SUSTAINABILITY REPORT 2020 - AECI
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SUSTAINABILITY REPORT 2020
The global pandemic has brought humanity together in a desire to build back better. Having advanced our sustainability performance over recent years, our strategic commitment to “good chemistry” and a better world in the fundamental areas of mining, water, food systems and chemicals is already finding traction in this renewed global call to action. This Report introduces a revised Sustainability Framework for the Group and provides a brief update on performance in relation to material environmental, social and governance (ESG) issues. It will in future be part of our Annual Integrated Report, available on our website at https://investor.aeciworld.com/integrated-reports-and-afs The scope of this Report includes all operations over which we have direct management control and for which we set and implement policies and standards. Reported information pertains predominantly to the financial reporting period 1 January 2020 to 31 December 2020. However in some instances, historical data is reflected from 2016 onwards. The Board reviewed the content of this Report and confirms that it believes it addresses our material issues as it relates to sustainability and presents a balanced reflection of the sustainability performance and prospects of the Group.
AECI SUSTAINABILITY REPORT 2020
CONTENTS
1
AECI SUSTAINABILITY REPORT 2020 Mark Dytor CHIEF EXECUTIVE FROM OUR CHIEF EXECUTIVE 2
AECI SUSTAINABILITY REPORT 2020
In 2020 we reviewed our strategy and
vision for the next five years in the
context of global megatrends that
include a shift towards a purpose-led
world, where authenticity in creating
harmony between actions is paramount.
Dear Stakeholders the environment and consideration for the we do. This philosophy and associated
community, recognising that its licence to commitments are captured in our new
In the last century, the world operate also comes through the approval purpose of “One AECI, for a better
of stakeholders in the countries in which world”. The sustainability efforts of every
has seen significant evolution it operates, and that economic progress of individual, team and business across
in the approach to all issues the present must never be at the expense the Group will be integral to delivering
relating to sustainability. Often of future generations. this promise. Our revised Sustainability
Although this Report will be tabled as Framework was developed in this context
changes have been driven by and it is my pleasure to share it with you,
AECI’s first Sustainability Report, our
tragedies and, in many cases, related journey started decades ago. together with a brief reflection on how we
are actioning it across the Group.
these events have occurred in One milestone on the journey was in
1991 when our then MD, Mike Sander, In 2020 we reviewed our strategy and
the very industry where we exist signed the International Chamber of vision for the next five years in the
and supply. Sadly, AECI too has Commerce’s Business Charter for context of global megatrends that include
Sustainable Development. a shift towards a purpose-led world,
experienced tragic events but we
Environmental matters were becoming far where authenticity in creating harmony
are also proud to have played an between actions is paramount. This
more prominent at the time and AECI chose
active role in shaping our world, as to accelerate the thrust needed in this area. strategy will be commented on in some
Accordingly, we convened a major internal detail in our upcoming Integrated Report.
it relates to responsible chemical We recognised the need to enhance our
conference on environmental management
and explosives manufacturing. and took the initiative in establishing the focus on growth by improving customer-
Chemical Industry Environmental Forum. centricity while helping solve pressing
global challenges like food security and
AECI, then known as African Explosives In 1994 Mr Sander committed AECI to water scarcity. The revised strategy places
and Industries was registered as a company Responsible Care®. At that same time, “Zero Harm and Sustainability” at its core.
on 21 March 1924, with headquarters in AECI was a participant in the move
Johannesburg where we are still based to establish the Chemical and Allied The urgency needed in addressing the
today. At the time, our operations were Industries’ Association (CAIA), challenges listed above was brought
in Modderfontein (established in 1896), a solid and effective organisation which is into sharper focus by the COVID-19
Somerset West (1903) and Umbogintwini still the custodian of Responsible Care® pandemic, which has reversed progress
(1908), all in South Africa. Today, our in South Africa today. In 2020, AECI on many of the global SDGs. Issues of
operations span 22 countries and while received several awards from CAIA for poverty and inequality have taken centre
the manufacture of explosives and the its performance and commitment to stage as rich and poor struggle with new
provision of services to the mining Responsible Care® and initiatives that realities and loss. Health and wellness
industry remains a key component support, among other things, the United have become a priority and it has become
of our activities, we have diversified Nations Sustainable Development Goals evident that the challenges we face cannot
significantly. Our Group now includes (SDGs). be dealt with in isolation.
businesses that focus on a spectrum
As a Group we have much to offer. To Innovation and collaboration driven by
of sectors such as water treatment,
ensure we’re able to deliver growth and “good chemistry”, leveraging cross-
agriculture, food and beverage, road
maximise resources to the benefit of business diversity and in partnership with
infrastructure and general industry.
all stakeholders in a sustainable way, our customers and suppliers, delivers our
AECI has always been committed to we have adopted a more collaborative most significant impact on society and the
conducting its operations with due care for and integrated approach in everything SDGs. In safer and more circular mining,
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AECI SUSTAINABILITY REPORT 2020
AECI’s sustainable innovation areas
are supported by responsible practices
in our own operations, targeting our
environmental footprint and a range
of commitments under the umbrella
of Zero Harm and Sustainability.
the provision of clean water and through and thereafter for medical facilities, clinics By definition, therefore, the process is an
healthy, affordable food and greener and schools. Assumptions about “how iterative one.
chemistry, our product and service we do things” dropped away as our teams
I thank all our stakeholders who have
offering is challenging the assumptions re-imagined their business, responding
supported us thus far, including our Board,
of the past to evolve the business models to new needs: near-shoring strategic raw
our management teams, employees,
of the future. materials, substituting for unavailable
suppliers, customers, shareholders and
materials and direct sales to smaller
AECI’s sustainable innovation areas the communities in which we operate.
entrepreneurs who exemplified the agility
are supported by responsible practices AECI will continue to prosper and make a
demanded by the moment. Without a
in our own operations, targeting our meaningful contribution but we know we
doubt, the future will require us to draw on
environmental footprint and a range of cannot do so alone. I am inspired by the
this agility again and again.
commitments under the umbrella of Zero challenge of continuing to work with you
Harm and Sustainability. As we achieve Our mining and industrial partners face to achieve so much more.
internal milestones, we are committed significant challenges from the global
to extending the impact through our move towards a circular economy.
