“ Sustainability requires a continuous balance between capital investment, sustainable growth, reducing the unavoidable impacts of operational activities and creating stakeholder value. These considerations are increasingly integrated into our business and financial planning, which has enhanced our ability to determine costs and benefits at an early stage of deliberation. ”
Michael Michael
Group CFO
Introduction
Our approach to Climate Change
We believe that climate-related issues are intrinsically linked to creating value for all stakeholders. Therefore, these issues formed part of the Board’s considerations when reviewing strategy, risk management, annual budgets and business plans as well as developing action plans and Group policies. In support of our existing commitment to sustainability and climate change-related matters, the Board officially adopted the Task force for Climate-related Financial Disclosures (TCFD) framework in June 2021. It will be implemented over three years.
We are committed to understanding and responding to climate change in a way that is measured and rooted in science, supports our business sustainability, and considers the needs of our host countries and local communities. To this end, we have developed a TCFD roadmap that outlines our path and allows us to deepen our understanding and respond effectively.
Our objective is to ensure that our science-based targets and decarbonisation strategy are established by the end of 2022. Implementation is scheduled to begin by the end of 2023, aligning with our TCFD roadmap (refer to our Annual Report and Accounts 2021 and Sustainability Report).
Our TCFD roadmap
01
2021
02
2022
03
2023
Phase 1 2021
Establish the necessary governance, strategy and risk foundations to support meaningful, science-based decision-making.
Phase 2 2022
Understand the climate-related risks Gem Diamonds faces to reassess our organisational resilience.
Identify climate-related opportunities available to the Group, and establish clear metrics and targets for decarbonisation.
Phase 3 2023
Monitor and manage our climate-related exposure and measure against our decarbonisation targets.
In 2022, the Group will embark on the next phase of its TCFD adoption strategy, which will focus on:
Deepening our understanding of the climate-related risks Gem Diamonds faces.
Reflecting on the resilience of our strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.
Establishing climate-related performance targets that will underpin the Group’s decarbonisation strategy.
Our TCFD roadmap
Phase 1 2021
Establish the necessary governance, strategy and risk foundations to support meaningful, science-based decision-making.
Phase 2 2022
Understand the climate-related risks Gem Diamonds faces to reassess our organisational resilience.
Identify climate-related opportunities available to the Group, and establish clear metrics and targets for decarbonisation.
Phase 3 2023
Monitor and manage our climate-related exposure and measure against our decarbonisation targets.
In 2022, the Group will embark on the next phase of its TCFD adoption strategy, which will focus on:
Deepening our understanding of the climate-related risks Gem Diamonds faces.
Reflecting on the resilience of our strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.
Establishing climate-related performance targets that will underpin the Group’s decarbonisation strategy.
2021 Highlights
Established robust Board and management governance structures.
Strengthened the enterprise risk management processes to ensure climate risk is considered and managed.
Completed the climate change scenario analysis.
Identified and assessed physical and transition risks over the short, medium and long term.
Board and senior leadership trained in the science behind climate change and related studies.
Strengthened the Board’s ESG skills and experience with the appointment of Rosalind Kainyah.
Governance
How we govern climate-related risks and opportunities
Board
The Board is ultimately responsible for the governance of climate-related risks and opportunities, and is supported by the Sustainability Committee and Audit Committee. The Board embraces a science-based approach to understanding the impact of climate change and continues to deepen its understanding of the physical and transition risks along with associated opportunities.
Oversight
Board
Ultimately responsible for the Group strategy, risk and governance of climate-related risks and opportunities.
Governance
Audit Committee
Reviews and monitors matters concerning strategy and governance and reports to the Board on these issues.
Sustainability Committee
Reviews matters regarding existing and planned metrics and targets, performance and operational objectives.
Responsibility
TCFD Adoption Steering Committee
Management forum responsible for ensuring climate change-related risks and opportunities are appropriately identified and subsequently elevated through the established governance and operational structures.
