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Climate change


Climate change, energy and greenhouse gases

Energy management
Exxaro has adopted a consolidated approach with all related issues integrated under the energy management steering committee. This previously functioned as the clean energy forum but has been realigned to increase the prioritisation and management focus given to this important issue.

The scope of the steering committee includes operational energy management issues as well as the implementation of projects to enable Exxaro to thrive in a low-carbon economy. The forum is led by an executive general manager, and comprises senior management from corporate services and business units. Topics addressed include:
  • Regulatory environment
  • Energy consumption data reporting
  • Energy security
  • Energy efficiency
  • Mitigation and clean-energy opportunities
  • Integration with sustainability management.
The forum’s objectives include establishing a cross-functional management structure to address all energy related issues, and ensuring the development of a comprehensive energy-consumption and carbon footprint reporting framework.

Energy efficiency
Exxaro remains committed to the energy efficiency accord signed in 2005 and, by participating in the energy efficiency technical committee (facilitated by the National Business Initiative), is playing a leading role in industry collaboration with the DME and other government agencies.

Exxaro uses just under 1% of all the electricity generated by Eskom. In 2006, Exxaro produced 379 443 tonnes of carbon dioxide equivalent (CO2e) through the consumption of petrol and diesel and more than 1,5 million tonnes of CO2e from purchasing electricity from the Eskom grid. Establishing these quantities – and investigating ways to reduce them – was the first step towards reaching Exxaro’s 2015 goal of improving energy efficiency by 15%. In 2007, the group’s electricity bill was R256 million – 3% of total operating
expenses. This cost per tonne may increase significantly over the next four years purely as a result of tariff increases, which will be partially mitigated by the extensive energy efficiency initiatives being undertaken.

Mitigation and clean-energy opportunities
The Exxaro Chair in Business and Climate Change is based at Unisa’s College of Economic and Management Sciences. The R3-million three-year sponsorship will help in developing a core body of knowledge on climate change in South Africa to assist local businesses to adapt to, and reduce the effects of, climate change. This reinforces Exxaro’s commitment to achieving clean energy standards and remaining competitive while dealing effectively with climate change, potential energy shortages, related environmental concerns and rising costs of energy.

Exxaro has initiated a pre-feasibility study on two renewable energy projects with the potential of generating
250 – 400MW, in either wind or solar generation. The group is also progressing with a feasibility study on co-generation to produce some 200MW of electricity from waste energy such as furnace off-gas and waste heat at its own and at other organisations’ operations. The objective is to minimise energy waste, thus increasing energy efficiency dramatically. The carbon footprint of electricity from these sources is virtually zero and would reduce Exxaro’s carbon footprint.

Carbon disclosure project
As noted in the chief executive’s sustainable development message, Exxaro was recognised for its comprehensive response to climate change issues in the group’s first participation in the carbon disclosure project. This process assesses four issues surrounding climate change namely:
  • Climate change risks and opportunities – identify strategic risks and opportunities and their implications
  • Greenhouse gas (GHG) emissions accounting – determine actual absolute GHG emissions
  • Performance – against targets and plans to reduce GHG emissions
  • Governance – determine responsibility and management approach to climate change.

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