influence on the broader value chain. Large-scale agriculture is under constant
Underpinning the full sustainability pressure for productivity, which can be at MARK DYTOR
effort are passionate people who seek odds with longer-term natural cycles. We CHIEF EXECUTIVE
expression in a culture of openness, know that a sustainable future requires us 20 MARCH 2021
learning and accountability. to address trade-offs such as these without
further destabilising our economies and
AECI’s organisational culture is based
societies. Without underplaying the
on our BIGGER values of being Bold,
economic realities, our drive remains
Innovative, of Going Green, and of being
positive and aligned with our business risk
Engaged and Responsible. These values
appetite. It is my task as Chief Executive,
are the foundation of our sustainability
more than ever, to create the space for our
effort and central to delivering our
teams to deliver a #ABetterWorld.
goals. Everyone, everywhere, deserves
to be safe and healthy, and to live in a In this first dedicated Sustainability
world that is free of discrimination and Report, we present our Sustainability
empowering of positive pursuits. Framework. We also share how our efforts
are progressing and we encourage you, our
Progress in 2020 was swifter in some
stakeholders, to join us on our journey and
areas than others. Each of our interlocking
hold us to account.
strategic areas – innovation, responsible
operations and passionate people – was We have finalised a set of targets for
tested over this difficult period. In some many of our respective goals and others
cases, lockdown restrictions associated will be set as we progress. In the coming
with the COVID-19 pandemic delayed months we will go about formulating
trials of our #ABetterWorld initiatives. the various projects to deliver on these
In others, the interruption presented improvement areas. Our first milestone
new channels and opportunities. For is 2025 but we are already looking ahead
example, we quickly converted a number to 2030. AECI’s sustainability goals will
of our production units to manufacture continue to be informed by those of the
hand sanitiser and disinfectant for our United Nations and the needs of the
employees, contractors and their families individual countries in which we operate.
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AECI SUSTAINABILITY REPORT 2020
5
AECI SUSTAINABILITY REPORT 2020
OUR
RESPONSE
TO COVID-19
On 4 February 2020 we initiated Little did we know just how
much the pandemic would
our very first response to the change our way of working.
COVID-19 pandemic, in the form of We went on to produce
12 versions of our response
an international travel cautionary. plan with the last one still
in place at the time of
publication of this Report.
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AECI SUSTAINABILITY REPORT 2020
Task Team to oversee RESPONSE PLANS AND PROTOCOLS arrangements were introduced for leave
related to lock-down, working from home,
The AECI response plan was made available
strategic direction to the public via our website and social forced quarantine, self-isolation or in the
event of an actual positive case. AECI was
and response media pages and provided to the authorities
and to the chemical industry via CAIA. It fortunate to have most of its operations
was also shared with customers, suppliers deemed providers of essential products and
In March 2020 a Task Team was formed to and visitors. services and this required the re-organising
oversee the response to the pandemic. The of shift patterns, among other things. All
team comprised the full AECI Executive HUMAN CAPITAL employees who continued to work in our
Committee, supplemented by specialists operations while others were in lockdown
Communication were given a once-off bonus.
in various fields including Medical, Human
Capital, Stakeholder Relations, IT, SHEQ Our management response needed to
and Risk. The team met daily until September be as swift as the pandemic itself. With Employee tracking
2020 when frequency was reduced as the the help of rapidly deployed IT solutions Once the communication channels had
impact of the pandemic declined. and the establishment of dedicated been established, the Task Team was able to
communication channels, we instituted monitor the work arrangements of all staff
The strategic intent of the team was: daily updates from the Human Capital on any given day to ensure that protocols
›› To prevent or reduce, as far as Business Partners, across the globe. This were being adhered to. All confirmed cases
possible, the infection of our spanned 22 countries and the information of infection were discussed and in the event
employees, their families, co-workers was fed directly to the Task Team, based of a hospitalisation, detailed information
and others who may come into in Johannesburg, on a daily basis. would flow on the condition of the employee
contact with them. We set up a dedicated mailbox to which via the Company Occupational Medical
any person could direct a question about Practitioner.
›› To help reduce the risk of COVID-19
the pandemic or our response. These would
becoming a community, national or Business Continuity Planning (BCP)
typically be answered within one day of
international disaster.
receipt. Direct messages were sent from An integral part of the response plan was
›› To ensure prompt and adequate the offices of the CE and Group Human a documented BCP for each business to
detection and treatment. Capital Executive to all staff on a regular deal with a scenario of single or multiple
basis. The CE has sent a weekly SMS to all infections in any of our operations, or a
›› To reduce the level of absenteeism, due to
employees in South Africa, without fail, since temporary supply chain interruption, or
direct or indirect effects of COVID-19.
the beginning of the pandemic. Rapid and permanent closure of a customer. Each
›› To minimise the impact on operations accurate communication was a key element business has a detailed plan to minimise
and ensure AECI can honour of our response. the risk of transmission within shifts of
contractual obligations, and that it teams. If a positive case was reported, a
continues to secure its revenue streams. Benefits, leave and remuneration mattered decontamination programme commenced
One of the goals set by the Task Team was immediately. It is pleasing to report that
›› To reduce the spread of COVID-19
to avoid a scenario where salaries could not there were no outbreaks of infection in the
and ultimately reduce the strain on
be paid or staff had to be retrenched as a workplace and we did not interrupt supply
international healthcare systems.
direct consequence of COVID-19. Special to any of our customers.
›› To ultimately restore society back to
“business as usual”, and
›› To increase our readiness for future
outbreaks.
VULNERABLE STAFF
A strong emphasis was placed on the
protection of potentially vulnerable staff
due to co-morbidities. All employees
were given the option to disclose their
conditions voluntarily to a Company
Occupational Medicine Practitioner
(doctor) who would assess each
individual and decide on the best way to
accommodate the individuals either at
work or with an alternative arrangement.
All staff, service providers and their
families were provided with critical
information, sanitiser and masks. Katlehong Primary School was among the beneficiaries who received handwashing stations
and food parcels.