Top-down approach –
sets the risk appetite
and tolerances,
strategic
objectives and
accountability
for the
management
of the
framework
Bottom-up approach –
ensures a sound risk
management process
and establishes formal
reporting structures
To ensure effective oversight, the Board and Committees received quarterly reports, updates and presentations on climate change-related matters and the progress made in adopting the recommendations of the TCFD. During 2021, these reports included information on:
Physical and transition risks
Resource use performance and efficiencies
Carbon tax
Carbon footprint reduction opportunities
Major project considerations related to climate matters and decarbonisation
The climate change-related data and performance information presented to the Board and Committees informed the 2021 reviews of the Group strategy, risk management framework, annual budgets and business plans. The Board and Committees also considered climate change-related data and performance when setting the organisation’s internal key performance indicators (KPIs) and non-financial personal performance metrics for senior management.
Management
The Group’s CFO holds overall accountability for integrating climate-related issues into annual budgets and business plans, financial disclosures and risk management. The Group’s COO has overall accountability for sustainability, including climate-related issues. He is supported by the HSSE and Sustainability Manager who is responsible for the day-to-day management of climate-related work within the Group and reporting matters concerning TCFD and CDP.
In June 2021, Gem Diamonds established a TCFD Adoption Committee, which is a management forum responsible for ensuring climate change-related risks and opportunities are appropriately identified and subsequently elevated through the established governance structures.
The Committee meets monthly and members include the CFO, COO, Group Financial Controller, and HSSE and Sustainability Manager. Internal and external attendees are invited to provide input into the process as appropriate. The TCFD Adoption Committee drives an integrated approach to climate change by identifying and assessing climate-related issues through internal assessments and external independent studies. In 2021, the TCFD Adoption Committee commissioned the following external and independent studies to build the Group’s climate-related knowledge base:
Climate change scenario analysis
Carbon and water footprints
Physical and transition risk assessments
Scope 1 and 2 carbon footprint reduction opportunity assessment
Materiality assessment
The TCFD Adoption Committee also worked with the relevant internal functions to bolster the integration of climate change consideration throughout the business, including:
Enterprise risk management
Communication and reporting
Insurance
Financial planning and disclosure
Project management
Internal audit
Engineering
Mining
Treatment
The TCFD Adoption Committee’s findings are reported to the Board, and the Audit and Sustainability Committees, by the HSSE and Sustainability Manager every quarter. Reports on existing and planned metrics and targets, performance and operational objectives are presented to the Sustainability Committee. At the same time, the Audit Committee reviews matters concerning strategy, governance and risk. Both committees report to the Board on these issues. In addition, the HSSE and Sustainability Manager presents to the Board quarterly on emerging climate-related issues and developments such as carbon tax, regulatory changes and technological developments.
Strategy
The impacts of climate-related risks and opportunities on our businesses, strategy and financial planning
Our strategy aims to sustainably maximise stakeholder value in alignment with our commitment to being responsible stewards of natural resources. Gem Diamonds has identified three priorities (listed below) that underpin how the Group creates value for all stakeholders. We believe that climate-related issues can affect the Group’s performance within these priorities and impact the Group’s business, strategy, financial planning and performance.
Climate considerations
Operational initiatives to improve efficiencies, thereby reducing operating costs and ensuring future availability of natural resources for all stakeholders.
Our 2021 integration
In 2021, Letšeng implemented an improved waste rock dumping strategy that reduced hauling distances and resulted in a measurable reduction in fossil fuel consumption, related carbon emissions and costs. Our integrated approach ensures alignment between sustainability and operational objectives refer to our Annual Report and Accounts 2021 and Sustainability Report.
Climate considerations
Bolstering our resilience to the physical impacts of climate change while working with our PACs to improve their readiness and resilience ensures that Gem Diamonds can protect its social licence to operate and continue to work responsibly with our stakeholders.
Our 2021 integration
As a result of localised flooding in the Patiseng valley during the first half of 2021, water supply infrastructure, access roads and footbridges in our PACs were swept away. We rebuilt the damaged infrastructure and used our climate change work findings to design an improved water supply structure, using borehole and groundwater systems rather than surface water. This limits the impact of future flooding and drought on our water supply.
