Our efforts to reduce our carbon footprint focus on electricity and fuel consumption, to reduce our operational costs and comply with South Africa's Carbon Tax Act.
Our biggest consumers of fuel are our generators, company cars, test drives of vehicles to generate sales and the car rental fleet. To a lesser extent, fuel is used to deliver aftermarket parts to customers, although the transport logistics of parts is managed through a dedicated team to achieve route optimisation. Financial Services' use of technological resources makes it dependent on electricity.
Our generator network in South Africa is regularly maintained and critical for ensuring business continuity during power outages. We are comfortable that our operations have adequate access to alternative power supply; however, our focus going forward is to move away from the use of petrol or diesel generators to greener alternatives where we can. This will not only reduce our carbon footprint, but also our demand and dependence on a weakening national grid.
What we are doing
Our initiatives to reduce our electricity consumption include:
- Installing energy-efficient lighting and air-conditioning systems and replacing energy intensive lights with light emitting diodes (LEDs).
- Installing light sensors to switch lights off in unoccupied areas and timers on air-conditioning and heating systems. In the UK, heating controls are installed on workshop doors switching the heating systems off when doors are open.
- Monitoring employee fuel use and, in Aftermarket Parts, continually revising delivery routes and schedules so that they are as efficient as possible. The trend towards online shopping will enable the further optimisation of delivery routes.
- In South Africa specifically, we are installing electricity meters to monitor consumption, identify spikes and energy-saving opportunities, and compare actual consumption to municipal charges. In addition, we install solar photovoltaic (PV) systems, where feasible. PV systems are installed at Hyundai's parts distribution centre (PDC) in Germiston, Kia's eco-dealership in Weltevreden Park (under refurbishment and upgrade), and six key Retail and Rental sites.
2021 performance and looking forward
- Road fuel usage was 16 114 297 litres, 16,0% lower than prior year and well below our F2021 target by 26,3%. Decreases are attributable to fuel cost initiatives in many businesses and remote working due to COVID-19.
- Electricity usage was 73 317 megawatt hours, 3,2% lower than prior year and 10,5% lower than F2021 target.
- While Scope 3 emissions have significantly reduced due to less air travel (94% reduction), this will increase again as business returns to normal activity. However; it is rewarding to see the steady decrease of overall carbon emissions over the past three years.
- During the year, we completed all applicable registrations in terms of South Africa's carbon tax fee.
- Objective: all business segments are investigating where solar PV power installations are feasible and, where there are solar plants in place, to ensure that we effectively use solar power without wastage.
- Objective: given OEM strategies and market conditions, where feasible, we will adapt our company car fleet to include more fuel-efficient demo vehicles, where possible.
- Objective: we will expand the number of charging stations in dealerships in the UK and Australia.
- Objective: our businesses will continue to install energy-efficient lighting and light timers and replace old electronic equipment with energy-efficient alternatives, when retrofitting projects are undertaken or equipment becomes redundant.
- Objective: based on our COVID-19 experience, we will drive hybrid meetings (a combination of in-person and online connections) as an alternative to travel.
Business specific initiatives and highlights
- The solar system at the Hyundai PDC, installed in 2020, has achieved around 69% in cost savings and a 61% saving in kilowatt hours drawn from the national grid. The system has achieved the optimal kilowatt hour target of 70% twice since it began operating; however, unforeseen technological issues, and the inability to maintain the system during South Africa's hard lockdown, impacted its optimal performance during the first months. On the whole, we are pleased with the system's performance. Following the successful solar test case at the PDC, Hyundai is reviewing similar options for other strategic sites.
- Kia approved a solar PV replacement system for the Weltevreden Park dealership (Gauteng), where the current solar system is at end of life. The new system has a 36-month payback period and the installation will be completed by November 2021. Under normal operating conditions, the system will supply 70% of the dealership's power requirements with the balance being drawn from the national grid. Kia also implemented a conventional power back-up solution at the East Rand dealership (Gauteng), which is solar compatible. The business case for connecting solar panels to the back-up solution is being investigated.
- Renault installed an 80 kilowatt solar plant at the Renault PDC and increased the percentage of online learning, reducing employee travel to training facilities.
- To date, 76 Retail and Rental sites have been retrofitted to energy saving lightbulbs during dealership upgrades. The business segment is conducting solar PV feasibility studies with new implementations to be considered in the next budget.
- Car Rental will procure vehicles with lower emissions, although this will be dependent on what is available in the market.
- Financial Services approved a small-scale solar installation for implementation in F2022 for a building at its Johannesburg campus. Given the nature of the work undertaken in the business segment, working from home was heavily utilised during COVID-19 lockdowns and peaks. On return to the office, the correct balance between face-to-face and virtual business activities that suit operational requirements will be determined.
- Implemented a policy for employee use of EVs and hybrid vehicles, and installed charging points at certain sites in accordance with the standards set by OEMs.
Motus Vehicle Solutions (UK)
(at 30 June 2021)
IN OUR FOREST
Motus Vehicle Solutions in the UK is working with ecologi.com – an initiative that enables individuals and companies to access carbon offset opportunities and become carbon neutral. The initiative was started early in 2021.
OF SEA ICE
IN A CAR