Environmental responsibility

Companies globally are challenged to balance competing demands, such as increasing shareholder value, with sustainable business practices. As such, Oceana recognises that practices introduced today have a long-term impact for future generations and that its operations impact the environment significantly.

Policy and strategy

The group's Environmental Policy, approved by the board and reviewed annually, is published on the corporate website. Strategy, to give effect to the policy, is reviewed and updated regularly at executive and senior management level. The chief executive officer (CEO) is responsible at board level for implementation of the policy, while divisional managing directors are responsible at operating level. Policy and strategy are outlined in the table below:

Communication and training

Oceana's Environmental Policy requires executive management to develop skills and awareness concerning environmental issues and responsibility among employees in key areas of activities and operations, including most efficient usage of non-renewable resources. The policy is available to all employees.

Compliance with the Environmental Policy, along with Oceana's other formal policies, is a condition of employment, with the possible consequence of disciplinary proceedings for non-compliance.

Awareness is promoted through a variety of channels, including articles on environmental issues in the Oceana Tidings magazine; maintaining environmental risk registers and quarterly reporting, environmental committees at larger operational sites; and the inclusion of environmental training in annual induction training programmes.

Sustainable fisheries

The continued availability of the marine species harvested by Oceana is fundamental to the sustainability of the business, as well as satisfying the expectations of stakeholders.

Membership of the responsible fisheries alliance

Now in its third year of existence, the RFA seeks to ensure that all stakeholders understand and support the implementation of an ecosystem approach to fisheries management in South Africa's fisheries. The RFA comprises the WWF for nature in South Africa, and four major fishing industry players, namely Oceana, I&J, Sea Harvest Corporation and Viking Fishing.

Oceana prides itself on the fact that all its commercial fishing rights fall within the green category of the updated SASSI list, which guides consumers about sustainable seafood choices. The species on the list are assessed, based on the health of the fisheries, and then allocated into a colour category. Green represents the most sustainable choice, orange indicates reasons for concern and red represents unsustainable fish populations or are illegal to buy and sell.

Status of the South African fisheries relevant to Oceana

Oceana's leadership continues to take a close interest in the body of knowledge and research concerning marine resources and reasons for the changes in the biomass and availability of the species. Equally important is the management of marine resources, in particular the methodology adopted in determination of TAC and the process of allocating quotas. The success of these processes depends on the availability of reliable factual data and honesty of purpose in deliberation and decision-making.

Consultation with government departments, academia and industrial technical working groups enables Oceana to contribute to and benefit from a wide source of knowledge and experience, supplemented by reference to published material concerning marine life and factors affecting it.

Extensive independent research reports are available in the sustainability section of the corporate website, which provides data and conclusions regarding the status of species that Oceana is involved in harvesting.

Sustainability forum

As part of the governance structure within the group, a sustainability forum was established with formal terms of reference. It comprises senior operational managers who engage with divisional operational manage­ment to facilitate implementation and management of policy.

The terms of reference of the forum are as follows:

• Promote understanding of environmental issues requiring attention
• Identify disciplines where initiatives would make the most impact
• Make recommendations on strategies, targets, projects and efforts

At its five meetings this year, the forum paid attention to employee wellness; training and development; the health and safety of employees; CSI; stakeholder engagement; reviewing divisional environmental risk registers; assessing the internal ECS; permits and licences; climate change; GHG emissions; efficient use of non-renewable resources; water conservation initiatives; reduction of energy usage; recycling and waste minimisation.

Environmental management system

Oceana's ECS provides for the identification, monitoring and control of the group's environmental issues. In designing this system, international best practices were taken into consideration, specifically the ISO 14000 series, as well as the local South African legal requirements.

The first ECS external audits were conducted in 2010 at six operational sites. Following this audit, environmental targets were set for 2011, which required an overall average score of 85%, as well as a minimum score of 65% for each element in the audit. During 2011, Alexander Forbes Risk Engineering Services conducted independent environmental audits at all Oceana land-based sites. The table below indicates the audit scores achieved during 2011 vs 2010, as well as the target per element of the audit for each division. All divisions showed an improvement on the overall scores and also met the minimum target for the overall and individual elements. In summary, the targets set were met across the group.