Climate considerations
The impact of climate change can be seen around the world. The work we undertook in 2021 to identify and respond to physical and transition risks associated with climate change ensures that we can appropriately strategise for and mitigate against the impact of climate change in our future. The Group’s existing business continuity and disaster management plans include considerations for extreme natural events, which we have responded to since we started mining in 2006.
Our 2021 integration
While Gem Diamonds is currently in the foundation phase of its TCFD journey, the business identified climate-related risks and opportunities through externally commissioned studies and internal assessment processes.
The 2021 Group risk and strategy workshops identified strategic and financial planning processes that should consider climate-related risks and opportunities over the short, medium and long term. As outlined in the table below, the timeframes adopted by Gem Diamonds for the short, medium and long term align with accepted industry practice and consider the mine lease period for our operating mine, Letšeng.
Our operations are located in remote areas, making them susceptible to more frequent extreme weather events due to climate change. While we continue to deepen our understanding of the expected physical risks under various scenarios, climate change has already impacted our operations and forms part of our business continuity planning. (For more information on how we are managing and mitigating the impact of extreme weather events, refer to our Annual Report and Accounts 2021 and Sustainability Report).
The diagram provides a high-level overview of some of the risks and opportunities identified during 2021. Where opportunities for improvement over the short term were identified, the related processes were enhanced, and the foundations for further integration and consideration of climate-related issues in 2022 were established.
Timeframes
01
Short term:
1-3 years
02
Medium term:
3-5 years
to
long term:
5-10 years
Short term: 1-3 years
Short-term processes include annual business and financial planning, performance reporting, short-term capital and contract negotiations.
Climate related risks
•
Increase in occurrence of moderate precipitation
•
Enhanced emissions reporting obligations
•
Enhanced ESG obligations
Potential financial impact
•
Increased operating costs
•
Increased capital investment
Climate-related opportunities
•
Increased resource efficiencies and reducing our reliance on fossil fuels
•
Enhanced water use strategies
•
Waste reduction and recycling initiatives
Potential financial impact
•
Reduced operating costs
•
Increased capital investment
Medium term: 3-5 years to long term: 5-10 years
Medium to long-term processes include strategy development, social and environmental management plans, rehabilitation planning, capital management plans, financing and capital investments, and operational planning including contract negotiations and future-focused projects.
Climate related risks
•
Increase in occurrence and severity of precipitation
•
Rising mean temperature
•
Strong winds
•
Increased frequency and duration of droughts
•
Failure of electricity providers to move to a low-carbon economy
•
Substitution of technology with lower-emission alternatives
•
Social risks due to resource constraints, particularly in developing countries
•
Evolving regulatory context regarding carbon tax
•
Increased costs of carbon-intensive products (diesel)
•
Reputational risk
Potential financial impact
•
Increased capital investment
•
Increased operating cost
•
Reduced revenue from decreased production capacity
•
Increased insurance premium or insurance unavailability
•
Research, development and implementation costs of new technology
•
Inappropriate investment decisions
Climate-related opportunities
•
Identify opportunities to transition to renewable energy sources
•
Position Gem Diamonds as an ethical and responsible producer of low carbon footprint diamonds
•
Use of new technologies
Potential financial impact
•
Reduced exposure to carbon and fossil fuel pricing
•
Increased capital availability
•
Reputational benefits
•
Decreased operating costs
•
Increased capital investment
Timeframes
Medium to long-term processes include strategy development, social and environmental management plans, rehabilitation planning, capital management plans, financing and capital investments, and operational planning including contract negotiations and future-focused projects.
Climate related risks
Increase in occurrence of moderate precipitation
Enhanced emissions reporting obligations
Enhanced ESG obligations
Potential financial impact
Increased operating costs
Increased capital investment
Enhanced ESG obligations
Climate-related opportunities
Increased resource efficiencies and reducing our reliance on fossil fuels
Enhanced water use strategies
Waste reduction and recycling initiatives
Potential financial impact
Reduced operating costs
Increased capital investment
Waste reduction and recycling initiatives
Medium to long-term processes include strategy development, social and environmental management plans, rehabilitation planning, capital management plans, financing and capital investments, and operational planning including contract negotiations and future-focused projects.
