Environmental management

ENVIRONMENTAL POLICY STATEMENT

Telkom’s Environmental Policy Statement (EPS) demonstrates Telkom’s commitment and due regard towards ensuring a sustainable future for generations to follow. Telkom’s geographical footprint is significant, albeit the nature of its impact is considered as negligible. Due to technological advancement and changing business trends, the Telkom EPS is due for review during the 2014 reporting cycle and will be endorsed by the newly appointed GCEO .

ISO 14001 certification

Telkom’s Environmental Management System (EMS) is currently ISO 14001 certified. The purpose of complying with this international standard is that it specifies requirements for an EMS which enables an organisation to develop and implement a policy which defines objectives and targets while at the same time ensuring compliance with legislated requirements. It also provides for the opportunity to clearly define and quantify significant environmental aspects and their potential impacts. From this, control measures are implemented, monitored and measured to constitute a continual improvement cycle. As the ISO 14001 standard is designed to ensure continual improvement, certification is awarded over a three-year cycle. In the 2014 financial year, Telkom will apply for recertification to ensure a sustainable commitment to ongoing environmental consideration towards the way we conduct ourselves throughout our business imperatives to continually support our reputation as a responsible corporate citizen.

In order to sustain the ISO standards, annual surveillance audits are conducted by the external verification authority each year during the three year accreditation period. Telkom’s EMS achieved the ISO 14001 second surveillance audit requirements.

Environmental training

Telkom’s EMS incorporates training and awareness as an ongoing process in which both formal training and awareness campaigns are provided. Telkom supports the South Africa environmental calendar from which one campaign per quarter is communicated and employees are encouraged to participate.

Compliance

There were no significant fines or sanctions for non-compliance with environmental laws and regulations during the reporting cycle.

Telkom did not encounter any environmental management related fines or sanctions for non-compliance, which demonstrates that the EMS methods, procedures and applicable protocols are meeting the desired conformance requirements.

Biodiversity

Biodiversity management in Telkom is defined as those interventions which ensure that the impact of our infrastructure causes minimal impact relative to the protection of species and natural ecosystems of our country’s environment. A holistic conservation approach is paramount to Telkom’s EMS . Over a number of years Telkom has actively involved itself in various biodiversity initiatives, namely:

The Telkom environmental management team have over the past few years developed methods and controls to manage the encroachment of various species on Telkom infrastructure. Line managers are now in a position to manage such interventions independently.

During this financial year, Telkom successfully engaged in an environmental/social responsibility project in the Wakkerstroom town of Mpumalanga, internationally recognised as a haven for migratory birds. The project entailed working with two local NGOs the Wakkerstroom Natural Heritage Association and BirdLife South Africa. The objective of the project was to relocate a telephone route from a wetland which would significantly enhance the wetland biodiversity and aesthetic value of the surroundings. The removal and relocation of the route was undertaken successfully. The Telkom Foundation also contributed a significant amount to fund the refurbishment of a walkway that leads to a bird hide situated adjacent to the wetland. The project generated significant interest and was selected by Telkom to be screened on national TV as part of e-TV ’s ‘Kaelo stories of hope’ which illustrates South African businesses commitment to social upliftment and sustainability within the communities in which they operate.

CLIMATE CHANGE AND ENERGY

In spite of the fact that the telecommunications sector is a relatively low-impact industry when it comes to energy usage and carbon emissions, there are significant opportunities to reduce costs and achieve carbon savings from energy efficiency, thereby ensuring a sustainable future. In addition, the telecoms sector has the unique potential to enable significant carbon savings across many sectors through communications technology offerings (such as creating opportunities for customers to dematerialise their businesses and reducing the need for travel by providing alternative communication methods).

The telecommunications sector is also an expanding sector, with energy demands that will continue to grow. Nevertheless, Telkom is working to balance its current energy requirements with the necessity of ensuring a sustainable future as it relates to climate change and energy security. Security of energy supply in S outh Africa is a major issue. Furthermore, we recognise the environmental, social and economic threat posed by climate change and the need for co-ordinated global action to reduce greenhouse gas emissions. A s such, Telkom acknowledges the importance of their contribution to reducing S outh A frica’s carbon emissions, in line with the draft National Energy Efficiency Strategy, in order to ensure a sustainable future.