Risk registers

Each of the four operating divisions maintains its own environmental risk register, with combined assurance and action plans, which form part of the overall enterprise-wide risk management system.

The environmental risk registers record and analyse the major risks impacting, or potentially caused by, each division's activities, products and services. The consequence rating is chosen on the basis of the most likely impact(s) of the plausible worst-case scenario of the various risks on the company and its stakeholders and takes into consideration possible financial, health and safety, environment, reputation, legal and compliance, and management impacts.

The risk registers detail action and assurance plans regarding the group's ability to respond to, and manage, the risks identified and its possible consequences.

The risk registers are reviewed and updated quarterly. The group's Environmental Policy prescribes the procedure for reporting major environmental incidents to the CEO, risk committee and at divisional meetings. The internal reporting and monitoring system includes immediate reports to the CEO of every major environmental incident.

Factors that impact the environment which are beyond Oceana's control

Whilst Oceana takes care to minimise its impact on the environment, certain risk factors are beyond its direct control, which can affect performance. These are described in the table below:

Potential and actual impacts of Oceana's activities on the environment

The actual and potential direct and indirect impacts of Oceana's activities on the environment are as follows:

Licences, policies and procedures

All operations are required to maintain up-to-date permits and licences, which are reviewed regularly by management. Assurance is obtained through periodic site and permit reviews or audits by professional consultants.

Skippers on all Oceana's fleets are bound to formal policies that regulate issues such as targeting particular fish species; avoiding by-catches of other species; prohibiting dumping of fish, fuels and plastics at sea; and procedures for refuelling, handling spills of fuel and oil, cleaning of tanks and garbage disposal. Professional and indemnity insurance cover for environmental damage is in place.

Operating procedures for work to be done by trained and responsible staff, such as adequate supervision, reporting of failures and omissions and further investigation thereof, are adhered to in all major areas of business, including cold storage. Factories and cold stores have procedures to test higher-risk installations (eg oil and ammonia stores) and to react to failures or damage.

The terms of its supply agreements, with professional advice where appropriate, assist Oceana in clarifying legal liability in the case of environmental incidents such as fuel leaks or spills, or loss and damage to fish en route to a processing plant. Recovery plans and insurance are in place to cover the consequences where Oceana has a liability or might incur loss.

Other compliance methods

All commercial fishing rights held by Oceana fall within the green category of the SASSI consumer list. The hake trawl fishery is certified by the Marine Stewardship Council.

Independent verification of compliance, with criteria as to usage of resources and methods of operations, is provided by the DAFF; Water Affairs; Environmental Affairs; and other local authorities. This verification includes checking landings; inspectors on board fishing vessels; monitoring adherence to fishing zones; monitoring of by-catch; as well as monitoring atmospheric emissions and water effluent discharge.

The SAMSA checks vessel registration, safety and navigation compliance. A survey of International Air Pollution certification of vessels is conducted annually on horse mackerel vessels.

Documentation pertaining to the use, management and control of resources is maintained. This includes fishing rights and permits, permits regulating activity in processing plants, product clearances, storage and use of flammable liquids and major hazardous installations.

Non-compliance

Structures are in place to address non-compliance with policies and ensure that preventative and corrective action is implemented. These include reporting and follow-up procedures in the Environmental Policy; control systems outlined in the risk registers; and the relevant disciplinary action for any breaches prescribed in the Discipline and Grievance Code and Guidelines.

During the year there were neither major instances of non-compliance with environmental regulations nor prosecutions. A minor incident occurred at BCP when 0,5 tons of bunker fuel was spilled in the port of Cape Town by the Desert Diamond. The spillage was contained and cleaned immediately with no significant impact on the environment. The port control and SAMSA were notified and an administrative penalty of R50 000 was paid.

Oceana's environmental management systems are subject to review as circumstances require. The Environmental Policy and the Code of Business Conduct and Ethics confirm the principle of legal compliance in group operations and, so far as reasonably possible, in the business activities of outside parties supplying fish, goods and services to group companies.

