Producer.
- Committed to installing four solar plants.
Supply Chain Management
Supplier Audits: 50% of suppliers by number, 50% of total procurement spend
Responsible Procurement
- Engagement with suppliers on low-carbon products and climate-related risks.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Water stress
- Changes in precipitation patterns
Transition Risks
- Carbon pricing mechanisms
- Changing customer behavior
- Additional regulatory compliance
Opportunities
- Development of new products and services
- Energy efficiency and renewable energy initiatives
Reporting Standards
Frameworks Used: Greenhouse Gas Protocol
Certifications: ISAE 3000
Third-party Assurance: Limited assurance
Sustainable Products & Innovation
- Products that reduce customers’ GHG emissions, improve their resilience, and sequester carbon.
- SupPlant
- Biocult
- Emulsifiers for cold production processes
Awards & Recognition
- Award from the South African Department of Forestry, Fisheries and Environment for contribution to executing the intent of South Africa’s National Environmental Management Waste Act (2008).