Green Economy Journal Issue 38 by GreenEconomyMedia

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Sustainability in Mining leading insights from African Mining Indaba Wind Industry powering the grid 11025

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Transport Tech green economy class Evolving Events the triple bottom line 2019/12/30 8:58 PM

With 10 stations and more than 10 supporting bus routes, step off Gautrain relaxed, into a city of progress and promise. Gautrain is your golden link to explore the endless opportunities of Gauteng

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Transport

GAUTRAIN FACILITATES SUSTAINABLE GROWTH AND LIVEABLE CITIES Gautrain is committed to sustainable development and its commitment is not only critical to environmental protection and social upliftment. It also calls for an integrated approach considering the inter-relationship between transport, the environment, the economy and society.

autrain brings economic benefits and sustainability, in that efficient public transport and lower road traffic congestion increase productivity and the economic viability and it decreases the out-of-pocket cost of transport to the community. With the traffic volumes escalating by 7% per year in the economically active corridors in Gauteng, carbon dioxide emissions from road-based vehicles will contribute to global warming. However, for each person that has opted to make a trip on Gautrain instead of using a car has delivered R74.00 of economic benefit per trip. By opting to travel on the Gautrain instead of a private car reduces carbon footprint by 30% to 60% per trip. As a public transport service, Gautrain has presented Gauteng with an opportunity to empower its citizens and to expand the economic activity of the Province. Gautrain has made a direct and indirect economic contribution to township economies through the provision of employment and stimulation of new commercial developments around stations. Currently, Gautrain contributes to township economies through the provision of employment and stimulation of new commercial developments around stations, such as in Alexandra township. During construction, Gautrain made major contributions to help the Gauteng Province become a more efficient economy through the longterm nature of economic benefit streams. The economic impact during this period is seen in approximately R20 billion contribution to the GDP of the Province; sustained 121 000 jobs between 2006 and 2012 and an approximate of R2 billion received by lower-income households. Urban space is a limited resource impacting the quality of life for all those living and working in a city. Efficient land use, to which public transport such as Gautrain contributes, produces results far beyond the immediate benefit of increased use of public transport. The Gautrain service has increased connectivity which has led to residential, business and industrial densification, thereby integrating the metropolis. It has the potential to significantly change the way we live and travel, reducing our individual carbon footprints while preserving and enhancing our mobility. It further encourages people to have a more active healthy lifestyle, particularly if they are walking or cycling to their stations. Since the development of the Gautrain, the perception and behaviours related to public transport usage in Gauteng have changed and this is encouraging more sustainable land use and development patterns, which are centred around transport nodes and infrastructure. The planned Gauteng Rapid Rail Integrated Network (GRRIN) extensions deal with future challenges such as population growth and increasing

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car usage. The proposed extensions will, amongst others, improve mobility and connectivity that will facilitate higher productivity, and access to job opportunities; support economic development through the strengthening of existing development nodes and enabling the growth of additional development zones; complement other initiatives within the Province and the country to revitalise and grow the rail industry and direct and indirect job creation during both the development and operational periods of the extensions. Not only is Gautrain developing Gauteng’s economy but the service continues to be a convenient, fast and efficient means of travel and the catalyst for a better public transport system in the Province. It retains a unique place in the transport network and is not in competition with any other transport mode. As a rail transport facility, Gautrain has a backbone function in the transport system. Each mode of transport has its own function which fits into the holistic transport network in the Gauteng Province. Gautrain will continue to contribute to the future of South Africa and Gauteng through the role it plays to give stimulus to the economy. As a sustainable transport system, it continues to increase mobility in the province, supports transit-orientated development by encouraging the growth of transport modes.

Follow us on: Twitter - @TheGautrain Facebook – www.facebook.com/gautrainn Website – www.gautrain.co.za Call Centre – 0800 42887246 SMS alert line for service disruptions - 32693

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Contents ISSUE 38

TRANSPORT

MINING

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NEWS & SNIPPETS

Gautrain’s focus on environmental management and how they are lowering South Africa’s carbon emissions.

The Green Economy Journal speaks to mining leaders ahead of the African Mining Indaba about sustainability in the sector.

ASPASA discusses the important role that small-scale surface mines play in the South African economy.

MINING Leading precious metals mining company Sibanye-Stillwater has committed to an approach of overarching sustainability that is bearing much fruit in the communities they are involved in.

REGULATION

SUSTAINABILITY

EVENTS

INFRASTRUCTURE

ENERGY

SRK Consulting advises on the legal requirements of environmental impact assessments.

Social sustainability consulting and data management in the South African mining context, by MTS Holdings.

Cape Town International Convention Centre’s triple bottom line sustainability objectives.

GBCSA has accelerated the process for built environment professionals to learn what it takes to build green.

SAWEA calls for the immediate release of available wind power into the national grid.

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Economy G

Economy

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Economy G

Cyclone Kenneth Satellite taken on 11 April, 2019

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Issue 33

Issue 34

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Agriculture: Latest fruit cultivars

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Investment: Huge boost for Renewable Energy Water: The state of SA’s rivers

Economy G

KZN Public Works Preparing for Climate Impacts New Tech: Carbon Reduction Buildings: Interiors Rating Tool 11025

Skills Women and energy audits

Carbon Tax: Cost and benefit Climate Project Finance: Examining the options

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Net Zero Green Buildings on the rise

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Manufacturing Competitiveness in the age of technology

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Energy Wind taking centre stage Infrastructure Opportunities for investment

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Water: Partnerships for Progress

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Celebrating Africa’s innovations

Super Women Leaders in their sectors

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Issue 36

Issue 37

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Skills Development The role of the tradesman Energy Wind power to the rescue

Events & Conferences The appeal of a sustainable city

Renewable energy Next hurdles for IPPs The Vaal River Imminent collapse 11025

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Responsible eco-tourism Lion conservation or exploitation?

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Hidden potential

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Bio Energy

Agriculture Opportunity for systemic reboot Biofuels The crops that are working

Dear Reader, The production economy begins with extraction, then processing and manufacturing, along with transportation and the various components of the supply chain in between, to bring us the things we need and want, and this process has complex and significant impacts. In this issue, and as media partners to the African Mining Indaba, we focus on mining and extraction and discuss the many considerations miners can invoke to boost their positive impacts, principally economic, and minimise negative impacts, principally social and environmental. The most tantalising of these strategies are those that achieve both in the same integrated approach and, in so doing, achieve the ‘Social Contract to Mine’, a key to long-term success. It’s one thing for investors to model the lifetime commercial performance of a mine in ideal circumstances, but by mitigating against the risk of future disruptions and potential fines and the high costs of unplanned rehabilitation, best practice in planning and implementation can assure investors of the commercial case.

Editor-in-Chief: Gordon Brown PRODUCTION MANAGER: Alexis Knipe LAYOUT AND DESIGN: CDC Design GM: MEDIA SALES: Danielle Solomons danielle.solomons@alive2green.com PROJECT MANAGER: Munya Jani SALES: Vania Reyneke Gerard Jeffcote PRINTING: FA Print DISTRIBUTION: Edward MacDonald WEB: www.alive2green.com/ publications/green-economy-journal/ Circulation enquiries: distribution@alive2green.com GENERAL ENQUIRIES: info@alive2green.com ADVERTISING ENQUIRIES: munyaradzi.jani@alive2green.com EDITORIAL PROPOSALS: alexis.knipe@alive2green.com PUBLISHER: Gordon Brown Alive2green Projects PHYSICAL ADDRESS: 1st Floor Cape Media House 28 Main Road Rondebosch 7700 Cape Town TEL: 021 447 4733 FAX: 086 694 7443 REG NUMBER: 2005/003854/07 VAT Number: 4750243448 ISSN NUMBER: 2410-6453 PUBLICATION DATE: January 2020

Economy G

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PUBLISHER

alive2green p r o j e c t s

Green Economy Journal is audited by ABC

Issue 38 R29.00 incl VAT

Sustainability in Mining leading insights from African Mining Indaba

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Wishing you a valuable read and all the best in 2020!

