Operational impacts on the environment are managed by the businesses as required by legislation on waste packaging, prevention of spills and compliance with regulatory licences to operate – e.g. waste water discharge consents and waste management permits in the Environmental division.
In businesses where there is a more significant potential for environmental impact, principally within the oil business and the environmental division, specific controls and procedures (e.g. tank testing, bunding and monitoring systems) are in place to minimise the likelihood of spills. The environmental management systems in a number of businesses are certified to the ISO14001 standard.
Regrettably, in 2015 Enva’s Portlaoise facility was responsible for excessive odour levels arising from waste oil processing and in December 2015 the company pleaded guilty in the District Court to causing an odour nuisance. All practical measures, both operational and technical, have been implemented to eliminate odour emissions and address the concerns of both the Irish Environmental Protection Agency and the local community.
Energy and Climate Change
The Paris Agreement negotiated at the United Nations COP21 in December 2015 was a significant milestone on the journey to the global reduction of greenhouse gas emissions. The physical realities of climate change, ambitious reduction targets and increasing societal demands present challenges and opportunities to all organisations.
EU Energy Efficiency Directive
During 2015, compliance with the nationally determined requirements of the EU Energy Efficiency Directive Article 8 was achieved in all affected businesses. This was achieved through a variety of measures, in particular the completion of in-depth energy efficiency audits at larger processing facilities and of the vehicle fleet. Recommendations for cost savings opportunities from
these audits are being prioritised for implementation and shared between businesses to maximise efficiency gains.
All subsidiaries report energy use data to DCC’s on-line IT platform. Carbon emissions are calculated using conversion factors from DEFRA in the UK and in line with the international Greenhouse Gas Protocol. This information is used to comply with mandatory reporting requirements, for example, the UK Carbon Reduction Commitment Scheme and requirements under the EU Energy Efficiency Directive, and with voluntary reporting to the CDP, a global initiative, funded by the investment community, which encourages companies to publicly report their carbon emissions and the steps they are taking to address the challenge of climate change.
Absolute carbon emissions for the Group in the year ended 31 March 2016 fell by 6% to 120 mtCO2e. Contributions to this decrease include the disposal of the Food & Beverage division, a milder winter requiring less facility heating demand and ongoing energy efficiency initiatives – in particular at the Healthcare manufacturing facilities and in the HGV fleet. Offsetting this decrease were a number of acquisitions and increasing throughput at a number of facilities.
The carbon intensity of DCC businesses has decreased by 5% on a per revenue basis against the prior year and by 28% against our baseline of 2011.
KPMG has undertaken limited assurance over selected data within this report in relation to carbon emissions and their report is set out on page 202 of our Annual Report.