Our energy consumption

Our direct energy consumption derives from fossil fuels used in road, water and air transport, while indirect energy consumption is largely made up of electricity purchased.

We measure each of these indicators on a monthly basis per site and by division, tracking both total fuel consumed as well as biofuel consumed. We are also working towards reduction targets, set during 2013 by each division according to the nature of their business and environmental footprint.

Direct energy consumption

Electricity purchased rose 22% from 164 million kWh in 2012 to 209 million kWh in the year under review. This increase was as a result of Lehnkering and CIC contributing for a full year as well as new acquisitions that have come on board during the year. In addition, the increase was also partly as a result of data corrections in the Logistics Africa and the Automotive and Industrial divisions during the previous reporting period.

Total fuel (litres)

Africa Logistics     International Logistics     Automotive and Industrial     Financial Services     213 862 787     23 688 403     32 776 724     656 590     (2012: 218 652 007)     (2012: 16 962 288)     (2012: 35 276 770)     (2012: 513 818)

Total electricity (kWh)

Africa Logistics     International Logistics     Automotive and Industrial     Financial Services     68 074 604     51 547 448     86 443 022     2 781 612     (2012: 56 948 284)     (2012: 16 357 474)     (2012: 87 591 825)     (2012: 2 646 391)

tGHG – indicator

Africa Logistics   International Logistics   Automotive and Industrial   Financial Services     2013   2012   2013   2012   2013   2012   2013   2012   Scope 1 618 699   639 016   262 411   150 559   93 792   130 622   1 492   2 254   Scope 2 79 309   56 673   31 605   7 219   92 215   83 676   2 663   2 617   Total scope 1 & 2 698 008   695 689   294 016   157 778   186 007   214 298   4 154   4 871

Imperial signs Energy Efficiency Leadership Network Pledge

Imperial recognises that energy efficiency in line with our sustainability strategy and framework, is key to a number of business objectives including: business competitiveness; energy security; job creation; energy consumption; improving air quality and reducing carbon emissions. In support of these objectives Imperial has signed the energy efficiency leadership network pledge between the Department of Energy, Business Unity South Africa (BUSA) and the National Business Initiative (NBI).

Initiatives to reduce energy consumption

Properly trained drivers, well-maintained vehicles and upgrading our fleets with the latest technology helps to reduce our fossil fuel consumption and thereby, our carbon footprint. During the year, Europcar changed its fleet mix to deliver an average 3% reduction in carbon emissions across the fleet. As suitable low-sulphur fuel becomes more readily available, transport fleets across our South African businesses continue to be upgraded to meet Euro 5 standards.

Our logistics operations use sophisticated fuel management systems to track fuel consumption and highlight inefficient driving techniques.

We expect the system to assist us in improving our fuel efficiency. A number of our businesses have embarked on energy-efficient projects that include retro-fitting existing lighting systems with energy-efficient lighting, making use of new aircon technology and running “switch off” awareness campaigns among employees.

During the year the Imperial Logistics division completed the first phase of its energy efficiency project, which replaces inefficient lighting with the latest environmentally friendly lighting technology. The project was rolled out at the Goldfields Logistics Park and Imperial Cargo Solutions premises, delivering savings of over 20% on energy costs. Phase II of the project is underway at a further nine premises, which are collectively expected to deliver an average energy saving of 1 368 400 kWh per annum. This equates to a carbon saving of approximately 580 t GHG per annum.

Imperial International Logistics’ Lehnkering business has installed energy-efficient lighting in a 30 000 m² area of its Wolfenbüttel warehouse. The system incorporates motion sensors that allow lights to be switched off when they are not needed. The company also plans to roll out new exterior lighting around the premises, following a pilot test case using LED bulbs. According to calculations the replacement of 85 lights will achieve an annual saving of 121 125 kWh. This equates to 71 tonnes of CO₂ per year.

