Green economy journal issue 20 by GreenEconomyMedia

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by the solid strength and dependability of clay brick. Nature’s thermal battery The high density and natural insulation properties of clay brick also contribute significantly to the low CO2 emissions life cycle of a building. Clay bricks essentially perform like thermal batteries. They slowly absorb and store heat during the day over a 6 to 8 hour period, and then release that warmth when it is needed most – at night. This exceptionally long “thermal lag” - unique to clay brick - keeps indoor temperatures comfortable for occupants during hot days or cold nights. The result is lower electricity use. In South Africa, it is estimated that the heating and cooling of internal spaces consumes as much as 25% to 40% of total electricity costs. Clay brick’s ability to “self-regulate” temperatures makes it superior to concrete building systems. Workspaces for the next generation Clay bricks can be trusted to create environmentally responsible, reliable and enduring living and work spaces. “We continually investigate international best practices and technologies to reduce pollution and environmental impact during manufacturing,” says Jonathan Prior, Executive Director of The Clay Brick Association of South Africa. “We are proud to be at the forefront of sustainable construction materials and methods. For further information: The Clay Brick Association of South Africa (ClayBrick.org.za) Website: www.claybrick.org.za

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Real Africa Real Close To Cape Town The Big 5 - Cape Town South Africa Over 10,000 hectares of Big 5 Conservancy

Working in an office in the middle of a concrete jungle, a change of scene is certainly needed. When one gets busy in the hustle and the bustle of a corporate life, one forgets to stop and appreciate what we have. Aquila Private Game Reserve is the perfect location for any corporate event, there is no better way to incorporate both business and beauty. Set in the Southern Karoo Highlands against a backdrop of dramatic mountains with the big 5 roaming freely, this four star Game Reserve offers a taste of Africa two hours from Cape Town. Aquila Safari Lodge offers event organisers a spacious conference centre with breakaway rooms a buffet area as well as a beautiful boma lounge, which can be used for private lunches or dinners. In keeping with sustainable events, the conference centre is built from natural materials such as river pebbles, reeds, wood and thatch, ultimately creating a tranquil setting for an event. Aquila’s triple volume restaurant is perfectly situated to offer breath-taking views of the reserve. This spacious African character building is the perfect setting for the extensive buffet-style meals served or a themed gala dinner. Meals to suit all culinary/dietary requirements are prepared by our resident chefs, including traditional South African cuisine. Exclusive dining for groups can be arranged in various enchanting venues including a traditional “bush” barbeque. Aquila has been the proud recipient of a national Lilizela Imvelo award for the past 2 years. In the words of the National Minister of Tourism, Derek Hanekom “These awards honour the best of the best in tourism, and recognise the people who work hard to give South Africa an excellent reputation as a destination”. Added to this, Aquila received the award for Best 4 star Game Lodge from Top Destinations 2015. Aquila Private Game Reserve has the maximum capacity to sleep 168 people sharing in 42 lodge rooms and 33 cottages. FACILITIES AND ACTIVITIES: FOUR STAR ESTABLISHMENT | PREMIER, LUXURY AND STANDARD COTTAGES | LUXURY AND STANDARD ROOMS SUPERB INDOOR & OUTDOOR RESTAURANTS | FRESH & SALT WATER POOLS | WET BAR | CIGAR LOUNGE DAY TRIP SAFARI | HORSEBACK SAFARI | QUAD BIKE SAFARI | STAR SAFARI | OVERNIGHT SAFARI | FLY IN SAFARI | CONFERENCE CENTRE | KID'S ENTERTAINMENT | LIBRARY & CURIO SHOP | ARC (AQUILA ANIMAL RESCUE AND REHABILITAION CENTRE)

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Economy G

journal

EDITOR: Melissa Baird LAYOUT AND DESIGN: Charlie Kershaw CLIENT LIAISON MANAGER: Eunice Visagie CLIENT LIAISON OFFICER: Lizel Olivier, Natasha Keyster MARKETING MANAGER: Nabilah Hassen-Bardien PROOFREADER: Simon Lewis DIRECTORS: Lloyd Macfarlane Gordon Brown Andrew Fehrsen DIVISIONAL SALES MANAGER: Annie Pieters PROJECT MANAGER: Elna Willemse PRINTING: FA Print DISTRIBUTION MANAGER: Edward MacDonald PUBLISHER: Alive2Green PHYSICAL ADDRESS: Cape Media House 28 Main Road Rondebosch 7700 Cape Town TEL: 021 447 4733 FAX: 086 694 7443 Websites: www.alive2green.com/publications/ green-economy-journal/ DISTRIBUTION AND COPY SALES ENQUIRIES: distribution@alive2green.com ENQUIRIES: info@alive2green.com ADVERTISING ENQUIRIES: sales@alive2green.com EDITORIAL PROPOSALS: melissa.baird@alive2green.com Company Registration Number: 2006/206388/23 Vat Number: 4130252432 ISSN No.: 2410-6453 Published: December 2015

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All Rights Reserved. No part of this publication may be reproduced or transmitted in any way or in any form without the prior written permission of the Publisher. The opinions expressed herein are not necessarily those of the Publisher or the Editor. All editorial and advertising contributions are accepted on the understanding that the contributor either owns or has obtained all necessary copyrights and permissions. The Publisher does not endorse any claims made in the publication by or on behalf of any organizations or products. Please address any concerns in this regard to the Editor.

Editor’s Note

This is my first edition of Green Economy Journal as editor and I am looking forward to many editions that will serve to establish the thinking of the business and social leaders who recognise ‘sustainability’ is their biggest opportunity to adapt and grow within a developing economy that is reeling from the externalities funda mental to growth. Water, energy and impacts of the mining industry are going to be substantial drivers for change, as is the legal and compliance framework for larger businesses that determine how reporting on business success will be measured. In this issue we offer an insight into the water and mining ‘issue’ as well as profile business mavericks who are working within our current environment to develop new models for the hospitality industry and for delivering clean energy to small businesses. Disruptive technology is taking us all to new levels of living and working, but smart computers are also now beginning to replace work that used to be done by people. We have seen this before when automation replaced hands and how that led to change within our society. It is a cliché because it is true, but the only constant we can rely on is change. Due to the unavoidable pressures this country faces in terms of its national resources, how this change will be managed will be determined by people who have vision and are willing to create better business models for better business outcomes across the environmental, social and economic sectors. We will measure true growth by the happiness and welfare of South Africa’s workforce and by offering as much support as possible to the entrepreneurs and mavericks who have seen a new way and are forging ahead to make their dreams a reality. May 2016 bring us all good fortune and enable the green economy to grow in leaps and bounds in order to enable it to bring to life all its promises. Sincerely,

Melissa Baird

The Green Economy Journal is printed on Hi-Q Titan plus paper, manufactured by Evergreen Hansol a leading afforestation member acknowledged by FOA. Hi-Q has Chain of Custody certification, is totally chlorine free, and is PEFC, ISO 14001, ISO 9001 accredited. This paper is FSC certified.

