Green2020_strung_LR

CARBON TAX

WHAT YOU NEED TO KNOW
ABOUT CARBON TAX

IMAGES: FRANCESCO SCATENA/ISTOCK.COM W hen President Cyril THE • The Carbon Tax Act 15 of 2019 came into
Ramaphosa signed the CLEANER effect on June 1 2019.
Carbon Tax Act into law in WAY OF
May last year, it signalled to • With the signing of the act, SA became one of
South African corporates DOING about 45 countries that put a price on the
with carbon-producing activities and enterprises BUSINESS carbon footprint of companies.
that they would have to revise the way they do
business. The carbon tax, which came into effect Carbon tax means that companies • The carbon tax will be levied on the sum of
in June last year, effectively puts a price on the need to find greener ways of doing greenhouse gas emissions from fuel
greenhouse gases companies spew into the air. combustion, industrial processes, and
business or pay the price, writes fugitive emissions, determined in accordance
Izak Swart, carbon tax and Africa director at MPHO LUKOTO with a reporting methodology approved by
Deloitte, says carbon tax is important in South the Department of Environmental Affairs.
Africa, since the country is the world’s 14th largest for companies, Van Antwerp says, and many are
emitter of greenhouse gases, yet is relatively still looking at gas and steam turbines, as well as • Emitters are required to license their
a small economy. There needs to be a change in the renewables, to lower their footprint. It helps that activities liable for carbon tax, and an annual
way companies operate. these technologies also reduce reliance on the environmental levy is due in July. A separate
Eskom grid in these times of loadshedding. tax on emissions from petrol and diesel was
In its current form, carbon tax won’t really lead incorporated into the fuel levy system from
to much behavioural change, says Swart. “There’s a lot businesses can do when it 5 June 2019.
“According to World Bank reports, you need to comes to energy efficiency,” he explains. “A lot of
charge $40-$80 per ton. So far, the tax is around technology in use in South Africa is very old, and • The carbon tax is being implemented
$3 a ton, so we are at a low base.” newer machinery can be much more efficient.” In in phases. Phase 1 is from June 1 2019 to
addition, he continues, big data and intelligence is December 31 2022. This approach is to
Still, companies must seek out more helping to improve industrial processes. ensure a smooth transition to a low-carbon
environmentally-friendly ways of operating to economy and limit the effect on business.
save money in the long run. They need to start
doing it now, while the government is still Source: Deloitte and Legal Brief
treading softly to ease the tax into the market
without disruption. In terms of ensuring they comply, Swart says
bigger companies are already used to reporting
But, are companies starting to do on their carbon emissions to the Department of
things differently? Environmental Affairs and in their sustainability
reports. However, for smaller companies, it
“The market is moving very quickly,” says Mark van might be a more complicated task if they have
Antwerp, vice president for sales, power generation in not yet prepared to comply. The act has difficult
southern and eastern Africa at Siemens. “Especially calculations and formulas that need to be used.
since December, we’re seeing a lot of enquiries and It will also mean changing the way companies
even board decisions being made.” account for their activities. “We are used to
managing in rands and cents, now we need to start
Reducing reliance on coal power is one of the thinking in tons,” says Swart.
most important factors in lowering emissions
Duncan Pritchard, a director at ETC-Africa,
which provides carbon footprint and carbon tax
consulting services, says smaller companies have a
tough road ahead as they’re not ready at all.

“If companies are only first thinking about it now,
compliance will be onerous,” says Pritchard. “But
what I think the tax will do is force carbon efficiency
as our country takes a big step towards being a
global citizen. And, I think it gets companies used to
a different way of doing business.”

Pritchard says the risks of noncompliance could
include lost business as companies decline to do
business with companies with heavy footprints.

Yet at least one CFO Green spoke to said they
were still investigating how they will comply, rather
than implementing systems for compliance.

G R E E N 51



FOOD WASTE

OSCAR EKPONIMO C howberry’ s app in action.