Carbon Footprint

As part of managing our contribution to addressing climate change, Telkom has measured and calculated its carbon footprint for the third year. The Greenhouse Gas Protocol (GHG Protocol) was used as the basis for calculating the carbon footprint. In order to improve the credibility of our reporting, we obtained reasonable assurance in a statement of verification by independent assurance providers CA-Governance, using the ISO 14064-3 standards.

The boundary for the carbon footprint is Telkom South Africa; as well as the South African operations of the subsidiaries Swiftnet and Trudon.

The carbon footprint includes the following scopes as per the GHG Protocol:

The carbon footprint was calculated using emission factors provided by the United Kingdom’s Department for Environment, Food and Rural Affairs (DEFRA). Our overall scope 1, 2 and 3 carbon footprint is 769,216 tCO₂e. The table below provides a breakdown of emissions per scope.

Initiatives to reduce Greenhouse Gas emissions and reductions achieved

We are aware that as a growing sector, and as a solutions provider to other sectors, our energy demands will increase. Nevertheless, we recognise that we need to manage our energy usage and carbon emissions in order to ensure a sustainable future. Telkom has therefore put the following in place to minimise our carbon footprint and educate and create awareness among our stakeholders:

Going forward

Telkom will continue to consider climate impacts in our business decisions and improve energy efficiency, in order to ensure a sustainable future.

Some potential initiatives include:

WASTE

Telkom recognises that the responsible disposal of waste is a key way in which we can minimise our impact on the environment. Due to the strain placed on South Africa’s landfill sites, and the impact of hazardous waste on the environment, Telkom encourages recycling and resource efficiency. We further recognise the important revenue generating potential of certain waste streams such as copper.

Waste is a key issue in the telecommunications sector for two reasons. Infrastructure components wear out and must be replaced. New technology is constantly developed, and as a consequence, products are constantly being upgraded and replaced.

Due to the dispersed nature of much of Telkom’s infrastructure, the scope for waste management falls into two areas:

Formal policies and procedures detail Telkom’s requirements for the handling of waste streams as well as the recycling of materials where this is possible. Telkom consistently aims to dispose of waste in an environmentally responsible manner by using accredited vendors who collect and dispose it. Disposal certificates are obtained from suppliers to ensure that waste is not dumped illegally and processed according to environmental governing legislation.

For the current reporting period, Telkom’s recycled waste has consisted of the following streams (Trudon and Swiftnet do not contribute to these waste streams):

It is important to note that while these materials constitute the majority of Telkom’s recyclable revenue generating waste stream by volume, their quantity is not necessarily influenced primarily by our resource efficiency initiatives. In the case of copper and optic fibre recycling volumes are driven primarily by the amount of damage inflicted upon our infrastructure during the theft of copper cable. Batteries are used at sites where direct current power is needed as an alternative source to alternating current power.

WATER

Telkom recognises the potential limiting effect that water could have on economic expansion. It is of utmost importance that this resource be optimally utilised to the benefit of all current and future consumers and users.

Our aim as a responsible water consumer is to maximise the value we obtain from our water resources while seeking to avoid long-term net harm. We recognise that we act within a broader strategic water-resource framework. Hence Telkom strives to protect the quality of our water resources, use water wisely and aims eventually to develop alternative water resources.

During the reporting period, Telkom has facilitated an awareness programme and application of functional, efficient techniques to assist in the reduction of water consumption that will ultimately modify effective behavioural changes. These techniques will support Telkom’s ongoing commitment towards the philosophy of environmental sustainability.

An understanding of the potential benefits associated with conservative water management, will ultimately enhance Telkom’s commitment towards environmental sustainability of the organisation and within the South African context, while also committing itself to support and to work together with the Department of Water Affairs in managing South African water resources for an equitable and sustainable future.