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First in South Africa Solar-to-Hydrogen Pilot Plant in Operation by HySA

Renewable energy sources (RES) are able to sustain a carbon-neutral society with sufficient energy if a viable method of transferring and storing energy is found. Hydrogen-based technologies hold the future of the carbon-free clean energy storage systems. The mission of the HySA Infrastructure is to deliver cost-efficient technologies for hydrogen production, linked to renewable energy, storage and distribution of hydrogen. HySA Infrastructure Center at NWU Potchefstroom campus has been successfully operating the first of its kind Solar-to-Hydrogen system in South Africa since 2013. The project started with pilot system capable of producing 0.5 kg Hydrogen per day. Due to its success the pilot plant was upgraded to a commercial scale plant capable of producing 2.5 kg ultra-high pure hydrogen per day with the added capability to compress to 200 barg required for commercial use. A separate solar-to-hydrogen system adding an additional capacity of 0.5 kg per day has now been added making the total combined production of ultra-pure hydrogen from photovoltaic solar energy of 3 kg per day. The two systems combined forming the commercial plant. It consists of 21 kWp solar panels, related power electronics, 120 kWh energy storage in lead-acid batteries, 7 kW and 2.2 kW PEM electrolysers, 14 bar intermediate hydrogen storage, and 200 bar high pressure final hydrogen storage. Hydrogen produced is used for Fuel Cell applications.

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Contents ISSUE 20, JAN/FEB 2016

12 18

NEWS AND UPDATES From around South Africa

MINING AND WATER

INTELLECTUAL CAPITAL Valuing bright ideas. Part five of the six capital series

SUSTAINABILITY SPOTLIGHT Belgotex Floors wins coveted award

TOURISM Africaâ&#x20AC;&#x2122;s leader in the hospitality industry

THE CIRCULAR ECONOMY A regenerative and zero-waste pursuit

INTERVIEW David Lello: Cleantech entrepreneur

AnthonyTurton gets to grips with the issue

20 22 www.alive2green.com/publications/green-economy-journal/

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NEWS AND UPDATES

Denmark to Provide Critical Skills Transfer and Assistance to Address SA’s Water Shortage Challenges

Polystyrene Shines at Annual Recycling Awards

His Royal Highness Crown Prince Frederik of Denmark and the Danish Minister for Environment and Food, Mrs Eva Kjer Hansen, recently signed a Memorandum of Understanding (MoU) with South Africa’s Minister for Water and Sanitation, Mrs Nomvula Mokonyane, at the Grand Opening of the Danish Business Expo to South Africa on Monday, 2 November 2015. The MoU, which signifies a long-term partnership, is formalized around major current and future challenges in South Africa’s water supply and the subsequent areas where Denmark can provide strong partnership, particularly around policy incentives for water conservation, management practices and water-efficient solutions. Ambassador Trine Rask Thygesen says, “Danish companies are global market leaders when it comes to water-efficiency and wastewater management. As such, these Danish companies have solutions that match South African needs. Therefore, I believe there is great potential for South African-Danish partnerships in the water sector, which will help alleviate the current challenges and, ultimately, uplift communities and create jobs and growth in both our countries.” Source: At Vogue Communications Agency

Are SA Companies Ignoring International Management Standards in Sustainability Reporting? A new Nelson Mandela Metropolitan University (NMMU) Business School study of sustainability report suggests that SA companies may be ignoring the international guidelines for sustainability reporting. NMMU Business School MBA faculty member Heidi Janse van Rensburg and Prof. Miemie Struwig of the NMMU Faculty of Business and Economic Sciences, examined the sustainability reports of five South African-listed companies, assessing the reporting practices of five JSE-listed companies to develop a framework of standards and indicators for sustainability reporting. Their exploratory study found that integrated reporting “has increased both the quantity and the qualitative dimension of sustainability reporting in South Africa, but these companies did not fully reflect the guidance provided by international sustainability management standards… Currently, there is no consensus on the meaning and definition of the term sustainability—nor a common shared framework of criteria or indicators for companies to adopt.” The study recommends an additional set of disclosures for sustainability reporting, such as the adoption of voluntary initiatives that go beyond governmental regulation and of international sustainability management standards, which may encourage businesses to be more proactive in their sustainability reporting activities. Source: NMMU Business School

How Green is Your Workspace? Anthony Manas, Chief Executive for Cube Workspace (the premium advertising-agency-styled, serviced office space for business and entrepreneurs in South Africa) is enthusiastically pro-green and likes to encourage all businesses and individuals to be eco-friendly. However, he’s not the only one taking notice of the benefits of “going green.” Since 2009, the total number of green-building projects certified by the Green Building Council South Africa (GBCSA) has increased by 121%, with aspects such as energy, water, waste management, transport, emissions and indoor-environment quality all taken into account. Manas points out that, for the commercial sector, certain green measures are easy and quick to implement at both design and building stage levels.

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Aruba ICF Energy Efficient Walling Systems received a Silver Award in the category Mixed Materials for their Greenlite Insulated Concrete at the prestigious South African Plastics Recycling Organization’s (SAPRO) Recycled Product of the Year Awards. The Aruba Eco Building System is an ICF (Insulated Concrete Form Construction) method that uses a recycled, expanded Polystyrene rEPS that is coated with a special cement mixture to produce a lightweight, strong and highly versatile product that is used in a variety of building applications. This fast, costeffective building system is ideally suited to meet construction needs in Africa and has assisted in successfully diverting more than 950 tons of polystyrene from landfills during 2014 alone. Hilton Cowie of Aruba ICF says, “We offer an environmentally safe, green building initiative that is rapidly increasing in popularity and acceptance by architects and building contractors alike.” Besides construction, other uses include flower pots, light fittings, outdoor furniture and pizza ovens. Aruba’s product is also SABS-approved as it contains no CFCs, HFCs or HCFs, it will not decay, it is vermin-proof and is also made from very low water-absorption properties. It is even flame-retardant and has the advantage of excellent thermal insulation and acoustic properties. Source: Polystyrene Packaging Council

Photovoltaic (PV) panels can be used for solar power, LED lights and light-switch timers can be installed, insulation can be incorporated into floor slabs and roofs, and double-glazing can be used for windows, while recycled material should also be considered for furniture and finishes such as carpets. He adds that a business’ choice of suppliers can also aid an organization in becoming more environmentally friendly. Manas and other business professionals in South Africa are not only seeing that these environmentally friendly buildings offer a better investment return, but they can also improve the well-being of their people. Source: Cube Workspace

on the

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NEWS AND UPDATES

Largest Solar Power Plant in South African Wine Industry South Africa’s largest independent wine and spirit producer and distributor, Douglas Green, will be drawing a major component of the energy used by its Wellington production facility from the Boland sun, making it a leader in renewable energy in the wine sector. The 800kWp solar installation currently being fitted is the single largest rooftop solar photovoltaic plant on any wine-producing facility in South Africa. The business case behind the investment by DGB was straight-forward, according to CEO Tim Hutchinson – international

The Road to Zero Waste

At the IWMSA Eastern Cape Branch’s recent waste management conference (themed “The Road to Zero Waste”) attendees were treated to a wealth of knowledge and networking opportunities to ultimately achieve minimal negative impacts on the environment. Among the many esteemed speakers in attendance were Agripa Munyai (PETCO), Mervin Oliver (Vice-Chair of the IWMSA Eastern Cape Branch and Technical Executive at GIBB Engineering and Architecture) Richard Patten (owner of Waste Management Systems), Larry Eichstadt (Director at RMS), Carin Burgess (a scholar in the Eastern Cape) and Theuns Duvenhage (Technical Director for Environmental Services at Aurecon SA). Their topics of discussion ranged from recycling tonnage at landfill sites to hazardous “e-waste” from digital devices. Nomakhwezi Nota, the IWMSA’s Eastern Cape Branch Chairperson, concluded that “it is very important that those operating in the waste management industry are knowledgeable about the advances in the field. The conference did just that and we are excited to continue leading the way to zero waste in the Eastern Cape.” Source: Reputation Matters

competitiveness in a highly competitive market. International buyers generally (and the Scandinavians and Canadians in particular) want to know the environmental impact of what they buy, and Hutchinson’s vision is to be able to offer a low-carbon and, ultimately, zero-carbon product. The solar plant will save around 1,265 tonnes of CO2 per annum but it also makes sound financial sense, enhanced by its

location. Not only does the Boland have excellent solar resources, but it also has bold and committed political leadership at the Drakenstein Municipality, which is one of only two municipalities in the country to allow net-metering. Source: Feed That Bird

