Materials

EN1 – 2

Materials used by weight or volume and percentage of materials used that are recycled.

As a retail/wholesale organisation, Massmart is not directly involved in the manufacturing process and as such does not measure raw materials. Initiatives are in place to encourage suppliers to reduce packaging, use more recycled materials whilst the use of toxic materials and inks are discouraged. In addition, Massmart conducts an annual environmental survey of its suppliers. This survey assists the Group in identifying the potential impacts that its suppliers may have on the environment and allows Massmart to advocate environmentally responsible practices to members of its supply chain.

Energy

EN3

What is Massmart’s direct energy consumption by primary energy source? 

Data around primary energy consumption was provided to Global Carbon Exchange (GCX) for the purposes of calculating our carbon footprint.  Some assumptions and estimates were made during the calculations to establish our carbon emissions.

The calculation of Massmart’s carbon footprint for 2011 has been completed. In total, the Group’s carbon footprint came to 394,391.38 Tonnes CO2e, which represents a 6.9% increase from last year’s 369,050.88 Tonnes CO2 e. Scope 2 (electricity related) emissions which represent the bulk (70.7%) of the Group’s footprint declined by 5.2 % for the reporting period.  This change in Scope 2 emissions is a result of more accurate energy consumption data and improved reporting processes.  The overall increase in the Group’s carbon footprint can be attributed to an increase in Scope 3 emissions, with supply-side freight and contractor truck related emissions increasing significantly. It appears that the increase in Scope 3 emissions is due to better reporting in this area. However, Scope 3 emissions data remains highly inconsistent and further work is required to achieve a more satisfactory level of data accuracy.

Going forward, we will be placing greater focus on obtaining more reliable waste disposal data and reducing the quantity of waste sent to landfill as a result of our operations. In addition, greater emphasis will be placed on obtaining more consistent contractor truck emissions data as this increased significantly for the 2010/2011 financial year.

EN4

What is Massmart’s indirect energy consumption by primary source?

The Group consumed approximately 270,788,312 Kwh of electricity at South African based operations for the reporting period.

EN5

How much energy has Massmart saved due to conservation and efficiency improvements?

Electricity consumption, estimated at 70.7% of our Group’s total CO2 emissions is our main focus area for energy conservation and efficiencies across the Group.  The implementation of more in-store electricity meters and the analysis of the Group’s energy usage figures indicate that the Group has overstated its energy consumption figures. Consequently, all energy related figures have been restated in the 2011 annual report.

Based on revised energy consumption figures and using 2008 as a benchmark, Massbuild and Massdiscounters have achieved 10% and 3% energy intensity savings respectively.  Energy intensity savings have been achieved through a number of energy interventions, including improved in-store consumption tracking, conversion to energy efficient lighting and refrigeration systems and the installation of lighting strips and skylights to reduce in-store lighting requirements. Makro, which has historically operated energy efficient stores, has taken the next step by designing and building stores that optimise natural lighting and reclaim heat from refrigeration systems to heat the store. These and other innovations have led to a 25% reduction in energy consumption (based on annualised comparison between the new Makro Vaal store and a similar-sized legacy store).

For more in-depth information on the installation of energy efficiency measures and resultant savings, (http://www.massmart.co.za/media_info/c_updates.asp).

EN6

What initiatives are in place to provide energy-efficient or renewable energy based products and services and what are the reductions in energy requirements as a result of these initiatives?

The Group provides an easily recognizable environmentally responsible product range that includes both private brand and national brand products.  Our Eco-wise brand was developed specifically to grow awareness about products that offer energy saving solutions, encourage recycling and highlight responsible use of natural resources.  In an effort to provide additional information to our customers about environmentally responsible consumerism and products, Massmart is in the process of launching an Eco-wise consumer website, which is nearing completion for launch in the fourth quarter of 2011. Our product offering includes energy-saving solar water heaters, LED and solar lights, household lighting timer switches, energy monitors etc.

In addition, we have increased the frequency and scope of product promotions that feature environmentally responsible merchandise options.  Most importantly we are working on price democratisation and information transparency to promote responsible consumer behaviour. These are areas in which Walmart has considerable expertise, including partnerships with a consortium of universities, suppliers and NGOs to develop a product information database that will provide the framework for the development of a consumer-facing index tool for shoppers.

Actual energy consumption reductions experienced by customers as a result of their purchases of these products is not measured.

EN7

What initiatives are in place to reduce indirect energy consumption and what are the reductions which have been achieved?

For reasons outlined above, exact savings have not been quantified.  However, steps have been taken to reduce energy usage in a variety of areas by converting to more fuel efficient logistics fleets and the reduction of business travel by making more use of video conferencing. 

Water

EN8

 What is Massmart’s total water withdrawal by source?

Due to ongoing complications in sourcing accurate water consumption data, we continued to measure water usage in Rands, the cost of which for the year was R 29,063,026 including African operations outside of South Africa.  Based on the Rand Water Board’s retail tariff for 1 July 2010 to 30 June 2011 (including levy and value added tax) of 858.89, we estimate our water consumption to be approximately 3,383,789 kilo litres, equating to a water consumption intensity of 2.64 kl per m² of trading area.

EN9

Water sources significantly affected by withdrawal of water

As a retailer, Massmart is not considered to be a significant consumer of water resources.