Climate change

Oceana commissioned a study on the fishing industry's role in adapting to climate change. Oceana has set short-term GHG emission reduction targets and will set longer-term GHG emission reduction targets in line with national and international regulations in the medium term. In addition, Oceana is committed to increasing awareness amongst its stakeholders regarding climate change issues.

Carbon disclosure project

This past financial year marked the second year in which Oceana participated in the Carbon Disclosure Project (CDP), which encourages companies to measure and disclose their GHG emissions. Oceana continues to seek innovative ways of managing GHG emissions and improving its water usage and conservation efforts in all its operations. Oceana was included in the Carbon Disclosure Leadership Index during 2010 and received a gold award in being placed within the Top 10 companies on the Index.

Carbon footprint

A full report is available on Oceana's website. An independent analysis was conducted by Global Carbon Exchange on the carbon footprint for all Oceana's South African and Namibian operations. The footprint was verified by Promethium Carbon.

Energy usage and limitations of emissions

Use of energy varies annually from division to division depending on, for example, the TAC, the location of fish, distance to processing plants, weather and factory production runs.

In terms of Oceana's Environmental Policy, factories and vessels are required to minimise usage of fossil fuels and emissions of gases, particulate materials and odours into the atmosphere. Factories comply with conditions imposed by legislation.

There is a continuous drive to achieve reduced energy consumption (diesel and electricity) in vessels and plants through revised operating procedures and technological enhancements, recycling and reusing renewable and non-renewable resources (waste heat, water, packing materials), and enhanced control of emissions – all of which reduce the group's carbon footprint and save costs.

The sustainability forum reviews the energy reduction initiatives on a bimonthly basis. Visit the Oceana website, for a list of energy reduction initiatives that have been implemented or have commenced since 2009.

The group monitors the CO2 emissions in absolute terms as well as per unit of activity (intensity). In the case of Oceana's three fishing divisions relative CO2 emissions has been expressed per 1 000 tons of finished product and for the Commercial Cold Storage division per 1 000 pallets of product handled into the stores.

An intensity reduction target for each division of 2,5% was set during the year under review.

In absolute terms, the group as a whole reduced its overall CO2 emissions by 15%. This included a reduction of absolute emissions by OB, BCP and CCS. In intensity terms, BCP and CCS achieved a significant reduction in their CO2 emissions of 20% and 22% respectively. The reduction at CCS was mainly due to increased focus on managing and optimising electricity usage levels. The reduction at BCP could mainly be attributed to reduced consumption of freon and the efficiencies resulting from increased product volumes.

The 19% increase in relative emission at OB is mainly due to an increase in the consumption rates of marine gas oil (diesel), electricity and heavy fuel oil (HFO). The presence of excessive by-catch levels, which prohibited effective industrial fishing during the second and third quarter of the year, and the scarcity of fish during the third and fourth quarter, resulted in smaller landings and thus lower total industrial volumes. The smaller batches had a detrimental effect on the diesel consumption of the vessels. Smaller production batches and lower landings at the Hout Bay fishmeal plant resulted in a substantial increase in the consumption rates of electricity (53%) and HFO (30%) per product produced. The impact of smaller industrial landing batches at the St Helena Bay plant was offset by the availability of offal volumes that increased the size of processing batches. The consumption rate of electricity increased by 23%, while the consumption rate of coal only increased marginally by 3%. Although the freon consumption rate increased by 15% two freon installations were taken out of production during the year under review.

OLSF saw a 9,3% increase in relative CO2 emissions mainly due to increased electricity and coal consumption. The electricity consumption increased due to a full 12-month operation at the Lobster Hout Bay factory, increased operation and increased stock holding at the lobster St Helena Bay factory, the increase in production at the French fries factory and the new value-added plant commissioned in the first half of the year at the French fries factory.

The data and calculations used to determine the 2011 carbon footprint for Oceana's South African and Namibian operations have been verified by an independent party in accordance with ISO 14064, Part 3.

Water

The group's policy and management practice is to use water as sparingly and efficiently as possible in production, cleansing and domestic applications. Usage is monitored on a monthly basis in factories and on vessels directly under the company's control and is reported at monthly management meetings, as well as the bimonthly sustainability forum meeting.