SA Power, Water Crisis Spurs Eco-Building Demand Soaring electricity prices, frequent load-shedding and the increasing scarcity of water nationwide has seen a surge in businesses and home builders implementing green solutions in a bid to either partially or entirely ease their reliance on the strained and ailing national grid. According to green building solutions firm Rhino Green Building, developers and home owners are more willing than ever to fork out good money for eco-building solutions. The firm itself has recently been involved with the development of a high-tech, off-grid, energy plus showcase home, House Rhino. The home incorporates many unique water and energy-centric eco-building solutions and recently won acclaim at a global sustainability conference in the UK. GBCSA chief technical officer, Manfred Braune, comments on these green building innovations and solutions: “Apart from the obvious cost-savings associated with sustainable and energy efficient buildings, hopefully those who live and work in green buildings will start to see the [cost, health, and lifestyle] benefits of doing so.” Source: Brian Anthony Communications

Brands, Consumers and Industry Link Hands to Protect Forests Across the World As consumers increasingly become activists for only buying sourced products, FSC and allied industries at the recent GBCSA conference have reached an agreement to create a network of certified suppliers who focus on forest protection and management. The Forest Stewardship Council (FSC) makes sure forests are managed in such a way that they meet the needs of society while ensuring this natural resource is still around for generations to come. More than 183 million hectares worldwide are currently under FSC management. FSC offers certified building products like decking and timber for housing, while large brands are now committing to sourcing packaging from FSCcertified paper mills. Everyday items like Tetra Pak boxes for juice and milk are also currently FSC-labelled. International fashion figures consider this labelling scheme as the benchmark for ecologically sustained forestry, and the product output (like paper bags, fashion catalogues and shoes made from rubber, and materials from forest fibres) are increasingly being sourced from these ethical supply chains. FSC-certified products offer the consumer peace-of-mind that this choice helps to look after the forests and people who depend on them for the future. Source: Wired Communications

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ADVERTORIAL

EcoStandard SETTING A STANDARD OF ENVIRONMENTAL EXCELLENCE EcoStandard is a Non-Profit Organization that has developed a third party, audited measurement tool that helps the building industry and consumers identify building products and materials that demonstrate responsible environmental practice. EcoStandard has designed and developed a proudly South African ecolabel. Based on ISO14024 (a type 1 environmental labelling programme), EcoStandard’s EcoProduct is the only proudly South African ecolabel for the building industry. The assessment is based on the lifecycle stages of the building product (i.e. Resources, Manufacturing, Product Use, Packaging and Distribution and Recyclability). This provides the building industry with a credible ecolabel that can be trusted. We aim to expand this product offering to include the chemicals, food and service industry. EcoStandard’s brand empowers South African consumers to make responsible environmental choices and EcoStandard’s current EcoProduct label represents environmental excellence. Why get an EcoProduct Label? A certified EcoProduct is a great way to show your commitment to sustainability of the building sector. Certified products carrying an EcoProduct label automatically receive points in terms of the Green Building Council of South Africa Interiors rating tool. Furthermore, EcoStandard is recognised by the City of Cape Town and the Western Cape Government’s 110% Green Initiative. EcoStandard was the winner of the Green Economic Modelling category at the 2014 Mail & Guardian Greening the Future Awards and has just certified its first 5-star rated product – Compressed Earth Blocks developed by Use-IT!

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Water doesnâ&#x20AC;&#x2122;t come from a tap. Water goes on a long and complicated journey to get to you.

Visit journeyofwater.co.Za to learn more about where your water comes from. Photo ÂŠ Hougaard Malan

Mining and Water – SA’s Economic Kingpins SOUTH AFRICA IS IN THE GRIPS OF A WATER ISSUE. I USE THE TERM “ISSUE” BECAUSE OF THE PERSISTENT OFFICIAL DENIAL THAT WE ARE IN A “CRISIS”. ADDED TO THIS “ISSUE” IS THE FUTURE OF MINING IN THIS COUNTRY AND CURRENT CASES OF MINING COMPANIES’ LACK OF COMPLIANCE IN WATER AND WETLAND CONSERVATION. I INTEND TO HELP YOU MAKE SOME SENSE OF IT ALL, SPECIFICALLY BEING ABLE TO CONTEXTUALIZE WATER, MINING AND ITS IMPACTS ON THE NATIONAL ECONOMY. Anthony Turton, Centre for Environmental Management, University of Free State

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ECONOMY - MINING - WATER

Artesian borehole alongside a coal waste dump in Mpumalanga discharging acidic minewater into the Upper Vaal River.

here are two key elements to the argument I present. Firstly, South Africa is fundamentally water-constrained. As the 30th driest country in the world, we have been blessed with the most diversified economy for the type of aquatic ecosystems in which that economy is embedded. All things being equal, South Africa should resemble the economies of the grasslands of Argentina, Russia’s steppes and the Outback of Australia, for those climatic systems are similar. The reason we are different relates to the second element in the argument – mining. Had it not been for the discovery of gold and diamonds, South Africa would not have been the industrial economy it is today. The Second Anglo-Boer War would not have happened. The Transvaal and Orange Free State would not have been forced into the Union of South Africa and we would have remained an unindustrialized economy similar to Malawi. Johannesburg (the only city in the world not located on a river, lake or seafront) would never have been built. So, whether we like it or not, mining has shaped this country – for better or for worse. Revenues from mining have sustained governments over time, built all of the infrastructure we now enjoy, given us the likes of Rand Water (the largest bulk-water supplier in the southern hemisphere and one of the largest in the world) and created our cities and financial institutions. However, as with all things complex, there has also been a downside. The migrant labour system has scarred our national psyche for generations, the urban fabric of our cities and towns has been shaped peculiarly in a way that cannot easily be remoulded, and the ecological impacts of mining are now becoming a constraint to our future ability to attract foreign investment and sustain social cohesion. Presently we have a fundamentally water-limited national economy, but with the added problem of historic externalities now presenting as additional constraints to our future economic well-being. This harsh reality is best illustrated by two case studies in mining. KwaZulu-Natal is currently drought-ravaged, with major dams hovering around empty and water supply infrastructure stretched to breaking point. In the Mvoti River basin a mining-related drama is playing itself out in the courts. The case is known as KwaZulu Bulk Logistics (CC) and others versus the Minister of Water and Sanitation. The focal point is about sand mining. The pivotal point is the issue of a water use license. The pertinent facts are summarised as follows. The appellant (KwaZulu Bulk