EN10

Percentage and total volume of water recycled and reused.

Rainwater harvested at some of our Massbuild stores is used for the watering of plants sold in the garden section as well as to water gardens at the entrance to some stores. 

All Builders Warehouse and Builders Express stores have installed rainwater harvesting solutions to supplement irrigation requirements for in-store nurseries. We estimate that 3 240 kilolitres was harvested in this way during the 2010 calendar year.  Makro is currently using the Builders Warehouse solution as a reference for assessing the merits of using rainwater harvesting to supplement its landscaping water needs. We aspire to supplement 40% of nursery and landscaping irrigation needs in this way.

Biodiversity

EN11-15

What is the location and size of land owned, leased, managed in, or adjacent to, protected areas with high biodiversity value? Describe significant impacts of activities on biodiversity in these areas.

Massmart does not own, lease or manage any land in or adjacent to protected areas or areas of high biodiversity value.  As an indication of our sensitivity, environmental impact assessments are conducted in respect of all new store developments and site developers work to minimise any negative impact they might have on the environment.

A recent example would be the project to re-locate all indigenous plants found at the new Makro Vaal site before work commenced, reuse of any excess soil to reduce the amount of new soil needing to be brought to the site and the doubling of the typical Makro store landscaping budget to allow for the planting of indigenous trees at every fourth parking bay.

Two of our divisions currently contribute funds towards a Wildlands Trust Rehabilitation Program investing in the planting of indigenous seedlings for reforestation projects.

Emissions, effluents and waste

EN16

What is Massmart’s total direct and indirect greenhouse gas emissions by weight?

Massmart’s absolute emissions for the reporting period were 394,391.3825 Tonnes CO₂e.

EN17

Other relevant indirect greenhouse gas emissions by weight.

Emissions of 278,911.96 Tonnes CO2e is applicable to electricity consumption constituting 70.7 % of Massmart’s total emissions with the next highest being 35,977.18 Tonnes attributable to emissions from waste to landfill. There are concerns about the accuracy of the data used to calculate this figure. (See Massmart’s updated Carbon footprint Calculation for 2011)

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

As reported in EN5 above, several projects are currently being implemented to reduce energy consumption across the divisions. As a result of more accurate energy usage data and a division-wide benchmarking exercise the divisions have committed to the following targets Massdiscounters have committed to a 7% reduction in energy consumption per m2; Builders Warehouse and Builders Express have committed to a 12% and 3% reduction in energy consumption per m² respectively.

EN19- 20

Emissions of ozone-depleting substances by weight.

A total of 14,350.54 tonnes of CO2e emissions can be attributed to fugitive emissions from a variety of different gasses used in refrigeration and air-conditioning plants at Massmart facilities.  A concern regarding the type of gases used in some of the refrigeration plants and air-conditioning units used in older locations has been raised.  This is being addressed by the use of 100% natural gases with zero ozone-depleting ratings in new and refurbished stores, where feasible.

EN21

Total water discharge by quality and destination.

No unplanned water was discharged outside of rainwater and sewerage discharge through municipal facilities.

EN 22

The weight of waste by type and disposal method

It is estimated that a total of 34,046.93 tonnes of solid and wet municipal waste were generated and disposed of in landfill sites although there is still a concern around the accuracy of this data.  Significant amounts of cardboard, paper, glass, tin, e-waste and plastics are recycled at Massmart facilities, the weight of which is excluded from this figure. No hazardous waste was generated.

EN 23-25

What were the total number and volume of significant spills?

None

Products and Services

EN 26

Initiatives to mitigate environmental impacts of products and services, and the extent of impact mitigation.

EN27

Percentage of products sold and their packaging materials that are reclaimed by category.

A significant percentage of supplier packaging is currently recycled prior to on-selling products to the end consumer although exact percentages are not measured.  Discussions and projects are in place with suppliers to reduce overall packaging and the toxicity of materials and inks used whilst the use of recycled packaging is encouraged.

Initiatives for customers to return E-waste, used batteries, CFL light bulbs and rechargeable batteries are in place at several Massmart facilities, the most recent being a new in-store recycling initiative being piloted at our Massbuild division. These products are collected and disposed of by externally contracted companies which dispose of the products safely and in licensed landfills.

Although voluntary recycling by customers is encouraged, no accurate measure is in place as to the extent thereof.

Compliance

EN28

What is the monetary value of significant fines and the total number of non-monetary sanctions for non-compliance with environmental laws and regulations?

None

Transport

EN29

What have been significant environmental impacts as a result of transporting products and other goods and materials used for the organization’s operations, including transporting members of the workforce?

Emissions due to supply-side freight as a result of imports of products by sea, land and air totalled 22,617.38 tonnes of CO2e.  Company owned vehicles used by staff members and for the delivery of products to and from facilities and for customer deliveries resulted in 9,953.13 tonnes of CO2e.   Delivery vehicles owned and operated by contractors accounted for 23,544.80 tonnes of CO2e, this represents a significant increase from last year which can be attributed to better reporting in this area. Massmart does not measure emissions resulting from staff members commuting to and from the work place.  Business air and road travel emissions account for 0.01% of our total emissions.

Overall

EN30

Total environmental protection expenditures and investments by type.

None currently