Our approach to environmental management is defined by our Corporate Sustainability Strategy, and is aligned to the requirements of the ISO 14001 international environmental standards.
We integrate environmental management into sustainable business practices throughout every level of our business by including sustainability as an integral part of our business strategy and working across the various areas of our business operations. Our sustainability decisions are based on creating shared value between our business, society and the environment.
The Group’s five strategic focus areas are reviewed quarterly, with accountabilities and reporting filtering throughout the business. Furthermore, they are built into the performance management contracts at executive and management level. The fifth strategic focus is governance and sustainability.
While the board retains ultimate accountability and responsibility for the Group’s sustainability performance, the Chief Executive has a mandate to ensure that all relevant factors are considered and affected as necessary with the assistance of his executive team. In turn, management reports to the social and ethics committee which reports to the board, in evidencing how it has discharged these responsibilities. Reporting areas include environmental performance, impacts, risks and opportunities.
The Group Environmental Manager is responsible for implementing the Corporate Sustainability Strategy and is mandated to create a consistent approach to environmental risk management by facilitating policy and performance standards, as well as monitoring, evaluating and reporting on performance. The Corporate Sustainability Strategy is underpinned by nine pillars and supported by our sustainability policy, which has been signed by both the Chairman and the Chief Executive.
During 2014, our actions were focused on standardising data reporting processes across the Group. These ensure a sound basis for coherent, good practice environmental management approach across the Group and therefore the key indicators for 2014 have been restated as the baseline for resource measurement.
Key indicators for the Group’s performance have been restated for resource management for 2014:
|Sun International – South Africa||920 610|
|Electricity purchased||Gigajoules||901 302|
|Generators (Diesel)||Gigajoules||1 589|
|Sun International – Africa||179 811|
|Electricity purchased||Gigajoules||118 181|
|Generators (Diesel)||Gigajoules||41 002|
|Sun International – International||98 311|
|Electricity purchased||Gigajoules||92 887|
|Total Sun International – Group||1 198 732|
|Electricity purchased||Gigajoules||1 112 371|
|Generators (Diesel)||Gigajoules||42 703|
|Water consumed||Kilolitres||4 768 050|
|Water recycled||Kilolitres||741 247|
|Waste generated||Tonnes||12 481|
|Waste recycled||Tonnes||3 128|
|Waste to landfill (non-hazardous)||Tonnes||9 325|
|Waste to landfill (hazardous)||Tonnes||28|
|Fuel – Petrol (Company owned vehicle)||Kilolitres||390|
|Fuel – Diesel (Company owned vehicle)||Kilolitres||602|
|Fuel – Petrol (On-site storage)||Kilolitres||75|
|Fuel – Diesel (On-site storage)||Kilolitres||439|
|* Data not available for 2013/14|
Diesel generator (litres to kWh): 3.2 kWh/litre Source: www.csiro.au
|1 litre of LPG is 6.6 kWh Source: www.energyineducation.ie|
|1 kg SKE (Coal) is 8.141 kWh: Source: unitjuggler.com|
Factors that drive the implementation of our Energy Management Strategy are the increasing cost of electricity, the security of supply in certain areas, and our objective to reduce our electricity consumption and thereby reduce our carbon footprint. We are assessing and implementing achievable energy targets across all our properties, and utilising the most efficient and cost-effective energy technology where possible.
During 2014, the total amount of energy consumed by Sun International was 1 198 732 gigajoules, which included 1 112 371 gigajoules of electricity purchased (2013: 1 163 771 gigajoules). This equates to 0.027 megawatt-hours of energy per Rand of total revenue generated, 0.012 megawatt-hours per person hour worked1 and 0.251 megawatt-hours per square meter of floor space.
Our spend on electricity to perform our day-to-day activities was approximately R206 million for the year. Compared to the previous year, we achieved a 4% reduction in our electricity consumption for the year. Managing this cost effectively contributes to sustainable long-term financial performance.
77% of Sun International’s total electricity is consumed within South Africa, reflecting the concentration of properties in our home base.