Logistics) is the mineral rights holder to sand found in a certain reach of the Mvoti River. That river is the source of drinking water for the iLembe District serviced by a bulkwater treatment plant managed on contract by Umgeni Water. The Mvoti Water Treatment Plant (WTP) abstracts water directly from the sand, without any dam to store water in times of drought. Sand mining has been authorised by the Department of Mineral Resources (DMR). Both the mining plan (MP) and environmental management plan (EMP) has been circulated to all regulatory stakeholders, including the Department of Water and Sanitation (DWS) and the Department of Environmental Affairs (DEA). All regulatory departments signed off on the DMR documentation. Mention was made of impact to the environment, most notably in the form of wetland and riparian vegetation loss. The appellant responded to these by submitting a MP and EMP that included long-term rehabilitation plans post-closure. No additional regulatory stipulations were made. Reference was made in some correspondence to a “General Authorization”. The appellant took this to mean that no additional water use licensee was required, in light of the fact that all regulatory authorities had sight of the MP and EMP, and were thus aware that the mining would take place in the bed of the river, with an unavoidable impact on the banks and riparian vegetation. For almost a decade mining took place, with the appellant firmly of the belief that their rights were legitimate and the GA was sufficient to cover their water regulatory approval because they were not consumptive users of water. At no time did DWA (and, later, DWS) visit the mine to determine the compliance status. Citing logistical constraints, no attempt was made to use Google Earth images to determine the compliance status, despite these images being in widespread use within the DWS for other regulatory purposes. In late 2014, after a complaint was lodged by the operators of the Mvoti WTP, the Blue Scorpions raided and shut down the mine. Other mines, known to be in a similar state of compliance, continued unchallenged in the same river basin. The case was taken to the Durban High Court, who ruled that it had no jurisdiction, ordering that the Water Tribunal (which had fallen into dysfunction) be reinstated in order to deal with the matter. The case has since been wrapped up in the Water Tribunal and judgement is pending. The pivotal issue from this case, irrespective of what the final judgement might be,

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ECONOMY - MINING - WATER

centres on regulatory approval with universal applicability across the entire mining sector. The State is the custodian of both mineral and water resources, yet one arm of the State grants a licence to mine in what is clearly a sensitive ecological area, while another arm of the same State sterilizes that right by rendering it impossible to exercise. This is a consistent problem across the entire mining sector today. Coal mining rights are granted in the Upper Vaal water management area, irrespective of the fact that this area is a highly sensitive water resource. The complexity arising from the regulatory process is such that risk to investors is high. The burden of proof is complex and, when placed on a small, emerging empowerment company trying to be compliant (but also constrained by financial and other factors) is almost impossible to achieve. The regulatory authorities are pitted against each other, given their different mandates, leaving the unfortunate applicant in the middle of a dog fight over turf and authority. Finally, the absence of compliance monitoring for a decade, ramped up to extreme enforcement in the face of a national crisis, speaks volumes about the role of the state as facilitator of economic growth as opposed to the State as wielder of the big regulatory stick. This leads naturally into the second case study. Gold mining is in the last phase of its life. In all probability there will be no significant underground mining of gold anywhere a decade from now, other than perhaps in the Far Western Basin of the Witwatersrand Goldfields. This leaves the 600,000 tonnes of uranium that is currently locked up in the many mine dumps around Gauteng. All things being equal, marginal mine companies will become insolvent and be unable to rehabilitate the land. It is known that money set aside for this purpose is inadequate. It is also legally complex to release this cash for rehabilitation, because a dump is regarded as a resource to be used some time in the future. The natural incentive for any savvy investor is to disinvest from Brownfield sites. This merely hastens the demise of the industry and the onset of the environmental disaster that will occur when the 600 kilotonnes of uranium become mobilised by wind and water. The challenge in this regard is how to attract foreign direct investment into Brownfield sites in a way that enables the many dumps to be recycled and safe land to be restored back to social and economic use. Both of these cases speak to the central role of the State as regulator. If we are to create jobs in an industry shedding them by the thousands (and solve at least one element of the water constraints we have to our national economy), then we will need to support the

Coal duff being deposited into a waste dump alongside a mothballed Eskom power station brought back online.

A partially reprocessed gold tailings dam reveals a forest of gum trees covered in the 1930s after tube mills were introduced to extract gold more efficiently than stamp mills.

A uranium contaminated lake lies deserted with the Stonehenge-like remains of a oncevibrant recreational use of the water.

A sulphate-encrusted pipe flange on an abandoned ventilation shaft in the Witwatersrand Goldfields.

legal and policy reform that Minister Nomvula Mokonyane has launched. In so doing, she has become the first Minister of Water since Kader Asmal to engage in such a process. Central to that process is the need to streamline the regulatory approval of all mining rights applications. We also need to incentivize the investment of capital and technology into the rehabilitation of Brownfield mine-impacted sites. To do this we need to make a clear conceptual distinction between Greenfields logic

(applicable to all new mining rights in pristine areas) and Brownfields reality, applicable to much of the coalfields of Mpumalanga and KZN, and the Witwatersrand goldfields. If we get this right, our economy will grow in the face of endemic water scarcity. But if we get this wrong, then the unintended consequences of mining will return as the mineral curse of Africa. But if we get this wrong, then the unintended consequences of mining will return as the mineral curse of Africa.

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ADVERTORIAL

Incomati Basin Women

In Water Conference 2015 The Inkomati-Usuthu Catchment Management Agency (IUCMA) hosted the first conference for women in the Incomati Basin. The conference was held at Greenway Woods Resort in White River and was attended by women from Mozambique, Swaziland and South Africa. The Incomati is an international basin shared by South Africa, Mozambique and Swaziland. The theme of the conference was “Raising Women’s Voices in Sustainable Water Resource Management”. The Inkomati-Usuthu Catchment Management Agency (IUCMA) has, since its establishment, successfully demonstrated commitment to its legislative mandate by ensuring that the National Water Act (Act No 36 of 1998) is realised. This is by ensuring that the nation’s water resources are protected, used, developed, conserved, managed and controlled in ways which take into account, amongst other factors, the following: • Meeting the basic human needs of present and future generations. • Promoting equitable access to water. • Redressing the results of past racial and gender discrimination and other factors.

The IUCMA has initiated the 1st as an additional platform through which basin stakeholders and water management institutions could be directly engaged to deal with specific IWRM matters affecting all sectors and women in particular. The Conference will also provide a platform for non-government stakeholders to participate in seeking solutions. It should be acknowledged that this is the first conference of its kind to be organized in the Incomati Basin and that, as a result, it will serve as a platform to share different experiences and lessons learned in the various water-related initiatives by women in the Inkomati-Usuthu water management area as well as that of the co-riparian states, Swaziland and Mozambique. This conference will offer a unique opportunity for women and other stakeholders to engage in integrated water resource management issues as well as other water-related issues in an environment that is conducive for learning. It will also afford them an opportunity to fully understand the impact that climate change has on our

biodiversity and natural resources. In 2017, the conference will be held in Swaziland.

Contact us: Tel 013 753 9000 Fax 013 753 2786 Address Suite 801, 8th Floor The MAXSA Building 13 Streak Street Mbombela 1200 Private Bag X11214 Mbombela 1200

It is based on this premise that the IUCMA, through this conference, seeks to redress the results of past gender discrimination by enhancing the role of women in the water sector, particularly in the Incomati Basin. A conference of this magnitude will therefore ensure that this legislative mandate is realised in the entire Incomati Basin through stakeholder interaction and cooperation at various levels.

