Good afternoon, everyone. Welcome and thank you for joining us on a presentation on PPC's TCFD Report, which was released earlier this morning. My name is Kwame Antwi, and I'll be your MC for today's event. To take us through the presentation is Roland van Wijnen, who is the Group CEO of PPC. He is joined by his team. As usual, we will have a formal presentation and thereafter, we will open the floor for question and answers. For those of you who are joining us via the webcast, you can only ask questions by typing in your questions in the text box. You can do this at any point during the presentation. The team will collect the questions and direct it to the relevant presenter as and when the question and answer session is opened.
For those of you who are joining us via the conference call, the operator will guide you through the prompts on how to ask questions when the floor is open for question and answers. During the formal presentation, everybody will be in listen-only mode. Without taking too much of your time, let me open the floor and hand over the mic to Roland to take us through the presentation. Roland, over to you.
Thank you very much, Kwame, and good afternoon, ladies and gentlemen. A pleasure to welcome you to the very first TCFD report that PPC has released. TCFD stands for the Task Force on Climate-related Financial Disclosures, a well-recognized international body that has given guidance to companies like ourselves how we should look at climate change and the impact that it has on our operations. At PPC, we clearly recognize climate change as well as our contribution to climate change through the CO2 gases that are emitted while producing cement. Having said that, we also like to be part of the solution, knowing that concrete is a versatile material that can become carbon negative in the medium to longer term. Together with me are my two colleagues, Kribs Govender and Delon Perumal, respectively, the Head of Technical for our SA and Botswana business and our PPC International business.
Kribs and Delon will support me in explaining to you how we have looked at the TCFD recommendations and what we do to implement a CO2 intensity reduction strategy. If I can have the next slide, Kwame. After my brief introduction, I will hand over to these two gentlemen, and after that, I will come back to you for a brief summary, and then we open for Q&A. All of this we obviously have to see within the broader context of the environment in which we operate. Our strategic priorities remain unchanged, and they are to make sure that we work in an environment that delights our customers, that has engaged employees, and that has effective and efficient processes. Because ultimately, we have been entrusted with capital from our shareholders as well as our lenders, and we ought to provide a decent financial return on those investments.
We do our work within a clear purpose, which is to empower people to experience a better quality of life. We do that through our products, and we do that through our outreach programs in the communities, and we do that through developing our employees and suppliers, to give you a few examples. Of course, all is underpinned by strict governance and compliance to our policies and the regulations of the countries in which we operate. Now, you hear a lot about ESG these days, and maybe 5-10 years ago, the word sustainability became very popular. For a company like PPC that has been operating now for nearly 130 years, these words, very well known, they were not 100 years ago, but we were already practicing them.
We have always been a company that have been able to combine the three elements that determine sustainability, which means a financial return, reducing environmental impact, and creating an environment for the people to thrive. People, planet, profit. It doesn't really matter in what order. All three of them need to be balanced to have a sustainable business. We will continue to deal with the changes that we see in society. Nowadays, climate change has been clearly recognized by the scientists as one of the biggest problems that we are facing to continue having a world in which our children and grandchildren can live with the same or better prosperity than we have had.
We therefore will continue to operate in an environmentally and socially acceptable manner, involving our key stakeholders such as our employees, our customers, our capital providers, suppliers, community, and et cetera. We do that in the background of the United Nations Sustainable Development Goals, and the ones that are particularly relevant for us in this journey is first, the third objective, good health and well-being. Together with number seven, affordable and clean energy. Or number eight, decent work and economic growth. Industry, innovation, and infrastructure, goal number nine. Sustainable cities and sustainable communities is close to our heart and is United Nations SDG number 11. Number 12, responsible consumption and production, climate action, and last but not least, life on land. In our future integrated reports, we will continue to give you the feedback on how we progress in the fulfilling of our objectives.
If you allow me to give a little bit further background on the next slide as to the TCFD reporting framework and why we have done this, and what impact does it have. We basically worked on two different angles. The first one was to understand the impact of climate change on our existing operations. We've used three different climate scenarios for that. One where the temperature stays within the 1.5 degrees, but also ones that are escalating above these levels. What does that mean for our operations? What do we do with the extensive rainfalls? What do we do with the extensive droughts? How can we mitigate those impacts? The other angle that we looked at is we contribute through the CO2 emissions to the problem, and how can we minimize that on the short term, on the medium term, and on the long term?
