Tackling climate change is key to protecting our business and fulfils our ethical duty to support the environment.
As the challenges facing our planet become more urgent, we’re focusing our efforts on finding innovative solutions that reduce our environmental footprint.
We’ve mapped an ambitious path to combat climate change, and through the support from our sustainability partnerships, we’re promoting a sustainable supply chain.
Our FY23 footprint
We calculated our full value chain footprint in line with the GHG Protocol Corporate Standard. This means we included direct emissions from our facilities and vehicles (Scope 1), as well as emissions indirectly related to the energy we purchase (Scope 2). We also considered other important indirect emissions that happen in our value chain (Scope 3).
In FY23, our overall footprint increased by 17.3%, due to a 17.4% increase in Scope 3 emissions – particularly those in ‘purchased goods and services’. This is because we use a spend-based methodology, and this reflects our 18.3% revenue increase from US $2.89 billion in FY22 to US $3.42 billion in FY23.
Despite an increase in Scope 1, total Scope 1 and 2 emissions have decreased since FY22.
Over 99% of our overall emissions are within our supply chain, making our Scope 3 reduction targets especially important.
Within Scope 1 and 2, purchased electricity is our largest source of emissions, accounting for 67.5% of total Scope 1 and 2 emissions in FY23 (see Figure 1). To reach our targets in these Scopes, we will be prioritising renewable electricity.
Figure 1. Scope 1 and 2 emissions sources: FY23 vs FY22
Reaching our Scopes 1 & 2 2030 commitment
Scope 1 and 2 emissions are greenhouse gas emissions (GHGs) related to our business activities and are in our direct control. Scope 1 refers to GHGs emitted by our facilities or vehicles, while Scope 2 covers emissions that happen indirectly due to the energy we buy for our own use, like electricity, steam, heating, and cooling.
For several years, we’ve been incrementally improving Scope 1 and 2 data collection for inclusion with Datatec’s CDP disclosure. Table 1 shows the types of emissions we identified in our Scope 1 and 2 assessment.
Overall, our total Scope 1 and 2 emissions dropped by 2.2% in FY23 compared to FY22, largely driven by lower Scope 2 emissions linked to purchased electricity.
The implementation of our data management platform enhanced our collection of more accurate data in FY23 (though the impact of this can’t be quantified).
Table 1. Emission types identified in our Scope 1 and 2 assessment
*0 recorded in FY22
Scope 1 and 2 deep dive
In FY23, our Scope 1 emissions increased by 17.1% (see Table 2 & Figure 1). This is due to larger volumes of diesel combustion at our South African logistics facility, caused by loadshedding disruptions to electricity supply.
Overall, our Scope 2 emissions reduced by 9.4% (see Table 2) in FY23 compared to our base year. This is because, in FY23, we increased the amount of renewable electricity we purchased, while carrying out energy efficiency and reduction measures at various European facilities.
In FY23, 35% of our total purchased electricity was from renewable sources. This was consistent with FY22 despite an increase in total purchased electricity in APAC, which was offset by the increased procurement of renewable electricity in Europe.
Table 2. Scope 1 and 2 GHG Emissions: FY23 vs FY22
The increase in purchased renewable energy in Europe increased the percentage share of renewable versus non-renewable in the region to 70:30 – an increase of 9% in renewable year-on-year (see Table 2 & Figure 1).
We aim to increase the share of renewable electricity purchased every year until we reach our target of 100% renewable electricity in FY30.
We also found that the countries where we use the most electricity are where our logistics facilities are – South Africa, UK, Netherlands, UAE, New Zealand, Australia (see Figure 2).
