Climate change and energy

Sanlam recognises that climate change presents an important business and global risk. We are committed to upholding our responsibility to measure and reduce our carbon emissions, and to encourage responsible environmental practice in our sphere of influence. While considered a low-impact business, our greatest direct environmental impacts result from the buildings we occupy, with electricity consumption (Scope 2 emissions8) accounting for the highest proportion of our greenhouse gas emissions. As a company with regional representation across all provinces and head office in Cape Town, employee commuting is the second-highest GHG emitting activity.

Sanlam has been a signatory to the Carbon Disclosure Project (CDP) since 2007. Sanlam RSA's Carbon Footprint Report is published separately on our website. The environmental dashboard to be developed in 2012 will inform our process of measuring and monitoring our performance, and will allow us to undertake a deeper analysis of the risks and opportunities climate change presents to our business.

Our current efforts to reduce our footprint focus on promoting energy efficiency – primarily at our head office, and progressively at our other offices – through energy saving initiatives under the management of our Facilities team. We are also committed to promoting an increase in the use of video conferencing as an alternative to carbon emissions intensive business travel. In addition to contributing to our energy and carbon reduction target, it will also result in valuable cost savings.

A further opportunity we are exploring is to develop a portfolio of onsite renewable energy generation initiatives that will increase energy savings and resulting operational cost savings to the business; this will increase in significance in the context of rising energy prices and uncertainty of supply. As a result of amendments to South Africa's draft Taxation Laws Amendment Bill 2009, anticipated energy taxes are likely to substantially increase the operational costs of Sanlam RSA through associated taxes and penalties; there will also be tax allowances for energy-efficient equipment and renewable energy technologies.

Our carbon footprint performance

Sanlam remains focused on establishing an accurate and comprehensive carbon footprint assessment and carbon-emission reduction strategy. Our greenhouse gas measurements are undertaken in accordance with the most widely used global standard for Greenhouse Gas (GHG) accounting and reporting, the WBCSD/WRI GHG Protocol9. This is compatible with other GHG standards such as ISO14064. Sanlam RSA's CO2 emissions for 2011 calculate to 10.29 metric tonnes per full-time equivalent employee or 0.50 metric tonnes per square metre of office space across the six measured buildings. This is similar to last year's performance (11.77 metric tonnes per full-time equivalent employee or 0.48 metric tonnes per square metre of office space). The decrease in total carbon footprint can be attributed to the significant decrease in electricity consumed and travel in commercial airlines, as a result of initiatives conducted over the year..

In 2011, Sanlam was ranked eighth overall on the CDP Disclosure Leadership Index that rates the performance of the JSE 100 participating companies. We are also a signatory to the CDP highlighting the importance we place on the CDP information to better inform our investment decisions.

Sanlam's Carbon Footprint (key data indicators)
(Jan‐Dec 2011 versus 2010, 2009, 2008)

The table below shows the results of our carbon footprint measurement for the past four years. The increase in our reporting scope each year since 2007 must be considered when comparing year-on-year emissions.

Sanlam's 2011 Carbon Footprint Report can be accessed here.