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South Africa, as the country with the highest CO₂ per unit of GDP in the world, understands not only what is at stake but most importantly the opportunities presented by
participation in the green revolution.

Companies that manage their environmental aspects responsibly can enhance their brand value and make themselves more attractive to potential customers and investors. All businesses have the opportunity to reduce their environmental footprint and the business case for doing so is growing ever stronger.

As part of South Africa’s commitments made in Copenhagen in 2009, to reduce the country’s carbon emissions by 34% by 2020 and 42% by 2025, the South African government has embarked on a concerted drive to implement policies and strategies which will combat climate change. In conjunction with this, businesses are also increasingly being required to develop strategies for meeting environmental targets and for reporting on the status of the achievement of such targets. Some of the key drivers which oblige businesses to address climate change aspects are:

National Climate Change Response: The Department of Environmental Affairs has issued the draft National Climate Change Response Green Paper (Green Paper). The Green Paper sets out the framework for the country’s targets for activities aimed at the reduction of greenhouse gases (GHG) to combat climate change. South Africa, as the country with the highest CO2 per unit of GDP in the world, understands not only what is at stake but most importantly the opportunities presented by participation in the green revolution.

The Carbon Tax Option: Within the energy mitigation sector, the Green Paper states that, government will make use of market-based policy measures such as an escalating carbon tax to price carbon and internalise the costs of climate change. National Treasury has proposed the imposition of a carbon tax. It is hoped that a carbon tax will diversify the energy mix and increase energy efficiency measures and new investment in cleaner technologies and industries. Energy efficiency and electricity demand-side management initiatives are also set to be scaled up through the setting of ambitious and mandatory targets.

The Carbon Disclosure Project (CDP): This is an organisation based in the United Kingdom which works with shareholders and corporations to disclose the greenhouse gas emissions of major corporations. In South Africa the National Business Initiative’s Climate and Energy focus area assists South African companies to address the CDP requirements. The CDP publishes the emissions data for some of the world's largest corporations, accounting for a significant percentage of global emissions resulting from human activities. This data can be viewed by anyone and is often of particular interest and use to investors, policymakers and their advisors, government bodies, the media and academics.

The Socially Responsible Investment (SRI) Index: Launched by the Johannesburg Stock Exchange Limited (JSE) in May 2004, the SRI identifies those companies listed on the JSE that integrate the principles of the Triple Bottom Line (also known as “people, planet, profit”) and good governance into their business activities. The SRI indicators are structured along the three broad categories of environment, society and governance (ESG) and related sustainability concerns, and from 2010, the specific category of climate change was an additional focused area of measurement.

It is anticipated that a climate change action plan will be compiled and published by the Department of Environmental Affairs. Once published, the plan will detail various short-, medium- and long-term actions which will be measurable, reportable and verifiable.

Recognising this, AECI aims to ensure that business activities within the Group are conducted in a sustainable manner.

AECI’s vision is to be the chemical and mining services supplier of choice for customers in its chosen markets.

Being able to manage environmental issues is becoming increasingly important as knowledge and understanding of the changing global environment becomes more and more pronounced. Consequently AECI intends to base business practices on its environmental values and targets to ensure sound environmental management. A key component of sound environmental management is the setting, measurement and reporting of achievement of targets. To manage and communicate environmental performance effectively, therefore, it is essential to measure what we manage. This measurement will be based on quantifiable key environmental performance indicators (KEPIs) which will be used to track performance.

Our values guide our behaviour to sustain excellent performance.

DILIGENT MANAGEMENT OF OUR ENVIRONMENTAL FOOTPRINT Taking the AECI values and the SHE policy and standards into account, we have formulated the AECI Group environmental vision as diligent management of our environmental footprint. This environmental vision is based on three critical environmental footprint reduction goals; namely, resource conservation, energy conservation and pollution prevention. PILLARS SUPPORTING GREEN GAUGE Our efforts to achieve the targets of Green Gauge will be based on three key pillars. 1 Achieve targets through progressive efforts to increase efficiency   We will strive to minimise our impact on the environment by improving the efficiency of production processes, efficient logistics management, offerings to customers and office activities, amongst others. 2 Place a high priority on green chemistry to encourage the design of products and processes that minimise the use and generation of hazardous substances   By ensuring that our activities are environmentally conscious, we will strive to provide products that are not only superior in terms of functionality and quality, but also exert minimal impact on the environment. 3 Communicate and establish partnerships with stakeholders within and outside the Company   In addition to innovation, the move to renewable energy and other new elements of environmental infrastructure, developing technologies and creating mechanisms for reducing environmental impacts require collaboration with other companies, regulatory authorities, NGOs, universities and research organisations. To ensure Group-wide participation and ownership of this pillar, we will encourage and promote environmental education and training.

Green chemistry, also known as sustainable chemistry, is the design of chemical products and processes that reduce or eliminate the use or generation of hazardous substances. Green chemistry applies across the life cycle of a chemical product, including its design, manufacture, and use. Green chemistry: Reduces waste Eliminates costly end-of-the-pipe treatments Yields safer products Reduces use of energy and resources Improves competitiveness of chemical manufacturers and their customers Instead of limiting risk by controlling our exposure to hazardous chemicals, green chemistry attempts to reduce and preferentially eliminate the hazard thus negating the necessity to control exposure.

KEY FOCUS AREAS

With the aim of reducing the environmental footprint of our Group activities and products throughout their lifecycles to minimise environmental harm, we will set targets for the following Key Focus Areas (KFAs):

1. Resource conservation and recycling
2. Energy conservation and global warming prevention (including GHG emissions)
3. Chemical substance management and pollution prevention
4. Remediation of contaminated land
5. Communication and awareness
6. Management aspects

Our targets for the first phase, which continue to 2020, are outlined in Green Gauge, in which we have proposed the mid- and long-term environmental footprint reduction goals.

Green Gauge describes specific steps to realise this vision of diligent management of our environmental footprint. Using 2015 and 2020 as the standard years, both qualitative and quantitative targets have been set for monitoring environmental performance in each of the KFAs.