Page 56 - Integrated Annual Report

REPORT OF THE SOCIAL AND ETHICS COMMITTEE (CONTINUED)
For the year under review:
• Tsogo Sun was responsible for a total of 149 883 tons of carbon which is a 40% reduction over 2020. This reflects the temporary closure of many Tsogo Sun facilities during the year.
• HCI Coal emitted a total of 40 387 tons of carbon, a reduction of 17%. HCI Coal uses diesel to power its mining vehicles and uses both diesel and electricity in its processing plants (washing, crushing and screening). HCI Coal sold Mbali mine during the last quarter of the financial year and also saw a reduction in output at the Palesa mine as a result of restrictions.
• The Deneb group includes industrial manufacturing, textile manufacturing as well as industrial properties. In the year under review, Deneb was responsible for 19 009 tons of carbon. A reduction of 13%. Deneb’s baseline figure was reduced as a result of the sale or closure of some of its manufacturing facilities.
• Golden Arrow Bus Services (GABS) and sister company Eljosa were responsible for 61 938 tons of carbon generated through the use of diesel to power their buses, a reduction of 27%. This is in line with reduced kilometres travelled. Fuel efficiency increased marginally.
Various HCI subsidiaries continue with their efforts to reduce their emissions. The Property division has made significant progress in the use of rooftop solar energy and intends to expand this further. Tsogo Sun is considering a pilot project at one of its casinos and has great potential to install renewable energy particularly in the Gaming division where rooftop space lends itself to such projects.
Golden Arrow Bus Services has taken huge strides in its renewable energy journey. Not only are two of its depots carbon neutral (as a result of solar installations), but the company is now testing two electric buses for a 12-month period. This project, in partnership with bus manufacturer BYD and Government initiative uYilo eMobility Programme, will ultimately produce a feasibility report which will be made available to industry to assist other bus companies to decide whether electric vehicles would be suitable for their operations . Results are very encouraging so far and the two vehicles are now being used in active service.
Water use and water discharge:
South Africa is a water scarce country facing growing demands on our limited water resource. HCI takes its water conservation responsibilities seriously, reporting on both water use as well as water discharge from our various facilities.
HCI’s total water withdrawals for FY2021 amounted to 2 383 million. This represents a decrease of 40% over 2020 and is related to the temporary closure of many facilities as a result of COVID-19 restrictions.
HCI Group‘s total water discharges for 2021 amounted to 36 megalitres. This is very similar to 2020 once the 2020 figure has been restated to account for closure or sale of assets (HCI Coal, Deneb) and addition of new facilities (Tsogo Sun Hotels). The reason that discharges did not decrease in line with water withdrawals relates to the fact that the major discharging facilities (mostly Deneb’s manufacturing facilities), experienced less disruption that the large water consumers (such as Tsogo Sun).
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INTEGRATED ANNUAL REPORT 2021
HOSKEN CONSOLIDATED INVESTMENTS LIMITED
4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000
500 0
2020 2021 Withdrawals Discharges
HCI water withdrawals and discharges 2020 vs 2021
The largest water users in the HCI Group are Tsogo Sun, HCI Coal, Deneb and HCI Properties as can be seen in the graph below.
38% HCI Coal
47% Tsogo
12% HCI Properties and Gallagher
3% Deneb
Tsogo is the largest water user in the group but has reduced its water use steadily especially in the Cape Town area where the company now runs a desalination plant that draws in groundwater and seawater and purifies it for various uses. HCI Coal is also a significant water user, but most of its water comes from the mine pits as well as from boreholes and stormwater. GABS draws mostly on boreholes for bus washing facilities.
The only HCI company that produces significant water discharges is Deneb. These are associated with manufacturing facilities and are carefully managed. The two major contributors to water discharges in the Deneb Group are Formex and Gold Reef Chemicals, both of which sustained their production levels during the year despite COVID-19 disruptions. Effluent discharges are regulated by the Department of Water Affairs and local authorities and are monitored internally.