Wind Industry powering the grid 11025

Gordon Brown

journal

We interview key professionals scheduled to speak at the sustainability engagement at the African Mining Indaba 2020 and share their insights over an extended article from page 10. We also delve into the key questions of more sustainable approaches to both transport and to building and construction from a range of contributors.

Editor-in-Chief

Energy: SA’s Industrial Energy Efficiency Project

Circular Economy

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Economy G

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Transport Tech green economy class Evolving Events the triple bottom line

Cover image: ww.123rf

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 organisations or products. Please address any concerns in this regard to the Publisher. 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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It’s been said that the best way to predict the future is to create it. The CTICC offers the ideal platform to do just that. Every aspect of the centre’s offering has been considered – from the more than 140 000m² of flexible space across two state-of-the-art buildings to world-class technology, delicious cuisine, and servicedriven staff. Turn your knowledge and vision into potential with events that shape your future at the CTICC.

Call +27 21 410 5000, email sales@cticc.co.za or visit www.cticc.co.za and connect to possibilities.

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News & NEWS and SNIPPETS Updates

ENERGY TRANSITIONS IN AN AGE OF ACUTE CLIMATE CHANGE

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Economists agree that to survive the country needs to rethink its competitive edge and find new niches. Hugo Pienaar, chief economist at the Bureau for Economic Research at Stellenbosch University, said: “Broader thinking away from manufacturing is needed. The Green Economy sector could be our saviour. The recently published Integrated Resource Plan 2019, with its support of a diverse energy mix and policy interventions, could set us up for the next decade. Finance and Economic Opportunities MEC David Maynier said: “As a result of opportunities identified in digital and technology, for example, we’re seeking to establish the Western Cape as the digital hub of Africa, investing in niche sectors such as greentech, fintech and healthtech.”

PLASTICS INDUSTRY UPBEAT

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SA’s answer: Green Economy and Technology

Significant action is needed immediately to strengthen the global response to climate change. Specifically, carbon dioxide should be removed from the atmosphere and other greenhouse gas emissions reduced. At the same time, global demand for energy is predicted to continue to rise. How business resolves this seemingly intractable dilemma, “will define not only how businesses themselves, but also how the planet that we all share, will survive into the future,” says Lerato Sithole, managing partner, ERM Africa. “In South Africa where we rely so heavily on carbon-based energy the stakes have never been higher in terms of how we understand and manage climate change and the energy transition,” she adds. There is a clear call to action to businesses around the world to transition to alternative lowcarbon energy sources and, critically, remove carbon dioxide from our atmosphere while reducing other greenhouse gases.

Speaking at the opening of the Plastics Colloquium 2019, Minister Creecy praised the work done by both Government and the private sector in terms of the setting up of infrastructure for the recovery and recycling of plastic and the informal sector for collecting much of these materials but warned that the evidence suggested much more still needed to be done. “It is time to combine the wealth of collective experience to relook at the complex and difficult problem. Considering the whole value chain and lifecycle of products, the aim is to develop a comprehensive plan as part of an ongoing initiative that would engage all citizens to create a love for South Africa and the environment,” Creecy said. “As an industry, we have been the first to acknowledge the need to reduce the impact plastics have on the environment and ensure that plastic litter does not end up in our oceans, water sources or anywhere in nature. To this end, Plastics SA and the four plastic Producer Responsibility Organisations (PROs), namely Petco, Polyco, SAVA and the Polystyrene Association of SA have launched various recovery and recycling projects, with which we have had great success,” says Anton Hanekom, executive director of Plastics SA. www.plasticsinfo.co.za

OPPORTUNITIES IN AFRICAN FOOD AND AGRICULTURE

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(not including cold-chain investments for horticulture or animal products), and as much as $65 billion in irrigation to fulfil its promise. Further investment will be needed in basic infrastructures, such as roads, ports, and energy, as well as for improvements in regional trade flows, according to a recent McKinsey report. The report highlights an attractive landscape for investors, agribusinesses and start-ups to

stimulate growth in the sector. The African Agri Council has hosted the African Agri Investment Indaba for the past three years to create an environment for all stakeholders to explore, discuss and build the business of food and agriculture in Africa. Look out for the African Agri Investment Indaba in 2020. www.agri-indaba.com

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The food and agriculture industry will power Africa’s economic transformation. The possibility of growth in African food and agriculture across the value chain is well documented, however, realising the continent’s full potential will require significant investment. Sub-Saharan Africa will need eight times more fertiliser, six times more improved seed, at least $8 billion of investment into basic storage

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UN CLIMATE CHANGE CONFERENCE A green economy is “not one to be feared but an opportunity to be embraced”, UN SecretaryGeneral António Guterres said in a keynote speech to delegates at the opening of the COP25 UN climate conference in Madrid in December 2019. COP25 marks the beginning of a 12-month process to review the commitments that countries made under the 2015 Paris Climate Agreement and ensure that they are ambitious enough to defeat the climate emergency. The stated intention of some 70 countries to submit enhanced Nationally Determined Contributions in 2020 – with 65 countries and major economies committing to work for net-zero emissions by 2050 – while governments and investors are backing away from fossil fuels, were cited as positive signs. “There is no time and no reason to delay”, concluded Guterres. “We have the tools, we have the science, we have the resources. Let us show we also have the political will that people demand from us. To do anything less will be a betrayal of our entire human family and all the generations to come”.

SOUTH AFRICA’S CLEAN CONTRIBUTION At a recent wind energy conference in Cape Town, energy minister Gwede Mantashe said South Africa’s clean energy had grown to over 4.5% within five years. renewable energy made up more than 8% of South Africa’s energy mix.

In 2019,

ENERGY TRANSITION OPPORTUNITIES The 2019 Integrated Resource Plan (IRP) committed to developing 14.4GW of new wind power capacity by the end of 2030, (18% of the generation capacity). This is over and above the 3.4GW of wind capacity already procured through the first four rounds of the Renewable Energy Independent Power Producers Procurement Programme (REI4P). The 14.4GW of new generation capacity from wind energy will have positive spin-offs for the South African economy as this capacity is expected to attract more than R300 billion in investments, create jobs across the industry value chain and deliver cheap electricity. The consistent market of 1.6GW per annum, as allocated in the 2019 IRP, is projected to give the local manufacturing industry a major boost as it opens an opportunity to localise more components. The success of a localisation programme for future procurement rounds hinges on a consistent pipeline of projects and requires that we don’t return to the stop-start procurement style that we have seen in the past. The industry is responding to the Department of Energy’s Request for Information relating to projects that can be brought online in the next six to 12 months.

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News NEWS STRAPHEAD and & SNIPPETS Updates

CLEAN ENERGY COUNTDOWN 7000MW of clean energy by 2020 Almost 60% of 2020 target met To help the Government meet its 2025 target, independent power producers (IPPs) need to generate 17 800MW of renewable energy under the REIPPP programme. The goal was 5 000MW from renewable energy by 2019 and a further 2 000MW by 2020. According to the Independent Power Producer Procurement Programme’s latest quarterly report, 6 422MW of electricity have been procured from 112 IPPs. Only 3 970MW have been connected to the national grid. This is 57% of the 2020 target.

MISSION FOR MANUFACTURERS In his keynote address at the 2019 Manufacturing Indaba, Solly Fourie, Head of Department of Economic Development and Tourism said that there are many challenges to overcome with South Africa’s current weak economic outlook. The development of new workplace skills is required as there is a major gap between the skills demanded and the skills produced locally. South Africa needs to tackle resource resilience, GDP and skills. South Africa can significantly boost growth by increasing work in our country. In order to attract much-needed new capital investments into the region, the Government must seek to reduce regulatory burdens for investors. Government has adopted an approach to find solutions to identify major visa and trade barrier problems. There is great concern about the energy security for the economy considering load shedding, as with water security. Short- and long-term plans are in place to address climate change and water security. Another challenge for the industry is building resilience towards technology shocks.

