Illovo - Climate Change and Environmental Impacts Report 2014/15 - page 4

In a further example of our progress towards sustainable agriculture, the World Wildlife Fund, in
partnership with the Noodsberg Cane Growers’ Association and supported by our own Noodsberg sugar
factory and refinery, was instrumental in the development of a Sustainable Sugar Cane Farm
Management system for growers, termed SUSFARMS®. This concept is based on three fundamental
environmental principles for sustainable sugar cane production - natural assets are conserved, critical
ecosystems are maintained and agricultural resources are used sustainably
,
all in conjunction with social
and economic drivers. Performance relative to the principles is judged according to verifiers, resulting in
a creditable certification system for implementation at other sites. The South African Sugarcane
Research institute (SASRI)
continues to
enhance the SUSFARMS® model. Through our membership of
the South African sugar industry, we contribute to the pursuit and practice of the SUSFARMS® ideology
in this country.
TECHNOLOGY, RESEARCH AND DEVELOPMENT
Illovo’s future sustainability objectives are underpinned by technology, research and development. Our
climate change mitigation indicators are directed at promoting energy efficiency initiatives and advancing
the use of clean technology where appropriate.
In order to optimise the return from our existing installed capacity, we have well established in-house
resources which provide technical expertise in agriculture, sugar production and downstream product
manufacture at all operations. A centralised core of expertise exists to ensure technical standards are
optimised and maintained for both existing equipment and new agricultural and factory installations and
to keep abreast of technical innovations. This in-house function is also involved in investigating
opportunities to expand our operations and in the planning and implementation of approved projects.
We continue the collaboration between our technical services function and AB Sugar with regard to the
application of new technology, energy efficiency improvements and process performance optimisation.
Our Continuous Improvement (CI) initiatives focus on enhancing productivity and reducing cost of
production at all our operations, with emphasis on benchmarking and optimising operational
performance across the group.
We continue to benefit from research and development undertaken by the South African Sugar Milling
Research Institute and SASRI. These organisations are funded by the member sugar companies,
including Illovo, which are represented on the respective boards of these institutes.
Illovo has a dedicated team which pursues opportunities for the development and commercialisation of
downstream products and new applications. In this regard, we collaborate with both local and
international research organisations and outsource certain work as appropriate.
Illovo produces a number of products utilising bagasse and biomass generated from its operations and
exports excess electrical energy into the national grid from certain of its operations. In addition to sugar,
syrup, ethanol and lactulose, the downstream plant at Sezela uses the bagasse from its manufacturing
operations to produce furfural – a common agricultural by-product resulting from sugar cane milling –
and its many derivatives, including environmentally-friendly agricultural chemicals to control nematode
infestation of agricultural food crops and turf.
During the year under review, Illovo spent R11.7 million on research into new technologies and product
development-related interventions (R13.4 million during the previous financial year).
BIODIVERSITY
We operate over vast tracts of land, some of which are situated in close proximity to areas of potential
ecosystem sensitivity. The protection of biodiversity is addressed formally in new projects through
environmental impact assessments (EIAs) and in existing agricultural operations through managing
farming activities according to the field conservation guidelines advocated by SASRI and the
SUSFARMS® initiatives, so as to ensure sustainable agricultural production, with limited negative
impacts on the environment. During the year under review, the increased area developed for the
cultivation of sugar cane did not results in any impacts on aspects of biodiversity within the footprint of
our current operations.
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