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SIX CAPITALS

Bright ideas are worth their weight in gold INTELLECTUAL CAPITAL EXPLAINS ITSELF IN THE KNOWLEDGE, PROCESSES AND IDEAS THAT ARE OF GREAT VALUE TO COMPANIES WHO ARE DEPENDENT ON THE GREAT MINDS THEY EMPLOY. THIS IS THE FIFTH ARTICLE IN A SERIES OF SIX THAT EXAMINES THE FORMS OF CAPITAL IDENTIFIED IN THE SIX CAPITALS MODEL OF THE INTEGRATED REPORTING FRAMEWORK (IR FRAMEWORK) AS PROMOTED BY THE INTERNATIONAL INTEGRATED REPORTING COUNCIL (IIRC). Alistair Schorn

ccording to the IS Frameworki, the term ‘intellectual capital’ refers to organizational, knowledge-based intangibles, including: • Intellectual property, such as patents, copyrights, software, rights and licenses; and • “Organizational capital”, such as tacit knowledge, systems, procedures and protocols. In terms of this definition, the concept of intellectual property is probably one that is relatively well-understood, and also relatively easy to define. According to the World Intellectual Property Organization (WIPO)ii, Intellectual property (IP) refers to ‘creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names and images used in commerce’. Furthermore, according to the WIPO website, IP can be protected by law, for example through the registration of patents,

copyrights and trademarks, which enable individuals and companies to earn recognition or revenue from what they invent or create. A key consideration within the IP system is to strike an appropriate balance between the interests of innovators on the one hand, and the broader public interest on the other, in order to create an environment in which creativity and innovation can flourish. The second element of the IR Framework’s definition of intellectual capital, however, appears to be somewhat more difficult to quantify, particularly in terms of the accurate valuation of this form of capital, and the calculation of the returns that it can provide to its owners. It is, of course, inherently difficult to accurately value concepts such as tacit knowledge and experience, or internally developed systems, procedures and protocols, in part because these are essentially unique to an organization. In spite of these difficulties, however, a number of methods have been explored to

achieve such valuation. One such method is based upon a calculation of additional revenue, or of enhancements to the value of other forms of capital, generated from an investment (of time and/or funds) into the development of such systems, procedures or protocolsiii. Similarly, organizations might attempt to quantify the increased revenue generated by an investment in training, irrespective of whether this training is formal or informal in nature. In addition to the two elements of intellec tual capital identified in the IR Framework, a number of other concepts are worth mentioningiv. Firstly, human capital (which will be discussed in detail in the final article of this series) can be considered as an element of intellectual capital. So too can stakeholder capital (also known as relational or relationship capital) which can be defined as the value of the relationships that an organization builds with its customers and/or stakeholders, and which is reflected in their affiliation or loyalty to the organization and its products or services.

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SIX CAPITALS

Finally, intellectual capital can also encompass organizational/structural capital, or competitive intelligence, databases and information systems that an organization has created over time. This is sometimes also referred to as institutional knowledge or institutional memory. Historically, each of these forms of capital has not been included in the balance sheet of organizations. Increasingly, however, the drive towards integrated thinking and the accurate and comprehensive evaluation and disclosure of the entirety of an organization’s impacts, has resulted in ever more refined attempts to quantify and account for these elements of intellectual capital. In this regard, it is also important to locate the emergence of this form of capital in the context of the rapid growth, over the past several decades, of the knowledge economy and the process of knowledge management. In this context, knowledge management refers to the development, capture, sharing and effective application of institutional knowledge. One of the most widely used manifestations of the value of intellectual capital is the degree to which an organization’s value (generally as expressed in terms of financial metrics such as share price, market value or market capitalization) exceeds the value of its tangible assets, both physical and financialvi. This value premium can be considered as a central element of the benefits provided to society by companies operating in the knowledge economy. One of the most enduring issues faced by any organization that possesses a significant level of intellectual capital, or that exhibits a significant value premium arising from this intellectual capital, is the preservation of this capital stock. In many instances, the bulk of institutional memory or knowledge present within an organization lies in the minds of its employees, as opposed to having been effectively captured by internal knowledge management systems. This situation presents a major risk for such organizations, as any resignations by employees, particularly those who possess a significant degree of institutional knowledge, implies a major risk to the stock of intellectual capital. This risk is exacerbated by the fact that the employees who possess high levels of knowledge regarding their roles, as well as the business processes and data sets that support these roles, are provided with very little opportunity or incentive to share this knowledge with the organization and their peers. As a result organizations (and, in particular, the Human Resources managers and professionals within these organizations) often face major challenges in capturing and storing information regarding issues related to:

• The core knowledge of employees regarding their roles, along with the experience and skills that they have gained within these roles, particularly over an extended period; • The most appropriate training interventions for particular positions and roles; • Effective performance measurement systems; • Effective succession planning systems; and • Relevant leadership and management development programmesvii. In light of these ongoing challenges, the process of effective knowledge management assumes even greater importance within organizations, since the lack of such processes can (over time) create an exponentially greater impact arising from employee turnover. As institutional knowledge is concentrated in fewer and fewer individuals, the impact of a single resignation (or departure on the part of one of these individuals) on the organization’s intellectual capital can become increasingly significant. Furthermore, in an era of increasing globalization, the requirement within multinational organizations to effectively capture institutional knowledge is further magnified by inherent differences of language, culture and other factors that might, under certain circumstances, negatively impact on the natural capital stocks within an organization.

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In the South African context, it might be argued that one of the unintended consequences of a shortage of skills in a number of critical areas, as well as of the ongoing focus on transformation, is an unhealthy concentration of institutional knowledge and intellectual capital within a relatively small number of highly skilled and experienced individuals. In order to remedy this situation, it is critical that organizations focus on skills development, and on the development of effective systems of knowledge management and transfer between employees. Finally, returning to the field of integrated reporting, one of the most effective means to encourage organizations to transfer and retain their institutional knowledge (and, therefore, to maintain and even grow their stocks of intellectual capital) is by encouraging them to measure and report on their activities and achievements in these areas on a regular basis. In this regard, the various integrated and sustainability reporting standards (including the IR Framework and its Six Capital Model) can prove particularly effective when monitoring their activities and achievements in these areas on a regular basis.

SUSTAINABILITY SPOTLIGHT

WINNING FLOORS DOWN IN THEIR QUEST TO BE SOUTH AFRICA’S TOP ENVIRONMENTALLY SUSTAINABLE FLOORING MANUFACTURER, BELGOTEX FLOORS HAS SUCCEEDED IN BECOMING THE FIRST IN THE COUNTRY TO BE AWARDED THE INTERNATIONALLY RECOGNISED ‘LEVEL A’ GREENTAG ECOLABEL CERTIFICATION, CALLED THE GREENRATE™. Cathy Dippnall

include health and eco-toxicity, life-cycle analysis (material extraction, durability, endof-life and product emissions for greenhouse gases), as well as social responsibility.

Belgotex Floors were subjected to the Global GreenTag’s tough and demanding rating process based on Type 1 ISO 14024 Ecolabel, achieving maximum compliance against their sustainability measures. These criteria

“The challenge for the flooring industry is to shift traditional operating models to new ecoinnovative sustainable ones. Our aim with this GreenTag certification

his prestigious award enabled the company’s products to be eligible to attain 100% credit points across all the Green Building Council of South Africa’s (GBCSA’s) rating tools.

is to enhance the credibility of eco-product offerings and change the perceptions of the product category.” – COO, Kevin Walsh.

Belgotex’s GreenTag certification is in line with GBCSA’s recently launched Green Star SA, as it awards points to projects that use green-certified products.

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SUSTAINABILITY SPOTLIGHT

The GBCSA rating tool focuses on the need for green product certification from companies, thus ensuring competitiveness of the products, as well as backing-up claims by manufacturers that they are producing eco-friendly green merchandise. For over two decades Belgotex has continually pushed the limits for operational efficiency, pursuing ecologically sustainable manufacturing methods and developing ecofriendly products. The founder and chairman of familyowned Belgotex Floors, Stephan Colle, began the company in 1983 and, despite the humble beginnings, the passion for their business has driven its success. Originally called Natal Nylon Industries it is now part of the multinational Belgotex International Group with seven companies over four continents. The company has developed a reputation for innovation across its range of flooring and enjoys a significant market share in South Africa. The decision to become a committed, environmentally friendly organization began in 1991 and the first steps on their ‘Green Journey’ were to operate an eco-friendly factory, while still producing products of international quality and standards.