With no reliable national grid supply in Nigeria, we remain heavily dependent on diesel for operational continuity at the Federal Palace.
¹ Multiply 1 824 hours worked by the number of employees, based on 8 hours per day for 228 working days per year.
To reduce energy consumption, we implemented 21 energy saving projects and spent approximately R11 million over the year on energy management initiatives. During 2014, Sun International became the first hospitality member to participate in National Business Initiative’s Private Sector Energy Efficiency project to reduce carbon emissions. Accordingly, the Chief Executive has made a commitment to reduce the Group’s energy use.
During the refurbishment of the conference centre at the Zambezi Sun, lighting was replaced with energy efficient lighting. The conference room was previously lit with a combination of 300 watt incandescent down lighters, 50 watt dichroic down lighters, and chandeliers with 40 watt incandescent candle lamps. For continuity, the existing lamp positions were used in the new lighting design. The new LED lamp sources specified for this energy efficient lighting system are a 15 watt LED to replace the 300 watt, a 5.3 watt LED to replace the 50 watt and a 1.8 watt LED to replace the 40 watt. The challenge in replacing the existing incandescent light source with a LED light source was to maintain the same aesthetic feel and warmth that existed in the facility. The colour temperature of the LED light source output was matched as close as possible to that of the incandescent lamps. For this reason, a warm white lamp temperature of 2 500 kelvin and a CRI of above 80 was specified. As this lamp temperature is not common in the LED range and was not easily available, these LED light sources were manufactured specifically for this project. The result is that there is a connected demand reduction to the lighting in the facility of 39 kilowatts making the new lighting system 95% more efficient than the previous system. Based on this efficiency, we anticipate energy consumption for the conference centre to reduce by approximately 70 000 per annum. The total cost for this lighting replacement initiative is R130 000. As this development is based in Zambia where electricity tariffs are charged at more favourable rates, we expect the return on investment would be achieved in four to five years.
Sun International is committed to the responsible stewardship of water resources while ensuring a secure supply of water for our properties. Water is a critical resource for our operations; as such, water remains a key focus area for each of our properties.
Most of our properties obtain water from the municipal supply system, but some are solely dependent on freshwater resources. A number of properties use municipal water in combination with surface water, ground water and treated wastewater. No water sources are significantly affected by any of our properties, nor is water withdrawn from any RAMSAR wetland or protected water resources by any of the properties that make use of surface water.
During 2014, total Group water consumption was 4 768 050 kilolitres (2013: 6 083 000 kilolitres). This equates to an average of 184 922 litres of water consumed per person hour worked1 and 3 874 000 litres per square meter of floor space. Compared to the previous year, the 22% reduction in total water consumption is attributed to improved metering and monitoring processes implemented during 2014.
Six of our properties use recycled water, comprising treated wastewater either from the municipality or from their own onsite water treatment plants. During 2014, 741 kilolitres of the Group’s total water was recycled.
Waste generation is one of the main concerns for the Group. With the exception of Sun City, who owns their own licenced landfill site, all waste is disposed at municipal landfill sites.
During 2014, total waste generated throughout the Group was 12 481 tonnes, with 3 128 tonnes waste recycled. 9 325 tonnes non-hazardous waste was sent to landfill and 28 tonnes hazardous waste was disposed at registered hazardous waste sites. Total waste to landfill equates to an average of 0.01 tonnes per square meter of floor space of waste generated. The amount spent on waste management for the Group was approximately R8 million over the year.
We have improved our waste data collection throughout the Group. As a result, the 37% increase is reflected against the previous year’s waste generated. The previous year’s waste to landfill did not include hazardous waste generated and did not include data for non-hazardous waste to landfill for Carnival City, Federal Palace, Golden Valley, The Maslow and Naledi Sun. To compare changes in Group waste from 2013 as the baseline, 2014 has been normalised to exclude 292 tonnes, thereby reflecting a 6.69% waste increase to landfill.
To reduce the volume of waste being disposed to landfill, waste separation and recycling initiatives are being implemented at the majority of our properties. General waste recycled includes paper and cardboard, glass, cans, plastic, metal, e-waste, wet-waste sent to worm and pig farms, and garden waste used for composting. 25% of waste generate by Sun International was recycled during 2014.
