Telkom Integrated Annual Report 2020

Climate change

The board has overall accountability for overseeing the group’s risk and compliance (including climate-related topics). It is supported by the social and ethics committee, which monitors and advises the board on climate change matters. Sustainability, which includes climate change risks and opportunities, is a standing item on the agenda.

The committee monitors Telkom’s activities, considering any relevant legislation and prevailing codes of best practice, including SHE which includes climate change. Senior management is responsible for environmental performance and managing climate risks at an operational level.

Significant climate-related risks and opportunities

There are many new technologies in the ICT sector that are both cost-effective and assist companies in reducing their carbon and water footprints. For example, Telkom recognises that our video conferencing solutions are a low-carbon product as they assist our customers and in-house employees to reduce ground and air travel (scope 3 emissions).

Our services offer customers the ability to move large volumes of data electronically (locally and internationally). This reduces the need for postal and courier services. With our wide ICT footprint, we enable customers to work from home, reducing frequent travel.

Phasing out ozone-depleting substances

The Department of Environmental Affairs promulgated the phasing out of the ozone-depleting substances in 2014. The regulation outlines 2020, 2025 and 2030 phase-out requirements to comply with the regulations for phasing out and managing ozone-depleting substances. In 2016 (baseline year), Telkom had 97 tonnes of R22 gas in the system. To date Telkom has reduced R22 gas to 57 tonnes, complying with the 2020 requirement of a reduction to 63.1 tonnes. To meet the 2025 target of 31.5 tonnes, Telkom must reduce R22 gas by a further
26 tonnes.

Energy

Telkom’s key source of electricity is municipal (more than 80%), diesel for back-up generators and solar photovoltaic (PV). To minimise the increase in energy use and carbon emissions, we appointed an energy expert to develop and implement an energy management strategy.

Telkom continues to invest in energy-efficiency initiatives to minimise the increase in energy use and carbon emissions:

• Smart metering project: We installed smart meters in some high-energy-consuming sites. Cost savings will be tracked upon completion of the installations
• Telkom Park energy management system: We conducted a gap analysis of the implementation of an energy management system at Telkom Park to achieve ISO 50001 certification, and are implementing the recommendations
• Resource efficiency assessments: We conducted water and waste management assessments at the top three highenergy and water consumption sites. We submitted reports to the Council for Scientific and Industrial Research for review
• The power factor correction installation at high energyconsuming sites is in progress. The project will be rolled out to other high-consumption sites nationally to stabilise energy demand

Carbon footprint

Our scope 1 and 2 footprints include network buildings, data centre, office building and mixed-use buildings, excluding some buildings occupied by BCX and Yellow Pages.

BCX data excludes all BCX international operations, as well as other South African operations such as CEB, USC, Accsys and Intergr8.

Scope 1 includes:

• Refrigerant gases used by Telkom
• Fleet petrol consumption by BCX and SMB
• Feet diesel consumption by BCX and Telkom
• Bulk diesel purchased by BCX (Centurion data included), SMB and Telkom

Scope 2 includes:

• Electricity consumption by BCX (Centurion data included), SMB and Telkom

Contribution to total carbon footprint per scope for group

			Scope 1					Variance (%)
					FY2020 55 227			2.7
					FY2019 53 760			1.5
					FY2018 52 965			(3.6)
			Scope 2					Variance (%)
					FY2020 601 433			7.9
					FY2019 557 525			(2.0)
					FY2018 568 686			(9.1)

Scope 1 increased due to high diesel consumption during load shedding in the first and second quarter of FY2019/FY2020.

Scope 2 emissions increased in FY2019/FY2020 due to the change in Eskom’s emission factor.

Water

Although Telkom is not a material water user, we recognise the scarcity of this resource and the risks associated with water shortages, particularly on employees and the economic sector. The group uses water primarily for cooling, drinking, catering, hygiene, and landscaping. Telkom occupies in excess of 1 400 premises, with a national footprint. Therefore, we need to manage our consumption.

Telkom’s key source of water is municipal supply. As part of ensuring efficient water usage, Telkom is rolling out low-flow regulator taps across high water-consuming sites.

Total water consumption for the group

			Water		kilolitres			Variance (%)
					FY2020 1 199 525			5.2
					FY2019 1 140 739			27.3
					FY2018 896 204			(40.1)

The drought conditions of 2018/2019 compelled supply authorities to ensure more frequent billing for water usage, resulting in high consumption being recorded, albeit consumption that occurred in earlier months; hence an upward trend into 2019/20.

Managing waste

Hazardous waste

The increased availability, affordability and consumption of electronic products lead to increased volumes of electronic and electrical waste (e-waste). This is the largest growing waste stream in South Africa, and our most environmentally impactful waste stream, internally and within the value chain.

E-waste is toxic and harmful to the environment and human health if not properly managed. It is a source of income for waste collectors and handlers. We sell our cabling to a leading e-waste recycling organisation, which processes the cabling using environmentally and socially responsible techniques (no chemicals or burning). We sell copper recovered from the recycling process to local and international markets. This sensitive, labour-intensive process provides employment to an Eastern Cape rural community – 22 families rely solely on this project as a source of income.

			E-waste recycled		tonnes			Variance (%)
					FY2020 9 076			102.7
					FY2019 4 477			51.8
					FY2018 2 950			(6.0)

Non-hazardous waste

Telkom’s solid waste streams include recycled waste, wet waste, municipal waste, garden refuse and paper. Telkom, through its facilities service provider, measured a substantial portion of these additional solid waste streams. FY2020 data will be compared to the FY2019 baseline year for recyclable waste.

FY2021 focus areas

Installations to significantly reduce carbon footprint and increase energy cost efficiencies nationally, through;

• Solar PV at sites
• Tariff optimisation by reducing notified maximum demand and consolidating accounts and tariff changes
• Smart meters: Online monitoring of real-time energy consumption
• Low-flow regulator taps to save water at high-consumption sites
• Set point and comfort analysis to improve heat, ventilation and air conditioning performance
• Power factor correction using harmonic filtering and voltage dip mitigation
• Replacing inefficient lighting with LED lighting
• Converting waste to compost and waste water treatment for improved water efficiency
• Obtaining a green star rating/certification for Telkom Park