GROUP SUSTAINABILITY REPORT

2019

Gathering
Momentum

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Underground Mining + Oil & Gas + Power & Water

Minimise our carbon footprint

THE REDUCTION IN OUR ENERGY CONSUMPTION AND CARBON FOOTPRINT FOR FY2019 IS MAINLY DUE TO THE COMPLETION OF A MINING PROJECT WHERE WE WERE DIRECTLY PROCURING AND USING DIESEL AS AN ENERGY SOURCE.

Energy

ENERGY MANAGEMENT (Gigajoules)

Note: total energy consumed includes all direct (all fuel types) and indirect (electricity) energy sources, with the majority of sources used in FY2019 being diesel, petrol and electricity. Reported figures include energy paid for by Murray & Roberts and excludes client purchases.

 

36%
DECREASE IN ENERGY USE
(YEAR ON YEAR)


Carbon footprint

TOTAL GREENHOUSE GAS EMISSIONS (tCO2e)

33%
DECREASE IN CARBON EMISSIONS
(YEAR ON YEAR)


2018 CDP ASSESSMENT

ACHIEVED AN AWARENESS LEVEL WITH A

C rating

2017: B rating

This level is based on the CDP’s more stringent methodology. The old methodology was revised given increased investor pressure and to align it to the Task Force on Climate-related Financial Disclosures. As a result ratings for both the CDP and Water Disclosure Project have declined in general globally. While our score is lower than the General Level average and the Africa regional average (both being B-), benchmarking indicates that relative to our peers this is still a good result within the construction and engineering sector.

Our annual reports to the CDP are available at https://www.cdp.net/en.








Carbon regulations affecting our operations

Regulatory requirements will increase the cost of fossil fuel-based inputs and the resultant carbon pricing mechanisms such as carbon tax will have the biggest impact on carbon intensive industries.

  • South Africa

    South Africa’s Carbon Tax Act was signed into law in May 2019 and will be implemented in two phases. In the first phase (June 2019 to December 2022), the carbon tax will impact industries using fossil fuels in stationary equipment (boilers and generators) with a thermal capacity of 10 megawatts and above. Our combined thermal capacity does not trigger this threshold and we will therefore not be directly impacted by the carbon tax in this phase.

    Carbon tax on liquid fuels (petrol and diesel) will be imposed at source as an addition to fuel taxes, which may result in pass-through costs from increased fuel prices. The National Treasury will review the interaction between the carbon tax and the electricity generation levy at the beginning of the second phase starting in 2023, which may result in increased electricity prices.

  • Canada

    Canada’s National Greenhouse Gas (“GHG”) Pollution Pricing Act regulates the national carbon pricing system. Regulatory charges are incurred on fuel applicable to households, residential and industrial facilities as well as a regulatory trading system for large industry – the federal output-based pricing system (“OBPS”). The federal OBPS is designed to ensure there is a price incentive for large industrial emitters to reduce their GHG emissions and spur innovation.

    Ontario, where we have a significant presence, did not implement a carbon pricing instrument and therefore did not satisfy the federal government’s conditions. As a result, a federal backstop was imposed on the province in the form of a fuel levy effective from January 2019 along with the federal OBPS from April 2019. The proposed system could impact Cementation Canada’s North Bay and Sudbury businesses however it should be noted that several provinces, including Ontario, are contesting the federal backstop. We will continue to monitor these developments and respond accordingly.