IMAGES: SUPPLIED W hen Oscar Ekponimo was WASTE THE BIGGER PICTURE
11 years old, his father fell NOT,
ill and was unable to work. WANT With the right funding, Ekponimo believes he can
The family struggled to NOT grow both the impact and revenue of Chowberry by
make ends meet and food tackling food wastage higher up the supply chain. “My
was scarce. “That was when the challenge of hunger ANTHONY SHARPE talks to a Nigerian plan is to build the business around big companies,
was made real for me,” says Ekponimo. social entrepreneur who is working to addressing what I see as an unstructured supply chain
get less food in the trash and more in where manufacturers, distributors and retailers don’t
Things have changed a lot for the young Nigerian necessarily see the full picture,” he says. “We want
software engineer and entrepreneur, now a Rolex the mouths of those who need it to sit in the centre, with a system that can efficiently
Awards for Enterprise Young Laureate and Time help manufacturers get consumer goods into the
Magazine Next Generation Leader, he’s working to MONEY TALKS hands of consumers timeously.”
try to ensure that other struggling families in Nigeria
don’t go hungry, while also working to combat food “When we started there was no revenue model so it By doing so, he says, overall food waste can be
waste. He’s created the Chowberry app, which wasn’t sustainable,” Ekponimo says. “The solution has reduced and food can be diverted from farm and
enables people to buy food that’s nearing the end of been to take a commission from every exchange. We manufacturers, not just supermarkets, to the needy.
its shelf life at a discount from retailers. sometimes charge the supermarket for the service,
but we’ve had to be flexible because some don’t want “If we’re able to redesign the system to address
In university, Ekponimo and some friends did to pay, even though we can quantify how much we that higher volume of waste and solve the problem at
occasional food drives for local street kids. “A friend can save them.” a bigger scale,” he continues, “there’s a higher chance
of mine had a supermarket nearby and I saw how to increase profit and impact. Then, with those
they threw away items when they expired,” explains Securing backing to grow remains difficult, numbers, we can enter more developed markets.”
Ekponimo. “I asked if, before those items went out however. “Funding is a challenge,” explains Ekponimo.
of date, we could have them to distribute to the “We’re not an outright business or a nonprofit. In “MY PLAN IS TO BUILD THE
street urchins. They were open to this.” Nigeria, there’s no official registration for a social BUSINESS AROUND BIG COMPANIES,
enterprise, and the investment community wants to ADDRESSING WHAT I SEE AS AN
It was an idea that stuck with Ekponimo be able to see what they’re investing in. I’ve had to UNSTRUCTURED SUPPLY CHAIN
after graduating. grow and bootstrap, but there comes a time when you WHERE MANUFACTURERS,
have to scale and move your impact higher up – that DISTRIBUTORS AND RETAILERS DON’T
HOW IT WORKS needs big cash and big support.” NECESSARILY SEE THE FULL PICTURE.”
– OSCAR EKPONIMO
Retailers list items on Chowberry and when they
near expiration date, shoppers on the app can buy LOOKING ABROAD
them at a deep discount. Those who can’t afford
expensive food, get it cheaper and retailers throw Those prospective markets include the US, where
away fewer products; it’s a win-win. many people are unable to access healthy food, and
there is greater access to funding, and South Africa.
If there’s one key problem with an app that’s
geared towards low-income households in Nigeria, With an estimated 10 million tons of food going to
it’s that most of the target customers don’t have waste in South Africa every year (a third of what we
internet access. Ekponimo is cognisant of this, produce), Ekponimo’s solution may well find a willing
which is why Chowberry finds its biggest impact is marketplace here.
working with NGOs, who use the app to stretch their
funds further. He says the company works
with 35 NGOs, which have to date helped feed
53 000 families.

G R E E N 53

GREEN LIVING

REINVENTING OUR CITIES FOR A
SUSTAINABLE FUTURE

BETH AMATO takes a look at
Menlyn Maine, an ambitious
attempt to rethink the way we
design living spaces in South Africa

