Rosond embraces a comprehensive ESG programme
Leading drilling solutions provider Rosond has introduced a management and analysis framework designed to track the risk and opportunities related to sustainability issues. This is especially important, as South Africa is currently ranked 95 out of 182 countries assessed under the Notre Dame Global Adaptation Initiative Index for vulnerability to climate change and preparedness to enhance resilience.
“Climate change in South Africa and the recent spike in severe weather events has destroyed infrastructure, displaced civilians and, in some instances resulted, in fatalities,” comments Rosond ESG Champion and Legal Advisor Zwelibanzi Nkomo. Therefore, agreements to which South Africa is a signatory, such as the Paris Agreement on climate change, deem it critical for industrial companies to adopt a culture of awareness and business practices that assist to save the environment for a sustainable future for all.
“By embarking on an Environmental, Social and Governance (ESG) programme, we have adopted a proactive approach to establish our baseline as an organisation in terms of our net greenhouse gas emissions,” highlights Nkomo. At present the company is tracking its Scope 1 and Scope 2 emissions throughout its operations, providing invaluable data which we intend to take cognisance of in implementing environmentally conscious strategies pertaining to our drilling operations.
It is important to emphasise that ESG is not, nor should it be, an added layer of compliance, it is a necessary tool for self-assessment and importantly the disclosure of information for reporting requirements. Scores assure stakeholders of progress made and equally afford the business an opportunity to focus and improve on possible gaps.
Nkomo states that the goal is to gear the business towards achieving a net zero or net neutral objective, with a potential target of net zero emissions. “Our target is to implement a strategy based on the technology we use and the practices we adopt to ensure we are among the leading organisations with the lowest greenhouse gas emissions in the drilling industry.”
In terms of applying the latest technology to the drilling industry, Rosond is in the process of equipping all the command trailers for its next-generation drill rigs with solar panels to reduce their reliance on fossil fuel resources and lower their carbon footprint even further.
Rosond and its partners exchange important information regarding ESG data, specifically around environmental impact of our respective operations. Clients conduct Environmental Impact Studies (EIS) prior to any drilling operations commencing. The EIS is a prerequisite to obtaining a licence issued by the Department of Mineral Resources and Energy (DMRE) upon approval.
Such studies aim to assess the impact that drilling and mining operations have on the environment, including, but not limited to, establishing mitigating and aggravating factors. Finally, the EIS also stipulates measures required for land rehabilitation after drilling operations have been completed.
Looking at water use, Nkomo points out that Rosond collects its water from community sources that have been issued with water licences and that have the necessary DMRE approval to use the water for its designated purpose. “We specifically use grey water for drilling purposes,” notes Nkomo.
Rosond integrates sustainability principles into its day-to-day activities and decision-making processes. For example, it has invested in greener alternative energy sources such as solar power at its head office, contributing positively to alleviate the pressure on the electricity grid. “We have installed 30 solar panels at our head office producing 1 500 kWh of electricity per month on average,” highlights Nkomo.
In terms of waste management, Rosond ensures that all its paper is disposed of in paper recycle bins at its head office, with all waste collected at regular intervals by a waste management company. The company also uses plastic sheets which are strategically placed under its machinery on-site to prevent any leakages spilling onto and seeping into the soil.
The chemical products that leak onto the plastic sheets are carefully collected and disposed of in a manner that does not negatively affect the environment. The disposal process involves the use of oil kits such as sponge material to absorb any oil spills or chemicals. In addition, Rosond also employs chemicals that neutralise or break down any waste material for disposal.
In terms of oil disposal, Rosond has a system in place geared towards safe disposal of oil at its sites and workshop. All used oil is collected in barrels on-site and at our workshop in Midrand. Thereafter the barrels are collected by a waste management company that annually awards Rosond a certificate of compliance in good waste management practices.
“We are aware of the water scarcity in South Africa and have developed recycling measures in our day-to-day operations,” says Nkomo. For example, the water used to transport the chemicals used for drilling is pushed back into sumps, the mud and sludge is separated from the water and disposed of, and the water that remains is reused for drilling.
“Although this is standard practice within mining, it is however a critical recycling method because it reuses the water that is not lost in the hole drilled. The overall benefit is premised on repeatedly recycling this precious resource throughout the drilling process,” explains Nkomo.
He adds that an ESG programme is critical in that it enhances an organisations credibility in the realm of good business practices concerning environmental awareness. “Addressing environmental and social issues helps build trust with stakeholders and the public. ESG-conscious investors are increasingly looking to associate with organisations that align with their eco-friendly values.
Having a robust ESG strategy can attract these investors, leading to long-term sustainable profits. It also promotes a resilient and adaptable organisational culture, while high-quality talent is drawn to companies committed to sustainable and ethical values,” concludes Nkomo.