Climate related risks
Increase in occurrence and severity of precipitation
Rising mean temperature
Strong winds
Increased frequency and duration of droughts
Failure of electricity providers to move to a low-carbon economy
Substitution of technology with lower-emission alternatives
Social risks due to resource constraints, particularly in developing countries
Evolving regulatory context regarding carbon tax
Increased costs of carbon-intensive products (diesel)
Reputational risk
Potential financial impact
Increased capital investment
Increased operating cost
Reduced revenue from decreased production capacity
Increased insurance premium or insurance unavailability
Research, development and implementation costs of new technology
Inappropriate investment decisions
Climate-related opportunities
Identify opportunities to transition to renewable energy sources
Position Gem Diamonds as an ethical and responsible producer of low carbon footprint diamonds
Use of new technologies
Potential financial impact
Reduced exposure to carbon and fossil fuel pricing
Increased capital availability
Reputational benefits
Decreased operating costs
Increased capital investment
Our mining operations require significant energy, and Letšeng receives its electricity supply from the South African grid. Increasing global demand for renewable energy, concerns about climate change and greenhouse gas (GHG) emissions, actual and proposed taxation of carbon emissions and limited availability of alternative energy sources will affect the price and availability of energy. Higher energy demand in countries supplied with electricity through South Africa and grid instability in South Africa could increase electricity supply interruptions and associated use of diesel-powered generators. Greater focus on transitioning the South African electricity supply sector to renewable energy can also increase energy supply interruptions. Additionally, changes in energy laws and regulations in various jurisdictions, such as taxation on carbon emissions or fossil fuel-based energy, may impact energy costs and technology available for use. Limitations on grid electricity supply and increased energy prices could negatively impact our operating activities, costs and cash flows.
In line with our TCFD roadmap, in 2022, we will conduct comprehensive physical and transition risk exposure assessments and determine the materiality of potential financial impacts on financial performance and position. This will assist us in indicating the materiality of the risks in the short, medium and long term, as well as the Group’s resilience against climate issues, and identify appropriate mitigation strategies.
Risk management
How we identify, assess and manage climate-related risks
Gem Diamonds has a robust risk management process and framework to identify, assess, manage and mitigate current and emerging risks and uncertainties. Our risk management framework combines a top-down and bottom-up approach to ensure appropriate governance and oversight.
The Board is responsible for risk management in the Group, including climate-related risks, ensuring that all risks are appropriately identified, assessed, mitigated and monitored. Risks are assessed and prioritised in terms of potential impact, probability of occurrence and effectiveness of controls across short, medium and long-term timeframes. The impact of a specific risk is assessed within the categories of finance, reputation, regulation, health and safety, climate and environment, and social and community. A standalone risk review meeting of the Board is held quarterly to explore all risks, including climate-related risks, in depth and fully assess management scenarios and plans.
Our climate-related risks are integrated into the Group’s risk management framework. In assessing the Group’s principal risks, the impact of climate change is considered a key element and impact determinator. refer to our the Group’s principal risks and uncertainties. In 2022, we will undertake an extensive exposure assessment of climate-related risks to mature our understanding of the potential impacts and opportunities. For more information on how we manage risk, refer to our Annual Report and Accounts 2021 and Sustainability Report.
01
Manage and
Monitor
02
Assess
03
Identify
Top-down approach
Board
Audit Committee
Sustainability
Committee
Bottom-up approach
Management
TCFD Adoption
Steering Committee
Manage and Monitor
The Board has ultimate responsibility for climate-related risk management.
The Audit Committee regularly received reports on risk, strategy and governance processes related to climate change and the associated financial disclosures.
The Audit Committee has oversight of climate-related risks and potential financial, strategy and business planning impacts, through presentations to the Board during separate quarterly risk meetings.