M ore than 50 per cent of the V isitor safety is paramount in open spaces. Menlyn Maine is a mix ed- use dev elopment. IMAGES: SUPPLIED
world’s population live in
cities and major metropolitan done as yet into how much carbon footprint has NEW URBANISM
areas. This puts monumental been spared, the buildings in Menlyn Maine consume
pressure on resources and about 50 per cent less water and energy than the The philosophical premise behind Menlyn Maine and the
infrastructure, particularly in relation to energy, average commercial building. He also claims that they other green cities around the world is the concept of New
waste, and water. What then is the way forward? generate 33 per cent less greenhouse gas emissions Urbanism. This movement challenges the way we look
leading to operational savings of over R100 per at how cities and their suburbs are designed and built. It
Menlyn Maine in Pretoria East is one of 16 square metre per annum. aims to promote environmentally-friendly spaces that
“green cities” being developed in various parts of are both secure and convenient for pedestrians.
the world. These green cities aim to rethink the way He also says that the development is about 80 per
urban spaces are designed by using cutting-edge cent complete and could take another four years Because electricity supply is such a critical issue in
technology to conserve our natural resources in to finish. South Africa at present, we asked how load shedding
a modern, innovative and sustainable way. has affected the development and the future of
Boogertman expressed the view that since sustaining such an undertaking.
Launched in September 2016, Menlyn Maine Menlyn Maine is a privately-owned development, the
is the single largest development of its kind in “control and high standards with regards to design, “Yes, load shedding is a very real problem for all of
Africa. This 315 000m2 locale promises to support construction and overall precinct management that us. Most of our buildings and facilities have back-up
a population of around 20 000 people, comprises is provided by a private enterprise ensure a high power, but this comes at an additional cost. We are
offices, a shopping area, luxury hotels, a casino standard of overall development, which underpins currently investigating the installation of additional
and entertainment zone, and (predominantly the quality and sustainability of the investment from solar and photovoltaic panel installations to service
underground) parking for 5 000 cars. It is also a long-term point of view”. some of our buildings. Designing commercial
home to a phased development of more than 500 buildings that are completely off the grid is
residential apartments of varying sizes, which, once He goes on to say that in terms of attracting unfortunately not yet commercially viable from our
completed, will give residents access to facilities such tenants and residents, “the main drawcard is point of view, but designing buildings that use fewer
as daycare, meeting rooms, a rooftop pool, a terrace the mixed-use facilities and tenancies that the utilities and resources is still a major priority for us.”
bar and round-the-clock security. There is even development offers. This is a very friendly, safe and
a state-of-the-art specialist hospital walkable city precinct and the variety of facilities
in construction. such as residential, office, hotel, shopping, sport
and entertainment, all on your doorstep and within
THE ATTRACTION walking distance is what makes Menlyn Maine the
OF ACCESSIBILITY address of choice to live, work, play and invest in”.

As far as its green credentials go, Henk Boogertman,
executive director and chief architect of Menlyn
Maine, says that while no investigations have been

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GREEN LIVING

HOW CLEAN

IS GREEN?

The number of “green” cleaning products available at
supermarkets is on the up. But just how effective are they

asks LISA WITEPSKI

IMAGES: SUPPLIED E nvironmentally-friendly cleaning There are international guidelines Green clean claims
products are a tricky area, says Chris regarding best practice for labelling need to be backed up.
Rafael of Orlichem. “There’s a lot of green cleaning products – although
greenwashing that goes on, which South Africa has been slow to implement Sham says that it’s also worth investigating
clouds the real facts,” she points out. them. It’s also possible to conduct “cradle all-natural products that don’t merely transport
For instance, a product that’s biodegradable, and to grave” studies, which examine every area dirt from your countertop to your drain, but also
therefore environmentally-friendly, might actually of a chemical’s impact, from its ingredients dissolve it completely. They’re considered as
be toxic to humans. to how it’s made and how it biodegrades. But such powerful as traditional cleaners.
studies are generally very costly, and Rafael says
Colin Sham, CEO and founder of Beyond Green he has yet to encounter a South African body that GROWING THE MARKET
Cleaning South Africa and the registered trademark can conduct such a thorough study. More often,
owner of Prof. Microbe, agrees. “A ‘green’ research is restricted to the chemical’s impact on Du Chenne says that South Africa’s market for
household cleaning product is biodegradable, human health. green products is small yet growing. We have
sustainable and environmentally friendly, some way to go before demand for green reaches
inflicting minimal or no harm to the environment. JUST HOW EFFECTIVE the proportions of, say, Europe, but this is likely
However, almost everything in the world eventually ARE THEY? to change as awareness of the benefits of
biodegrades – even [dangerous] chemicals environmentally-friendly products grows.
break down.” The ambiguity surrounding the definition of
“green” may be a reason consumers are sceptical, “The greatest barrier to trial is brand loyalty
“PEOPLE THINK GREEN DOESN’T but many have more questions around the and resistance to trying a new product, as well as
CLEAN AS WELL BECAUSE THESE efficacy of such products, especially as they the belief that traditional products do a better
PRODUCTS TYPICALLY DON’T FOAM tend to be considerably pricier than their job,” Du Chenne comments. He believes that such
AND THEY DON’T HAVE A STRONG traditional counterparts. challenges could be overcome through education
SMELL. THE REALITY IS THAT initiatives and support from retailers – simply
THESE PROPERTIES ARE CREATED Marc Du Chenne, MD of eco-friendly cleaning stocking the shelves with green products may be an
BY ADDITIVES THAT HAVE NO USE, system GenEon Technologies, says that perception incentive for consumers to try the product.
BEYOND CATERING TO WHAT WE plays a big part here. “People think green doesn’t
THINK A DETERGENT ‘SHOULD’ BE clean as well because these products typically In the meantime, Sham recommends looking out
LIKE.” – MARC DU CHENNE don’t foam and they don’t have a strong smell. for products carrying the Global GreenTag, a widely
The reality is that these properties are created by trusted label.
It’s not surprising, then, that the term is additives that have no use, beyond catering to what
increasingly misused, potentially misleading we think a detergent ‘should’ be like,” he explains. “There may be no such thing as the perfect green
consumers. Especially as the growing awareness product, but you can always look for the one that’s
of environmental issues mean that many wily “As much as these additives may add to the ‘greener’,” says Rafael. “How you use such products
entrepreneurs are eager to jump on the green appeal of traditional products, they are also also makes a difference: you can minimise your
wagon, as Rafael observes. the reason why such products may be harmful: environmental impact by using cleaning chemicals
solvents added to boost the cleaning process, as you would an antibiotic; sparingly, and only when
One of the reasons this obfuscation remains like ammonia, may have a corrosive effect over you need them.”
possible is because of the lack of regulation time, and may also cause respiratory problems in
and legislation: while various accreditations are children and adults,” he continues.
available, there is no single overarching prescribed
legislation or regulation for “green”, Sham says. Moreover, fragrances can cause allergies, Du
Chenne warns. The takeout? Green products may
require a longer cleaning time and a bit more elbow
grease, but it’s worth the effort.