No significant spill incidents were reported during 2014.
Sun International’s carbon emissions are measured in accordance with the GHG Protocol (WRI & WBCSD, 2004). As per the classification of the GHG Protocol, all Scope 1 and Scope 2 emissions should be included, although Scope 3 emissions are optional. During 2014, the Group expanded the footprint to include Scope 3 emissions, as well as extended Scope 1 to include waste water and waste landfill on-site. These additions should therefore be taken into account when comparing total annual emissions and Scope 1 emissions.
The financial control approach is used to consolidate all emissions within the specified boundary. This approach sees the inclusion of properties where Sun International has the ability to “direct the financial and operating policies of the latter with view to gaining economic benefits from its activities” (GHG Protocol, revised edition).
25 properties fall within the boundary of Sun International.
The Maslow’s operational lease status renders it outside the financial control definition and thus it is reported under indirect Scope 3 emissions as ordinarily Scope 1 emissions do not apply in this instance. However, emissions from the purchase, installation and control over the refrigeration, generators and air-conditioning equipment at The Maslow are treated as Scope 1 (direct).
All emissions are expressed as carbon dioxide equivalent (CO2e), which accounts for carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) greenhouse gasses (GHGs).
|Scope per GHG protocol||2014||2013|
|Scope 1: Direct GHG emissions|
|Company-owned mobile fuels||metric tonnes||2 687|
|Stationary fuels||metric tonnes||15 734|
|Fugitive emissions (Kyoto gases)||metric tonnes||12 650|
|Waste landfill on-site||metric tonnes||3 137|
|Waste water||metric tonnes||177|
|Total Scope 1||metric tonnes||34 385||33 346|
|Scope 2: Indirect GHG emissions|
|Electricity consumption||metric tonnes||272 416||271 559|
|Other direct emissions (non-Kyoto gases)|
|Non-Kyoto gases:||metric tonnes||14 092|
|Total Scope 1, 2 and direct CO2 equivalent emissions||310 893||304 905|
|Scope 3: Other indirect GHG emissions from:|
|Business travel||metric tonnes||4 126|
|Electricity (Leased facilities)||metric tonnes||5 659|
|Waste||metric tonnes||9 100|
|Water consumption||metric tonnes||4 426|
|Total Scope 3||metric tonnes||23 311|
|Total CO2 equivalent emissions||metric tonnes||344 205||304 905|
|CO2E intensity ratios (excludes Scope 3)|
|CO2e per Rand of revenue generated||metric tonnes/Rand||28.30|
|CO2e per m2 of property||metric tonnes/m2||0.26|
|CO2e per full-time employee||metric tonnes/Full time employee||30.77|
Total cumulative Group emissions for 2014 is 344 579 tonnes CO2e. The trend in total emission reflects the seasonal tourism cycles occurring during the year. Scope 2 electricity represents 77% of total emissions, due to the impact of carbon intensive electricity produced from coal-based resources.
The Group’s environmental risks relate to factors such as climate change, the increasing cost of resources and the geographic location of our properties. We have adopted an enterprise-wide approach to environmental risks, with each key risk included in a structured and systematic process of risk management. All key risks are reviewed quarterly and managed through mitigating controls, key action plans and accountability by risk owners.
Sun International is actively involved in conserving and protecting the natural environment. We identified our potential climate change risks as set out in the table below, and spent R6.5 million to manage the climate change risks identified over 2014.