Imperial Cargo Solutions’ installation of energy-saving lights resulted in a 24% saving of electricity consumption yearon- year. The business is in the process of fitting motion and occupancy sensors which are estimated to deliver an additional 5% to 10% saving in kilowatt-hours electricity.

The environmental footprint of the financial services industry is generally low, but businesses in this division are implementing energy efficiency projects to reduce their footprint wherever possible. LiquidCapital runs an ongoing awareness campaign to remind staff of the importance of switching off devices that are not in use, while the installation of energy-efficient lighting at Regent Insurance’s head office facility has significantly reduced its electricity consumption.

We have also embraced sustainable building technology across a number of our businesses. During the year, the Distributorship division’s flagship green Kia dealership was completed in Weltevreden Park (see case study on page 34). In the Automotive Retail division, the new UD Trucks dealership in Pretoria East uses daylight harvesting, solar panelling and a specially adapted air conditioning system to minimise electricity usage from the grid. All new dealerships within both these divisions will be designed and built according to similar environmentally friendly plans and standards.

CASE STUDY UD Trucks embraces energy-efficient building A state-of-the-art energy and water management system, installed at the UD Trucks head office in Pretoria, has significantly reduced the environmental footprint of the building without the need to compromise on modern comfort. A specialist Automation company was contracted to design, install and commission an Energy/Building Management System (EBMS), which can be accessed online from anywhere 24 hours a day. The web-based system monitors and controls energy and water consumption, temperature, CO2 levels, air conditioning, solar power output and the fire system. The system responds to these measurements with environmentally intelligent solutions. Fresh air and extractor fans are activated when CO2 reaches a certain level and lights switch on or off in response to people entering or leaving a room. A unique weather system monitors the outdoor ambient temperature and wind speed and controls the air conditioning and lighting inside the building. The building was designed to maximise the use of natural light, and is fitted with low-energy LED and state-of-the-art dimmable fluorescent lights. All geysers are connected to heat pumps and the solar system supplies 66% of the power consumed during the day. While the building is environmentally friendly, it is also a place of rest and relaxation for truck drivers. The drivers’ lounge is air-conditioned and the sleeping quarters are equipped with heat pump showers. The UD Trucks dealership also has a state-of-the-art water treatment plant and its wash bay functions almost entirely on recycled water. A rainwater harvesting system supplies irrigation water the garden, which has been planted with water-hardy plants and indigenous natural grasses.

During the year the National Cleaner Production Centre (NCPC) undertook energy-efficiency studies at a representative sample of 22 of our sites, providing the group with recommendations on how to improve energy management practices at these facilities (see case study on page 38).

CASE STUDY National Cleaner Production Centre audit highlights opportunities for improved environmental efficiency During the year, an audit conducted by the National Cleaner Production Centre (NCPC) on 22 Imperial sites highlighted a rangeof opportunities for greater energy efficiency. The NCPC is a national government programme that promotes the implementation of resource efficiency and cleaner production methodologies to help industry lower costs by reducing energy, water and materials usage, and improving waste management. Hosted by the CSIR on behalf of the Department of Trade and Industry, the NCPC offers the subsidised assessments at little or no cost to companies. The 22 Imperial sites in Gauteng, the Western Cape and KwaZulu-Natal were selected for the audit as a representative sample from the group. Each site underwent energy assessments to identify opportunities to lower consumption and thus production costs. These assessments were conducted to help the company understand its full energy generation profile and identify opportunities for improvement. “Our role is to help companies identify opportunities. We have provided Imperial with a list of recommendations and it is up to each site to implement those recommendations that they feel will be valuable,” explains Hermant Grover Project Manager at the NCPC. The sites are currently in the process of reviewing the NCPC recommendations and drawing up a list of those to be implemented. They include interventions related to energy-efficient lighting, lighting sensor controls, introducing natural lighting where possible, waste management options, water recycling solutions and automated air-conditioning systems.