7
AECI SUSTAINABILITY REPORT 2020
OUR
SUSTAINABILITY
FRAMEWORK
Through innovation and collaboration,
our teams are seeking to deliver on
The AECI Group Sustainability
five priority SDGs: Framework centres our effort in pursuit
› SDG 2 Zero hunger
› SDG 6 Clean water
of a better world. It presents 10 goals
and sanitation across the tiers of One AECI, for a
› SDG 8 Decent work
and economic growth better world, Responsible Operations
› SDG 12 Responsible production
and consumption
and Passionate People.
› SDG 13 Climate action
One AECI, for a better world focuses on the significant opportunity
to deliver Better Mining, Better Water, Better Food Systems and
Better Chemistry in collaboration with our customers and other
partners. Supported by the AECI Growth Office (AECI.GO) and the
ongoing, Group-wide innovation drive, our teams explore new products,
processes and technologies that can be scaled to deliver our purpose.
RESPONSIBLE OPERATIONS focuses on aligning every operational
decision and action with a #ABetterWorld in pursuit of Zero Harm to
people and the environment. Supported by the Group SHEQ function
and SHEQ personnel across our 12 businesses in 22 countries, our
commitments inform the efforts of all our 6 800 employees.
PASSIONATE PEOPLE focuses on high performance and inclusion,
making it easier for AECI teams to contribute, in partnership, to
#ABetterWorld. Supported by the Group Human Capital function and
Human Capital Business Partners, this goal area recognises the value,
rights and responsibilities of every employee and all our stakeholders.
8AECI SUSTAINABILITY REPORT 2020
SUSTAINABILITY FRAMEWORK
ONE AECI, We will drive innovation and growth in support of the
FOR A BETTER
SDGs
WORLD
1 2 3 4
BETTER BETTER BETTER BETTER
MINING WATER FOOD CHEMISTRY
SYSTEMS
Make mining Provide access Enhance access Reduce the
safer and to clean water to good food hazardous nature
more circular and improve through improved and effects
conservation farming, of chemicals
productivity
and nutrition
RESPONSIBLE We will minimise our environmental impact and strive for
OPERATIONS Zero Harm across our value chain
REDUCE 5 REDUCE 6 7
Carbon Intensity our Water
of our operations footprint
PASSIONATE We will nurture a high-performance culture in an inclusive,
PEOPLE purpose-led environment
LIVE 8 NURTURE 9 THRIVE 10
our values in our passionate people in a high-performance
a purpose-led and collaborate with and inclusive
organisation our stakeholders culture
9AECI SUSTAINABILITY REPORT 2020
BETTER
MINING
Make mining safer and more circular
Globally, miners are facing a Making mining safer BLAST EFFICIENCY AND DESIGN
challenging period. Volatility in Drawing on precision positioning and digital
REMOTE CHARGING imagery, our engineers are seeking greater
commodity prices necessitates Although mining provides resources control over blasting to reduce ground
stringent cost control and safety needed for our economy, it remains a high vibration, air blast (and noise) and fly rock.
risk environment. Where people are in This research, in partnership with the
concerns have made changes in the proximity of explosives and blasting University of Pretoria, has led to measurable
technology, such as automation, activities, inadequate products and improvements in blast efficiency and design.
expertise can be extremely dangerous.
a necessity. The mining sector In open cast mining, miners use emulsion NEW EXPLOSIVE TECHNOLOGIES
faces a complex transition explosives to charge holes to be blasted, Our new emulsion technology for
using a Mobile Manufacturing Unit underground mining ensures that a
to a low carbon economy, (MMU) and manually deploy the non-sensitised (meaning a non-explosive)
with growing regulatory and initiating system. In cases where the product can be transported and deployed in
temperature of the hole is above a defined the mine. Consequently, the user and those
stakeholder pressure. AECI involved in transportation are not handling
threshold, commonly known as a hot
Mining’s world-class capabilities hole, or in reactive ground or where high or in close proximity to an active explosive.
walls exist, personnel on the bench are This greatly reduces the safety risk. Only at
are being applied to the challenge
exposed to additional hazards. We have the time of deployment into the holes is the
of safer and more circular mining, embarked on a project to limit exposure product sensitised. The charging of holes
in partnership with our customers of personnel by allowing remote and/or and sensitisation of the product is done with
autonomous charging and deployment our portable charging units which we first
and other stakeholders. of initiating systems on benches where deployed in 2012. Extensive collaboration
there is increased risk. The system will with our customers has enhanced both
KEY SDG GOALS be integrated into our BLASTiTABLET safety and environmental parameters
system to record information and provide through the conversion to emulsion
feedback to mine management. The use explosive technologies.
of this technology is in testing phase at In a further partnership, the deployment
pilot sites in Burkina Faso and eMalahleni of Powergel®X² formulation has helped
in South Africa. Testing was delayed another key mining customer address
significantly by COVID-19 restrictions on safety risks when blasting in extreme
economic activity and the movement of (hot and reactive) conditions.
people but it will resume soon.
VERTICAL DROP
STEMMING TRUCKS Delivering smart systems and solutions
A further development to improve safety for the underground mining industry
is moving into implementation phase with a is part of AECI Mining Explosives’
key customer. Stemming is a crucial element integrated offering. Inherently
in the “drill and blast” mining phase. In this engineered into its delivery systems is
historically manual and labour-intensive state-of-the-art technology that enables
process, aggregate is placed on top of miners to operate more safely and with
explosives in drill holes, locking the expanding higher efficiency. Our emulsion vertical
gases in the hole and hence enabling more drop delivery system infrastructure
effective rock-breaking. Stemming trucks involves a sophisticated system to safely
with single operator functionality will remove transfer product from surface directly
people from the danger area and enable to underground storage facilities. This
better controlled blast outcomes. enables better and safer management
of products, simplifies compliance
processes and has the potential
10AECI SUSTAINABILITY REPORT 2020
AECI Mining’s world-class capabilities are being applied to the
challenge of safer and more circular mining, in partnership with
our customers and other stakeholders.
to streamline shaft delivery times
significantly. It also ensures that at no
time is there sufficient pressure to SOCIO-ECONOMIC DEVELOPMENT (SED) SPOTLIGHT
make the product sensitive to outside
stimuli, change its structure or make
it detonatable.