G R E E N 57

BUILDINGS

A SOUTH AFRICAN

GREEN FIRST

Formfunc Studio has bagged South Africa’s first six-star Green DID YOU KNOW? The Green Building Council of South Africa is very
highly regarded across the green building community globally. By the
Star Interior v1 certification. GARETH GRIFFITHS finds out year 2019, the GBCSA had certified over 500 projects under its Green
Star programme. These include new buildings, existing building
how and why refurbishments, office precincts, interior, residential projects and
even net-zero classifications.
T he details matter. Office furniture may not be the most obvious place to
start when it comes to trying to improve your environmental footprint, WHAT DID IT TAKE TO ACHIEVE THE RATING?
but given the amount of office furniture we buy and use, the impact can
be huge. KK. To attain this exclusive international rating, the project consultants
So it’s good to see one local supplier walking the talk. Formfunc Studio along with IT solutions provider, Aethyr IT, and design specialists, Mask.
is a Lanseria-based company specialising in improving office environments through Design, and other contractors had to assess every element of the fit-out
ergonomic design, most notably as the African distributor for Humanscale-branded and scope of work to ensure that it would score a rating of between
products. It has just bagged a top award for environmental design too. Formfunc has 75 and 100 credits in accordance with the Green Star Rating Tool.
attained the first six-star Green Star Interior v1 rating in South Africa for an office and
distribution centre. WHAT DOES THIS MEAN FOR THE LOCAL INTERIOR DESIGN
AND ARCHITECTURAL COMMUNITY?
We caught up with Kim Kowalski, director and co-founder of Formfunc, to find out
how and why. KK. Over the last few years, Formfunc has been asked for our local content.
We need to change the question and challenge the thinking when it comes
WHY GO FOR THE GREEN STAR RATING? to the materials we use in our manufacture and assembly processes, what
we should rather be asking is “what is in it?”.
Kim Kowalski. It was imperative that our office environment went beyond just an
ergonomic solution; it had to also reflect our brand and our philosophy of recreating To this end, The Living Building Institute has a list of red listed/banned
workspaces that are simpler and healthier for our employees to work in. substances. These include asbestos, formaldehyde and VOCs [volatile
organic compounds, gases released from materials such as paint and
WHAT DOES THIS REALLY MEAN? KIM KOWALSKI solvents] to mention a few. Chromium 6 is also a very big no-no – it
can be found in a lot of office furniture currently in the marketplace.
KK. The word sustainable should not just exist as a buzz The manufacturers using these substances are the big polluters. So,
word anymore. As a business it was vital for Formfunc if we tie in the Declare Label (see box) example, we as a business (and
to show our commitment to the environment by other businesses for that matter) can make better decisions based
actually “doing” something actionable and visible. on knowledge. It also allows industry to apply pressure on these
Achieving the international standard of a green star manufacturers to change irresponsible practices.
rating was a means to do this. The six-star rating was
always our goal. Further information on the Interiors Rating Tool of the Green Building
Council of SA can be obtained at: https://gbcsa.org.za/certify/green-star-
Furthermore, our core or primary value is to promote sa/interiors
health and wellness within the workplace through
ergonomic solutions, but it doesn’t stop there; it has
to incorporate the “actual” environment that our
employees work in.

WHAT IS THE DECLARE LABEL? IMAGES: SUPPLIED

The Declare Label is an international standard for labelling building
materials paired with an online database. Customers who want
to know what has been used to make a product can verify its
environmental credentials using the Declare system.

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ADVERTORIAL

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