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Transport

GAUTRAIN CONTRIBUTING TO A SUSTAINABLE PUBLIC TRANSPORT SYSTEM Is sustainable environmental management the key to combating climate change? The Paris Agreement, Kyoto Protocol and other global initiatives have been in existence for almost 20 years but are we achieving the goals we set out to achieve? What are the radical changes required to make a dramatic shift in the global climate crisis? BY GAUTRAIN

auteng, South Africa’s economic hub, is experiencing rapid urbanisation, much like the rest of the world, however, unlike more developed economies across the globe, the climate crisis is not at the top of the priority list. Taking priority in developing nations is alleviating poverty, growing economies, and providing very basic services to its people. But is the global climate crisis not part of development? On the back of severe droughts, high emissions rate and growing populations, the focus should lie on environmental management. Transport is known to be the worldwide largest contributor to global greenhouse emissions; the use of fossil fuels and the overall carbon footprint of the manufacturing requirements have boomed through the past 40 years. The need for mobility has brought the motor industry huge profits, and amidst the great climate crisis, the longevity of the industry is already being planned: the future is electric. So, the next global shift: Electric transport. This uptake is slow especially since the dependence on electricity is still controlled by fossil fuels, nuclear power and limited use of renewable energy. Gautrain, an urban rapid rail system moving through Johannesburg, Tshwane and Ekurhuleni in South Africa, provides transport between the largest economic hubs in the country and in Africa. Carrying around 55 000 commuters a day, Gautrain aims to create the shift from private to public transport. Much like our European and Asian counterparts, the Gauteng Provincial Government is looking to expand the use of rail transport in the province and create a sound, supportive public transport system, that is convenient and reliable. What does this mean for the environment? In South Africa, the

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environmental legal system is stringent on development with the aim of not only preserving natural resources but also to account for social justice and integrated social ecosystems, and in no uncertain terms, the voice of the environment lies with its people. But while the law is specific and targeted, the lack of both incentive and consequence to ensure more sustainable options are sort by developments allows little for long term sustainability. Where is it going wrong? Offices and malls in crowded urban hubs are built, 20 storeys high with equal amounts of basement level parking allowing more cars onto two-lane streets leading to six-lane freeways, increasing surface runoff, pressurising stormwater and sewage facilities, increasing temperatures with glass and chrome façades. People, planet and prosperity is the theme of the Agenda, setting 17 Sustainable Development Goals that call for action for the pressurised planet. Given the challenges of poverty and inequality, the goals are set to drive economic growth, build sustainable cities and communities, take climate action and promote responsible consumption and production of goods. So, what does this mean for us, the ‘transporters’? It means that we have to be more responsible and focus our projects with the future always in sight. There has never been a better time to be involved in public transport like Gautrain, the shift toward new types of mobility has created a new excitement within the transport sector. Micro mobility, urban rail, nonmotorised transport and electric mobility have all been derived to make transport more sustainable, more accessible and more efficient. Technology has influenced the way people travel, ride-hailing services such

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Transport

The ability to reduce the carbon footprint lies in the ability to reduce vehicles of lesser-used routes, predict peak movements and allow more responsible consumption of resources.

as Uber and the overall shift towards wellness and connected mobility. The number of public transport users increases as multiple modes featuring trains and bus rapid transit routes are introduced. The South African public transport is set out in the National Public Transport Masterplan. This strategy ensures the sustainable future of transport. The masterplan highlights the key areas of focus to ensure the sustainable future of transport. Some of these goals are: • To define, adopt and implement, at central government level, a national urban transport strategy that ensures the sustained development and management of urban transport systems; • To plan for urban forms and land use that minimise the need for individual motorised travel and promote public transport and nonmotorised transport modes; • To deploy transport infrastructure and services in a manner that promotes sound urban forms and land use; • To strengthen land use management; • To adopt and systematically introduce, at all levels and scales, a multimodal approach to the development and management of urban transport systems; • To develop and maintain, for each urban area, a pedestrian network that is continuous, safe and accessible for all throughout the day; and to develop and maintain bicycle paths with similar characteristics;

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• To provide an integrated and hierarchical public transport system that is efficient, reliable and capable of serving the needs of constantly evolving populations and the urban economy; • To plan and implement mass transit systems that operate on exclusive infrastructure and can form the backbone of the urban public transport system; and • To enhance the level of service provided by paratransit (minibus taxi) operators by way of full integration in the public transport system, which requires restructuring, modernising and promoting them. The change has come through awareness, and as cliched as this may sound, knowledge has truly been the key to transforming the transport industry. The world is Artificial Intelligence (AI) and fourth industrial revolution, I-everything is everywhere, why not public transport? Trip planning and increased user awareness have allowed Gautrain to anticipate user needs. This, in turn, benefits the environment, by being more aware of passenger movement and increased route planning, the ability to reduce the carbon footprint lies in the ability to reduce vehicles of lesser-used routes, predict peak movements and allow more responsible consumption of resources. The global crisis is not just anticipated: it is now a full-blown crisis. It’s never too late to do your bit to help South Africa achieve its goal. An old Greek proverb states that: “A society grows great when old men plant trees whose shade they know they shall never sit in”, this has never been truer than today, whether we are tree huggers or not, it is time to relook at what sustainability means to us. In the transport sector, environmentalists have seen the debilitating effect of the years of using fossil fuels and increasing numbers of private vehicle use. Countries across the globe are realising the need to go green but green does not only mean that we stop using fuel, it means alternative materials. The dependence on rubber, metals and plastic must be decreased for us to experience a future that has some hope of being green. The future of transport would ideally be emission-free, renewable-based, resource-friendly and most importantly efficient and available. How does this happen? Gautrain invests in technology that allows for a service that is convenient and reliable. At Gautrain, we are currently sourcing ways to change our entire operation to meet the needs of the future. Although initially built to rely on coalfired power, over the next five years the face of stations and future stations are set to change. Gautrain will power all our activities through renewable energy, recycle station water and build every new station and line with the ability to be complexly off-grid, because it’s never too late to make a change.

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Mining

at the crossroads

It’s been 152 years since diamonds were discovered on the Orange River and 133 years since gold was struck on the Witwatersrand, but the mining industry continues to make a significant contribution to the national fiscus. What’s different now is that mining – done right – is also pivotal to the sustainability of many communities and many regional economies across the country. That’s right – as the 21st century moves into its third decade, mining has taken the sustainability bit firmly between its teeth. BY GREG PENFOLD

Although mining has been a cash-starved industry for most of a decade, South Africa’s geological endowment means there is no shortage of opportunity.