Making mining
more circular
USING WASTE AS RAW MATERIALS
Sustainability initiatives frequently require
trade-offs. The vast mobile fleets used by
mines generate significant volumes of used
oil which typically require disposal. AECI
Mining Chemicals has developed a process
which allows the introduction of used oil
into the bulk emulsion fuel blend instead
of diesel. Our advanced, robust surfactant
technology permits the use of the oil
without treatment or recycling. Benefits
include reduced diesel fuel consumption,
reduced pollution risk and a decrease in
costs for the customer.
INCLUSIVE SUPPLY CHAINS
By including AECI Mining’s customers in
our Enterprise and Supplier Development
(ESD) activities in South Africa, we
work towards enabling the integration
of ESD benefits into mining tenders,
to expand our social impact beyond our
own operations and host communities,
and to meet the requirements of the
Department of Mineral Resources’
Mining Charter. In terms of the latter,
AECI Mining Explosives is in the process Supporting healthcare through Unjani Clinics
of obtaining verification by the SABS
on local content on more than 60 of its Through our SED funds, we partner with external organisations to
products. To improve alignment with
the Mining Charter and in keeping help mining customers address social needs in their host communities.
with a national drive to empower Black In 2019, more than 128 000 patients received primary healthcare
industrialists, the AECI Group currently
services at Unjani Clinics in mining regions across the country. This
spends more than R10 million annually
on sourcing services preferentially from partnership empowered female nurses to own and run their own
small, local, and Black-owned enterprises. healthcare practices and provided access to primary healthcare for
These services include, among others,
engineering, transport, cleaning, SHE people in the most rural and vulnerable communities.
products and blasting accessories.
11AECI SUSTAINABILITY REPORT 2020
BETTER
WATER
Provide access to clean water and improve conservation
On the back of multi-year drought Making clean water Making water
conditions in South Africa and with
water stress a growing global concern, more available conservation easier
the pressures of the global COVID-19 AECI Water partners with municipalities AECI Water is collaborating with AECI
pandemic have highlighted even further and water boards in South Africa, Mali, Plant Health to explore how water treatment
the importance of clean water and Ghana and Burkina Faso to supply potable technologies can reduce the volume of
sustainable water use as preconditions water to communities. Using an ecosystem water needed for irrigation purposes without
approach and innovative technologies, we compromising yields. A further collaboration
for addressing a public health crisis.
are improving the delivery of this basic project with AECI Food & Beverage is
In South Africa, some municipalities necessity, benefiting both quality of life and targeting water conservation opportunities
face financial constraints and public municipal compliance. In water-stressed in the dairy industry in the Western Cape.
resources are often insufficient to areas, we are helping to supplement
Precision irrigation should become the
address water challenges at local level. municipal supplies with water derived from
norm in water-stressed areas, including
Access to water and sanitation in alternative sources such as boreholes.
in South Africa where irrigation accounts
schools is a particular concern. Where communities lack adequate for 70% of total water consumption.
access to water, additional challenges are Agricultural exports face particular risk as
Industrial processes and chemical inevitable. Beyond infrastructure and some European customers are seeking to
products are known to have negative purification, our teams explore innovative track “embedded water” used in upstream
effects on the management of water financial solutions to address funding agricultural production. AECI Plant
availability and water quality and gaps, options to power the system with Health has secured access to technology
there is consensus on a participatory solar energy and opportunities to train from an Israeli-based agri-tech start-up
role for corporates in realising local community members as operators or called SupPlant. The technology uses
security personnel at the treatment plant. artificial intelligence to improve crop health
systemic solutions.
The scale of the challenge is significant through, inter alia, efficient irrigation while
and fuller solutions will require multi- increasing yields. Precision sensors placed
KEY SDG GOALS on individual plants reflect exact moisture
stakeholder collaboration and wide
funding nets. We continue to pursue requirements and feed the data to a control
competitive opportunities and CSI centre for irrigation. To date, 13 installations
opportunities through AECI’s SED funds have been placed on customer farms totalling
and are also drawing on our longstanding 435 hectares. The objective is to expand
relationship with South Africa’s National the offering to 7 000 hectares by 2025.
Business Initiative to explore prospects Key to the expansion of the installation
for large-scale collaborative solutions. footprint is the initial investment required.
Our teams are addressing this through a
blend of manual and digital options and
funding models.
Reducing the demand for potable AECI WATER’S 1 MILLION PEOPLE
FIVE-YEAR TARGETS in remote areas supplied
water for industrial use with potable water
AECI Water is targeting the replacement of over 3 billion litres 50 SCHOOLS 2 BILLION LITRES
of potable water used in the AECI Group’s process streams with supplied with potable water of potable water reduced/replaced
recycled/repurposed water alternatives over the next five years. in the private industrial sector
Another target for AECI Water is to replace over 2 billion litres
2 BILLION LITRES 1 BILLION LITRES
of potable water used in process streams in the mining sector of potable water reduced/ of liquid effluent discharged by
with recycled acid mine drainage and/or grey water alternatives. replaced in the mining sector industry to be reduced/repurposed
12AECI SUSTAINABILITY REPORT 2020
AECI Water’s capabilities are being applied cross-functionally,
drawing on our public- and private-sector network to build and
operate better water systems for municipalities and other mandated
authorities, schools, communities, farms, mines and industry.
Purifying water
for re-use WATER FOR SCHOOLS
Many mining operations generate excess
water, known as fissure or seepage water,
which can be treated and used. At Anglo
Platinum’s Dishaba Mine, treated water is
returned to the mine, significantly reducing
the use of potable water. High chemical
oxygen demand (COD) effluents are a
further opportunity. Trials at a pulp and paper
customer have established that bacteria and
enzyme treatments can result in re-use of
up to 60% of waste water if properly applied.
Our teams are currently commercialising and
scaling up these initiatives.
Water re-use is particularly relevant in
water-stressed areas. As climate change
effects result in lower rainfall along South
Africa’s arid West Coast, companies are
exploring desalination options and we
have successfully partnered with several in
recent times.
Not only did these partnerships secure much
needed water but also helped to safeguard
more than 2 000 jobs which were at risk due
to potential factory closure.
The water treatment plants also ensure
that waste water meets specifications for
discharge to sea.
Further, we have started assessing industrial
symbiosis opportunities, where purified
waste water could be made available to
operations located on production sites
neighbouring our own.
