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Climate change
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 (CO
2e) through the consumption of petrol
and diesel and more than 1,5 million tonnes of CO
2e 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.
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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