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Mining

he big picture of the new mining – as well as the contours of the challenges it faces – was shared by AngloGold CEO Mark Cutifani at the Joburg Indaba in October 2019. “We need to think differently about mining if it’s going to achieve its full potential of being a cornerstone of uplifting South African society in a broader sense. We can only do this by creating a paradigm where mining shifts from merely sharing value to helping create enduring value for all – value as our stakeholders see the value, not as we perceive they should see the value. The difference lies in seeing how the value we create stands the test of time, not just in the short term.” Whereas life-of-mine seems long, at anything from five to 100 years, life-of-community is much longer – 100 years is just the beginning. A key question then becomes how mines today can help create a very different life in a community. The creation of enduring value entails three immediate tasks: “We need to work to focus on creating an enabling environment for investment in the sector. We need to embrace modern mining with all the opportunities it brings, with open eyes and understanding of unintended consequences, because we have to manage both sides of that equation. We need to find compromises and solutions to navigate a transition that is consistent with our current social and financial complexities.” Although “mining has been a cash-starved industry for most of a decade”, South Africa’s geological endowment means there is no shortage of opportunity: We have the resources – the question is what can we do with people, communities and Government to turn resources into reserves. We have to be the best of the best and engage in the tough conversations that need to be had to create the best mining industry in the world. “The Minerals Council of South Africa is now of the view that even in the absence of greenfields exploration, mining investment could almost double in the next four years if the country was to return to the top quartile of the most attractive mining investment destinations,” adds Cutifani. This resurgence can only happen if the critical foundations are right. A stable, investor-friendly political climate, long-term regulatory clarity and, above all, “an aligned voice” on the part of all stakeholders to promote the South African mining industry. “Modern mining is an opportunity for our country to regain its competitive edge and put itself at the vanguard of the mining industry across the globe. This demands a fundamental remodelling of the South African mining sector so that it embraces new technology and new skills in a globally competitive manner,” Cutifani concludes.

Diavik Diamond Mine, Canada (Rio Tinto).

Rio Tinto, Kennecott, USA.

Social license to operate Perhaps the most important of the “compromises and solutions” that Cutifani alludes to is the achievement of a social license to operate. This is what will make the difference between the all-too-familiar low-road scenario where communities near mines experience degraded soil, polluted water, broken communities, unemployment and disease, and that high-road where value is created for all. Mpho Ndaba, Chief: External Affairs at Vedanta Zinc International, comments: “The high road is based on effective stakeholder participation in the development planning process of community development programs. The mine, government and the community must collaborate towards developing a road map aimed at achieving sustainable development outcomes linked to the mining project. “An additional critical ingredient in achieving positive social outcomes is for regulatory bodies to collaborate with investors to ensure capital markets thrive to guarantee future investment flows into our communities as an assurance for the realisation of commercial ventures, which will contribute towards localised socio-economic and employment multipliers.” Remi Piet, senior director at Americas Market Intelligence (AMI) and co-leader of the firm’s Natural Resources and Infrastructure Practice, says: “Mining is the only sector that is able to create conditions of development www.alive2green.com/publications/green-economy-journal/

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Rio Tinto Mine of the Future™ Autonomous Haulage Trucks, West Angelas mine site, Australia.

Richards Bay Minerals, South Africa.

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Mining

Rio Tinto: Oyu Tolgoi underground mine.

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Mining

Richard’s Bay Minerals

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in rural areas provided that the projects are well designed. In Africa and South America, one of the key problems is migration to huge urban centres where rural people live dead-end lives of poverty. “Mining companies have to work where the minerals are, so it is in the best interests of the mining sector and communities to generate longterm investment in those areas. It’s a boots-on-the-ground sector where you have to invest for the next 10, 15 years. Social, politic and economic conditions tend to force stakeholders to work together. Without security around the site, for instance, there is a low capacity for projects to succeed. “The only possibility for mining companies to succeed is to gain a social license to operate. Through stakeholder mapping and understanding the unique linkages between actors, mining companies can actually build alliances – not only to gain short-term support but to really turn communities into partners for local sustainable economic development.

If well-mentored, communities can participate in economic development and environmental maintenance activities.” The consensus is emerging that sustainability is critical for mining to remain viable, and this means co-creating a shared vision of value creation with local communities. Ndaba puts it succinctly: “There is increasing understanding and acceptance that long-term sustainable success is premised on addressing urgent local development challenges, which include climate change, disease and poverty. The International Finance Corporation’s (IFC) recent performance evaluation of its equity portfolio in emerging markets confidently illustrates the correlation of a company’s positive community and environmental contribution with positive financial performance. “A mining company is expected to directly consult with its immediate community and devise a plan on how it will meet the community’s expectations. Once a community’s expectations plan has been devised and agreed upon, the mining company is expected to live up to its commitment and the expectations of the community. “To fully comprehend the community’s requirements a Social Due Diligence (SDD) needs to be conducted successfully before and continuously during the life of a mine to ensure uninterrupted and successful business practise. “The SDD should be premised on micro-level details as opposed to a higher level approach and a need for mining companies to get a better understanding of the local environment; to ensure the fair and transparent sharing of the mine’s benefits with the local population; to have a clear understanding of land rights; to understand competing interests between illegal and artisanal miners; to be aware of the potential environmental impacts which may emanate from the mining project and to safeguard the mining company’s reputation from other communities where it also has operations.”

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

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Piet comments, “One flaw for many mining companies is the pressure to meet deadlines. This can cause them to underrate the importance of understanding the community. This calls for an approach that draws on the social and environmental sciences in addition to the traditional geology. Geologists are not well equipped to understand the various relationships at the community and regional levels. To date, companies have tended to focus on partnering and establishing key relationships with Government. Depending on the country, this can be a limiting factor. Basically, companies need to do a better job of understanding key stakeholders at a regional level and the linkages between them. This requires a specialised and well-trained approach at the community level. It is not enough to rely on local third parties or brute force. “In this perspective, Africa is five to 10 years behind South America. Mining companies are pursuing what they see as their rights granted at the national level, but this doesn’t work anymore because now we have communities that have acquired a voice. A lot of community leaders have access to cellphones and there is an active NGO network against the welldocumented illegitimate use of force.”

Transparency, traceability Increasingly, due diligence is extending to questions of transparency and traceability. Piet comments, “We work on value chains not only from extraction to processing of minerals to end recycling but also the value chain from the supply aspect. When you open a mine, you have to work with subcontractors on everything from transport to catering. Looking at a way to operate with transparent bidding and procurement selection of suppliers actually infuses best practices in the selection of suppliers. Not only does this set a standard for your suppliers to adhere to, but by practising transparency, you are showing that you will not be drawn into corruption or political patronage networks.” Regarding the scourge of conflict minerals. Piet comments: “Currently in development is a series of traceability measures to quickly assess where minerals come from so that conflict minerals cannot be included in exports. A pilot project involving the Foundation for Community Development and Empowerment (FCDE) and a series of NGOs is currently underway. The major impact is expected in five to 10 years. Mining companies will have to invest in technology to show traceability. The question is how to ensure this level of technology becomes mainstream throughout the sector. In Switzerland, there is already a clear legal framework that will force the sector to set standards itself. These standards won’t be adopted by the entire industry overnight, but step-by-step malpractices such as smuggling conflict minerals will incur serious legal penalties as well as massive reputational damage. “State actors will be responsible for providing guidelines for mining companies to follow and enforcing sanctions appropriately. This will send a strong signal to mining companies to follow a formal path for the exploitation of minerals. We are seeing strong traction for this within the sector because, very importantly, the various financial institutions are in turn sending a very clear signal that mining companies will need to adopt a more sustainable approach to secure investment.”

Clarifying the waters Mining has frequently and justly been fingered as a major environmental villain. In South Africa especially, mining is seen as competing with agriculture for land. Additionally, mining is held responsible for largescale water pollution from abandoned and derelict mines, active mines (underground and surface mining operations), mineral processing facilities, haulage roads, tailings and mine waste disposal facilities. However, the potential exists to turn this around, and some leading companies have already implemented promising measures. Piet comments, “The mining sector has the capacity to address areas of strong environmental concern. The tailings dam disaster in Brazil springs

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Mining

Dampier operations, Australia (Rio Tinto).