POTABLE
WATER
To address the plight of South African learners with inadequate access
25% to water and sanitation services, we have partnered with the City of
by 2025 Tshwane to deploy decentralised water solutions at five schools in
Hammanskraal. We aim to expand this programme to provide clean
DISCHARGE water to more than 500 000 people over the next five years.
TO SEWER
AND SEA 20% We have set ourselves a target of reaching 50 schools over the next five
by 2025 years with projects similar to that delivered in Hammanskraal.
13AECI SUSTAINABILITY REPORT 2020
SPOTLIGHT
Addressing water shortages in the Western
Cape through desalination
Desalination provides sustainable Since start-up in April 2018, AECI
water supply to drought stricken Water’s desalination plants on the west
coast of South Africa have produced
customers in the Western Cape.
more than 1 500 million litres of water.
AECI Water designed, built, installed,
commissioned and operates a number of
desalination plants in the Western Cape. They
are a sustainable and cost-effective solution for
water-stressed environments. Given the high cost
of energy associated with desalination, an Energy
Recovery Device is incorporated into the design.
This technology reduces power consumption in
terms of kW/m3 by 30% – 50%, depending on
the feed source of the water.
The installations at Lucky Star, a division of the
Oceana Group, secured the sustainability of its
fishmeal supply. The 36 m³/h containerised plant at
St Helena Bay, comprising 10 reverse osmosis vessels
and 70 membranes, can produce 864 000 litres of
water a day. The 26 m³/h Amawandle Pelagic plant has
seven reverse osmosis vessels and 49 membranes. Its
daily capacity is 624 000 litres. In both instances, sea
water is sourced from beach wells.
Sea Harvest’s desalination plant in Saldanha
produces a million litres of potable water a day.
It has dissolved air flotation, ultra-filtration and
sea water reverse osmosis (SWRO) systems.
These technologies treat effluent or sea water,
providing the company with all the water it requires.
The quality of the water produced by the plant
conforms to the South African National Standard
(SANS 241-1:2015) as a minimum requirement for
potable water. In time, the SWRO will replace the
current municipal feed with sea water.
14AECI SUSTAINABILITY REPORT 2020
15AECI SUSTAINABILITY REPORT 2020
BETTER
FOOD SYSTEMS
Enhance access to good food through improved farming,
productivity and nutrition
According to the United Nations, Improving yield by digital trading platform that makes
it easier for this growing sector of the
one in nine people in the world do working with nature market to connect to commercial
not have enough to eat and one- New AECI solutions seek to better
off-takers for their produce and source
input supplies, including the full suite of
third of all food produced goes to complement the ecological processes
plant and soil health products and services
important for sustainable agriculture.
waste. This situation is mirrored in from AECI Plant Health. We have piloted
AECI Plant Health’s NuWay®
this solution through our customer base
Africa where food waste is equally methodology uses precision analysis,
in South Africa including the Industrial
high, hunger and malnutrition remote sensing and tailored chemistry Development Corporation, the Land
to address long-term soil health. This Bank and ABInBev. The partnerships
persist at alarming levels and diet- enhances agricultural output and link to the customers’ own ESD spend
related diseases are among the top delivers healthier crops. An example of objectives. The aim is to build an inclusive
the holistic NuWay® offering is Biocult product and service ecosystem, centred
causes of death. These patterns which uses mycorrhizae to enhance on smallholders, that draws on the
have been amplified by the impact plant nutrition, soil biology and soil capabilities of our diverse customer base.
chemistry. Application can improve soil The medium-term objective is to reach
of the COVID-19 pandemic. carbon sequestration by up to 15% and 50 000 of these farmers, initially in
There are wide economic and the potential for this product to generate South Africa. 4 200 of them are already
new revenue streams in the carbon registered on the Khula platform.
racial inequalities on the African market is being assessed. Through our
continent in a food system that R&D capabilities, we are exploring other
opportunities to improve the quantity Making food healthier
depends heavily on small-scale
food producers yet struggles to
and quality of produce by using treated
water abstracted from dams, boreholes,
and more affordable
and rivers for irrigation purposes. INGREDIENTS FOR BASIC,
provide a context in which these
AFFORDABLE FOODSTUFFS
small players can thrive. Making farming Lower-income consumers spend a
disproportionally high percentage of their
KEY SDG GOALS more inclusive total income on food. In partnership with
New “turnkey” and digital agricultural Chr-Hansen, a principal with whom we
solutions provided by AECI Plant have built a relationship over 20 years,
Health seek to support emerging- and we supply a range of specialty cultures
smallholder-farmers’ start-up, enhance used in the production of Mageu and
their productivity and facilitate their Amasi. These low-cost, non-alcoholic
access to commercial markets. In ferments offer affordable on-the-go
Malawi, for example, we have developed nutrition to consumers in Africa. We
our Nyonga input packs that provide also source and sell a range of functional
a tailored solution for smallholders. ingredients used in the production of
The packs include seeds, fertilizer, low-cost processed meat products which
crop protection products and personal are favoured across South Africa for
protection equipment for the farmers. their broad availability, affordability, taste
The packs are distributed through and protein content. A new project is
multinational companies which have underway to produce a healthier dairy
contracted smallholder farmers to fruit juice blend for this target market.
produce tobacco, cotton, maize and AFFORDABLE ALTERNATIVE
pigeon pea. PROTEINS
The Khula App is another innovative Global growth in demand for protein,
product for emerging farmers. It is a coupled with the rising environmental
16AECI SUSTAINABILITY REPORT 2020
AECI’s agricultural, nutritional and digital capabilities are being
applied to develop innovative technical solutions that expand
nutritional options and support inclusivity towards establishing
a food system that is more productive and less wasteful.
impact of conventional animal farming
and shifting consumer ethics, has led
of mould in dairy. Additions to the
offering continue to be identified and
Reducing the need for
to a growing protein gap and increased assessed. For example, an additive chemicals and water
demand for alternatives. Input sources produced from silkworm silk is being
such as peas and hemp are becoming investigated as an opportunity for the as cleaning materials
increasingly popular and AECI Food & longer term.
