Management approach

The group CEO and the board of directors bear ultimate responsibility for environmental performance. They are assisted by the social, ethics and sustainability committee of the board. At group level, the executive committee takes responsibility for environmental policy, reporting and monitoring, with an executive designated to drive this agenda. Environmental incidents, trends and related matters are reported to the executive committee and applicable divisional boards on a monthly basis, and to the group board on a quarterly basis.

However, the day-to-day operational management of environmental issues lies with each division and business, in accordance with our decentralised structure. As such, business units are responsible for developing their own environmental policy, in line with group principles, and taking into consideration their unique environmental impacts.

All operations report monthly carbon emissions (electricity and fuel consumption) and water usage data through our sustainability management system. This monthly reporting allows businesses to rapidly identify any environmental issues as they arise so that these may be immediately addressed. Businesses are required to rigorously investigate and report incidents and effectively mitigate the impacts of any incidents.

In managing our environmental impact, we are guided by the group-wide sustainability strategy and by the relevant legislation. Many of our operations also comply with International Standards Organisation (ISO) 14001 certification, which guides the way in which they manage and mitigate their environmental impact.

We did not receive any fines during the year under review for environmental incidents, spillages or non-compliance with environmental laws and standards.

The business case for environmental management

We recognise the business case for environmental management. Poor environmental management, and its subsequent effects, can pose a serious risk for business, while sound environmental management can offer real business opportunities.

Environmental issues are listed on our business risk register and include carbon tax and the risk of fines for non-compliance.

The green revolution offers market opportunities by differentiating green products and services. Green solutions also often help to reduce costs – energy-efficient lighting, water recycling initiatives, sustainable building developments and fuel-efficient vehicles are prime examples of how the business bottom line can benefit from implementing environmentally friendly solutions.

Kia’s green dealership a world first
CASE STUDY

Kia’s green dealership a world first

Kia Motors’ flagship Weltevredenpark dealership opened its doors during the year as the first fully solar-powered Kia dealership in the world, and one of South Africa’s most environmentally friendly motor vehicle dealerships.

There is a growing trend towards green building technology, with the utlisation of eco-friendly products and systems being used both in the construction of a building and in the design and functionality of the building. These green solutions deliver a significant reduction in energy and water consumption, but the Kia Weltevredenpark dealership went a step further in making the building almost entirely self-sufficient from an energy perspective.

A sophisticated solar PV and battery system means that solar energy can be stored and used to power the facility even on cloudy days. This means the dealership can operate off the utility grid. The battery system acts as an uninterrupted power supply and can run critical items for 12 hours.

Sustainability was top of mind right from the beginning. The building was designed using recycled and reinforced steel which was incorporated into the concrete and foundations, while the use of fly ash substantially reduced the amount of cement in the concrete mix. This in turn reduced the amount of CO2 emissions generated during the construction process.

Natural lighting was used extensively and tinted glass was installed to minimise the build-up of heat in the building and reduce
the need for air-conditioning.

Paints low in volatile organic compounds (VOCs) were used throughout the building. The absence of lead and other unstable, carbon-containing compounds in this paint reduces the negative impact on the environment.

The building is fitted with energy-efficient light fittings and all rooms have motion sensors that allow for lights to be automatically switched off when no movement has been detected for five minutes.

Solar energy geysers have also been installed on the roof for water heating thus cutting down on energy consumption and the eco-friendly air-conditioning system uses less electricity and does not release harmful gases into the atmosphere.

The Kia Weltevredenpark dealership has the ability to recycle water through its state-of-the-art filtration system. Rainwater is collected from the facility’s roof and is then distributed into six 10 000 litre containers.

Low-maintenance gardens were designed. These gardens are easy to maintain in our relatively dry climate, and require minimal watering.

Of the R49 million invested in the 8 500 m2 dealership, R6 million was spent on green energy and water management systems.

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