We've announced today that it is our ambition to reach net zero by 2050. At the same time, you will have seen through our report that we concentrate on 2025 and 2030 because those are periods that we believe we have a reasonable view on what is feasible and what is not yet feasible. What comes beyond 2030 still requires a lot of R&D investigation and trials, and we will closely follow what is happening in this area with our peers in order to apply our innovation strategy that is based on being a fast copier. We have worked with a large group of people.
You will only have a chance to interact with a few today, but it has literally been dozens across all our operations that have been engaged in this exercise over the last 12 months, as well as our board, who has extensively put itself aside with this particular report and its implications. The TCFD was established by the Financial Stability Board already back in 2015 to provide this framework to organizations like ours to better understand and effectively deal and develop climate-related strategies. The report that we have shared with you touches on governance, how the line managers, together with specialists, are looking at this and how this escalates to the executive committee and ultimately the board. The climate scenarios that I've indicated to you are further unpacked in the report, and you can see how we expect that to play out throughout the world.
We looked at physical risk, transition risks, but also at opportunities. We know that the change of energy mix in, for example, South Africa, will require a number of investments in renewable energies such as wind, and we have a role to play by providing the concrete necessary to build this infrastructure. Ultimately, we do know better now than yesterday that this topic of climate change will have an impact on our financial performance. It will give both opportunities and it will give risk that we ought to manage. On the next slide, you'll see the outline of our targets as we disclosed them already last week as part of our interim results. On the short term, we see feasible a 10% reduction from today's or yesterday's 756 kilograms of CO2 per ton of cementitious materials to 680 or less.
We have set aside ZAR 664 million over that period in order to achieve that target. The next step will take us to FY 2030, and by that time we expect to be at 550 kilograms or less, which means 27% reduction compared to the levels where we find ourselves today. We have a very good idea what we want to do to achieve also the financial year 2030 target. We have not yet disclosed the CapEx that is going hand in hand with it. The simple reason for that is that there are still many assumptions that have to be validated and verified before we have a reasonable certainty around these numbers. The long-term target is heavily dependent on the regulatory framework and the speed and cost of innovation.
I truly hope that we will see as a world that we come together, share new ideas to implement this imperative, and that we do not do the same as what happened last Friday when the new variant of Covid was discovered in South Africa and we got literally punished by various countries in the world. If we want to be successful to defeat Covid or to deal with climate change, this has to be an effort that is done by everyone together. On that note, let me hand over to my colleague, Kribs, who will take you in more detail through our decarbonization strategy. Kribs, over to you, please.
Thank you. Thank you, Roland. Good afternoon to everyone online. Next slide, please. Thank you. Yeah, I mean, just to add and build on what Roland has highlighted, we looked at different scenarios, and based on those scenarios, we looked at the different climate futures that we could expect at our facilities in the continent itself. Taking those things into account under those different scenarios, the impact of that in our business, we foresee that, you know, we're gonna have higher temperatures coming through, longer spells of dry seasons, frequent rainfall and heavier rainfall, extreme risk of flooding, increase in wildlife risk, longer, drier winter.
These things contribute in terms of how we position and how we respond as an organization in terms of these climate risks and what do we need to do in terms of being more sustainable in our business and in delivering to our commitment to our shareholders and to the communities that we operate in. We'll move to the next slide, Kwame. Taking those physical risk into account and the transition risks that were mentioned, we looked at it and said, "How would this fit into the reporting framework of TCFD?" There are four key areas that's sitting in here in terms of governance, strategy, risk management and the metrics and targets. I'll focus a bit on each one of them.
From a governance point of view, the organization we are aligned to the framework in accordance with King IV, and there's appropriate structures in place where you have total board oversight at the end of the day in terms of how we progress, in terms of our climate related strategy and our mitigation in terms of climate impact on the business itself. Our reporting is aligned with our integrated reporting framework, and this TCFD report that you see that came out earlier today is a once off, and in future it will be part of our integrated reporting suite of suite of documents that would come out. In addition to that, the GRI, the Global Reporting Initiative, is where we are aligned in terms of all our data. This data is collected from all our facilities.