A Rio Tinto operator stands next to plant machinery on a bauxite plateau. Amrun, Cape North Peninsula, Queensland, Australia. to mind. It is therefore important to encourage companies to continue increasing the quality of their environmental policy. That is an area where we have seen improvement over the last decade. Look at different types of mining, some companies, especially the big majors, are able to set best practices at early development phases.” Ndaba elaborates: “Mining and agriculture are mutually dependent sectors and both utilise extensive amounts of our limited water supply. In the South Africa context, mining operations are not a significant user of water when compared to other uses such as irrigation which accounts for approximately 60%, livestock watering and nature conservation 24%, municipal domestic (urban) water use accounts for 24%, while municipal domestic (rural) water use accounts for 3%, mining accounts for only 2.5% water use, while bulk industrial water use makes up 3%, power generation accounts for 2% and afforestation makes use of 3% of overall water available for industrial application. “Mining industry stakeholders are constantly working towards finding the optimum and cost-effective water treatment technology. The South African Government has conducted several feasibility studies to find the most sustainable solution. The Government has considered physical treatment, chemical, biological and passive acid mine water treatment options. The results of their assessment illustrate the following as the most viable options: • Reverse Osmosis (RO) for desalination (physical treatment), • High-density Sludge (HDS) for neutralisation and metal removal (chemical treatment) as a short-term intervention and it is being implemented in the Witwatersrand to deal with acid mine drainage; and • Ion Exchange (IX) for uranium removal (physical-chemical treatment) if required.” Ndaba continues: “There’s a need for a strong commitment in the employment of biodiversity offsetting with specific emphasis on aquatic www.alive2green.com/publications/green-economy-journal/

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Reclaimer, Cape Lambert, Pilbara, Australia (RioTinto). ecosystem restoration in all mining operations as a strategy to compensate for the negative residual impacts of mine development on biodiversity. This will require constant monitoring of contaminated aquatic ecosystems to enable early detection of fine sediments and heavy metals. The Government needs to develop a framework that will enable it to collaborate with the mining industry to periodically evaluate aquatic ecosystem metal pollution and the employment of mitigation measures. “Our company recycles and reuses water. We are committed to zero discharge. Our tailings dam located 3.2km from plant to store 3.55 mtpa of tails and has HDPE liner as per environmental regulations.”

Work the land together With regard to mining and agriculture, Ndaba highlights several complementary areas between the two sectors. Notably, agriculture relies heavily on mining in that modern farming machinery and other products are derived from the beneficiation of minerals into finished products. Moreover, certain minerals are incorporated into fertilisers that include Lime Ammonium Nitrate (LAN), a formula used to grow and increase plant yield. Further, the mineral vermiculite is used to improve soil drainage, aeration and water retention, to the benefit of water-loving plants. This, in turn, enables rapid germination of seeds. Ndaba explains further: “The mining project also provides a readily established large market for farmers to supply their produce. Mines also own large tracts of arable land and can utilise this land for the development of alternative employment opportunities as part of their Local Economic Development (LED) legislated Social and Labour Plan (SLP) projects. These projects should be commercial agricultural projects with the primary aim of replicating the local mining sectors economic and employment multipliers. Western Australia’s (WA) mining companies are displaying this awareness successfully. “In the Pilbara, WA Citic Pacific Mining Sino Iron project operates one

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Mining of the largest magnetite mining and processing operations which include downstream processing, consisting of six production lines. The company has a land lease in the Pilbara consisting of a free-range beef production operation, with over 8 000 head of selectively bred cattle in collaboration with the local population. “Rio Tinto is not only the world’s largest iron ore miner; in the Pilbara region, it also operates a land lease over 1 500 000 hectares of land. Five of the leases are managed by the miner managing almost 24 000 head of cattle. Water from the mining dewatering process is being utilised for crop irrigation producing over 25 000 tonnes of hay averaging eight cuts per year, a good way to dispose of clean water from the mine dewatering process. The hay is used in cattle operations with the surplus sold to local farmers and to the Middle East.” Ndaba calls for mines to “start seeing the co-existence of agriculture and mining as a profitable business opportunity to farm large open tract of non-mining or reclaimed land as an activity that can stimulate local employment, diversify the local economy, ensure the mine is not the only source of employment and to ensure a viable agriculture economy that can sustain the local economy beyond the life of the mine.” In this regard, he says, the following aspects should be considered: • Continued investment in Research and Development targeted at advancing knowledge of ecological reactions to heavy metals. • Recycling and reusing water. • The mining company using its capabilities to identify local, regional, national and international agricultural markets to assist with securing farming contracts and accessing of supply chains. • Agribusiness training to be offered to mineworkers and mine community members as part of the SLP downscaling and retrenchment training programs. • The mining company to use its capabilities to secure funding, to secure working capital to fund early-stage agribusiness enterprises

along with making use of the funds already budgeted for the SLP. • Making available relevant mining company infrastructure that can be altered to agriculture needs such as packing and storage facilities. • Allow the agriculture project to make use of the mining transport and logistics infrastructure where feasible.

Tracking progress Looking to the future, Ndaba calls for the increased use of results-based Monitoring and Evaluation (M&E) techniques in the planning and execution of development projects. “This is important for operational and learning purposes and can easily be applied to socio-economic projects agreed by the mine and the community. The importance of M&E lies in its ability to track progress against targets and budgets, assists in the optimal allocation of resources for effective and efficient implementation of endeavours.” For Piet, due diligence in pursuit of good social, environmental and governance practices will become increasingly important to the financial sustainability of mining companies. This means that managers will have to take due diligence more seriously than ever before. Piet comments: “We do a lot of on-the-ground due diligence, discussing issues with different communities and connecting with investigative journalists. The problem is not obtaining information so much as relaying the information to the ears of investors and the company head office. Company managers tend to limit the amount of information in circulation in order to exercise damage control. However, due to the pressure from financiers, some mining companies are now hiring us directly to do due diligence. Further, because due diligence costs are often passed to sponsors, junior miners, especially, come under pressure to hire the correct expertise to do their due diligence. It is becoming much harder for a junior minter looking for social investment to get away with a watered-down report on risks and issues – if they are serious about attracting big finance, then they have to go through a reputable monitoring company.”

Do not miss the African Mining Indaba, 3-6 February 2020, Cape Town. Mpho Ndaba, Vedanta Zinc International, and Remi Piet, Americas Market Intelligence, are both speakers at the Sustainable Development Day session (4 February 2020). www.miningindaba.com

Oyu Tolgoi: Sun setting over Gobi Desert D375A Digger used in the primary crusher open pit (Rio Tinto).

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

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Mining

Giving small-scale miners a voice

Small and low-value commodities mined by smallscale surface mines plays an important role in the economy of South Africa. BY ASPASA

ASPASA director Nico Pienaar

o says Nico Pienaar of surface mining industry association, ASPASA. He adds that these operations collectively employ thousands of workers and deserve an equally loud voice within the mining industry. “In our case mining refers to the retrieval of materials for the building of our infrastructure, dimension stone for floors and kitchen counters, salt for our tables and a wide variety of other commodities that are critical for us to survive and thrive in South Africa. No matter the size, smaller operations such as quarries that typically employ between five and 15 people using mechanical extraction methods, still have to comply with all the relevant mining, environmental and health and safety legislation. However, when problems or non-compliance issues arise they simply do not have the manpower or expertise to solve such problems. Given the complexity of mining laws and regulations and other issues facing the industry, it is best for these small operations to get assistance and to join forces for a louder voice.

a further audit document has been developed to cover non-mining operations. ASPASA also co-ordinates training relevant to health and safety issues and then focuses on actual on-the-ground requirements of the sector. “With our environmental audits the focus is on legal compliance to ensure operations are not stopped unnecessary, for example where water licenses are applied for and we continue to focus on problem areas to ensure compliance and to address the root of these problems. From 2020 the environmental compliance evaluations will focus much more on training and developing the quarry management to understand and comply with legal issues of environment,” says Nico. He adds that the quality of products produced is equally important and for this the association has developed an audit that focuses on testing product quality in a laboratory. The audit will ensure that the product that goes out is appropriate and empowers the business to prove the quality of its products in case of legal actions.

