ENERGY AND EMISSIONS

We monitor our energy consumption constantly at the Karben site, using software designed for the purpose. This enables us to classify energy consumption according to consumer. It is only by analysing consumption data accurately that we can identify savings potential and review effective implementation of measures.

Our energy management system is certified in accordance with the international standard DIN EN ISO 50001 and undergoes external auditing annually. This allows us to ensure continuous improvement.

The following graphic shows an overview of energy consumption patterns for 2015 to 2021.

The main energy sources in 2021 were electricity (32 %), wood (27 %) and fuel (26 %) for the company-owned vehicle fleet (HGV and cars). The wood comes from production offcuts and constitutes a carbon-neutral energy source. So electricity and vehicle fuels were our main generators of carbon emissions.

Consumption of all energy sources – except wood – has dropped by a total of 15.1% in 2020 (2019: 41,504 MWh, 2020: 35,232 MWh). This saving is not just a result of investments in more efficient technology, as in past years. The main reason for the reduction is the reduced production output because of the pandemic.

Our wood is used to heat all indoor spaces including production buildings. Wood consumption depends very much on weather conditions.

The total energy consumption for 2021 was comparable to the previous year 2020 (2021: 35,221 MWh, -0.3 %). In 2021 the reduced production output because of the pandemic continued, however at the same time we continued to invest in process optimisation and more efficient technology.

The higher consumption of natural gas and heating oil in 2021 compared with the previous year was balanced out by the reduced consumption of wood to generate heat. The reason for this is that we carried out extensive repairs to the wood furnace so that it could not be used all of the time.

König + Neurath has its own solar power installation. The electricity it produces is fed back into the municipal electricity network. The following graphic shows the pattern of annual electricity generation. It is essentially dependent on how much sunshine there is. The significantly lower amount of electricity produced in 2017 is due to an equipment fault.

The carbon emissions resulting from energy consumption are calculated on the basis of the relevant emissions factors. The following graphic provides information about the carbon emissions from the different energy sources.

Due to a retrospective change in carbon emission factors for bought-in electricity during 2019, there is a variation compared with the last report.

The lower total energy consumption for 2020 is also reflected in significantly reduced carbon emissions. The carbon emissions sank compared with 2019 (7,719 t CO₂) by –19.9 % to 6,180 t CO₂.

Carbon emissions stayed at a similar level in 2021 (+ 2.7 %, 6,348 t CO₂). The reason for the slight increase is a higher consumption of natural gas and heating oil because of extensive repairs to our wood furnace.

The Greenhouse Gas Protocol (GHG Protocol) guidelines represent the established de facto standard for the categorisation of greenhouse gas emissions. Greenhouse gas reporting distinguishes between three scopes:

• Scope 1: covers direct emissions that are generated in processes within the company,
• Scope 2: includes indirect emissions caused by energy bought in externally (at König + Neurath this means electricity). These two scopes are clearly defined, so that there is no overlap between Scope 1 emissions that are counted for two companies.
• Scope 3: Emissions always represent the Scope 1 and Scope 2 emissions in the greenhouse gas accounts of external companies and individuals. The Scope 3 emissions include for instance goods and services,

Electricity and vehicle fuel account for 89 % (2020) and 84 % (2021) of carbon emissions at the König + Neurath production facility in Scope 1 and Scope 2.

In comparison with 2015 we reduced carbon emissions in Scope 1 and Scope 2 by 32.4 % (2019), 45.8 % (2020) and 44.4 % (2021). In 2020 and 2021 the further reduction of carbon emissions can be primarily attributed to a lower production output because of the pandemic.