The Background
New Clicks Holdings (NCH) is a specialist retail group which, through its market-leading retail brands Clicks, Musica and The Body Shop, has 500 stores across southern Africa. NCH also has a strong presence in the healthcare market through its wholesale pharmaceutical distributor, New United Pharmaceutical Distributors (UPD), and in retail pharmacy where Clicks operates the largest drugstore chain in the country with 132 in-store dispensaries
The Objectives
NCH has recognised that climate change and its impacts are the biggest environmental challenges we face this century. It has shown its commitment to addressing this problem and the longer term goal of increasing its overall fuel- and energy-efficiency by participating in the 2008 Carbon Disclosure Project (CDP). To complement this initiative, NCH commissioned GCX to conduct a carbon footprint assessment of its operations.
"Taking action has been a positive experience and because we had a limited understanding of the environmental reporting structure, selecting the right partner was essential. We are proud of this step and look forward to an ongoing relationship with Global Carbon Exchange as we continue with our reduction process. - Wally Bouland, National Group Facilities Manager, New Clicks Holdings Limited
The Process
GCX conducted the analysis according to the internationally recognised Standard, the Greenhouse Gas (GHG) Protocol (WRI and WBCSD, 2002).
- The control approach was used to consolidate all emissions;
- Data used was submitted to GCX by NCH for their 2007/8 financial year. Separate data was submitted for UPD;
- Emissions associated with outsourced logistics and distribution were, in accordance with the control principle, included in the assessment;
- GCX also conducted an online employee travel survey to account for emissions associated with employee commuting;
- The organisational boundaries were drawn around the operational activities;
- The operational boundaries included the entities outlined below:
The Results
NCH’s total carbon footprint for the financial period 2007/8 was 140,009 tons of CO2 equivalent (CO2e). The chart below shows the total inventory of GHG emissions by source.
The table below shows total emissions by source and scope and also indicates carbon emissions intensity.
Note: Intensity reporting only reflects the direct emissions (Scope 1 and Scope 2) for which NCH is responsible.
 These findings indicate that for the 2007/8 financial year
the biggest sources of carbon emissions for NCH were:
- Electricity (over 95 mega-tons of CO2e)
- Employee commuting (nearly 21 mega-tons of CO2e)
- Distribution (over 15 mega-tons of CO2e)
This equates to an annual carbon emissions intensity of:
- 11.19 tons CO2e per employee
- 124.59 tons CO2e per million US $ turnover
- 781.65 pounds CO2e per yard2 floor space
NCH’s total annual emissions:
- are equivalent to burning almost 47,843 US tons of coal per year
- will require the planting of 254,000 trees per year to offset
The Recommendations
By far the biggest source of carbon emissions is from the indirect consumption of electricity, which is also a significant operational cost to NCH.
On GCX’s recommendation, NCH will soon undertake a full Energy Efficiency Audit to uncover the energy savings potential in all areas of their operations. GCX has advised NCH to start off with a pilot audit of the head office and a selection of stores. Additional recommendations were as follows:
- Setting of emissions-reduction targets that can be properly controlled and monitored on an annual basis;
- Implementation of a staff awareness campaign to educate and involve staff in carbon-reduction initiatives (e.g. Electricity, waste, water etc);
- Implementation of an employee travel plan for the +/- 10 000 NCH employees;
- Optimisation of distribution logistics.
The Future
The opportunities identified in the carbon footprint assessment are currently under consideration by NCH management as a means for reducing the company’s carbon intensity and operational costs as well as differentiating it in the marketplace.
GCX has advised NCH to carry out an Energy Efficiency Audit and to implement the cost-effective recommendations which come out of the audit. Other measures (listed above) should also be implemented in order to reduce overall emissions as much as possible before considering offsetting as a strategy to becoming carbon neutral. GCX will then advise NCH on offsetting options that best suit its requirements.
GCX believes that this baseline assessment, and any future assessments, will complement the image of NCH and will provide a sound basis for reducing its environmental impact, as well as creating awareness around climate change amongst its employees, suppliers and customers.
|