The Sustainability Committee assures the Board that appropriate systems are in place to identify and manage climate-related health, safety, social and environmental impacts.
Assess
Management, through the TCFD Adoption Steering Committee, assesses the materiality of climate-related risks identified through the risk identification process.
Based on this assessment, a risk management plan is developed and presented to the Audit Committee, Sustainability Committee and Board for approval.
Emerging and existing regulatory requirements related to climate issues are monitored and assessed by the Audit and Sustainability Committees of which the HSSE and Sustainability Manager is an invitee.
Identify
Gem Diamonds has established internal and external processes to identify climate-related risks.
Quarterly risk workshops for department heads provide management oversight of climate-related risks. The outcomes of the risk workshops inform updates to the Group risk register, these are presented to the Board through the quarterly risk review meetings.
Approved risk management plans are implemented by management at Group and site level. This is monitored and managed through TCFD Adoption Steering Committee meetings, quarterly technical reviews, management risk workshops, quarterly risk reviews, and Committee and Board meetings.
The Board has ultimate responsibility for climate-related risk management.
The Audit Committee regularly received reports on risk, strategy and governance processes related to climate change and the associated financial disclosures.
The Audit Committee has oversight of climate-related risks and potential financial, strategy and business planning impacts, through presentations to the Board during separate quarterly risk meetings.
The Sustainability Committee assures the Board that appropriate systems are in place to identify and manage climate-related health, safety, social and environmental impacts.
Management, through the TCFD Adoption Steering Committee, assesses the materiality of climate-related risks identified through the risk identification process.
Based on this assessment, a risk management plan is developed and presented to the Audit Committee, Sustainability Committee and Board for approval.
Emerging and existing regulatory requirements related to climate issues are monitored and assessed by the Audit and Sustainability Committees of which the HSSE and Sustainability Manager is an invitee.
Gem Diamonds has established internal and external processes to identify climate-related risks.
Quarterly risk workshops for department heads provide management oversight of climate-related risks. The outcomes of the risk workshops inform updates to the Group risk register, these are presented to the Board through the quarterly risk review meetings.
Approved risk management plans are implemented by management at Group and site level. This is monitored and managed through TCFD Adoption Steering Committee meetings, quarterly technical reviews, management risk workshops, quarterly risk reviews, and Committee and Board meetings.
Unpacking our climate change scenario analysis
Understanding climate-related risks and opportunities allows us to align our business strategy with stakeholder demands of the industry, enhance sustainability efforts throughout the organisation, create resilience to climate change-related impacts and maximise value for all stakeholders.
Targets and metrics
The targets and metrics used to assess and manage relevant climate-related risks and opportunities
The Group monitors a wide range of metrics to inform its assessment of climate-related risks and opportunities. Before 2021, the following metrics and trends were measured and monitored:
Carbon footprint
Water footprint
Freshwater dam levels
Precipitation patterns
Energy consumption trends
Environmental expenditure
Land use and rehabilitation activities
In addition to these metrics, we also monitor developments regarding areas that may impact our transition risks:
Current and emerging climate-related regulations
Regional renewable energy developments
Existing and proposed carbon pricing such as carbon tax
New technology
Following the adoption of the TCFD recommendations, we also track our climate change-related expenditure. In 2021, we spent US$0.9 million on environmental protection measures. US$ 0.2 million specifically related to climate change, and the adoption of the recommendations of the TCFD.
Non-financial performance indicators related to climate metrics are included in the Group Executives’ personal performance targets, Group performance targets and as part of the Group’s annual incentive plan. refer to our the Remuneration Committee report in our Annual Report and Accounts 2021 and Sustainability Report.
In 2021, the Group worked on improving the internal KPIs and targets around climate change. Our internal KPIs aim to improve resource use efficiencies, reduce our carbon footprint and advance our water stewardship goals. In line with our Group sustainability strategy, Gem Diamonds included carbon reduction and water conservation KPIs in its Sustainability Linked Loan (SLL). The interest rate on the SLL decreases if performance indicator targets are achieved.