Compliance audits

Further assistance

“This is where ASPASA makes all the difference, giving these operations the tools to comply and the methods and support to implement these requirements. It also gives small-scale surface mines a voice that ensures they are able to operate on a level playing field. Membership means small companies and businesses have access to various assessments (audits) of surface mining operations to help them run their operations correctly. The advantage of running operations correctly is that businesses are fully legal compliant. (ASPASA only represents established operations that are legal). “The Health and Safety Audit is most probably one of the best in the world,” says Nico, adding that “due to demand and requests from members

Other focus areas include blasting and assessment of compliance with legislation, as well as compliance with the requirements of the Mining Charter. On this point, as well as Human Resources (HR) and Social and Labour Plan (SLP) matters, ASPASA also has service providers that assists members to assess and measure compliance. “Although a large portion of our membership comprises smaller surface mining operations they have a large voice through association with similar operations around the country and that’s why it is critical for these types of operations to join ASPASA,” concludes Nico. Contact: Nico Pienaar, Tel: (011) 791 3327, Fax: 086 647 8034, Email: nico@aspasa.co.za, Web: www.aspasa.co.za

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

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Mining

Biomonitoring of rivers close to the areas of Sibanye-Stillwater operations.

Rooted in

Sustainability

â&#x20AC;&#x153;Our mining improves livesâ&#x20AC;? is a bold statement to make, but leading international precious metals mining company Sibanye-Stillwater has committed to an approach of overarching sustainability that is bearing much fruit in the communities they are involved in, and surrounding environments in which they operate.

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Mining

epresenting its corporate values through the indigenous South African Umdoni tree, Sibanye-Stillwater represents its CARES (Commitment, Accountability, Respect, Enabling and Safety) values as the fundamental roots of their organisation, providing a solid basis for the way they do business. The trunk of the tree represents the material strength of the company (they are the world’s largest primary producer of platinum, the second largest primary producer of palladium and the third largest producer of gold on a gold equivalent basis, as well as a significant producer of rhodium) while the leaves represent various stakeholders: customers, employees, company, shareholders, environment, communities, organised labour and government. The tree’s seeds and fruits signify the varying benefits and value that the company’s success brings to those stakeholders. These include many things such as total returns and economic value, but also extend to upliftment, better lives and clean water, air and land.

Uplifting communities In South Africa, there is a specific regulatory requirement for all mining companies to contribute to local and labour-sending area upliftment in order to secure a social licence to operate; and since Sibanye-Stillwater’s inception in 2013 the company has committed to meeting and going beyond these targets in line with its vision of creating superior value for all its stakeholders. In 2018 alone, South African operations invested R1,374 million in socio-economic development initiatives, with the projects thriving through community relationships built on trust. SibanyeStillwater work hard to overcome historically poor perceptions of the mining industry among communities.

When it comes to compliance with environmental best practices, Sibanye-Stillwater’s stance is far from being a box-ticking exercise; it is about protecting the environment for future generations, long after mining has stopped.

Sibanye-Stillwater has been assisting local farmers in the Eastern Cape, one of the company’s key labour sending areas, with animal health and optimising value out of their livestock. The company is building shearing sheds to enable local farmers to shear their sheep for wool production, and has plans to deliver four of these sheds. In an effort to boost the economy of Cala at Sakhisizwe Local Municipality, the company completed the Beyele Shearing Shed, and worked collaboratively to open the Masikhule Shearing Shed in September 2019. The Eastern Cape Department of Agriculture said the area was ideal for stock farming as it is a sour veldt area with cold winters. Before the establishment of the shed, the farmers had to drive their sheep to a neighbouring shed in Nompucuko which took a long time. The farmers felt that by the time their produce went to the market, buyers were no longer interested in paying a good price for their wool. A major drawing card for the 89 farmers linked to the shed (with approximately 8417 sheep) is the dipping tank enabling them to fight diseases such as sheep scab. Farmers are also able to form a farming circle where ideas and advice are shared.

Treading lightly When it comes to compliance with environmental best practices, SibanyeStillwater’s stance is far from being a box-ticking exercise, but is about protecting the environment for future generations, long after mining has stopped. Environmental sustainability is part of its DNA and its operating model places a heavy emphasis on finding efficient methods to conserve water, reduce energy usage, dispose waste and lessen their carbon footprint. With water being acknowledged as a critical resource, SibanyeStillwater’s water conservation and water demand strategy consists of various components – using alternative available underground water sources to replace purchased water in line with the conditions of their water use licences; identifying and reducing wastage of water through the implementation of improved metering, water balance management, leak detection and repair initiatives. In 2018, Sibanye-Stillwater reported on a 3% decrease in the consumption of purchased water that year. In 2019, the company’s energy management strategy was honed to focus on holistic energy efficiency using digital applications, such as digital twinning. It also continued with ongoing improvements in the use of compressed air, pumping, ventilation and refrigeration, as well as the elimination of waste consumption, application of new technologies and footprint optimisation. This approach was aimed at achieving a net electricity consumption reduction of approximately 2%. Sibanye-Stillwater is aware that its sustainability goals cannot be achieved without all-round support, and that is why stakeholder engagement and partnerships are prioritised. The company is constantly identifying and addressing challenges, and engaging meaningfully to be in the best possible position to truly be a mining company that improves lives.

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ENVIRONMENT

SOLVED

ENVIRONMENT MINING | WATER INFRASTRUCTURE | ENERGY

www.srk.co.za

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Regulation

Meeting Africa’s higher environmental standards BY SRK CONSULTING

As more African countries tighten up their legal requirements around environmental and social impact, companies must keep up with changes – including the increased need for environmental impact assessments.

“A

growing number of countries in Africa are focused on good international industry practice and project design to manage risks and impacts,” said Darryll Kilian, partner and principal environmental consultant at global consulting engineering firm SRK Consulting. The trend, said Kilian, is demanding the expertise of experienced environmental assessment practitioners to navigate this fast-changing regulatory terrain. “Based on SRK’s experience in undertaking environmental impact assessments (EIA) for mining, infrastructure and energy projects throughout sub-Saharan Africa, we have been able to help clients address key considerations when undertaking EIAs,” he said. A project scope and schedule is conducted at the start of a project or process, although it is highly likely that this scope may change. Such changes could trigger more compliance requirements, while there is also a possibility that in-country environmental laws themselves could change. This often leads to added costs and scheduling delays, but an astute environmental assessment practitioner could help avoid this. Before undertaking the regulated EIA process, it is vital to confirm and clarify project details alongside the legal requirements for environmental authorisations. This is important as legislated timeframes can leave insufficient time to adequately meet legislative requirements, if the scope of the project changes within the regulated timeframe. With the support of an environmental assessment practitioner, however, the applicant can map out the requirements optimally before the EIA process commences. In the planning period, for instance, the biophysical and social setting of a project can be screened. Key environmental and social sensitivities can be identified, and engagement with key stakeholders – especially regulatory authorities – can commence. This helps ensure that all the required legislative processes have been identified and agreed upon. “In most African countries, there is a requirement for a permitting plan, which may include a list of applicable legislative processes, present terms of reference for specialist baseline investigations and set out the stakeholder engagement strategy for the EIA process,” adds Fran Lake, SRK partner and principal environmental scientist. She emphasises that applicants should also explore undertaking an integrated environmental authorisation process, wherever possible. “Specialists’ baseline investigations can also begin during the project pre-feasibility and feasibility processes, to inform and assist with the planning of the environmental authorisation processes and the placement of the project footprint,” said Lake. “This will provide early warning of any fatal flaws or no-go areas that could prevent or delay the project.” During the authorisation process, flexibility in the permitting plan is crucial – as unexpected deviations from the original scope of work or permitting plan often occur. Such flexibility is possible if the environmental www.alive2green.com/publications/green-economy-journal/

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SRK partner and principal environmental scientist, Fran Lake

SRK partner and principal environmental consultant, Darryll Kilian

assessment practitioner has a detailed understanding of the applicable legislation, to identify available avenues provided in the legislation to allow for the change in scope. Frequent interaction with regulatory authorities is needed to adapt to the change in the working plan. The practitioner should also be aware of any pending changes in legislation that may come into effect during the process. “The environmental assessment practitioner really plays a central role in the EIA process in the African context,” she said. “They are appointed as independent experts by the project proponents to conduct an EIA process and to prepare the necessary reports for decision-making by environmental regulators.” Practitioners are also obligated by law to objectively conduct the EIA process, taking account of the views and concerns of all stakeholders. This means the practitioner must embody a wide range of relevant skills – to balance the proponent’s expectations in obtaining the requisite permit, on the one hand, and the application of the law on the other. With many variables influencing the environmental authorisation processes in Africa, unexpected deviations tend to be common. Kilian highlights, that these deviations should not be viewed as a hinderance. Rather, they are opportunities to reinforce and improve the proponent’s understanding and knowledge of applicable legislation. “This could also strengthen planning and permitting processes, which in turn could further inform and improve the environmental and social governance and compliance of future projects in the African context,” he concludes.