Beverage markets a range of novel and when transporting
functional products from these and
other sources (rice, whey, collagen, and
Redistributing liquid food products
keratin) as healthier protein alternatives unsold food We are the first to offer a product called
for consumers. For the medium and long
term we are exploring partnerships in AECI Food & Beverage is currently Mega-InLiner® to the South African
a number of opportunities to develop assisting a non-governmental organisation market. This is a fully recyclable liner
low-cost microbial protein for the mass in Cape Town which redistributes unsold
which allows the liquid product to be
food from retail outlets and fresh fruit
market in Africa. loaded in the liner itself and eliminates
and vegetables to people in need. The
To meet rising consumer demand for project is being supported as part of our the need to clean vehicles with chemicals
sugar alternatives, we supply a range of CSI programme through the donation and water. A trial was undertaken recently
healthier alternative sweeteners, including of flowbins for food deliveries. Greater with a large beverage company and the
low-kilojoule erythritol and natural sugar involvement is being considered. results are promising.
extracted from coconut. Another offering
is a range of lactase enzymes that reduce
sugar content in dairy products for
individuals who are sensitive to lactose.
These solutions are provided primarily
to food and beverage manufacturers in
southern African markets.
FORTIFIED AND FUNCTIONAL
FOOD INGREDIENTS
Recent medical research has made a
connection between poor gut health and
a number of chronic health conditions.
Conversely, a healthy gut microbiome
has been linked to improved health and
wellbeing. To support the gut health of
consumers, we provide a range of functional
ingredients and additives, including
clinically-proven Fibersol®, a dietary
juice-fibre, and a range of probiotics.
Reducing food waste
Collective efforts to reduce food
waste at global level are in the spotlight.
AECI Food & Beverage markets natural
alternatives to artificial preservatives that
extend the shelf-life of food products. An
example is Fresh-Q ®, a bio-preservative
which naturally reduces the development The Mega-InLiner ® is inserted directly into the cavity of a liquid transport vessel.
17AECI SUSTAINABILITY REPORT 2020
CSI
SPOTLIGHT
Witzenburg PALS
With financial support from AECI, The programme enables support for emerging Black
commercial farmers, local communities and farmers by partnering with an established commercial
farmer. The commercial farmer acts as a broker, mentor
government are collaborating in the Western and business partner in an initial joint venture with the
Cape’s Witzenburg District to ensure that emerging farmer on the redistributed land, followed by
Black-owned farms established through the emerging farmer having first option to buy all shares
land reform processes emerge as successful in the venture after a set period. The commercial farmer
enterprises and lead to the economic underwrites the business plan and stands surety on the
financial obligations for the new Black-owned venture.
transformation envisioned in South Africa’s The programme has expanded considerably over the last
National Development Plan. three years and has attracted widespread attention as a
model for use in other provinces across South Africa.
18AECI SUSTAINABILITY REPORT 2020
19AECI SUSTAINABILITY REPORT 2020
BETTER
CHEMISTRY
Reduce the hazardous nature and effects of chemicals
Growing public concerns are Making personal Helping industries
driving changes in legislation and care greener green their operations
leading to a shift in consumer With the move towards milder, more We are trialling the shift to greener
ethics and demand towards the natural and sulphate-free cosmetics industrial processes in our own operations
globally, AECI Chemicals is working with by leveraging our learning and our
sustainable consumption of key suppliers to develop and source such established expertise in support of the
healthier, more natural, safer materials and is actively promoting these shift to greener industry. As always,
options to customers. We offer safer and partnerships with our suppliers and
and more protective products. greener replacements to sulphate and customers are fundamental to success.
The ingredients, materials and other harsh ingredients and preservatives
commonly used in the manufacture of We promote and supply organic
manufacturing processes used to shampoos, hand washes and shower gels. pigments as a substitute for the toxic
produce (and package) consumer Our alternatives are kinder to the skin lead-chrome pigments used in road
and the environment. Market uptake has markings. Our green replacement project
goods are being interrogated. been relatively slow due to higher prices looks to support the substitution of
Our customers are becoming of green alternatives and pressure on environmentally harmful chemicals with
consumers’ disposable income. Almost softer chemicals in the manufacture
increasingly responsive to this
5 tonnes were sold in 2020 from a zero of industrial cleaning formulations. To
scrutiny and more aware of the base in 2018. reduce reliance on non-renewable oil-
economic potential in the sale derived feedstock, we are experimenting
To support the credible climate change
commitments of product manufacturers with a renewable oleochemical feedstock
of greener products. In support to develop an industrial range of epoxy
and brands, we are involved in developing
of this shift, we are leveraging and supplying emulsifiers that enable resins and hardeners.
a change from hot to cold production
our chemistry, procurement and
processes for lotions, creams and hair Developing more natural
customer relations capabilities products. Without the need for heating,
to develop and offer customer- manufacturers use less energy and have a ways to treat waste water
lower carbon footprint. To improve water use by mines we are
centricity solutions, chemicals working with our customers to develop and
and ingredients that embody Making homecare greener implement solutions. We are harnessing
greener chemistry. the power of enzymes and bacteria to
To reduce the impact of homecare and
homecare products on water, and in provide a more natural solution for the
support of the emerging shift to greener treatment of effluents with high COD.
KEY SDG GOALS
homes and lifestyles, we are leveraging our Our initial trial in another sector indicates
customer relationships to promote the use the potential to re-use 50%-60% of
of greener chemicals in the manufacture water treated through this method. A trial
of related products. We supply and actively with a mining customer is underway. The
promote the replacement of nonylphenol efficacy of this water-saving technology
surfactants with less toxic alternatives has been proven and commercialisation
and are advancing the uptake of an “easy plans are well advanced. Our in-house
rinse” technology in washing powders that flow enhancers also reduce water use,
reduces water-use for home laundry. Again, have a positive impact on water quality
market uptake has been relatively slow for and address the issue of sticky ore in
the reasons already outlined above. underground applications. This helps
Over 4 tonnes were sold in 2020. extend the life of a mine.
20AECI SUSTAINABILITY REPORT 2020
In the context of climate change, COVID-19 has amplified public
concern for the disruption and pollution of the earth’s biosphere
as well as the impact of industrial processes and the accumulation
of toxic substances on human health.