The 2011 consumption and product information below was verified within the carbon footprint verification process.

Waste and effluent minimisation, recycling and disposal

Over the past year, increased focus was placed on introducing new waste minimisation initiatives, as well as developing and implementing the waste procedures within the environmental control system.

BCP recycles sludge and waste oils as well as scrap metal on horse mackerel and hake vessels. Paper recycling was initiated in the BCP offices. International recycle and trash can logos are featured on wrapping for frozen horse mackerel products. All horse mackerel fish caught on fishing vessels not suitable for frozen markets is processed on board into fishmeal.

CCS conducts in-house sorting of their solid waste. CCS has entered into an agreement with an external waste manage-ment company to sort, recycle and sort their waste at three of their seven South African cold stores. The roll-out of this initiative to the other cold stores is being investigated. Drain water from cooling pods are used to wash the floors, returned back to condenser sumps and urinal flushing units at three of the cold stores. The City Deep cold store is collecting rainwater from the cold store roofs and drainwater to top up condenser sumps. The Walvis Bay cold store is collecting condenser overflow water and use it in urinal and toilet flushing units. Most of the cold stores are recycling scrap metal, carton rolls, paper and used lubrication oil.

OLSF recycles paper, cardboard, plastic bags, used lubrication oil and coal ash. Different waste decomposition projects have been investigated, including a project by the National Cleaner production centre. The minimisation of solid waste generated by the French fries facility in Lambert's Bay continues to be a key focus.

During the implementation of the waste procedure at OB, bins were allocated per department for waste separation. An onsite baler is used at the cannery and fishmeal plant facility in St Helena Bay to bale the separated waste streams after which specialist contractors remove and recycle waste oils, plastics, paper cartons and coal ash as per respective agreements.

With regard to recycling or reclamation of fish waste material, offal from the cannery (fish heads, tails and guts) is processed into fishmeal. Offloading of fish for the cannery and fishmeal plant uses recycled water (freshwater and seawater). Fish and waste in the cannery are moved dry, instead of in water. Water for cooling in retorts is filtered and reused. Condemned canned fish is destroyed under controlled conditions. Stick water in the fishmeal plant is reprocessed to extract all proteins and solids. In fishmeal plants, condensate and steam for heating and drying are returned to the boiler for reuse, and also in a waste vapour heat recovering system. The waste vapour is condensed in seawater scrubbers. Waste water is returned to the sea at ambient temperatures in terms of authorised conditions of use.

Hazardous waste is disposed of at approved landfill sites.

The sustainability forum reviews waste generation, recycling and disposal of waste in all divisions at bimonthly meetings.

Monitoring and management of impacts of commercial fishing

Compliance with rules and regulations

The impact of commercial fishing on each species and marine life is managed by a comprehensive process of regulatory control, industry involvement and engagement, and company-specific (in Oceana's case) management procedures. Catch controls are set by the Minister of Agriculture, Forestry and Fisheries after scientific surveys and study of the biomass and in consultation with major stakeholders.

Oceana is directly and indirectly involved in interacting with MCM concerning management and sustainable use of fish and the marine habitat through various industry organisations.

The industrial or commercial part of the allowable catch is allocated amongst long-term fishing rights holders, who obtained such rights on the basis of being eligible in terms of various criteria, including performance and legal compliance. Fishing in terms of a right may not commence without a permit issued by the authorities for a season or period, and includes conditions with respect to species, size, by-catch, controlled areas, etc.

Independent observers

Compliance with the legal framework and permit conditions is facilitated by a system involving independent observers on vessels during fishing trips; monitoring vessel location and movement by MCM in South Africa through satellite and cellphone technology; and landing all catches only at discharge sites specified in permits.

Independent monitors, appointed by MCM, must be present during offloading, to check mass, species mix and size, presence of by-catch, etc. Oceana's own systems of compliance Apart from the laws and controls implemented by regulatory authorities, Oceana has introduced its own formal operating procedures to promote compliance with disciplinary actions outlined for transgressions.

Oceana’s own systems of compliance

Apart from the laws and controls implemented by regulatory authorities, Oceana has introduced its own formal operating procedures to promote compliance with disciplinary actions outlined for transgressions.