It's aggregated at a corporate level and they are assured in terms of our external assurance process that takes place there in terms of the numbers we publish. From a strategy perspective, our focus is on, for now, Scope one and Scope two emissions. Part of this focus is to how do we respond to the transition risk, and I'll highlight a bit on that just now, as well as what are the opportunities as a business that we could take from these risks that we see coming through. I highlighted a bit as well in terms of the physical risk, the resilience that we need to have, so we have mitigations in place in terms of those different climate scenarios as well as the impact on our business, as was mentioned in the previous slide.
We also are looking at, and we've started the process of having a foundation in terms of data and human capital that will support all our activities, will guide us in terms of our strategy formulation, will guide us in terms of our execution as well as the measurement thereof. From a risk management perspective, our focus is on the transition risk as well in terms of products and services, how innovation needs to play in terms of developing new products and services in the light of climate-related activities, as well as in terms of human capital, attracting talent and capital, and developing talent in terms of positioning for a future that's more sustainable.
Then lastly, our systems linked in terms of the data that we have, how do we get that to work on an integrated basis and our systems are aligned in terms of delivering on our strategy. I think the key barriers to decarbonization, as I've mentioned earlier, that we're looking at focusing is on the policies. It's key that we understand what policies, how do we influence the policies, both in terms of imported cement as well as in terms of waste. How do we do waste management? How do we work with governments in terms of shaping policies that we can also look at driving and contributing to our drive to reducing our carbon footprint?
And lastly, from a risk management perspective, we are looking at being a follower and from a technology perspective, and how do we adopt these technologies on a quick and an efficient way into our operations and benefit from that in terms of reducing our footprint. As was mentioned in the slide earlier, our targets are based on a FY 2020 baseline, and we are looking at reducing that by 10% by 2025 and by 27% by 2030. Then moving beyond that to less than 550 kg per cementitious product, on the road towards net zero by 2050. Thanks. Next slide, please.
I think just to highlight here as well from an environmental management perspective, as was mentioned earlier, on the goals, we are aligned in terms of developing our strategy, executing our plans in line with the UN Sustainable Development Goals. Our focus there is in terms of our policy that will support our activities in driving and reducing our environmental footprint and achieving our targets, as was mentioned. Added to that, our integrated SHE policy drives and gives us clear direction in terms of the outcomes in relation to both environmental management as well as in terms of safety and health of our employees and our contractors. To build on that, we are conforming to the standards in terms of ISO 14001.
We perform internal and give assurance in terms of our delivery as well as ensure assurance in terms of achieving our targets. Lastly, in terms of compliance, we are complying in terms of our air quality licenses and authorizations and as well as in terms of country legislations and other specific requirements that do come up from time to time. Thank you. With that, I'll hand over to Delon.
Thank you, Kribs, and good day to all on the online stream. I will be taking you through four key focus areas that we've defined as enablers of our decarbonization strategy, and they focus primarily on clinker factor reduction, the use of renewables within our electrical energy mix, the use of alternative fuels to look at coal replacement, and then at a plant level, focusing at overall equipment efficiency or what we term in the cement industry as OEEs. Thank you. Next slide. Starting off with clinker factor reduction. Before I go into the details, I think it's useful to give some background on what is clinker factor. Now, worldwide, within the cement industry, it's a commonly accepted practice to take your intermediate product and then combine this with what we call an extender or a supplementary cementitious material or SCMs.
Which then, when combined, typically end up in your bag of cement as you would see it. Now, these extenders or SCMs typically display very similar cementitious properties to clinker, but more importantly, it has a lower CO2 footprint. Hence, when combined with clinker, has the overall impact of reducing the CO2 footprint. Now, going into some of the key levers within this strategy. At a very basic level, we're going to look at optimizing our product portfolio. In this regard, we will look to maximize the extent to which we add these SCMs. Now, we will also do that by ensuring that our cement standards and around which we operate are not compromised and our premium product offering across the whole range is maintained to our customers.