In 2022, the Group will embark on the next phase of its TCFD adoption strategy, which will focus on establishing climate-related performance targets that will underpin the Group’s decarbonisation strategy. Gem Diamonds is committed to a science-based approach to setting targets and metrics. Our objective is to ensure that our science-based targets and decarbonisation strategy are implemented by the end of 2023 in alignment with our TCFD adoption roadmap (refer to our Annual Report and Accounts 2021 and Sustainability Report).
Our carbon, energy and water footprints
The Gem Diamonds carbon footprint was calculated in accordance with the GHG Protocol Corporate Accounting and Reporting Standard, an accounting tool to manage GHG emissions. The standard was developed through a decade-long partnership between the World Resources Institute and the World Business Council for Sustainable Development. It includes IPCC GHG inventory guidelines for specific heating values, carbon content, densities and emission factors.
Our carbon footprint was also calculated in accordance with the International Organisation for Standardisation (ISO) 14064-1 Part 1: Specification with guidance at the organisation level for quantification and reporting of GHG emissions and removals.
In 2021, the total carbon footprint for the Group was 153 864 tonnes of carbon dioxide equivalent (tCo2e) (2020: 135 694 tCo2e). This includes direct GHG emissions (Scope 1), energy indirect GHG emissions (Scope 2) and material Scope 3 emissions.
In 2020, our Letšeng mine suspended operations from 28 March to 26 April due to the Lesotho Government’s COVID-19-related lockdown. During May, operational activities were ramped up and planned waste mining activities were successfully deferred to resume in July. This suspension of operations explains the reduced 2020 carbon footprint. Below is a three-year view of our carbon emission performance.
Carbon emissions (tCO2e)
2021
2020
2019
Scope 1 (direct) (tCO2e)
62 672
53 568
75 359
Scope 2 (indirect) (tCO2e)
67 473
61 320
67 870
Total Scope 1 and 2 (tCO2e)
130 145
114 888
143 229
Scope 3 (indirect) (tCO2e)
23 718
20 807
29 739
Total Scope 1, 2 and 3 (tCO2e)
153 864
135 694
172 968
Total tonnes mined (ore and waste)
24 962 356
21 167 606
30 327 114
Ore tonnes treated
6 213 098
5 436 396
6 707 791
Scope 1 and 2 (tCO2e)/Tonnes mined (ore and waste)
0.005
0.005
0.005
Scope 1 and 2 (tCO2e)/Tonne ore treated
0.021
0.021
0.021
The Group's carbon footprint is primarily driven by electricity consumption, and mobile and stationary fuel combustion at Letšeng. Scope 1 emissions made up 41% of the 2021 total carbon footprint. 92% of the Scope 1 emissions are related to mobile combustion activity at Letšeng with the remainder related to stationary combustion, liquefied petroleum gas and explosives. Scope 2 emissions make up 44% of Group emissions, driven by grid electricity consumption at Letšeng. Our carbon intensity reporting is based on Scope 1 and 2 emissions. Less than 1% of the Group’s total CO2 emissions originated from its UK-based office.
Unlocking value through collaboration
A key strategic objective for the Group is to continuously
identify opportunities to unlock value within our business.
During 2021, we focused on continuous improvement
opportunities to reduce mining-related costs and
improve resource use efficiencies. At Letšeng, waste
hauling distance is a major driver of both current and
future mining costs and fossil fuel combustion-related
greenhouse gas emissions.
We identified an opportunity to reduce both mining
costs and greenhouse gas emissions through shorter
mining waste haulage distances of our waste from the
Main pit. Following extensive collaboration between our
environmental and mining teams, a new mine waste
dumping plan was designed and implemented. The
revised plan has reduced the haulage distance by 30%,
resulting in a significant long-term reduction of the
associated operational costs and diesel consumption, and
advancing our sustainability objectives to lower carbon
emissions.