In 1991 Belgotex introduced quality control SHE specialists and in 1995 started a recycling programme. It was in 1996 that Belgotex received its ISO 9001 SABS certification and, in 2009, the SABS ISO 14001 certification. Between 2001 and 2014 Belgotex installed a total water management system at its effluent treatment plant in Pietermaritzburg and, in 2011, they installed a membrane bioreactor, further reducing the chemical oxygen demand levels. By 2009, products had undergone testing and passed the volatile organic compounds criteria for GBCSA’s Green Label and, by 2014, carpet production was 100% solution-dyed.

“It doesn’t matter what flooring you choose, with Belgotex it’s always green.” – Chairman Stephan Colle. These first steps were milestones and, as a result, they were one of the first carpet manufacturers to become ISO 14001 certified. This could not have been achieved without strong leadership necessary to implement principles of good corporate

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governance across the company so that all deliberations, decisions and actions of the business are based on integrity, responsibility, accountability, fairness and transparency. Communicating the new direction has also been pivotal to the success and stakeholder communication is also highly regarded within the organization, with open internal channels that encourage regular employee meetings. Frequent engagement between union representatives and the company’s management ensures that any issues are dealt with immediately. Liaison and communication with suppliers occurs on an ongoing basis. Looking to the near future, Belgotex plans to get its OHSAS 18001 certification in 2017 and, by 2018, to have 10% of its manufacturing energy requirements derived from solar panels. Belgotex has now launched its Sustainability Report that covers the operation of Belgotex Floors in its entirety. (belgotex.co.za)

TOURISM

“Thriveable” Tourism – THE HOTEL VERDE WAY

RESPONSIBLE TOURISM IS ALL ABOUT MAKING “BETTER PLACES FOR PEOPLE TO LIVE, AND BETTER PLACES FOR PEOPLE TO VISIT”. HOTEL VERDE – RIGHT NEXT DOOR TO CAPE TOWN’S INTERNATIONAL AIRPORT – SHOWS THAT INVESTING IN GREEN BUILDING, INDIGENOUS GARDENS, WATER TREATMENT PLANTS AND MAXIMISING ENERGY EFFICIENCY GOES FURTHER THAN EXPECTED IN CREATING A MEMORABLE DESTINATION… FOR BUSINESS OR PLEASURE.

hile many hotels worldwide pay mere lip service to environmentally conscious trends, genuinely ‘going green’ is an ambitious, often costly undertaking but the rewards end up being well worth the effort. Hotel Verde has achieved a first on the African continent and shows that the future of the hospitality industry will thrive built on similar principals. The hotel was designed from the ground up to be a pioneer in sustainable and responsible tourism and it began this journey with a key focus on how to manage their water supply. Used bath and shower water from the hotel is channelled to the Pontos greywater plant, where it is biologically filtered and sterilised so that it can be re-used to flush toilets. Natural bacteria break down particles in the water and then ultra-violet light sterilizes the water. No harmful chemicals are used during the process and the result is water that is colourless, odourless and perfectly suited for toilet flushing or even washing vehicles. Rain gutters feed water into the hotel’s WISY filter. The rainwater enters the filter at an angle, encouraging a swirling motion. The filter is self-cleaning and removes debris such as leaves from the water, while the swirling motion of the rainwater rinses the leaves from the filter. Only eight rooms have bathtubs, and their showerheads give maximum spray effect but use far less water. All rain water is collected in a 40,000-litre tank. One of the most beautiful features is the outdoor eco-pool that functions as a living eco-system. The pool’s outer perimeter serves as a filtering system, consisting of living plants and organisms. The plants and

organisms consume all the nutrients in the water, thereby cleaning it and preventing the growth of algae. These techniques enable Hotel Verde to claim a high degree of water stewardship and are a shining example of how technology and smart use of water enables guests to enjoy their stay without wasting water. Energy efficiency is also maximized by varying features. Take for example the flat concrete roof over the reception and lobby area covered by a vegetated roof garden. In addition to being aesthetically pleasing, the vegetation creates a habitat for birdlife, encourages biodiversity and thermally cools the areas. Cobiax void formers (plastic spheres made from 100% recycled polyethylene) were utilized wherever possible in the building and this ended up saving almost 1,300 tonnes of concrete. The living wall is a striking interior feature of Hotel Verde and it functions to clean the interior air. The wall receives sunlight from skylights on one side and light from LED grow lamps on the other side. Unlike conventional grow lamps, the LED lamps provide all of the needed light frequencies without losing energy through heat. The lamps are on a timer to mimic daylight hours. Advanced energy modelling was used to establish which rooms are the most energy efficient in each season, based on their locations. The most energy efficient rooms are booked first to ensure optimal energy use. All the appliances in the kitchen and house-keeping areas are super energy and water-efficient, which helps to reduce running costs. At the entrance of the hotel there are three wind turbines which produce

renewable energy for the hotel. Although the payback period on the turbines is currently quite long, this landmark feature of the hotel is testimony to the owner’s belief that wind power is one way to solve South Africa’s current energy constraints. Photovoltaic (PV) panels are located on the north façade of the building and on the roof. At maximum output, the PV panels produce 54 kWh. This energy is used first to charge the UPS battery and the remaining energy is channelled to essential appliances and hardware. Any excess goes to wherever it’s needed within the hotel, to offset power from the grid. The 220 PV panels collectively provide about 78 000 kWh/year. The plant room is the heart of the hotel, facilitating many further green building features. The hot and cold water systems feature extremely effective insulation, to ensure that minimal energy is lost and guests have instant access to hot water. This isn’t only a convenience feature, but a water-saving feature as well. A geothermal field coupled to groundsource heat pumps has been installed to bypass the need for standard air-conditioning systems, which traditionally are one of the biggest energy consumers in a building. A complex network of piping (13 kilometres in length), along with equipment specially designed for Hotel Verde, uses the earth as a heat source in winter and a “heat sink” in summer, boosting efficiency and dramatically reducing operational costs. Energy-efficient LEDs are used for lighting throughout the hotel, and a number of controls help reduce the energy they consume. All public areas have motion sensors that activate the lights. If there’s no further motion, the lights switch off after a timed period of about 15 minutes. The

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R E S I S TA N C E

VA L

TOURISM

hotel also uses light level sensors, which measure the amount of light that’s available – including natural light from windows and skylights – and dims or brightens the output of the lights to ensure that only the required amount of light is given out at any time. The hotel elevators are fitted with regenerative drives, allowing for about 30% of the input energy to be recaptured and fed back into the building. Whenever an elevator travels in the “light” direction – that is, when a full cart is going down or an empty cart is going up – the motor acts as a generator and produces power. Adjacent to the hotel is a wetland that offers guests a scenic outside area to enjoy with a 240 metre jogging trail, an outside gym area and a pathway leading through a specially created garden of indigenous plants. Plants were carefully selected to encourage rehabilitation of the area and to attract birdlife and amphibians. The hotel’s wetland area is home to urban beehives, which house around 60 000 Cape honey bees. The bees help the indigenous garden to bloom and flourish and soon guests will be able to purchase the locally produced honey as a unique souvenir of their stay. A vertical aquaponic system optimises space use while maximising production of vegetables and herbs. This cyclical system involves fish and plants. The fish waste is broken down into nitrates, which feed the plants and, in turn, the plants clean the water for the fish. The system is controlled by a timed pump system to ensure that the plants get regular and sufficient water, without wasting unnecessary energy. Depending on season and demand, they grow celery, pansies, spinach, chives, watercress, basil, butter sage, lettuce, mint and parsley. The hotel’s bar serves locally sourced, micro-brewed draught beers and Cape wines as an extension of their responsible procurement programme. Most beer is on tap, reducing packaging waste and they bottle and filter their own still and sparkling water. Another outstanding feature (and a first for a hotel in Africa) allows guests to use energy-generating gym equipment, so when they use the exercise bicycles they are also creating energy for the building. Posters in the gym explain just how much power guests can generate in comparison to how much power they use, demonstrating how difficult it is to produce a usable amount of power and how easy it is to squander it. Further attention to detail can be found in the rooms with key’s that de-activate electrical equipment when guests leave their rooms, dual-flush toilets, two bins for self-sorting of waste and a small kettle sufficient for boiling only two cups of water at a