A BUSINESS RESPONSE TO COVID-19
WHO-approved sanitisers
AECI offers a range of protective set up a micro-lab for in-house product AECI Schirm, in Germany, rapidly
WHO-approved sanitisers that testing. Further, we worked with the deployed the manufacture of hand
protect people against the spread World Health Organisation (WHO) to sanitiser and disinfectant to address
of the coronavirus. address any misinformation and ensure the need for such products in efforts to
our sanitiser met credible criteria for control the spread of the coronavirus.
As the impact of the COVID-19
quality and efficacy. Initially, a contract for the supply of
pandemic led to the shutdown of some
1,9 million litres was concluded with
of our customers’ operations, some The task was significant but we were
the German Department of Interior
of our businesses also slowed down able to draw on our R&D teams, our
and executed in full. Thereafter, AECI
or suspended their activities. This networks through employees, suppliers
Schirm launched its own product
unplanned interruption gave us the and buyers, and our relationships with
range for the German market and,
opportunity to test our capability to industry bodies and authorities. We
potentially, sales in other Eurozone
respond innovatively and swiftly to an launched our product publicly and used
countries will follow.
unforeseen challenge. We sought new digital marketing channels to source
adaptive opportunities and found good new customers, sell product in bulk and
potential in the production and supply donate to our employees, contractors
of sanitiser to aid in the response to a and communities.
global pandemic.
There was nothing typical about this
We took ethical responsibility to source venture that highlighted AECI’s potential
pharmaceutical grade ingredients, secure to drive innovation in response to a crisis,
all required permits and permissions and including alignment with the SDGs.
21AECI SUSTAINABILITY REPORT 2020
RESPONSIBLE
OPERATIONS
We will minimise our environmental impact and strive
for Zero Harm across our value chain
AECI’s environmental efforts are
inspired by the circular economy
and our aim is to design waste WASTE
and harmful emissions out of our
systems. Our approach employs a
USE THE WASTE PROGRESSION ARROW
“progression arrow” to identify key
opportunities across energy, water,
waste and emissions. We profile ASSESS
WASTE
IMPLEMENT
REDUCTION
EXPLORE
RECYCLING
EXPLORE
TREATMENT/
EXPLORE
SALE OF
TYPES AND AND RE-USE AND RE-SALE ADAPTION WASTE
possible solutions from least- to VOLUMES OPPORTUNITIES OPPORTUNITIES OF WASTE PRODUCTS
WITHIN THE TO CREATE AS A SERVICE
most-favoured to guide decision- AECI GROUP NEW PRODUCTS LINE
FOR SALE
making and capital allocation
(see example for Waste alongside).
Our social efforts are driven TO IDENTIFY KEY OPPORTUNITIES
through continual improvement
against our Zero Harm aspirations
for health and safety. Beyond PREVENTION
MOST
this, the Group supports inclusive FAVOURED
OPTION MINIMISATION
growth through ESD.
RE-USE
KEY SDG GOALS
RECYCLING
LEAST ENERGY RECOVERY
FAVOURED
OPTION
DISPOSAL
GOING GREEN
PL AY YOUR PART IN
ENSURING
For more information see our Going Green booklet available at
https://www.aeciworld.com/sustainability-1
22AECI SUSTAINABILITY REPORT 2020
Responsible production requires that we align our operations
with the reality of environmental constraints and pressing
social needs.
Towards Zero Harm OCCUPATIONAL AND
PROCESS SAFETY
OCCUPATIONAL HEALTH
Through a dynamic set of Occupational
Inspired by our commitment to Reducing workplace injuries and illnesses Health Standards, we actively manage
Responsible Care® and directed by our has always been the top priority for exposure to occupational health hazards. In
SHEQ Policy, we are committed as us. While the final goal is Zero injuries, partnership with third parties, we provide
follows: “to operate sustainably, without milestones are agreed with leadership a suite of services to our employees. These
harm to people, the environment and teams across the Group, and for the include medical surveillance, chronic
the communities in which we operate”. Group as a whole, each year with medicine management, occupational
Our Zero Harm Strategy was developed incremental improvements being sought. hygiene assessments, wellness programmes
to standardise SHEQ best practice and We conduct annual benchmarking and a number of employee assistance
drive world-class performance across against the best performers in our peer programmes. There has been a reduction
the Group. The Strategy is supported by group and use this to inform our own in the rate of occupational illnesses across
12 focus areas for implementation over milestones. With the launch of our Zero the Group in recent years. Noise-induced
five to eight years, commencing in 2017. Harm Strategy, we extended our focus Hearing Loss remains our most challenging
An immediate deliverable for the Group to include process safety. The SHEQ area. One* new occupational illness was
was to eliminate workplace fatalities and Management system includes a dedicated recorded in 2020, down from two* in 2019.
other high severity incidents. This gave risk-based Process Safety Management
rise to a set of “Zero milestones”, aimed (PSM) system through which we track PRODUCT TRANSPORTATION
at reducing a range of high severity and investigate these incidents. AECI AND STEWARDSHIP
incidents to Zero by the end of 2020. is well represented at CAIA’s Process Our products travel thousands of kilometres
The Group was well on track to achieve Safety fora and this involvement has across the globe by various modes of
all milestones in 2020 but unfortunately enabled us to build our own PSM transportation. This includes extensive
an incident occurred in late December capabilities and support the development transport by road across Africa undertaken
which resulted in life-altering injuries to of PSM in South Africa. by heavy-duty vehicles on roads that are not
one of our employees. We are pleased to always in the best of conditions. Most of the
report that the employee is recovering The inclusion of data from AECI
Group’s transportation is outsourced but,
well and has commenced his rehabilitation Schirm and AECI Much Asphalt, once
as part of our commitment to Responsible
process. This was one of our biggest these acquisitions had been finalised in
Care®, we remain accountable for
disappointments for 2020. February and April 2018, respectively,
stewarding the product en route unless the
resulted in a temporary deterioration in
risk is transferred by formal agreement. In
the Group’s overall safety statistics. The
2017 we agreed a Group milestone target:
Total Recordable Incident Rate (TRIR)
PERFORMANCE to reduce major product transportation
HIGHLIGHTS at 31 December 2018 was 0,58* and had
incidents to Zero by 2020. Collaboration
improved to 0,38* in December 2019. The
with our numerous transport partners on
In 2020 AECI achieved: figure dipped as low as 0,34* in January
technological and behavioural solutions
2020 but increased to 0,42* in December
enabled us to achieve this target in 2020.
