Page 36 - SAGT Sustainability Report 2021
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34 SOUTH ASIA GATEWAY TERMINALS (PVT) LTD

ENVIRONMENTAL

STEWARDSHIP

As part of the sustainability performance       SAGT applies the Green House Gas (GHG)            consumption and harmful CO2, NOX and SOX
management system, the consumption of           protocol of the World Resources Institute         emissions, SAGT initiated the installation of
various materials is tracked and monitored,     (WRI) and the World Business Council for          new hybrid engines on two RTGs in November
and flagged items communicated to the           Sustainable Development (WBCSD), in               2019.
relevant decision-making bodies.                measuring carbon emissions which serves
                                                as the basis for monitoring all electricity       Since then, two hybrid engines were
The procurement of Materials is centralised to  and fossil fuel consumed at SAGT. SAGT            introduced as a pilot project and have
ensure cost-effectiveness, improve efficiency   calculates its carbon footprint on the basis      successfully reported savings of 135,453
of negotiations, and optimise usage. Materials  of carbon emission factors as set out in the      litres of diesel and a total cost saving of
are sourced via two primary channels: either    IPCC guidelines for national greenhouse gas       approximately LKR 14,046,700 for the period
directly through SAGT’s Supply Chain division   inventories published by the Institute of Global  from November 2019 to March 2021. In light of
or the Sourcing Initiative of the John Keells   Environmental Strategies (IGES).                  the success achieved through this pilot project,
Group for specified items.                                                                        SAGT expects to convert all 37 RTGs to hybrid
                                                The Company’s carbon intensity is calculated      engines by 2022.
The Company’s Supply Chain Division             based on the total number of boxes moved.
maintains a supplier registry, where new        This will form the base for carbon reduction      SAGT consumed 19,220,990 KWh of electricity
suppliers are screened and on-boarded           targets in the forthcoming years.                 from the National Grid during the year, a 9%
through a highly transparent supplier                                                             increase in overall electricity consumed from
screening process that focuses on a wide        Energy consumption in GJ at SAGT for the          the previous year. The 19,220,990 KWh of
range of aspects including social and           financial year 2020/21 and 2019/2020 is           electricity consumed in the current financial
environmental criteria. Currently, SAGT’s       detailed below.                                   year is the equivalent of 16.8KWh of electricity
supply chain consists of equipment suppliers,                                                     consumed per box move, which represents a
maintenance service providers, manpower         Total Power    GJ in FY    GJ in FY               29% increase per box move, in comparison
providers, waste disposal service providers     Consumed       2020/21     2019/20                to the previous fiscal year, the larger increase
as well as suppliers of fuel, stationery        in GJ                                             arising as a result of lower number of boxes
and other consumables totaling over 1244                       187,151       194,199              moved during the year in comparison to the
registered suppliers. While most of SAGT’s      Diesel                 18          32             previous year.
equipment is sourced from large international   Petrol
suppliers, manpower, maintenance and other      LPG               1,476         1,533             Total Electricity  2020/21 2019/2020
consumable items are sourced locally. Of the    Indirect         69,196       63,249              Consumption at
Company’s 1244 registered suppliers, 996 were   Energy -                                          SAGT
local suppliers and 248 were international      National Grid
suppliers. Eighteen new suppliers were on-
boarded in 2020. 68% of SAGT’s procurement      SAGT consumed a total of 6,165,137 litres         All QC (kWh)       6,905,037  7,433,388
spend for the year under review was on local    of diesel in its operations, a 4 % reduction      All Reefers        8,746,700  6,847,100
suppliers.                                      compared to the previous year. Approximately      (kWh)
                                                63% of the total diesel used during the year      Yard/              3,569,253 3,288,660
ENERGY AND EMISSIONS                            was from the operation of Rubber Tyred            Building(kWh)
MANAGEMENT                                      Gantry cranes (RTGs). 33% of diesel used
                                                was to power Prime Movers while the balance       Reefers consumed the largest share of
GRI 302-1: Energy Consumption within            was utilised by yard vehicles and other           electricity, amounting to over 46% of the total
the Organisation                                ancillary and support equipment. Yard vehicles    consumption. The total electricity consumed
                                                consumed 190,387 litres of diesel, reflecting a   by all QCs was 6,905,037 kWh. Of this, Reefers
SAGT’s Energy and Emissions Policy is           63% increase in consumption compared to the       consumed 8,746,700 units of electricity and
designed to conserve energy through green       previous year. This increase mainly attributed    the Administration Function/Yard activities
practices at all levels of the business and     to the increase in the yard vehicle fleet.        accounted for 3,569,253 units. This indicated
continuous monitoring of the energy and                                                           a 7% reduction in electricity consumed by
emission data pertaining to the Company.        In addition, SAGT used 33,563 kg of LPG in its    all QCs, as well as a 28% increase in the
                                                kitchens and staff canteens, a 4% decrease        consumption of electricity consumed by
                                                year on year. With the aim of reducing diesel     reefers and a 9% increase in consumption
                                                                                                  by the Administration Function/Yard, in
                                                                                                  comparison to the previous year. The increase
                                                                                                  in electricity consumed by reefers was a
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