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FORGING FORGING SUSTAINABLE SUSTAINABLE FUTURES FUTURES MTS-v2.pdf

2019/12/19

11:17

Howare areyouyoucreating creating positive How positive socialsocial sustainabilitywhile while mitigating negative sustainability mitigating negative effectsononthetheenvironment? environment? effects

CY CMY

CMY K

Be sure of expert social sustainability guidance Be sure of expert and quality data.

social sustainability guidance www.mtsholdings.co.za and quality data. www.mtsholdings.co.za

Contact our CEO Maritha Erasmus • maritha@mtsholdings.co.za • +27 (0) 10 595 3895

Contact our CEO Maritha Erasmus • maritha@mtsholdings.co.za • +27 (0) 10 595 3895 GEJ 38 MAG CDC.indd 22

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SUSTAINABILITY

Governing social sustainability as a Corporate Concern With a key consideration to Managing Transformation Solutions’ professional experience in social sustainability consulting and data management in the South African mining context, Green Economy Journal asked CEO Maritha Erasmus for insight on the matter of social sustainability as a corporate concern. What advice would you give on how companies can boost their business with Corporate Social Responsibility (CSR)? As a business community, we need to move away from CSR and encourage social sustainability. Social sustainability means that deliberate actions are informed by a value system, deeply entrenched in the business, with a view to creating long-term value for a wider stakeholder group.

Please expand on the relevance of the mining sector in terms of its position as a key employer of vulnerable groups. In the context of the mining industry, vulnerable groups can be categorised as youth, women, people with lower skill levels from rural communities who are at a higher risk of poverty and social exclusion. The mining industry is a key employer with 453 000 people directly employed by the industry, which makes a total contribution of 7% to the GDP of South Africa. A recent analysis of a mining-related data set from Insite (an online social sustainability tracking tool), revealed that the industry creates access for youth and women, mainly from rural and semi-urban communities, to gain access to unskilled and semi-skilled jobs. Detailed statistics of skill level and jobs of employed youth and women are available on request.

effectiveness of localisation programmes can be evaluated through critical performance indicators like (1) employment practices (2) targeted skills development programmes (3) upward mobility in the organisation (4) workplace diversity (5) diversified and inclusive supply chain, and (6) local development initiatives. 3. Social sustainability strategies must address and yield a long-term return on investment. It is crucial to have a comprehensive understanding of your current impact. MTS has developed software that analyses data contained in HR, payroll, training, procurement, and financial systems to determine a baseline from which a roadmap with key performance indicators can be developed. The basic process is circular in the manner in which it is implemented and managed.

How can South African businesses find economic value in the country’s complex social challenges? Value systems of inclusivity and sustainability will see businesses invest in their employees’ skills development and pay fair wages, unlocking more opportunities for cash circulation in the economy through consumer behaviour and the servicing of debt. Diverse suppliers in the corporate value chain will assist in the development and stabilisation of more Exempt Micro Enterprises and Qualifying Small Enterprises, directly impacting job creation and generating cash flow in local economies, resulting in the stabilisation and growth of our national economy, which in turn will impact consumer behaviour.

What do companies need to do to strengthen their corporate sustainability? 1. A key differentiator of companies that have embraced sustainability is that they have a formal aligned sustainability management program in place that addresses critical metrics to drive a social sustainability agenda and the impact of the operations on the environment. Executives embed metrics into business practices and can actively manage the monitoring and delivery of the sustainability agenda in an aligned and balanced way. 2. At MTS, we view localisation and building capacity in local rural/ semiurban communities as the cornerstone of social sustainability. The www.alive2green.com/publications/green-economy-journal/

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MTS Sustainability Roadmap. Among other benefits, these approaches contribute to developing sustainable communities and ensure a better living and working environment. The implementation and return on social sustainability programmes take time. Leadership must have a long-term view and manage the risks of not having a balanced social sustainability approach. One such risk is “reactive engagement” with communities – history has shown that the cost and risk to operations can escalate rapidly.

Maritha Erasmus has spent more than a decade working on social compliance and sustainability projects. She has unique insights on the social impact intelligence needed to respond to the changing socio-economic landscape of South Africa and the need to drive strategies that incorporate inclusive economic growth principles. For more information, please contact Maritha Erasmus at maritha@mtsholdings.co.za.

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Events

Triple Bottom Line Sustainability BY THE CTICC

Globally, consumers and event organisers are demanding that companies follow sustainable business practices and processes. As a business, the CTICC has aligned its practices to the United Nations Global Compact’s (UNGC) principles, and it is this alignment that drives the centre’s triple bottom line sustainability objectives, ‘People, Planet and Profit’.

hese principles, contained in the UN sustainability goals for the year 2030, set out strategic policies for businesses that are committed to establishing a culture of integrity. As part of this, the CTICC continuously seeks new ways to mitigate its impact on the environment. This includes assisting clients ‘green’ their events, while operationally focusing on the centre’s waste management, energy consumption, local sourcing and water conservation, to name a few. Water conservation is a key concern for the CTICC, as it is in the City of Cape Town. One of our most significant initiatives during 2018 was the installation of the centre’s reverse osmosis plant. The convention centre also harvests greywater and rainwater for use inside and outside the complex and has introduced several other initiatives to save water. In 2019, the CTICC’s reverse osmosis plant became fully operational. The plant extracts underground seawater using ultra-filtration, and reverse osmosis technology that removes the salt and contaminants from the water by pushing it through a semi-permeable membrane at high pressure. This plant produces purified and fully potable water that complies with the SANS/SABS 241 of 2015 Standard for Drinking Water. It is purposely designed to cater to all the centre’s daily water consumption needs and can produce 200 000 litres of drinking water in a 24-hour cycle. The plant integrates an additional storage tank with a capacity of 400 000 litres, which accommodates for maximum demand scenarios. In conjunction with this additional water storage capacity, the centre can provide twice their regular daily water consumption needs, which means that they can offer 100% water neutral events. Should the need arise, there is a valve to switch over to municipal water. There are several other initiatives in place to reduce the centre’s water consumption, these include: • Utilising rainwater storage tanks, which capture up to 265 000 litres of water at a time. The water is used for irrigation of indoor plants, cleaning and, in the winter months, provision of water to the cooling towers of the central air-conditioning system; • Capturing condensate from the air-conditioning units. About 20 000

