It’s a (nat­u­ral) gas

Finweek English Edition - - Communication & Technology -

IT’S A SUB­JECT I’VE touched on be­fore and even for a hard-nosed cynic like me, I have to con­cede that en­vi­ron­men­tal is­sues – the so-called triple bot­tom line view – are be­com­ing vi­tally im­por­tant for in­vestors.

Last week I was in­formed that Coro­brik, the coun­try’s largest brick man­u­fac­turer, has be­come the first com­pany in SA and sub-Sa­ha­ran Africa to be awarded car­bon cred­its by the United Na­tions Clean

At first I dis­puted that: I thought that Om­nia and Sa­sol were al­ready far down that road. But new Coro me the group was first and re­ferred me to the ap­pro­pri­ate web­site.

The con­fu­sion was prob­a­bly on my part, be­cause I thought Om­nia and Sa­sol were al­ready sell­ing car­bon cred­its. Maybe they’re an­nounc­ing planned car­bon credit sales be­fore they’re ac­tu­ally awarded?

Meyer says Coro­brik re­ceived the cred­its for switch­ing from coal to nat­u­ral gas fir­ing at its Coro­brik Law­ley fac­tory in 2004, re­sult­ing in an av­er­age re­duc­tion of 17 500 t/ year of CO2 emis­sions. “Un­der the scheme, Law­ley for the two cal­en­dar years 2005 and 2006 has been is­sued 35 130 Cer­ti­fied Emis­sions Re­duc­tions (CERs).”

Much like share cer­tifi­cates on a stock ex­change, CERs can be sold. The scheme al­lows for de­vel­oped coun­tries to buy green­house gas emis­sion cred­its from de­vel­op­ing coun­tries such as SA in or­der to achieve their emis­sion re­duc­tion tar­gets.

Coro­brik has sold its car­bon cred­its to Statkraft Mar­kets Gmbh, a large elec­tric­ity pro­ducer based in Ger­many.

A re­cent re­port I read es­ti­mated Om­nia’s car­bon cred­its would add about 100c/share to earn­ings in its next full-year re­sults. This isn’t just an is­sue for Gree­nies but taken very se­ri­ously over­seas and is tar­geted by share­holder ac­tivists.

So car­bon cred­its add to a com­pany’s in­vest­ment value. You can’t in­vest di­rectly in the no-longer listed Coro­brik but it will be good for the busi­ness.

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