omnia holdings annual report 2010 omnia holdings annu

About this report
This sustainability report presents a consolidated view of the
Omnia Group’s economic, social and environmental performance
for the year ended 31 March 2010. We aim to provide a
balanced, understandable and comparable view of our business
by giving a frank account of our sustainability achievements as
well as challenges.
Through this report, the Omnia Group aligns itself with
international sustainability best reporting practices, including the
Global Reporting Initiative (GRI), recognised internationally as the
benchmark for sustainability reporting. The Group subscribes to
the vision of the GRI, in that disclosure on socio-economic and
environmental performance should become as commonplace
and comparable as financial reporting, and that such disclosure
is inextricably linked to financial success.
We recognise that we still have some way to go in aligning
our reporting processes to the GRI. However, in keeping with
the GRI’s vision, we will continue to improve our non-financial
reporting processes over time, based on the principles of
accountability and transparency. We welcome feedback from
our stakeholders to assist us to continually improve our
sustainability reporting.
The Group also supports the principles of openness, integrity
and accountability as advocated in the King Code of Governance
for South Africa of 2009 (King III) and the Code of Corporate
Practices and Conduct reflected in the 2002 King Report
(King II). Moreover, we subscribe to the concept of the triple
bottom line, which embraces economic, social and
environmental relationships through an integrated sustainability
approach that encompasses all the Group’s stakeholders –
our shareholders, customers, employees and the communities
in which we operate.
We continue to seek to improve our sustainability reporting,
moving beyond compliance to focus on opportunities for, but
also challenges to, our sustainability, which we believe should
increasingly inform our strategy and enable us to enhance our
relationships with stakeholders. Our aim is the long-term
integration of economic development, environmental quality
and social equity into our business practices to continually
improve performance.
The reader is invited to access more detailed information on our
website where this report is also available in an online version.
Informing the boundaries of this report
Broad-based black economic empowerment (BBBEE) is regarded
as integral to our sustainability, and relates to both economic and
social aspects. Therefore, although our BBBEE initiatives only
concern our South African operations, they have been included
as part of this report.
Report assurance
We have not obtained independent third-party assurance of this
Sustainability Report for the 2010 reporting period. We assess
our application of the GRI reporting framework to be at Level C.
Statement from the Group Managing Director
The year under review saw intense debates around two major
world events – the global economic crisis and climate change –
OMNIA ANNUAL REPORT 2010 35
which once again demonstrate our global interdependency, but
at the same time revealed a need for solutions to be crafted at
local and national levels.
Although the outcome of the Copenhagen climate talks at the
end of 2009 was disappointing, with developed countries’
targets to cut their greenhouse gas emissions remaining low,
South Africa made a commitment to cut its carbon footprint
by slowing emissions by 34% below projected levels by 2020.
Dependent on coal for almost 90% of its electricity needs,
South Africa is the twelfth-biggest emitter of carbon dioxide in
the world, producing more than 40% of Africa’s fossil fuelrelated
carbon dioxide emissions. Despite this, local companies
have not made much headway when it comes to carbon trading,
which is part of the Clean Development Mechanism of the
United Nations’ Kyoto Protocol.
And although the position on carbon credits beyond 2012 is still
uncertain, the pressure on climate change abatement is not
going to recede.
In an unevenly globalised world, Omnia realises the need for
“bottom-up” alternatives to pursuing carbon reductions, and has
already amassed about 825 000 carbon credits, generated
through the nitrous oxide reduction project at our Sasolburg
EnviNox ® Clean Air plant. EnviNox ® was commissioned in terms
of the Kyoto Protocol’s Clean Development Mechanism and has
reduced our nitrogen oxide emissions by more than 98%.
400˛000 carbon credits were sold in November 2009.
And while we regret the fact that the world was unable to reach
a solution at Copenhagen, we are hopeful that concerted efforts
by companies, civil organisations and governments through
international alliances would serve as a basis for further
discussion towards a suitable agreement on developing a global
framework for climate change.
We are fully aware that long-term opportunities for the Group
exist in the renewable energy, water, mining and food sectors,
and Omnia is well positioned to make a significant impact in
these areas.
Omnia recognises in particular the potential in alternative energy
over the next decade, with uranium demand expected to more
than double by 2030 as increasing numbers of countries turn to
nuclear energy for their power requirements. Although nuclear
power is not considered renewable; since no combustion is
involved, nuclear power generation produces no carbon
emissions. We believe mining industries in southern Africa
are set to benefit from escalating local and global demand
for uranium, and although the tick-up in uranium processing
has been slower than expected, Omnia is confident that we
can exploit the opportunities available in this area, with our
strong product basket in terms of supplying mining explosives
and chemicals.
Expectations for growth in the mining sector are not only driven
by the growth in alternative energy, but locally also by Eskom’s
additional coal requirements.
The production of shocktube at Omnia’s Losberg facility,
which started during 2009/10, signalled an entry for the Group
into the underground mining sector, while BME’s new