It’s a (natural) gas
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.