|Risk driver||Potential risk||Potential impact||Mitigation actions|
|Change in regulations||Emission reporting obligations||Increased operational cost||Implemented a comprehensive data management, monitoring and reporting system|
|Magnitude of impact
Low – medium
|Monthly carbon accounting|
|Targets tracked monthly|
|Carbon Tax||Increased operational cost||Carbon accounting data tool developed|
|Magnitude of impact
Low – medium
|Changes in physical climate parameters||Change in mean
|Increased operational cost||Energy Management Strategy developed|
|Magnitude of impact
Medium – high
|Lighting retrofits and LEDs fitted into casinos|
|HVAC optimisation initiatives|
|Change in precipitation extremes and droughts||Increased operational cost||Disaster action plans developed for each property|
|Magnitude of impact
|Water licences to extract water from natural water courses during droughts have been obtained
Low flow showerheads and water-saving latrines installed
Maintenance plan implemented to check water quality and prevent water leaks
|Sea level rise||Increase in capital costs||Sites earmarked for future development undergo EIA process of which sea level rise is one of the indicators checked|
|Magnitude of impact
Medium – high
|Study on global warming effects conducted on potential new sites|
|Adaptation measures at risk sites which may include reinforcement of river banks with gabions and natural indigenous vegetation|
|Other climate-related developments||Reputation||Reduced demand for goods/services||Voluntary participation in CDP: Carbon|
|Magnitude of impact
|Participation in NBI PSEE programme committed to implement initiatives to reduce carbon emissions|
|Signatory member of SASSI and committed to purchasing sustainable seafood|
|Principle partner of WWF-SA to support efforts to address climate change issues|
During 2014, we formulated a climate change strategy which aligns with our values and considers the risks and impacts of climate change on business, society and the environment. The objective of the strategy is to position Sun International to identify, quantify and prioritise the risks and opportunities that climate change presents. It also supports our efforts to effectively manage these risks and opportunities for optimum performance, resilience and profitability to ensure the creation of long-term shareholder value and returns.
The envisaged strategic approach is to house climate change initiatives within key focus areas. This approach will allow for better management of the specific outcomes of each initiative to ensure relevance and measurable objectives over our climate change journey.
We implement green building principles where feasible to reduce our operating costs and impact on the environment. When designing new buildings or refurbishing existing spaces, we consider factors such as building management, indoor environmental quality, energy and water consumption, materials used, land use and emissions.
During the development of our new head office in Sandton, energy efficiency and sustainable design principals were used to optimise the indoor environmental quality of the building, and reduce electricity consumption and water demand.
Water and energy efficiency:
Indoor environmental quality:
Although our properties have a limited impact on the environment, properties situated in rural areas that are adjacent to or within sensitive environments are detailed below:
|Region||Property||Size of property||Sensitive natural receptor|
|South Africa||Carnival City||122 hectares||
|Fish River||16 hectares||
|Golden Valley||268 272m²||
|Wild Coast Sun||640 hectares||
|Other African||Federal Palace||76 000m2||
|Royal Livingstone and Zambezi Sun||46 hectares||
There were no recorded expansions of any of our properties into areas of biodiversity sensitivity during 2014.
Other operational activities that could impact on biodiversity resources indirectly include:
In addition to our standard management measures to protect important biodiversity, many of the properties have undertaken specific projects as detailed below:
In the 2013 environmental report, key sustainability objectives for 2014 were set. The table below reflects progress made against these objectives.
|Key sustainability objective for 2014||Progress|
|Undertake legal audits and complete legal registers at 10 southern African properties||No significant environmental incidents or non-compliances were recorded during 2014|
|Legal registers completed for Wild Coast Sun, Boardwalk, Sun City, GrandWest, Flamingo, Table Bay Hotel, Carousel, Carnival, Head Office and The Maslow|
|Undertake legal training for Sun International board||Completed|
|Create and roll out an environment internal awareness campaign for staff||Completed|
|Complete the ‘train-the-trainer’ for the new environmental awareness training package for staff||Completed|
|Train 1 500 staff members using the Live Smart environmental awareness training package||Completed|
|Complete ISO 14001 EMS implementation at 10 properties||Completed|
|Initiate quarterly campaigns for energy, water, waste and living environment||Quarterly campaigns initiated through the internal communication magazine|
|Formulate a climate change response strategy||Completed|
|Complete carbon and water disclosures for submission to the CDP||Completed|
|Inclusion in the 2013 SRI Index||Completed|
|Formalise the agreement with SASSI||Completed|
|Finalise and implement a green procurement policy||Green Procurement Policy incorporated into the Group’s procurement policy|