To further allow us to increase or maximize these SCMs, we also have to focus on maintaining a certain clinker quality. On this aspect, we've deployed some capital, focusing on optimizing what is the recipe used to produce clinker or what we call the raw mix, and this will focus more on ensuring raw material variability is removed and ensuring that clinker of the optimum quality is maintained across our operations. The last aspect of this will focus on what we call product enhancers. Now, product enhancers is not new to the industry. It's been around for decades in the form of what we call grinding aids and strength enhancers.
Over and above these, which will remain as part of our product portfolio, we are also going to be focused on a new age type of product enhancers that will focus more on the extender content and how we can maximize that while still maintaining these other parameters of strength and maintaining outputs. Now, to the right of the slide, you will see some of these extenders, namely limestone, fly ash, slags, and pozzolana, which we currently deploy within our product portfolio. What's highlighted in red is a relatively new material or clinker equivalent that has gained a lot of attention over the past 12-24 months, which I will unpack in the next slide. Next slide, please. Thank you.
At a very basic level, limestone calcined clay cement is typically a new type of cement that basically involves taking calcined clay together with some limestone and then combining this with much lower levels of clinker. Now, it's important to highlight these calcined clays display very similar cementitious properties, but have a much lower CO2 footprint, hence has the overall impact again of reducing the overall CO2 footprint profile. Before we move on to some of the key aspects, in terms of the process of manufacturing these calcined clays, it's simply produced by adding a raw clay into a kiln and then getting out what we call a calcined clay, which is highly reactive.
Some key aspects to note about this in terms of the raw clay deposit itself, across our various operations, we do have access to them. Some have been assessed in terms of their viability to use, and some are underway for assessment. It is produced at a significantly lower temperature profile in comparison to clinker, and as I mentioned earlier, it does have the required cementitious properties that makes it ideal for use in cement production. Now, from a decarbonization perspective, if we look at some of the numbers, a calcined clay typically consumes between 30%-40% less thermal energy, and from a CO2 perspective, that equates to almost 40%-50% less CO2.
Now, the benefits for PPC, as you see on the right, are quite wide-ranging, but I think the critical thing to highlight here is that it is currently under a feasibility assessment, and it is a key lever in the short term to address our CO2 footprint profile. But we will also do this in collaboration with local authorities and legislations across the jurisdictions. Within the South African context, some of those engagements have already been underway, and we do not foresee any challenges in terms of challenges with the standards or being able to use this within our current product portfolio. Moving on to the next key lever. Thanks. The next key lever focuses on the use of renewable energy. In particular solar.
Now, PPC is fortunate that within the areas in which it operates, it's blessed with high levels of solar irradiation. This, combined with the fact that the cost to implement solar has come down significantly over the past few years, has enabled PPC to engage with various service providers on entering into power purchase type agreements. Some of these projects involve looking at putting embedded solar plant at our various operations to rooftop solar, as well as looking at the feasibility of power wheeling at some of our SA operations. Within our Zimbabwe operation, we're also looking at putting in a solar plant at our clinker manufacturing line together with the use of batteries, and this will enable us to maintain our operations for between two-four hours when there are grid outages.
This is quite a unique solution which we will kick off within the next two months or so. Moving on to the next one. Now, the use of alternative fuels to replace coal is the next key enabler. Within the PPC context, it's still relatively in fledgling status. That being said, we have embarked on this journey of alternative fuels. Within our Western Cape operations, we currently are processing whole tires at what we call a thermal substitution rate of between 5%-7%, and in the short to medium term, we look at increasing that up to 20%. Whilst we continue that, there are currently studies underway to look at the use of these tires at our other mega plants within South Africa. On the continent itself, biomass is playing a key role as part of our AFR strategy.
In our Rwanda operations, we are using palm kernels and rice husk together with some peat, and currently we're sitting at substitution rates of between 8%-12% with again looking at getting this up to the 20% levels. Now, while we continue on this journey of AFRs, we are also going to investigate the use of refuse-derived fuels. There are currently feasibility studies underway, but I think the important thing to highlight here that refuse-derived fuels in itself is a highly capital-intensive initiatives, and it also requires strong collaborations with government, communities, and local authorities to implement. It is still early stages yet, but it's something that we will play a key role into the future to take our dependency off coal usage. Moving on to the final slide and the final enabler.
