Environment

ESG review

Bidcorp commitment to our environment

Sustainability is key to our business strategy and central to everything we do. Our philosophy and culture, and focus on operational efficiency help ensure we deliver our services in a socially responsible manner. We seek sustainable growth. We want our customers to grow as well. But we also want growth that is characterised by minimal environmental impact.

At Bidcorp, sustainability cannot be achieved by applying a single template. Operationally, Bidcorp confronts a complex mix of environmental and socio-economic realities. Flexible responses are required, as determined by the demands of unique markets across five continents.

Individual companies therefore set their own sustainability priorities, in accordance with local legislation, resource availability, employee skill sets and social conditions.

We are proud of our 2018 growth. Revenue is up 8%; headcount is up 10%, taking our total staff complement to 26 448 at June 30 2018. Sustained infrastructure investment has increased depot size by 11% while our vehicle fleet is 12% larger.

The 2018 Bidcorp growth story, reported below, outlines recent achievements across our four divisions. Growth means more jobs and new opportunities. It also results in greater activity levels, with inevitable emission increases. As a result, our carbon footprint has grown.

The challenge came into sharp focus in 2018 – growth while maintaining optimum efficiency in pursuit of environmental as well as market gains. We will continue to grow and invest in the future, but our vision of growth will be underpinned by renewed and redoubled efforts to contain our carbon footprint and reduce environmental impacts.

Bidcorp's 2018 growth story

Australasia

United Kingdom

Europe

Emerging Markets

Mouse over table below for additional notes

Bidcorp's 2018 global impact			Australasia	UK	Europe	Emerging Markets

		Group	Percentage change on prior year FY2017
Netherlands had to empty, repair and refill two significant water tanks on their site; contributing to the increased consumption reported. Australia’s increased water usage relates to the full year effect of 2017 acquisitions.	Commentary Rental income for the comparable 12-month period increased by 44% and includes the impact of the additional 29 properties from 1 July 2017 as well as the impact of the 10 properties for the full year (included in the prior year from 1 September 2016). Rental income on a like-for-like basis, for a 12-month comparable period, on the 24 properties decreased by 8%. Hospitality's rental income is subject to seasonal variability and the prior year included a robust summer period in the Western Cape. In the current year, the impact of the drought had a significant impact on the rental income from the Western Cape. Water in kilolitres	1 080 424	29%	(0,2%)	26%	4%	Group water 13% on prior year

5% increase in scope 1 emissions is due to 12% increase in vehicle numbers, however efficiencies are noted. Increased emissions in line with growth reported in Europe; impacted further by long cold winter which used more gas to heat work environments.	Fuels in kilolitres	73 990	5%	5%	14%	(14%)	Group scope 1 5% on prior year
5% increase in scope 1 emissions is due to 12% increase in vehicle numbers, however efficiencies are noted. Increased emissions in line with growth reported in Europe; impacted further by long cold winter which used more gas to heat work environments.	Gas in tonnes	3 552	10%	6%	14%	9%
5% increase in scope 1 emissions is due to 12% increase in vehicle numbers, however efficiencies are noted. Increased emissions in line with growth reported in Europe; impacted further by long cold winter which used more gas to heat work environments.	Scope 1 in tCO₂	207 358	6%	6%	14%	(14%)

Increased group scope 2 emissions is in line with reported increase in depot size, through acquisition and ongoing investment.	Electricity in kWh	332 626 120	9%	8%	23%	12%	Group scope 2 15% on prior year
Increased group scope 2 emissions is in line with reported increase in depot size, through acquisition and ongoing investment.	Scope 2 in tCO₂	174 823	10%	8%	42%	9%
Solar panels installed in Australia and Belgium have had the biggest contribution to the increased renewable electricity reported in 2018. Investment in this process continues and improved results are expected for 2019.	Renewable electricity in kWh	7 142 074	11%	(6%)	>100%	0%

Refrigerant and aircon gases were not reported in 2017, therefore it is separately disclosed in 2018. Those businesses able to gather this information reported it for the scope 1+ emissions calculation. Gas usage reported was gathered from all larger operations in the group; smaller businesses will gather and report this in the coming year. Refrigerant and aircon gases were not reported in 2017, therefore it is separately disclosed in 2018. Those businesses able to gather this information reported it for the scope 1+ emissions calculation. Gas usage reported was gathered from all larger operations in the group; smaller businesses will gather and report this in the coming year.	Refrigerant gas reported in tonnes	29	3	4	9	13	Group scope 1+ 19% of total emissions
	Scope 1+	89 153	11 372	9 606	31 432	36 743	Group scope 1+ 19% of total emissions