ZERO 2020, above the interim milestone of
0,36 we set. We have set an aspirational In 2020 we experienced 13* moderate, 14*
Fatalities medium-term target to reduce our TRIR minor and 2* serious product transportation
to less than 0,25 by 2025. incidents. The classification criteria used for
SHE legal directives product transportation is an internal one.
Major or serious Both serious incidents occurred in West
environmental incidents Africa, where third party transportation
TRIR companies moving AECI Mining Explosives’
Major process safety incidentsAECI SUSTAINABILITY REPORT 2020
Further, at the Modderfontein site we’ve supply chains and constrain the operations
reclaimed approximately 1,8 million tonnes REPURPOSING USED of our mining and agricultural customers,
CHEMICAL CONTAINERS
of ash from waste sites associated with in particular. Reducing our carbon intensity
IN LILONGWE, MALAWI.
historical operations. This ash has been helps us manage the risk and opens new
used as input in the manufacture of bricks opportunities in the global carbon market.
for housing developments.
While we execute our growth strategy and
In Australia, a partnership between AECI’s understand the potential expansion of our
Bajool explosives facility and a local recycler operations, we remain committed to reducing
has enabled the recycling of more than our Scope 1 emissions by 20%, by 2025.
70 tonnes of polypropylene bags – cutting
Building on experience at our own
waste by almost 50%. AECI Water designed and built a bespoke
operations, we see opportunities to extend
chemical container chipping and cleaning
AECI Much Asphalt has re-engineered plant which has been installed at the Farmers services in carbon reduction across the
its manufacturing process to include up Organisation Limited (FOL) facility in broader value chain.
to 40% of reclaimed asphalt in the final Lilongwe, Malawi. The plant is designed
In 2007-2008, AECI Mining Explosives
product. Since 2012, this more circular to chip and clean vessels which were
originally filled with agricultural products, implemented Clean Development
process has avoided the impact associated
manufactured by FOL and sold to farmers. Mechanism (CDM) projects at both its nitric
with mining 1 015 349 tonnes of aggregate
The farmers are encouraged to return the acid plants in Modderfontein to reduce nitrous
and refining 53 439 tonnes of bitumen.
containers which are then chipped and oxide (N₂O) emissions through catalytic
Asphalt recycling has been so successful cleaned of any residual hazardous material. reduction. The projects have since generated
that the South African Road Federation
The chipping prevents the containers approximately 1,3 million carbon credits which
has included it in its tender requirements.
from being sold or used for water have been sold. We will be exploring other
Historically, our approach to managing air collection. The certified clean plastic is carbon credit-generating opportunities in our
emissions has been largely compliance- then offered to recycling companies to AECI Agri Health business.
led. AECI Mining Explosives has focused manufacture non-human consumption
plastic materials such as irrigation pipes REDUCING GREENHOUSE
on compliance with the 2020 Minimum
or plastic sheets for greenhouses. GAS EMISSIONS
Emission Standards in South Africa,
Installation of a secondary catalyst at AECI
investing more than R100 million in air Through this initiative, FOL is also helping
address a significant compliance challenge.
Mining Explosives’ nitric acid plants in
emissions abatement initiatives. 80% of this
Farmers are required to comply with the Modderfontein is expected to reduce CO₂e
amount was spent in 2019. Despite being
Rain Forest Alliance, as an example, but emissions by approximately 45%. N₂O has a
granted a postponement of compliance
there are no facilities to handle empty, greenhouse potency more than 296 times
with some Standards until 2025, we are contaminated containers. that of carbon dioxide. Our investment of
accelerating our related efforts to achieve
Without cleaning, the containers would R10 million will deliver a reduction in the
full compliance during 2021.
be reclassified as hazardous waste and Group’s footprint from the end of 2021
LAND REMEDIATION additional licensing to handle and store and support the achievement of our 2025
them would be required. reduction target.
AECI has operated its oldest sites for
well over 100 years. The environmental The initiative is a win-win for all: it helps deal As another example, by the introduction
and health risks associated with land and with a significant waste footprint, addresses of waste methane gas into the feed for
ground water contaminated by historical a major compliance issue for farmers and
steam production at AECI Property
operations intensify as land now surplus to enables small recycling firms.
Services at the Umbogintwini Industrial
operational requirements is made available Complex is reducing both its costs and
for alternative uses, including residential Somerset West site formerly owned by the
upstream
and commercial development. Accordingly, Group and handover to the developer. The
carbon dioxide emissions.
we have adopted a risk-based approach, in Enhanced In-situ Bio-remediation project
alignment with the guiding principles of our at the Umbogintwini Industrial Complex INCREASING ENERGY EFFICIENCY
Land Remediation Strategy for South Africa has reached its final stage of deployment
While every lightbulb counts, the biggest
(2019). The focus of the Strategy is on and development and now moves into the
energy efficiency opportunities are in
remediating our historical management areas maintenance phase. Our active remediation
our production plants. Installation of
impacted by industrial operations over a long work has shifted to Modderfontein, where 10
Variable Speed Drive technology on the
period. Before seeking approval for a land management areas require remediation in line
cooling towers at AECI Mining Explosives’
remediation proposal from the Department with the aforementioned strategy. The work
Modderfontein facility reduced energy
of Environment, Forestry and Fisheries will be executed within a framework and time
use by 941 600 kilowatt hours per year.
(DEFF), we follow a formal planning process agreed with the Regulator.
which includes land characterisation, risk In January 2020, AECI’s Bajool facility in
assessment and selection of treatment and Reducing our Australia achieved a reduction in overall
power usage of 15% by transitioning from
management options.
In 2019, we received an award from the
carbon intensity mains power to the use of generators on
demand. This transition has reduced the
DEFF for our contribution to executing The effects of climate change are material
facility’s carbon emissions by an estimated
the intent of South Africa’s National to our business. Extreme or unpredictable
3,5 tonnes CO₂e per month.
Environmental Management Waste Act weather events are increasing the frequency,
(2008). Examples of work undertaken severity and effects of droughts, floods Renewables will meet an increasing share of
included successful completion of and water shortages. These events have our energy needs over the next decade. We
remediation of the final portion of the a real or potential negative impact on our have already committed to installing four
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