The last area of focus is typically at the plant level, and what we call the overall equipment efficiency. Simply this can be viewed as to maintain an optimal OEE at our plant, we want to run it for as long as practically possible at the correct output, and in doing so, we will maximize the energy input that we put into these operations. This has the impact of running at an optimum CO2 footprint. Now, in terms of the key interventions, we have a push to ensure that our operating units run at their design outputs or even their best demonstrated practices, if not better. There will be a focus on continuous improvements, and this will be done via rigorous plant audits to identify energy savings opportunities.
In terms of maintaining the kilns and ensuring good availability and reliability, we will leverage our asset care and management systems to ensure our plant and preventative maintenance is adequately implemented across our various operations. We will do this to ensure that these stop starts, which is very detrimental to energy usage, will be reduced if not eliminated going into the future. The last aspect of this is on digitalization. Digitalization is a growing trend not only in cement but across various industries, and it's no different for PPC in terms of embracing this for the future. We are going to focus on the use of data and data management and data analytics, not only to improve our manufacturing processes, but also our business processes.
It will put us in good stead in terms of ensuring credible data, credible reporting, and also from an audit point of view going forward. Now, just in terms of some of the key projects that will drive some of this, interventions within our Rwanda operation, we are heavily focused on getting the production capacity up to its design output, if not better. We're also looking to deploy more efficient technology, more at a plant level in terms of fuels, and also in terms of deploying a newer clinker cooler technology. Now, this specifically will have the impact of assisting with reliability, but also have a positive impact on thermal energy consumption.
The last one that you see there, which is quite an exciting one, refers to the use of artificial intelligence to drive sustainable performance, and we are going to look at deploying an AI system that will assist in running one of our kiln lines within Zimbabwe. We will do this to ensure the KPIs can be met consistently and at the right thermal efficiency. This will enable this operation to run in what one would call an autopilot mode, but important to highlight, we will not be moving away from the operator itself. In fact, we will use this process to leverage the skills and upskill these operators as we move forward. In a nutshell, those are the key enablers, and I hand over to Roland. Sorry, Roland, you're on mute.
Thank you for that, Delon. Thanks for the presentation, Kribs. Thank you, Delon. I hope that all the listeners this has given you an insight into how we plan to achieve the reduction of carbon intensity of our products. Allow me to summarize. Before I do that, in addition to Delon and Kribs, there have been many people involved throughout our business, and I would like to thank them because they've worked hard on this topic while we were in the middle of a major turnaround at the same time. Later on in the Q&A, there are two more colleagues that will be joining us, Aili Zeeman, who is the Lead Specialist, Quality, Health, Safety and Environment for PPC International, as well as Ronel Rakaran, who is heading up our Project Management Office.
Both of them have been instrumental in getting this report, and I would like to thank them for that. In summary, as an industry leader in Southern Africa, PPC have embarked on a continuation and an acceleration of a journey that has been going on already for a while. Without having been explicit about it, the investments that we have made as a group over the years have, of course, contributed already to a reduction. We have chosen to use our financial year 2020, which is the calendar year, largely 2019, as our base year, because we didn't want to show reductions benefiting from this past investment. We wanted to start now, as ultimately, the most important for us is to come to net zero rather than to show you a big percentage reduction.
I hope you have been able to get an insight in how we plan to achieve this by 2025 and later on by 2030 respectively. We will continue to look at climate risk as part of our annual risk programs, and we make mitigation measures where possible. For example, we know now that we have to build sheds in certain parts of our operations to protect our materials from the heavy rain that we can expect. The TCFD reporting going forward will be integrated in our annual report. We believe that that way we inform all our stakeholders at one and the same time of all aspects that drive the sustainability of our business. We haven't spoken much about the opportunities for new revenues, besides the fact that I mentioned that the energy transition in South Africa will require a huge amount of concrete.
There will be other opportunities coming out of building materials that we might not yet have a full sight of. As PPC, we would like to be, and will be, at the forefront of building materials that come with less carbon intensity than the ones we know today. We will, of course, use our regional footprint and the knowledge that we have across the various jurisdictions to transfer ideas from one part of the group to the other. Last but not least, we will continue to engage with the key stakeholders. Kribs mentioned in his presentation the importance to put a proper waste regulation framework in place that enables companies like ourselves to utilize the waste in a better way than what is currently happening with it, which is largely landfilling.