time. The complimentary cosmetic products contain no harmful chemicals or parabens. Wherever one goes, you are subtly encouraged to ‘do your bit’. The hotel’s environmentally friendly ethos and the staff’s genuine enthusiasm for it are infectious, especially because it’s all achieved so stylishly and sincerely. Staff members are warm, welcoming and consummately professional. The hotel encourages visitors towards more eco-friendly habits through a novel incentives system. Recycle waste, re-use towels, refrain from using air-con, or utilise power-generating gym equipment and you’ll be awarded ‘Verdino’ coins that can be redeemed at the 24 hour deli or hotel bar. Every Wednesday evening, the hotel observes its own version of “Earth hour”, by serving candlelit dinners. Perhaps the hotel’s greatest achievement is that there is no sacrifice of either comfort or style at this sophisticated four-star establishment. It boasts spacious, contemporary designed rooms and suites, perfect for both leisure and executive travellers. Chic, modern and boasting an eclectic and impressive collection of local art, Hotel Verde has seven full-service conferencing venues that can accommodate anywhere from four to 120 delegates. There is also a VIP lounge and business centre, free WiFi as well as a

shuttle service to transport guests to major tourist attractions in the area.

“No-one in Africa has taken the green model and philosophy and applied it as comprehensively as we have. The long-term benefits and sustainability are far more important to us than any immediate gains. We have a responsibility towards our planet and future generations and are delighted to be setting such a high precedent and hope to encourage others to follow suit.” – Mario Delicio, owner of Hotel Verde. Verde Hotels successfully manage to team luxury with sustainability, while at the same time remaining profitable. Companies with proactive environmental strategies have a 4% higher return on investment, 9% higher sales growth and 17% higher operating growth than companies with poor environmental track records. Verde Hotels are the future of hospitality. www.hotelverde.com www.verdehotels.co.za

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NEWS AND UPDATES

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ECONOMY

Full circle towards economic resilience CIRCULAR ECONOMIC MODELS ARE BASED ON MIMICKING THE INTELLIGENCE OF NATURE, WHERE NOTHING GOES TO WASTE. GIVEN THE FINITE PLANETARY BOUNDARIES IN WHICH WE MUST INVARIABLY LIVE, THESE MODELS AIM TO ACHIEVE ECONOMIC PROSPERITY IN TWO WAYS. Lise Pretorius – Sustainability Economist, GCX Africa

e like to think that (as humans, organizations or large-cap companies), that we are smart and that we are at the forefront of human development. While this may be true, it has also been true of many great, seemingly invincible societies that have collapsed before us and that now live on only in the pages of history books.

One of the critical factors that determined whether great societies adapted or collapsed was the extent to which their political, economic, and cultural norms were able to perceive and solve their environmental problems – including extreme changes to climate.1 The global environmental challenges we face today will, similarly, require that we adapt. The basis of our modern-day economic system is to maximize the conversion of materials and energy into goods, to consume them, to dispose of the resulting waste into our common environmental ‘sink’ – the land and, more recently, the oceans – and then to call this economic progress. The cultural basis for the system is consumption at all costs, where social status is defined by the ownership and accumulation of things rather than the quality of life enjoyed. It is not hard to see that this model is neither

perceptive of environmental realities nor on its way to solving them. We only need to look at nature to see how intelligent and efficient systems can really be. There is no ownership, unnecessary hoarding, or artificial scarcity in nature. Nothing goes to waste. All matter is circulated back into the system to become of use once more. To begin with, by working with these principals we can maximize access to the goods and services that increase our quality of life, while minimizing the physical resources needed to achieve this. In this light, success is no longer seen as everybody owning a car but, rather, as everybody having easy and reliable access to transport – with or without owning a car. Secondly, these models find ways to close loops at one or more stages of the production chain, ultimately circulating resources back into usefulness. Instead of the making-takingdisposing cycle, the circular model aims to keep things in the system – it aims to maintain and restore goods, then re-use or re-distribute them, and then re-manufacture them. The last resort should be recycling with an ideal vision of nothing going to landfill. Consider the unavoidable drivers for a circular economy in South Africa. The long-standing electricity crisis has seen energy availability

become a constraint to business and household activity. The country has half the global average rainfall and is currently experiencing a full-blown drought, while two-thirds of our water resources are contaminated with cyanobacteria. Landfill space is becoming increasingly scarce as waste continues to pile up. These stark realities are forcing a new economic reality with the prices of all these resources being corrected relentlessly upwards to reflect the way things are. Energy tariff hikes will continue to be in the double digits, while the national water pricing strategy is currently being adjusted to reflect the true cost of water. Landfill costs are rising with every square-inch filled. Waste streams that can be recovered and re-used will soon be banned from landfill, and implementation time frames have already been published. For a linear economic model, the future is one of scarcity and risk. It becomes clear that such a model will be incapable of creating economic prosperity and providing food security for a population of over 50 million people and growing. Circular economic models, on the other hand, create opportunity and abundance out of our current environmental challenges. Homegrown business models are already emerging, leading the way in this critical adaptation. AgriProtein, for example, is a Western Capebased company feeding waste to fly larvae to create a natural and sustainable source of animal protein for livestock feed. As a byproduct, it is also creating a nutrient-rich soil conditioner. This not only turns food waste into a valuable resource, it also turns food waste into a solution for the unpalatable demand on natural resources by industrial farming. Meanwhile, Pretoria-based Locomute, a 100% black-owned company, is creating a platform for collaborative consumption through car sharing. Citizens can get from A to B by locating, reserving, and unlocking a car from a mobile phone app, and are billed per hour and kilometres travelled. Maintenance insurance and fuel are all included in the price. The reduced need for individual car ownership not only reduces urban carbon emissions and air quality, but it also tackles the growing problem of urban congestion. It is these sorts of innovations – driven by advances in technology – that will start to decouple economic prosperity from reliance on physical resources. This is evolution. As South Africa focuses its efforts on incubating, growing and funding small business, it is worth remembering that we have the opportunity to imprint the DNA of adaptors and innovators into this fabric. These businesses will define the social and economic fabric of the next decade and beyond.

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GCIP South Africa is proud to celebrate excellence in Cleantech Entrepreneurship 2015 GCIP-SA Winner and Runners-up

Efficient and Safe Micro-Gasifier Stove - A micro-gasifier stove with an electrically driven fan, which is a smoke free and burns biomass efficiently.

Cleaning Validation and Optimisation of Water Usage a colour based diagnostic aid; reliable and cost effective tool to monitor and verify quality and safety of consumer products.

Hybrid Solar Heat Pump for Domestic Hot Water - Energy & water efficient solution for domestic hot water using a solar thermal heat pump with improved hot water storage.