	*Scope 3 – Waste reported in tonnes**
Emissions from indirect activities are not fully recorded at this stage. Operations have identified waste management as an opportunity to responsibly ensure this is actively managed and impact minimised. Reporting of this information has begun; and scope 3 emissions will be accounted for in future.	Food waste	1 219	47	318	536	318	Group total emissions (S1 + S2 + S1+) 471 334 tCo₂ in 2018
Emissions from indirect activities are not fully recorded at this stage. Operations have identified waste management as an opportunity to responsibly ensure this is actively managed and impact minimised. Reporting of this information has begun; and scope 3 emissions will be accounted for in future.	Waste recycled	11 486	320	8 813	1 953	399
Emissions from indirect activities are not fully recorded at this stage. Operations have identified waste management as an opportunity to responsibly ensure this is actively managed and impact minimised. Reporting of this information has begun; and scope 3 emissions will be accounted for in future.	Waste to landfill	9 899	1 213	6 472	898	1 316

* Emissions not calculated.

Sustainability governance

The board's social and ethics committee meets quarterly to review the results of the monthly reporting of the group's sustainability activities. While the decentralised business model promotes appropriate responses from our companies, the committee is guided by a group-wide materiality assessment and stakeholder impact analysis. Key among these, include responsible product sourcing, environmental impact, employee wellbeing, and our responsibility as a corporate entity to support social investment programmes.

Bidcorp, while embracing the decentralised structure, guides best practice standards and zero-tolerance standards through group-wide policies on bribery, corruption, fair labour practices, environmental management and critical sustainability metrics that businesses are required to report on.

Environmental commitment

We view our environmental reporting as an ever-developing strategic focus. Environmental management equates to sound business management as much as it relates to protection of our planet.

Management's commitment to this key driver is evident in the expanded environmental measurement reporting structures implemented across our group. Monthly reporting of a growing base of metrics is providing greater insight and information to our team, enabling us to embrace the efficiencies and opportunities identified through this much-improved process. Improved information provides not only insights but highlights previous errors and omissions. These have been restated where necessary. Our ability to present a more complete picture of our global carbon footprint and wider environmental impact is improving.

In this report we have included emissions from air-conditioning and refrigerant equipment, acknowledging the material scope 1 emissions from this vital element in our business. Embracing new technologies and cooling systems such as the ammonia cooling plants has started to deliver significant reduction in these air-conditioning and refrigerant gas omissions. These upgrading projects continue as maintenance requirements as investment resources come available.

Bidcorp is committed to reporting relevant contributors to scope 3 emissions such as waste management.

Waste is an important and relevant issue to Bidfood. Most of our waste is associated with packaging materials and food waste. While substantial environmental impacts from food occur in the production phase (agriculture, food processing), households influence these impacts through their dietary choices and habits. We try to manage these issues by encouraging recycling (often promoting enterprise development as a result) and partnering with charitable food banks to ensure waste is minimised, as well as using our stakeholder communication channels to support and advise on healthy food choices and eating habits.

Although our own operations are not significant water consumers, we acknowledge that many of our suppliers are reliant on suitable quantities of good quality water to produce our products and they may be located in water stressed areas. Climatic change will have an impact on these operations and we need to be cognisant of how water is managed in our value chain.

Bidcorp's response to 2018 Western Cape water crisis

The 2018 Western Cape drought saw the imminent approach of "Day-Zero" water shortage for the region. Businesses were faced with the challenge of operating without access to water. Initiatives to identify alternate water sources were somewhat successful including rainwater tanks, recycling water where functionally possible and the installation of borehole water facilities to ease the load on municipal water supplies.

Cleaning processes embraced the use of chemical and steam technologies to reduce dependency on water resources. Research into filtration systems to purify recycled and borehole water for the ammonia plant cooling towers was investigated.

Behavioural changes were implemented through the "water-wise" campaign, limiting ablution flushing, using waterless hand sanitisers and limiting travel in efforts to reduce water consumption. Water was trucked into the Western Cape branches from neighbouring areas during the height of the crisis.

"Day-Zero" was averted this time, however management continue to drive the behaviours and projects implemented over this time. Responsible consumption and committed water reduction is a vital key in ensuring the sustainability of our business and planet.