Hyprop Investments Limited Integrated annual report 2017

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Hyprop Investments Limited
Integrated annual report and consolidated financial statements 2017
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International benchmarking
Hyprop voluntarily participates in global benchmarking programmes.
■■CDP is the global standard for environmental carbon reporting. This
non-pro t organisation provides the only international system for
companies and cities to measure, disclose, manage and share vital
environmental information necessary for building sustainable
economies. Our CDP submission is audited and assured by KPMG’s
climate change and sustainability services division (fourth submission).
■■The Global Real Estate Sustainability Benchmark (GRESB) is an industry-driven
organisation that assesses the sustainability performance of global real
estate portfolios (public, private and direct). It is used by institutional
investors to improve the sustainability performance of their portfolios
and the global property sector (fourth submission).
■■The MSCI Investment Property Database tracks and publishes related
electrical and water consumption analytics (third submission).
Fines
Hyprop incurred no nes for non-compliance with environmental laws
and regulations during the year.
Key environmental projects completed in 2017
We have completed three projects, totalling R5 million, which focused
on energy-efficient lighting to reduce electricity consumption and
maintenance costs.
The third phase of our solar photovoltaic (PV) plant on Clearwater Mall’s
parking roof was installed in June 2017. Total solar generation now makes
up some 15% of the mall’s total consumption, generating on average
4 750 000kWh of electricity per annum (equal to the consumption of
430 average households). The panels cover an area of around 17 000m²,
saving 2 680 tonnes of coal and reducing carbon emissions by over
930 tonnes per annum.
Energy-efficiency initiatives
Of Hyprop’s total operational spend in any period, a large portion is on
electricity (mostly consumed by tenants), making energy efficiency a
nancial imperative. We are implementing a range of energy-efficient
solutions to better manage costs for the group and our tenants, improve
our environmental performance and reach our targets.
Total electrical consumption 2017 2016
Direct non-renewable energy consumption (GJ)(1)
from diesel burnt 8 656 8 145
Direct renewable energy consumption (GJ) from
solar PV 8 444 7 886
Direct energy consumption (GJ) from electricity
consumed but not recovered 106 312 114 452
Indirect energy sold (GJ), ie electricity recovered
from tenants 857 872 905 992
Electricity consumption (megawatt hours or
MWh) 267 828 283 456
Energy consumption (GJ) – calculated 964 184 1 020 440
(1) Gigajoules
To monitor the effectiveness of these initiatives and year-on-year
consumption patterns, we calculate our energy-use intensity.
2017 2016 2015
Energy-use intensity (GJ/m2) 1,27 1,30 1,26
Kilowatt hours per occupied space (m2) 2017 2016 % change
Retail 345 359 (3,9)
Office 275 242 13,6
Determining our carbon footprint
For an accurate baseline, we determined the group’s scope 1 and 2 carbon
footprint using the UK Department for Environment, Food and Rural
Affairs (DEFRA) voluntary reporting guidelines and the revised reporting
standard of the Greenhouse Gas Protocol, the accepted international tool
for government and business leaders to understand, quantify and manage
greenhouse gas (GHG) emissions.
Hyprop again participated in the CDP, submitting our audited carbon
footprint for the year to June 2017. We achieved an A-score (based on
the new scoring chart that emphasises actions to mitigate climate change
rather than just reporting on carbon footprint). This is considered above
average.
Hyprop’s carbon emissions
Total carbon emissions (tonnes of
carbon dioxide equivalents (tCO2e)
– calculated 2017 2016 2015
Total carbon emissions broken
down as: 280 990 289 939 296 770
Scope 1(1) 17 912 7 096 3 260
Scope 2(2) 27 942 30 457 31 925
Scope 3(3) 235 136 252 386 261 585
Average volume of carbon
emissions (scope 1 and 2) per hour
worked (tCO2e/h) 0,076 0,085 0,085
(1)Scope 1: all direct GHG emissions. Scope 1 skewed by Nigeria as 50% of power is
from diesel generators. Nigerian contribution 9 447 tonnes
(2)Scope 2: indirect GHG emissions from consuming purchased electricity, heat or
steam (scope 3 covers other indirect emissions, which for Hyprop are calculated
as kWh purchased from the supply authority and resold to tenants)
(3)Scope 3: includes tenant-driven increase in scope 3 emissions. All our sites have
bulk meters that measure total kWh consumed. Each tenant has a sub-meter that
registers direct electrical consumption. Where tenants have dedicated AC units,
100% of electrical consumption is recovered. Where they share an AC system, they
pay a pro rata share of the total area served by the unit
Carbon tax
This proposed tax in South Africa will apply to companies’ carbon
emissions (measured in tCO2e) and is expected to be phased in from 2018
to help South Africa reduce its carbon footprint. The mooted figure is
R120/tCO2, with a 40% scale for the first year. This is currently envisaged
as an additional surcharge on each kWh consumed and will equate to
12 cents per kWh.
Based on current advice from our auditors, Hyprop will not be liable for
any direct carbon tax under the anticipated law.
Water
We continue to investigate viable opportunities to reduce water
consumption, such as installing water-efficient equipment, while improving
our measurement and monitoring standards.
At existing properties, we rely on close cooperation of tenants and
customers to reduce water consumption. For new developments,
renovations and upgrades, efficiency is one of the criteria in choosing
technical equipment such as toilets, taps and cooling systems.