Page 55 - Integrated Annual Report

Compliance:
The group operates in a highly regulated environment. Where necessary, compliance officers have been appointed at each of the group’s key operating subsidiaries and associated company levels for ensuring adherence to the various laws and regulations.
The committee is responsible for reviewing any major breach of relevant legal and regulatory requirements. The committee is satisfied that there has been no material non-compliance with laws and regulations.
The committee is also satisfied that it has complied with all its legal, regulatory and other responsibilities during the year under review.
Employment practices:
The company seeks to offer employment to newcomers in compliance with laws and codes regulating employment. As an investment holding company, HCI has a relatively small staff complement, with fewer than 50 employees. The majority are long-serving employees, with minimal rate of staff turnover. The company aims to remunerate its employees fairly and competitively, according to their capabilities, skills, responsibilities and performance levels.
HCI believes that all employees are entitled to equal opportunities to advance their careers and accordingly, it does not allow discrimination against employees based on gender, race, religion or any other factor in relation to such opportunities.
ENVIRONMENTAL SUSTAINABILITY
HCI’s drive to combat climate change is focused on actively seeking and implementing solutions to reduce our carbon emissions across the HCI gGroup. We are also working to reduce water usage, especially in the Western Cape. HCI reports annually to the Carbon Disclosure Project, an independent international platform for reporting corporate environment impact. HCI reports on both carbon emissions and water consumption.
Carbon emissions:
HCI reports on the Scope 1 and 2 emissions of all of its subsidiaries. Scope 1 emissions are direct emissions produced by the reporting entity and are generally associated with the combustion of fossil fuel. Scope 2 emissions are indirectly derived from energy supplied by third parties and principally consist of emissions associated with the use of electricity. Scope 3 consists of indirect impact comprising carbon emitted in the product value chain but not directly produced by the company. Scope 3 emissions are reported on a voluntary basis to the CDP but not included in the figures reported here.
Each year we restate our baseline to take account of structural changes that have taken place over the past year, such as the disposal or acquisition of assets.
This restatement is calculated in terms of the Greenhouse Gas Protocol. Restatements this year amount to less than 1% of emissions. Where inter-year comparisons are made in the figures below, these are based on the restated 2020 figures.
2021 emissions were heavily impacted by COVID-19 associated restrictions. Many of our businesses were forced to close temporarily or to reduce trading activities. This is demonstrated clearly in our carbon emissions this year. The HCI group’s total Scope 1 and 2 emissions for 2021 amount to an estimated 289 674 tonnes of CO2, which is a 32% decrease from 2020. Scope 1 emissions fell by 28% whereas Scope 2 declined by 34%.
450 000 400 000 350 000 300 000 250 000 200 000 150 000 100 000
50 000 0
HCI Group Scope 1 and 2 emissions 2020 vs 2021
2019/20 (Restated)
2020/21
Over the longer term we have been reducing our emissions marginally each year, reflecting improved efficiency in our equipment and improved management of our resources. In particular, we have reduced fuel usage per kilometre and per passenger in Golden Arrow buses and we have improved the efficiency of various industrial processes in Deneb subsidiaries. We have reduced our electricity use in our hotels and casinos and in our properties in general. This year’s result is specifically related to the unusual circumstances we faced.
The proportion of emissions contributed by various subsidiaries did not change substantially compared with 2020. Within the HCI group, the largest producers of carbon emissions are Tsogo Sun (“Tsogo Sun Gaming and Tsogo Sun Hotels”), HCI Coal, Golden Arrow Bus Services and Deneb.
21% GABS/ElJoSa 52% Tsogo Sun
3% eMedia
4%
14% HCI Coal
HCI Properties and Gallagher
6% Deneb
HOSKEN CONSOLIDATED INVESTMENTS LIMITED
INTEGRATED ANNUAL REPORT 2021
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