INTERVIEW

Powering Africa by

Empowering the People

GLOBAL CLEANTECH INNOVATION PROGRAMME (GCIP) WINNER DAVE LELLO IS CEO OF KHAYA POWER, THIS YEAR’S WINNER IN THE INNOVATIONS CATEGORY. HE HAS 25 YEARS EXPERIENCE IN I.T. START-UPS AS WELL AS LAUNCHING TECHNICAL PRODUCTS INTO DISTRIBUTION AND RESELLER CHANNELS ACROSS SOUTHERN AFRICA.

he GEF (Global Environment Facility), UNIDO (the United Nations Industrial Development Organization) and TIA (the Technology Innovation Agency) in South Africa have implemented the GCIP for SMEs in order to promote clean technology innovation and to offer support to start-up companies by offering workable solutions for energy efficiency, renewable energy, waste beneficiation and water efficiency. The programme combined a competition and a business accelerator to offer participants extensive mentoring, training, access to investors and opportunities to showcase their innovations to the media and the public. Khaya Power is a renewable energy start-up company that has developed lowcost power appliances for use in “off-grid” homes across all of Sub Sahara Africa. Their aim is to empower traders and retailers in Africa by helping them install solar power in their businesses.

Dave Lello is delighted with this award, not least because it included two trips to Silicon Valley, R100 000 in cash and the opportunity to attend the Cleantech Open Global Forum in November. It has also enabled Khaya Power to become a leader in offering solutions to the energy crises affecting small businesses. Although this is not his first start-up business, Dave is frankly appreciative of the great support this programme has given him.

“The challenge in any start-up is that the idea often only represents a small part of what has to be built and the structures that have to be put in place. First you need to decide whether your product/ service is different or whether the business model you will use is different. Maybe it is both.”

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SUSTAINABILITY NEWS AND UPDATES

The Cleantech program was helpful not only by enabling them to review their business model but also because it gave them valuaClimate protection products ble networking opportunities as there were Theother global chemical leader’s goalfor is to 30 competitors competing this continually increase the contribution of their award. current products for climate protection, He said that “sharing ideas and experias wellatasthe of seminars new products and solutions. ences and online during the They spend around third of that theirthe annual webinars helped us one understand obexpenditures for encountering research and development stacles we were were normal (R&D) product and process innovations for thison kind of business and that ways where the R&D target is related to resource efficiency and climate protection. Products such as Neopor®, Basotect® and polyurethane provide innovative insulation to prevent heat and cold loss in buildings and solar systems. Improvements in insulation can increase energy efficiency by dramatically reducing the energy requirements for heating and cooling. In the automotive industry, BASF produces light-weight plastics. Lighter vehicles have reduced fuel consumption and therefore fewer emissions. According to BASF, if 100 kg of plastic parts replace double the weight of metal parts, the fuel requirement of a vehicle falls by around 0.4 litre of fuel per 100 kilometres. BASF also produces Keropur® fuel additives that decrease wear on the engine, thereby reducing the output of pollutants and CO2. In the agricultural sector, BASF produces a fertilizer containing a nitrification inhibitor that slows down the metabolising, by bacteria, of ammonia in the soil which reduces the amount of nitrous oxide, a greenhouse gas, into the atmosphere. The fertilizer also provides nutrients to the crops more efficiently so it can be used less frequently, reducing its impact on the ground water. Climate protection at the operational level BASF’s aim is to continuously reduce the greenhouse gas emissions resulting from the generation of energy in power plants and from the production processes. Their experts are constantly working on further improving the processes and setup of their installations. As a result, the company has already achieved a great deal on the way towards its goal of greater climate protection. Absolute emissions in the chemical business have been reduced by 48 percent, compared with 1990, with the reduction per metric ton of sales product being 74 percent. BASF aims to maintain this success in the future. The installation of nitrous oxide (N2O) decomposition catalysts, in all plants where N2O is created as a by-product, enabled the company to prevent emissions of around 21 million metric tons of CO2 equivalents

to overcome them were often common. Learning from other successful entrepreneurs was also useful”. in 2013. Chemical production requiresmodel a As with any product and business large amount of In an effort development, theenergy. outcome can be ato lot difincrease BASF invested ferent to energy what is efficiency, at first envisaged, but thisin combined heat and power (CHP) gasinput turbine is to be expected because, as more plants whichthe generate power and is received, initial thinking will steam evolve.at the same time. This achieves up more to 90 perSecondly, the business will take time, cent efficiency and enables the company to money and effort than you planned. You have cover more to than percent of their power to be ready dig70 deep and stay on track! requirement. The company hasIncubator set their From the Global Cleantech own target to improve Program, Khaya Power the has energy definedefficiency its of their production by 35execution percent business model andprocesses has a detailed until 2020, compared 2002. expert advice plan. The judging paneltooffered BASF also implementing integrated as part ofisthe program and thisan was greatly energy supply concept all that appreciated by (“Verbund”) Dave. He went on to at add their Business major sites. Verbund means “the Model Canvas wascombine, a really cooperate in all German. BASF good placeor tonetwork test ideas put intoAtperspecglobally thisGCIP is known as “connectedness”. tive by the programme”. By We linking production energy are their familiar with theand great examples demand, waste heat from production proof business model innovation that Uber and cesseshave is captured used as energy Airbnb broughttotobethe world. In the in otherof production plants. the energy case Khaya Power, it isIna2013, combination of Verbund concept saved BASF around their business model and product that17 has millionthem MWha per year,Khaya equal Power to an annual made winner. wants to reduction in product CO2 emissions 3.5 million sell a better but alsoofneeds to build tons. BASF sees the Verbund ametric supply chain for green fuels that areasnot one of their prime strengths in ensuring readily available today. the“We efficient use ofof itsthe resources; offering are aware task ahead by a competitive advantage whileout also having sizing the market and finding what would a positive impact on the to environment. The really make a difference the customer. Verbund principle producAt the base of theextends pyramid,beyond green is great tion and technology include employees; but, at the end of thetoday, economic sense combining interlinking the experience of prevails, ” heand added while noting that, “if you their workforce formproduct the bestatteam. cannot deliver a to green a competitive price, it will most probably fail.” Corporate Social Responsibility in The next step for Khaya Power is to find South ways to Africa get their FAABulous “2 in 1” Power Recognizing needPotential to contribute to the Appliance to the market. investors are communities which it operates, BASF at being engagedinand they are also looking in South Africa various Corporate alternative wayssupports of raising finance, like possiSocial Investment and campaign. Corporate Social bly doing a Kickstarter Responsibility that deal with access The productprojects has evolved dramatically to education is phase scienceand andLello maths, during the test and child his team abuse prevention, support, feeding are happy that theychild are much closer to a programmes, HIV/Aids support, encoursuccessful launch as a result of their particiaging the study of science pation in the GCIP program.and technology and career development. The company also focuses on encourage environmentalevery challenges and “I would green supports especially water conservation start-up to participate as the BASF has published information and learning experience is worth much opportunities and risks for the company due more that attending a formal to climate change since 2004, using the program at a business school. ” Climate Disclosure Project (CDP). In 2014, BASF achieved the maximum disclosure The next round of awards is being planned score of 100 points and came out as leader by TIA Energy and UNIDO for 2016. Opening calls of the & Materials sector of the for applications willLeadership begin in March. Carbon Disclosure Index (CDLI). The performance score evaluates the levelmore of company For info, visitaction to prevent climate change. It is the tenth time that BASF has www.khayapower.co.za qualified for the index.

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