Ladies and gentlemen, with that, we come to the end of the presentation, and we'll open the floor for the questions. Kwame, back to you, please.
Thank you, Roland and team, for a very comprehensive presentation. Once again, we thank everybody for joining us. Now we've opened the floor for question and answers. I'm going to start by asking, if there are any questions on the webcast.
Thank you, Kwame. We do have two questions on the webcast. The first question comes from Danielle Frank of RMB. She's actually said thank you for an insightful presentation. I just wanted to inquire around the ZAR 664 million in CapEx. Will debt and equity be leveraged to fund this CapEx?
Thank you for the question, Danielle. The ZAR 664 million CapEx is to some extent integrated in our normal CapEx plans going forward. We guided the market last week that we spend annually approximately ZAR 500 million-ZAR 550 million on our capital programs. This ZAR 664 million is over a period of three years. Part of it is integrated in the ZAR 500 million-ZAR 550 million, and a part of it, approximately ZAR 300 million over two years, will come on top. Given the fact that we are in a much better financial position than we were prior, we expect that we can finance this out of our normal cash flows.
We are at the same time engaged with our prime lenders, your company involved, to identify ways how we can use some of the incentives around green funding for some of these projects. I hope that answers your question, Danielle.
Thank you, Roland. The next question or series of questions comes from Lisa Steyn of Fin24. She has asked, how many tons and types of coal does PPC consume, and what do you expect it to reduce to in the short, medium, and long term? The second question; Does all PPC's coal come from the domestic market? Does the company have any concern for the impact of its reduced dependency on coal and what this will mean for coal mining communities? What will PPC do to assist the just transition for the coal industry and communities dependent on it?
Thank you very much, Lisa. We're gonna work that question backwards. I'm gonna ask in a second my colleagues, Kribs and Delon, to talk about the amount of coal, if they know it. I don't know it by heart, to be honest. Certainly, they can speak about where it comes from and what the reduction targets are in terms of alternative fuels. The last aspect of your question is about just transition, and that is a topic that is extremely important, especially in the context of the countries where we operate. As PPC, we have joined NBI in their just transition initiative, where we are working alongside with a number of large companies such as Eskom, such as Sasol, in order to come up with a just transition plan.
Because we know that if we were to switch away from coal as one of the main users, we do create problems in the communities that are currently dependent on coal mining. I think this is one of the reasons why South Africa and also other countries in Africa need to be very concerned in terms of the commitments they make and the speed with which they make them. On an overall scale, though, our coal consumption in the bigger scale is relatively small, as you probably already know. Let's start in South Africa, and then we'll work our way north. Kribs, would you like to give some insight in how much coal we currently use and where it comes from and what we'd like to reduce?
Sure. Yeah, I don't have the exact number in terms of our usage of coal, but we do source all our coals from domestic markets, and we have long-term agreements with those coal mines in terms of our supply. Reducing the coal, you know, it will be in the range of, as Delon mentioned, you know, total substitution rate of bringing in alternative fuels, so that's the 20%-30% that he's mentioned. So the coal consumption will come down around that percentage. Delon?
In the Rwanda market, we do use a lot of export coal from Tanzania, together with peat and some AFR, like I mentioned. In a similar vein, we're currently sitting at 8%-12% AFR. That's an offset of give or take 5,000 tons of coal. Moving up to the 20% substitution rate in the short term, replace about 10,000 tons of coal, roughly.
Thanks, Delon and Kribs. Aili, with the risk of putting you a little bit on the spot here, do you know whether the amount of coal usage is disclosed in our integrated annual report?
Hi, Roland. In previous versions we did have the coal figures displayed there, but we can look into it and give the exact figures.
All right. Super.
Yeah.
Thanks, Aili. Perfect. Lisa, please, outside of the session, happy to provide you more details.
Thank you to the team for answering those questions. The next question comes from Irshad Ahmed from Arqaam. Do you have a short-term ESG strategy to assist the communities you operate within?
