The usual suspects lined up for the annual identity parade as South Africa’s biggest emitters were revealed last month.
Eskom and Sasol came out tops when the National Business Initiative announced the results of its third annual Carbon Disclosure Project. But Eskom actually reduced its carbon emissions by about two million tonnes from its 2008 emissions.
The decline is reportedly as a result of a reduction in the country’s energy consumtion, indicating that South Africans have gone on some form of a low-carbon diet.
According to the report South Africa’s estimated total emissions from all sources is about 440-million tonnes of carbon or about 1.5% of the world’s emissions. This is opposed to the United State’s estimated 5 752-million tonnes, China’s 6 103-million tonnes and Brazil’s 352-million tonnes.
This year 87% of companies included in the report disclosed their greenhouse gas emissions. But companies will soon have no option but to disclose how much carbon they pump into the air.
In her comment on the project Environment Minister Buyelwa Sonjica said: ‘Greenhouse gas emission reporting by industries will soon be mandatory in South Africa and non-compliance shall be met by penalties.”
The disclosed emissions of 55 of the Johannesburg Stock Exchange companies added up to 101-million tonnes, which excludes emissions associated with electricity usage.
Eskom, though not a listed company, has participated in the project since its inception. The disclosure project singled out Eskom, Sasol, ArcelorMittal South Africa, BHP Billiton and Anglo American as big emitters.
Eskom’s reported emissions were 220-million tonnes, whereas Sasol came in with about 61-million tonnes. ‘In terms of direct local emissions, the data highlights the predominant contribution of Sasol,” the report reads.
To combat climate change a future treaty will have to impose emission caps on companies and force them to lower emissions. Businesses told the business initiative that they are aware of the impact climate change legislation will have on their businesses.
‘It seems to be only a matter of time before a cap, in one form or another, on emissions will be introduced. This could fundamentally affect the energy intensive core business of Anglo Platinum,” Anglo Platinum was quoted as saying in the report.
The disclosure project is a global collaboration of 475 institutional investors with an asset base of about $55-trillion and is voluntary.
The National Business Initiative manages the South African part of the project. Questionnaires are sent worldwide to about 3 700 of the world’s largest corporations requesting information about their greenhouse gas emissions.
The initiative found that there was limited evidence of climate adaptation strategies. ‘It appears that local companies are insufficiently advanced in their adaptation initiatives,” the report said.
But it also found indications that climate change issues are increasingly being integrated into how companies run their businesses.
About 86% of the companies that responded to the questionnaire indicated they have an executive body responsible for climate change.