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litres of water is captured a week and is used for cleaning purposes in and around the centre; • The centre reduces dishwashing loads and water use by not using tablecloths, using disposable napkins, biodegradable cups in the coffee shops, and providing clients with these options to use at their events; • Minimising water usage with aerators in all taps in both the kitchens and ablutions; • Monitoring activities from exhibitors and orders for plumbing. Previously, freshwater was used for ballasts at exhibitions for the erection of external structures. This practice has been banned, and only sand or sea water-filled ballasts are permitted. The CTICC focuses on lowering its environmental impact in various ways, and sometimes it is the small changes that have a significant knock-on effect. One such change was the strategic decision to ensure all food and beverage suppliers are located within a 50km radius, the exception being food items sourced from upcountry to accommodate specific client requirements. In addition, the CTICC kitchens only order what is needed for each event, which ensures there is very little food wastage, and the quality remains superior. The kitchens use water from the reverse osmosis plant, and energy-efficient ovens reduce the electricity requirements for cooking and regenerating food. These are just some of the centre’s green initiatives which showcase tangible value to the environment. In keeping with future efforts, the CTICC is also looking at further reducing its environmental impact. As part of its fiveyear strategy, the centre is investigating more sustainable electrical generation options, including photovoltaic solar PV panes and water heating utilising heat pumps. This commitment to the environment earned the CTICC top honours. Recently the centre won the Medium Stand Award category in the Event Greening Forum Awards at Meetings Africa 2019. These awards recognise stands and companies that excel in their commitment to ‘going green’ and environmental sustainability. www.alive2green.com/publications/green-economy-journal/

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Infrastructure

Create a positive impact as a GBCSA Accredited Professional Green Building Council South Africa (GBCSA) has accelerated the process for built environment professionals to learn what it takes to build green in the project stages of either new builds, retrofits, projects focusing on interiors, or at a precinct scale. BY GREEN BUILDING COUNCIL OF SOUTH AFRICA

everal pathways are available to guide individuals to qualify as either an Accredited Professional Candidate (APc), Accredited Professional or an Accredited Professional Practitioner (AP+) and GBCSA AP training and the qualification criteria are open to everyone with an academic background or professional experience in the industry. The criteria of an individual’s qualification, experience, and level of activity as well as engagement in the industry, will guide the GBCSA’s awarding of the AP qualification into three distinct tiers:

Accredited Professional Candidate (APc) Students should complete the GBSCA Green Building Certification Program while enrolled in their university. Upon graduating and gaining six months of industry experience, an APc can go on to become an AP by attending the AP Workshop in the tool that they have opted to specialise in and by signing the Accredited Professional Agreement.

Accredited Professional (AP) An AP is an individual who has met qualifying requirements, completed an AP Programme in their chosen specialisation and signed an Accredited Professional Agreement with the GBCSA. The courses provide significant exposure to the GBCSA grading and certification system.

Accredited Professional Practitioner (AP+) An AP+ is an AP who has demonstrated higher levels of activity through practising as an AP and engagement with the GBCSA by attending training, events, tours and other knowledge-sharing events in a 12-month period. Various AP specialisations are available that cover Green Star and Net Zero Certification Systems. An individual can have status in one or many specialisations: New Build, Existing Building Performance, Interiors, Sustainable Urban Precincts, and Net Zero. APs assist throughout the industry in the application and validation processes required for the awarding of GBCSA certification. APs are invited to attend GBCSA events and widen their professional network and are also added to the GBCSA website directory of APs available to the industry.

GEAR UP YOUR RATING AS AN

ACCREDITED PROFESSIONAL START HERE

APc

Accredited Professional Candidate (APc) Students can take their first step towards a career in sustainability by completing the GBSCA Green Building Certification Program while enrolled in their university.

With this extra qualification students in a building industry related field will find it easier to transition towards a fully-fledged AP.

Upon graduating and gaining six months of industry experience an APc can go on to become an AP by attending the Accredited Professional Workshop in the tool that they have opted to specialise in and by signing the Accredited Professional Agreement.

OR START HERE

Accredited Professional (AP) These programs provide significant exposure to the GBCSA grading and certification system and are of value to all involved the green building sector.

The skills and perspectives offered by these niche specialisations have proven popular – as can be seen by the more than 500 certified buildings.

Industry professionals are entitled to complete an Accredited Professional Program in their chosen specialisation. Individuals should have either two years’ experience or a recognised tertiary qualification, or be a current APc.

The scope of the APs work includes advice to clients on green design and assistance with preparation of a client’s submission for certification.

Aside for complying with the agreed code of conduct APs will retain active status if accumulate a set number of points with the GBCSA. APs are required to maintain a score of 5 to 10 each year, and those scoring more than 10 will be recognised as Accredited Professional Practitioners (AP+).

AP+ Accredited Professional Practitioner (AP+) Practicing APs who have shown higher levels of activity, through their professional work and by participating in knowledge sharing opportunities in a 12-month period, gain the AP+ accreditation.

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ENERGY

Wind industry

can release additional power into the grid now

BY SAWEA

The South African Wind Energy Association calls for the immediate release of available wind power into the national grid.

SAWEA argues that the Government should allow the industry to fast-track wind farms that are currently under construction.

he industry is proposing the lifting of Maximum Export Capacity (MEC) on all operating wind farms, which governs how much energy is permitted to be exported by wind farm power generators. Currently, wind farms can only export the pre-agreed maximum capacity into the grid and forced to curtail any additional capacity. If the restrictions were lifted, Government could buy that additional energy at a tariff it was prepared to pay. This is surplus energy that can be bought at marginal cost, as low as R0.40c per KWh. “The operational wind energy plants have excess capacity of about 500MW available immediately. These can also be short-term contracts that can be signed in this interim capacity constraint period and it doesn’t have to be viewed as a long-term commitment,” explained Ntombifuthi Ntuli, CEO of SAWEA. In addition to permitting additional wind power into the grid, SAWEA suggests that the Government allow the industry to fast-track wind farms that are currently under construction, meaning that they can provide power that is being produced to Eskom, before their agreed commercial operations date. This ‘early generation‘ electricity can be sold to Eskom at a rate approximately 40% cheaper than the agreed tariff, ensuring that the much-needed electricity is fed into the grid much earlier than anticipated and achieve short-term savings for Government/Eskom. SAWEA views load shedding is as clear symptom of Eskom fleet’s reduced electricity availability factor, which indicates an urgent need to procure new generation capacity in order to bring the available factor to healthy levels again. However, this may not be fast enough to close the short-term capacity challenge highlighted by the Minister of Mineral Resources and Energy recently, which is why the industry is posing short-term solutions while the

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Noupoort Wind Farm

industry waits for the green light to start constructing new wind farms. The third option is to open the market for private Power Purchase Agreements (PPAs). The wind sector can provide energy at a rate of 25% lower than Eskom mega-flex tariffs to intensive energy users. The wind industry can supply electricity through signing private PPAs, which should address a lot of the short-term capacity challenges and ultimately avoid load shedding, but this would need to be clearly spelt out in the ministerial determination for new generation capacity. “Our current state of power shortage is threatening multiple sectors and especially small businesses that employ over half of the country’s labour force. SMMEs struggle to recover from extended periods of load shedding, especially stage 4, which allows for up to 4 000MW of the national load to be shed,” Ntuli says. The utility is failing to meet a peak demand of 27 000MW. Load shedding costs the country over R2 billion each day, posing a huge cost burden to the economy, commonly known as the cost of unserved energy. However, the public is not aware that without the power currently being produced by wind farms, this cost would, in fact, be far higher. Calculations by energy analyst Chris Yelland show that Stage 2 (2000MW) of load shedding for 14 hours a day would result in unserved energy of 14 x 2000 x 1000 = 28 million kWh per day. Using a cost of unserved energy of between R15 per kWh (indicated by Eskom) to R75 per kWh (used by NERSA in a load shedding cost study) gives a cost to the economy of between R420-million and R2,1-billion per day, according to Yelland. He says that this would mean that 2000MW of installed wind capacity operating at a capacity factor of 0,35 during the assumed 14 hours of Stage 2 load shedding per day would save the South African economy between R147-million and R735-million per day. www.alive2green.com/publications/green-economy-journal/

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