The short answer, Irshad, is yes, we do. Both as part of the social labor plans that we have mandatory in South Africa, but more importantly, under our broader corporate social investments. I'll ask Kribs and Delon to give a few insights into what we do with the communities. Let's start in the north this time. Delon, let's go for Rwanda first.
Okay. If you don't mind, can I ask Aili to offer some insight in terms of stakeholder engagement?
100%. She knows a bit better.
She knows it better.
Yep.
Aili.
Thanks, Delon, for the question. There are several projects that are running in the communities at the moment. In Rwanda specifically, what I should highlight, we have a zero-waste strategy whereby we do not dispose any waste to the landfill site. Everything that we generate, we actually co-process in the kiln. We have a community or cooperative that is working with that waste and making sure that it's packaged the right way for it to be co-processed. In another instance, we also have recently put up solar panels at the houses in Rwanda, so we use the community to make sure that the maintenance of those solar panels are intact.
In Zimbabwe, we do have some initiative regarding gardening and subsistence farming that are emerging at the moment. Okay, coupled with that as well, we have got a cooperative whereby community members do the sewing projects for PPC employees, and also we're planning to expand that PPE to the rest of the communities or the rest of the mines around our communities. The same applies for DRC, although not part of the scope entirely, but we do have the same sewing project as well, whereby our communities and sold to PPC. In a nutshell, that is what has been happening.
Thanks, Aili. Kribs, you want to add something to South Africa? I know a lot of the areas are very similar, but if you see one or two comments you want to make, go for it.
Yes. No, thanks, Roland. I think we also develop small, medium, and micro enterprises. We do train people in, you know, that sector in terms of bricklaying, plastering. You know, those are the things that, you know, contribute and starts to create more sustainable jobs for them. As well as, you know, just to, you know, from our local communities, smaller type contracts, as Aili mentioned, we, you know, we do use that from a local perspective.
Thanks, Kribs. Just to return back to the question that Lisa asked, we are sometimes fast in getting answers. Thanks to Kevin Odendaal, our Head of Supply Chain. He just told me that we're using about 500,000 tons of coal across our operations in South Africa and Botswana. The international number, we can dig it out, easily as well, if you want to, Lisa. Back to you, Louise .
Louise, can we check the conference call if we've got any questions on the call?
There are no questions on the line, sir.
Okay. Let's go back to the webcast. Any more questions, Louise?
Thank you, Kwame. There is a question from David Coldridge of Ninety One. Thank you for the presentations. Scope one emissions are your most material and require early focus. Please comment on your Scope three emissions and what action you are planning, including timing.
Yeah. Thanks a lot, David. You're absolutely right. Our Scope one emissions are by far the most important. Scope one and Scope two in total is what we control directly. Scope three is what is sitting in our supply chain. Now, there are a number of challenges around that. The first challenge is to actually get the footprint out of our supply chain. That is not always easy. Secondly, we would of course expect that the number of the larger companies in that supply chain are doing the same thing as what we are doing, because what is Scope three for us is Scope one and two for them.
Also very important to bear in mind, if we speak about enterprise development and transformation, you know, in our supply chain, we have a lot of other priorities that we are dealing with as well, because we do at the same time trying to stimulate that. I'm not trying to sort of skirt away from the responsibility, but, you know, we do believe that keep us accountable for Scope one and Scope two and where we see, first of all, that we can get actually our heads around the total footprint that we have in Scope three, we will then start to tackle that as well. As usual, you eat the elephant bit by bit.
Thank you, Roland. There don't appear to be any more questions. I think we can maybe just give the participants on the line just a few more minutes on the webcast if there are any questions that you'd like to type in the Q&A tab. Perhaps we can go back to the conference call line. I don't know if there are any questions on that side.
No. There are no questions on the lines. Thank you.
Thank you. We seem to have no further questions.
Thank you very much, Louise. Thank you to the audience. Back to you, Kwame.
Okay, great. Thank you, everyone. Thank you very much. Thank you, team PPC, and also thank you for all the listeners on the both the conference call and the webcast. As you all agree, it was quite an informative presentation. If you have any more questions that you feel were not properly addressed, or if you come up with questions later on, kindly reach out on the PPC website via the Investor Relations tab, and we'll make sure that we respond appropriately as quickly as possible. Once again, everybody, thank you and enjoy the rest of your day. Bye.