ENVIRONMENTAL RESPONSIBILITY

ENVIRONMENTAL RESPONSIBILITY

We aim to minimize the environmental impacts of our operations and products. Continuously improving our environmental performance is essential to meeting our business objectives and customer requirements.

Our internal HSE management system sets our expectations for environmental management for all our manufacturing facilities. It provides an extensive set of procedures that establish good environmental management practices.

The HSE team in each facility are responsible for ensuring that these procedures are followed by all employees, as well as performing risk assessments to ensure that any new environmental risks are captured and appropriate steps are taken to eliminate or adequately manage the risk.

Each year our manufacturing facilities are set targets for reducing energy, waste, and water from the previous year’s performance.

ENERGY
In 2021, we took more concerted actions to improve energy efficiency in our manufacturing facilities. This was driven by two principle factors: our goal of achieving carbon-neutral products by 2039 (energy usage is the overwhelming source of the carbon emissions associated with our manufacturing operations) as well as the need to respond to the sharp increases in energy costs through the second half of the year (particularly during the last quarter) and into the forthcoming years.

In 2021, all our facilities were set a target to decrease energy consumption by 1% relative to total product sales (‘Energy Intensity’). Each facility took actions to reduce energy usage, including replacing lighting for LED bulbs, replacing old equipment for newer and more energy efficient equipment, and reusing waste heat.

We use Energy Intensity as our KPI for energy, and in 2021 our company-wide Energy Intensity was 98.7 kilowatt hours per EUR 1,000 of total product sales, a 3.3% reduction from the 102 kilowatt hours per EUR 1,000 of total product sales in 2020. This improvement was mainly driven by improved utilization of our facilities following the disruptions from COVID-19 in 2020. As a result of the increase in production, absolute energy use rose by 11.9% to approximately 122 million kilowatt hours from approximately 109 million kilowatt hours in 2020.

WASTE
Good waste management practices are important to both our company and the communities where we operate. In 2021, our manufacturing facilities were set the target of a 1% reduction of the yearly amount of waste sent to landfills or requiring special treatment compared to annual sales (‘Waste Index’). All facilities were active in seeking opportunities to reuse and recycle. Our company-wide Waste Index improved by 13.6% in 2021 to 1.15kg/EUR 1000 sales compared to 1.33 in 2020. The total amount of waste remained constant in 2021 from 2020 at 1.4 million kilograms. Notably, 13 manufacturing locations were landfill-free in 2021.

WATER
While our manufacturing activities are not water intensive, we still aim to make efficient use of natural resources. We measure water usage at each manufacturing facility and set an annual target for each one to reduce its usage by 1% from the previous year. In 2021, we had a 32.8% increase in overall water usage with a total volume of 144,822m3 water used, compared to 108,993m3 in 2020. This was mainly driven by increased production levels, insourcing some manufacturing activities, and maintaining the necessary levels of hygiene to protect against COVID-19 and maintain safe and healthy workplaces.

CLIMATE CHANGE
Our vision is to make a meaningful contribution to society’s efforts to tackle climate change and support our customers’ strategic goals to transition to more sustainable transport.

In the year that saw the COP 26 summit in Glasgow further focus global action on climate change, some of our manufacturing facilities experienced the impact of unexpected and severe weather events. While these have not yet resulted in disruptions to production, there were some notable events, such as the snowfall in Texas in early 2021. The low temperatures also led to some disruption in the Mexican electricity distribution networks. South East Asia experienced lower winter temperatures than normal at the beginning of the year, while many northern hemisphere facilities saw summer temperatures peak higher than would normally be expected at that time of year. Our facilities responded well to these challenges and were able to mitigate the effects of these events to maintain production and safe and healthy workplaces.

'Each year we report on climate change and actions to reduce carbon emissions created by our manufacturing activities, as well as water management, through the Carbon Disclosure Project (CDP). Our latest CDP Climate Change report is available on our website and via the QR code above.

CARBON EMISSIONS
All our plants measure and report their energy usage on a monthly basis. We use this data to calculate the Scope 1 emissions (fuels combusted at the plants) and Scope 2 emissions (emissions created by the generation of the electricity used). Scope 2 emissions account for approximately 90% of our total Scope 1 & 2 emissions.

In 2021, our CO₂ emissions were approximately 45,255 metric tons of CO₂, a 7.3% increase from the 42,180 metric tons of CO₂ emitted in 2020. This increase was primarily driven by the increase in production levels in 2021 from the effects of the pandemic in 2020.

RENEWABLE ENERGY PLANS
With a strategic target of using 100% renewable energy by 2030, in 2021 we worked on plans to centralize the management of energy supply contracts for our manufacturing locations, and identify potential ways to achieve 100% renewable energy for different facilities.

This work was principally driven by the sharp price increases and high volatility in the energy markets for 2022 and the next few years. Amongst the viable options being evaluated are Power Purchase Agreements, on-site renewable generation, and the availability of green tariffs. This work will continue through 2022.

In 2021, we used 40% renewable energy across all our manufacturing facilities. This remained constant from our renewable energy usage in 2020.

 

HSE

Gary McMillan, Director Health & Safety

Phone: +44 7796 174730

Email: gary.mcmillan@ka-group.com