Global warming and climate change pose economic challenges. Bidvest’s geographical and economic diversity and decentralised nature spread the Group’s exposure to specific climatechange risks. However, several sectors in which Bidvest operates, such as food production, are exposed to physical risks from changes in weather patterns. Businesses continue to identify and adapt to these risks.

Apart from protecting its business, Bidvest also has a responsibility towards reducing its impact on the environment

The Carbon Disclosure Project
The CDP works to measure and disclose the greenhouse gas emissions of major corporations. The CDP represents business and institutional investors. Its 2007 data covered 26% of manmade global CO₂ emissions.

Devised to address shortcomings in the Kyoto Protocol, CDP reporting focuses attention on energy usage and carbon emissions, and helps corporations ensure that an effective carbon emissions reduction strategy is made integral to their businesses.

Because of the size of its stakeholders, the CDP emissions declaration is most widely accepted by corporations, regulators and institutional investors.

Much of the data gathered by CDP-responding companies has not been collected before. The process of responding often results in changes in business practice and lower energy use. The information also helps corporations make informed risk decisions about potential legislation, consumers’ perceptions and reputational exposure.

A desktop evaluation of our carbon emissions was conducted based on the data contained in last year’s sustainability report. This year a more detailed divisional calculation was made, but the result can still only be considered preliminary.

Each year, the bar is being raised on the type of information required for various sustainability indices. Eco-efficiency is a particular challenge because of variations across industries. Denominators may range from “tons of goods handled” for Bidfreight, “customers served” in Rennies Travel, “turnover of goods sold” for Waltons, to “weight of goods sold” by 3663. So, while our data collation and reporting are improving so is the level of detail required. We continually strive to stay abreast of requirements.

Large corporations, regarded as leaders in their industries, are under close scrutiny for environmental behaviour from a variety of stakeholders. In particular, high levels of consumer awareness of environmental issues constitute a significant reputational risk for Bidvest. Awareness is higher in Europe and Australia/New Zealand than South Africa, although we expect the South African market to catch up rapidly. We look forward to the competitive advantage our proactive response to these risks will confer and the opportunities that will be derived from changing customer preferences.

	The GHG Protocol The GHG (greenhouse gas) Protocol is the most widely used tool for quantifying and managing GHG emissions, converting six main greenhouse gases into carbon dioxide equivalent units (CO2e) and separating GHG-producing activities into “scopes” according to the level of corporate control over activities. Bidvest’s GHG inventories were compiled by an independent consultancy and off er a limited and qualified carbon footprint calculation for indicative purposes only. Full information is either limited or not yet collated into usable forms. Bidvest’s carbon emissions were estimated to be 581 376 tonnes. Carbon emissions per employee were 5,5 tonnes.

We are entering the age of the environment, and management and employees across the Group are being sensitised to broader sustainability thinking, in particular how the Group responds to managing the risk and opportunities presented by global warming and other environmental issues.

Opportunities abound for protecting the environment while profiting from appropriate services and products. This thought is encapsulated in Bidvest’s “Green is Gold” campaign which alerts employees to the potential for improving profit through investment in environmentally oriented initiatives.

The review of operations highlight responses from business units that are achieving savings, efficiencies and better resource management. Examples include:

• a shift to lower cost, off-peak electricity at Voltex through the introduction of inverter technology
• Voltex is actively involved in Eskom’s demand-side management programme
• advanced route optimisation in several Bidvest distribution operations
• responsible resource management at Bidvest Fisheries, Namibia
• alternative fuel technology at 3663, Bidvest Asia Pacific and Caterplus
• water recycling at Island View Storage, Bidvest Australia and 3663 in the UK
• reduced packaging volumes at 3663

Bidvest averaged 58% in the annual scoring for a place in the DJSWI, falling just short of the 61% needed for inclusion in this prestigious index. Bidvest regrettably loses the place it has held for several years. Insufficient information was provided on customer relationship management and operational eco-efficiencies.

Since the assessment, Bidvest has developed and launched a real-time, internet-based data collation system allowing businesses to enter and review their data. Once the system beds in, improved data-flows will more accurately reflect Bidvest’s eco-efficiency and progress in other sustainability disciplines.

The JSE Socially Responsible Investment Index addresses local operating conditions, particularly the tension between socio-economic and environmental demands.

Environmental recording for the SRI has been a challenge, partly because Bidvest was categorised as a medium-to-low-impact business and the relevant statistics were not collated. The business world is waking up to the impact every sector (including transport, distribution and services) has on the environment, and Bidvest is keen to play a leading role in policy, management and reporting. We are proud of our status as a JSE SRI founding member.