In line with the groups objective of minimising its environmental impact, an environmental committee has been established. The committee comprises senior managers from all areas of the business, and meets monthly. Its scope is all-encompassing and its mandate is to minimise the environmental impact and carbon footprint made by the group and its stakeholders in all identified spheres. It reports quarterly to the chief executive officer and three members of the operating board. In order to ensure that the process is fully inclusive, the committee issues regular e-mails to all staff encompassing all aspects of environmental awareness.
Whilst retail businesses supplying clothing and related products have a low impact on the environment, we are well aware that responsible use of limited resources is imperative. There have been no environmental incidents of any significance within the group and no penalties or fines have been imposed by any environmental regulatory authority.
During the course of the year, a carbon footprint analysis was commissioned and completed. This has provided us with a benchmark for the measurement and reduction of our carbon emissions in the future.
In addition, the following measures are in force:
Our environmental policy is available to the staff through the groups intranet.
The amount of cardboard and waste paper generated by the groups distribution centres and head office approximates 102 000 kilograms per month. The vast majority of this is sent to recyclers. A portion of the waste cardboard is shredded and utilised as protective packaging. We anticipate a reduction of 15 000 kilograms per month in our cardboard waste in the next reporting period because of intended reuse of undamaged cartons.
Plastic waste from these sites is minimal as a result of the elimination of shrink-wrapping of cartons. Residual plastic waste is sold to the recycling industry.
Document imaging is currently being implemented in selected areas within the group that have a high volume of paper usage and storage. It is intended to extend this technology to other parts of the group. The saving in paper is uncertain at this stage.
Cardboard and other waste at stores continues to be controlled by means of shopping centre disposal processes and transmission into the informal sector.
Plastic hangers were recycled during the year, the cleaning and sorting processes being performed by The Workshop and House Horizon in Stellenbosch and Chris Steytler Industries in Bellville. In future all merchandise will be flat-packed and hangers will be retained within the stores. This will result in reduced packaging, transport and plastic production, favourably impacting upon our carbon footprint.
All plastic bags used by the stores are durable and reusable, being made of sheeting that is at least 30 microns thick. In certain divisions use is also made of recyclable paper packets.
Special bins for the disposal of tins have been placed in the head offices and distribution centres. Staff are encouraged to place all of their cooldrink and other tins in these containers, as the waste is then sent for recycling.
With the ongoing energy crisis, there is a concentration of effort surrounding power-saving initiatives.
An independent electrical and lighting design consultant has been appointed to advise the group on optimal energy efficiency at its stores, and also to investigate stores where the electricity cost per square metre is out of line with comparable stores.
Head office buildings utilise energy management systems and energy-efficient lighting to minimise the use of electricity. Signage has been placed in head office buildings to ensure that staff members do not make use of unnecessary lighting where it is not required. This includes unused conference rooms and display areas.
The air-conditioning plant in the main head office complex houses ice tanks that generate ice during off-peak hours, which is used for day-time cooling. Last year, the operating time of the air-conditioning plant was reduced by two hours per day, and further seasonal reductions are being considered.
Where possible, computers at head office locations are switched off at night, and computer procurement now includes a requirement for energy efficiency.
All new and refurbished stores are as a matter of course fitted with energy-saving lighting and control-gear. In existing stores, energy-efficient lighting is being installed when replacement is required.
Where it is practical and safe to do so, stores are now switching off all or most lights outside trading hours.
Water is primarily consumed for personal and hygiene purposes. Regular maintenance ensures that there is minimal wastage.
Electricity and water expenditure is monitored by the trading and service divisions each month against budgets and records of the previous year, and variances are followed up.
All printers and fax machines make use of recycled laser cartridges. Double-sided printing is being introduced in head office facilities. In addition, multi-purpose copiers have been replaced with energy-efficient units.
Company vehicles are checked and serviced in accordance with the manufacturers prescribed intervals. Merchandise transport is managed by outsourced professionals who, by the nature of their operations, ensure that their vehicles perform at optimal efficiency. As this is one of the groups larger areas of environmental impact, we intend to engage with the service providers in order to ascertain how best carbon emissions can be minimised.
All air-conditioning systems are maintained by outsourced technicians in terms of a regular maintenance programme. Refrigerants are not discharged into the atmosphere but recovered and recycled. Only refrigerants that comply with the requirements of the Montreal Protocol are used.
Fluorescent tube and general lamp disposal at head offices and distribution centres is controlled by an environmental waste management company. In the main, stores currently rely on the disposal processes of their local municipalities or of the shopping centres in which they are located.
Redundant computers are sent to an established electronic recycling company. They are stripped of recyclable materials and the unusable components are disposed of in a manner that is not harmful to the environment.
Used watch batteries from both our jewellery stores and head office watch repair workshop are similarly disposed of in an environmentally-friendly manner.
Via our intranet, staff members are encouraged to make use of the environmental disposal service for old cell phone components offered by all MTN franchise dealerships.
The group will not enter into leases where developers have not conducted the required environmental impact assessments.
As is noted in the Group Property divisions report, there is a growing trend towards the design and construction of eco-friendly shopping malls. While certain initiatives can be adapted to existing buildings, the key benefits will be generated from new, eco-friendly design concepts.
Whilst very much in its infancy in South Africa, we will engage with our landlords in this initiative.