OUR ENVIRONMENTAL PERFORMANCE

Our purpose is to enhance the quality of life of our stakeholders. To achieve this aim, we recognise that the health of our natural environment is critical.

CLIMATE CHANGE

Climate change is humanity’s most significant health threat. The Intergovernmental Panel on Climate Change has concluded that to avert catastrophic health impacts and prevent millions of climate change-related deaths, the world must limit temperature rise to 1.5°C.

To mitigate our direct environmental impacts, we aim to continuously improve our performance by diversifying and reducing our use of natural resources and preventing pollution.

GHG emissions

The following table provides a detailed overview of Medscheme’s 2024 GHG inventory, including the percentage contribution of each category and sub-category to the total GHG inventory and the percentage change from 2023. The scope of the 2024 assessment includes 26 office clusters distributed across the country.

This report does not provide the emissions information in the format required by the South African Department of Forestry, Fisheries and the Environment, per the National GHG Emission Reporting Regulations. This is because it was established in the previous reporting year that the Medscheme operations are below the Department’s reporting thresholds for listed activities. Combustion of diesel in back-up generators is one of the most likely listed activities for reporting. The reporting threshold is based on the total installed capacity (10 MWth) of back-up diesel generators in the South African office clusters over which Medscheme owns or has operational control.

The calculated total GHG inventory for FY2024 amounted to 16 303 tCO₂e, which resulted in a 5% increase compared to FY2023. Direct (Category 1) GHG emissions for FY2024 amount to 574 tCO₂e, which was a reduction of 29% compared to the previous year. The significant decrease in emissions was largely driven by reductions in diesel consumption for generators and electricity use. The reduction in diesel use was largely due to the reconfiguration of infrastructure reticulation in some buildings.

Indirect emissions amounted to 15 729 tCO₂e in the reporting year, representing a 7% increase from the previous year. However, emissions from purchased electricity (Category 2) reduced significantly by 30% compared to the previous reporting period.

A notable increase in emissions from transportation activities (Category 3) reflects a change in operational dynamics. This increase can be explained by the significant increase in employees from FY2023 to FY2024, where the total number of employees increased from approximately 2 287 to 4 715. This increase can also be attributed to a rise in employees working from the office again after being able to work from home due to the COVID-19 pandemic.

EMISSION CATEGORY	Emission source	FY2024 emissions	FY2023 emissions	Contribution	Percentage  change
Category 1 Direct GHG emissions and removals	Diesel used in generators	443	772	2.77%	(43%)
	Petrol used in vehicles	91	29	0.56%	211%
	LPG	2	3	0.02%	(7%)
	Refrigerant gases (R410A, R134A, R600A)	29	4	0.18%	625%
	R22	7	5	0.05%	40%
Total direct emissions		574	813	3.58%	(29%)
Category 2 Indirect GHG emissions from imported energy	Purchased electricity	5 084	7 226	31.74%	(30%)
Category 3 Indirect GHG emissions from transportation	Fuel- and energy-related activities	1 440	1 116	8.99%	29%
	Business Travel	1 408	830	8.79%	70%
	Employee commuting	7 511	5 260	46.89%	43%
Category 4	Water	43	44	0.27%	(2%)
Indirect GHG emissions from products used by the organisation	Food	124	111	0.77%	11%
	Stationary	27	0.31	0.17%	100%
Category 6 Indirect GHG emissions from other sources	Waste	90	79	0.56%	14%
TOTAL INDIRECT EMISSIONS (CATEGORIES 2, 3, 4 AND 6)		15 729	14 668	96.48%	7.23%
TOTAL EMISSIONS		16 303	15 481	100%	5%

Emission category mapping between ISO 14064-1:2006 and SANS 14064-1:2021

SANS 14064-1:2021					ISO 14064-1:2006			GHG protocol			Description
1.		DIRECT GHG EMISSIONS AND REMOVALS			Direct GHG emissions and removals			Scope 1			Direct emissions
2.		INDIRECT GHG EMISSIONS FROM IMPORTED ENERGY EMISSIONS			Energy indirect GHG			Scope 2			Energy indirect emissions
3.		INDIRECT GHG EMISSIONS FROM TRANSPORTATION			Other indirect GHG emissions			Scope 3(3) Scope 3(4)			Fuel and energy-related activities Upstream transportation and distribution
								Scope 3(6)			Business travel
								Scope 3(7)			Employee commuting
								Scope 3(9)			Downstream transportation and distribution
4.		INDIRECT GHG EMISSIONS FROM PRODUCTS USED BY THE ORGANISATION						Scope 3(1)			Purchased goods and services
								Scope 3(2)			Capital goods
5.		INDIRECT GHG EMISSIONS ASSOCIATED WITH THE USE OF PRODUCTS FROM THE ORGANISATION						Scope 3(10) Scope 3(11) Scope 3(12)			Processing of sold products Use of sold products End-of-life treatment of sold products
6.		INDIRECT GHG EMISSIONS FROM OTHER SOURCES						Scope 3(5) Scope 3(8) Scope 3(13)			Waste generated in operations Upstream leased assets Downstream leased assets
								Scope 3(14)			Franchises
								Scope 3(15)			Investments

Energy mix

While our current energy composition is anchored in non-renewable sources, as we chart our path forward, we are committed to transitioning towards utilising more renewable sources, aligning ourselves with global sustainability standards and playing our role in mitigating the impacts of climate change.

We have started using solar power solutions for some of our buildings, including those we lease. Two leased buildings are scheduled to have solar solutions installed in the first half of the 2025 financial year, which will be grid-tied installations, and the landlords have agreed to assist with these implementations. The other two owned buildings will be considered in the latter part of the financial year.

Water

We recognise that water is a finite resource, and within our context, many of our operations are located in water-stressed areas. Therefore, managing our water consumption is a moral obligation that helps mitigate operational, regulatory and reputational risks relating to water use while reducing operating costs.

WATER (KL)	2024	2023
Withdrawal (municipal)	30 573	31 751
Groundwater (borehole) withdrawals	nil	nil
Recycled water (greywater)	nil	nil
Total water consumption from water-stressed areas	30 573	31 751
Total water consumption	30 573	31 751
Water intensity ratio (Kl/m2)	257.48	251.246

A borehole project was concluded in January 2023 and feeds buildings in the Group’s office park, namely Blocks A, B and C, with the intention to add Block D as well. This borehole is working; however, some refinements are still being undertaken. Therefore, the contribution of this system will not be included in this reporting cycle.

Pollution and waste

We strive to reduce our impact on the natural environment through effective waste management, which can also reduce operational and capital costs through improved efficiencies. In contrast, a failure to manage waste can result in reputational damage and increase potential financial and legal liability costs.