By working together to design innovative solutions, we
are able to unlock shared value and drive Group goals
with regards to maximising value, managing costs and
reducing our environmental footprints.
The Group-wide energy consumption (for Scope 1 and 2 activities) in 2021 was 320 381 029 kWh (2020: 278 103 602 kWh). 99% of Scope 1 and 2 energy consumption in 2021 is attributable to Letšeng. Less than 1% of our Scope 1 and 2 energy consumption originated from our UK-based operations. The COVID-19-related operational suspension of our Letšeng mine during 2020 explains the reduced energy consumption during 2020. Below is a three-year view of our energy consumption performance.
Our principal energy sources are grid electricity and diesel. Scope 1 energy consumption in 2021 was primarily driven by mobile and stationary diesel combustion activities at our Letšeng operation. Group-wide Scope 1 energy consumption decreased by 18.7% from 2019 to 2021, resulting in a 9% improvement in our energy efficiency ratio for ore tonnes treated. The energy efficiency improvements are because of a reduction in waste tonnes, steeper slopes and an optimised mine waste dumping strategy.
Energy consumption (kWh)
2021
2020
2019
Scope 1 (kWh)
251 743 229
215 725 348
309 639 385
Scope 2 (kWh)
68 637 800
62 378 253
69 751 658
Total Scope 1 and 2 (kWh)
320 381 029
278 103 602
379 391 043
Total tonnes mined (ore and waste)
24 962 356
21 167 606
30 327 114
Ore tonnes treated
6 213 098
5 436 396
6 707 791
kWh/Tonnes mined (ore and waste)
12.83
13.14
12.51
kWh/Tonnes ore treated
51.57
51.16
56.56
Our Letšeng operation is located in a remote location, requiring long-distance transmission of power. Scope 2 energy consumption for the Group is primarily driven by grid electricity consumption at the Letšeng operation. As our operations move towards lower carbon emissions targets, power sources and technology at our operations will continue to be evaluated to secure stable and cost-effective supply and reduce our carbon emissions.
Energy Initiatives
In 2021, the Group assessed several energy-saving initiatives, specifically at Letšeng as the primary energy consumer. Our approach to energy-saving initiatives considers both short- and long-term initiatives. The following initiatives were implemented in 2021:
By optimising heating systems, we able to reduce the energy requirements for accommodation heating by 19%
Letšeng implemented ISO 50001 aligned energy management system that further informs the operational approach to manage, track, and protect energy supply as well as track and minimise energy consumption
We reduced our waste rock hauling distance, resulting in a reduction of our carbon emissions and diesel consumption. See case study for more information
Strengthened the Board's ESG skills and experience with the appointment of Rosalind Kainyah
The Group water footprint (net water usage) for 2021 was 7.1 million cubic metres (m3) (2020: 6.0 million m3). The COVID-19-related operational suspension of our Letšeng mine in 2020 explains the reduced water consumption during the year. Below is a three-year view of our water consumption performance. The total volume of water recycled within our production processes increased by 11.2% from 2019 to 2021. This is due to water use efficiencies in recycling water seepage from the Patiseng Tailings Facility and wastewater from the sewerage treatment plant back into the processing plants.
Water consumption (million m3)
2021
2020
2019
Net water usage
7.1
6
7.6
Water withdrawal and capture
3.8
3.5
5.6
Water recycled
8.9
8.8
7.9
Water loss through evaporation, entrainment and seepage
3.1
3.2
2.7
Total tonnes mined (ore and waste)
24.9
21.1
30.3
Ore tonnes treated
6.2
5.4
6.7
Net water use (m3)/Tonnes mined (ore and waste)
0.29
0.28
0.25
Net water use (m3)/Tonnes ore treated
1.15
1.11
1.13
Recycled water (m3)/Tonnes mined (ore and waste)
0.36
0.42
0.26
Recycled water (m3)/Tonnes ore treated
1.44
1.63
1.18
Find out more
Annual Report and Accounts 2021
The Annual Report and Accounts covers Gem Diamonds Limited
and its subsidiaries for the financial year ended 31 December 2021.