Emissions and energy

Article 964a ff. Code of Obligations

Concept and due diligence
Environment-related activities affect all business processes – from research and development through production to logistics and transport. We are aware that our operating activities result in greenhouse gas emissions. As Arbonia, we have been paying special attention to this issue for many years and are continually taking new measures to improve our environmental impact further. Arbonia aims to operate with the lowest possible emissions at our own company, in production and in the area of transport and logistics. The main objective of all companies is to grow responsibly and to aim for maximum energy efficiency. On the basis of the SBTi, we have determined a path for reducing our own CO² emissions (Scope 1 and 2) and defined corresponding targets and measures. We are aiming for an average annual reduction of 4.2 % (incl. growth) by the year 2035 (reference year 2020). Arbonia is also in the process of identifying the greatest factors influencing the Scope 3 emissions, in order to formulate reduction targets and measures for these as well. The energy efficiency of our production processes is monitored as standard and investigated with regard to optimisation potential. For this purpose, clear competencies and energy officers have been designated. These officers from the areas of production and logistics continuously monitor the target achievement. All targets in the area of energy efficiency are evaluated annually.

Measures including evaluation of effectiveness
Arbonia is constantly working to improve its energy efficiency on the basis of certified energy and environmental management systems. New or improved energy-efficient machines play an important part in this. Arbonia is steadily increasing the share of renewable energy in its electricity consumption by expanding the provision of photovoltaic (PV) systems and wind turbines as well as biomass CHP plants at its production sites. Furthermore, Arbonia has expanded its fleet of electric cars and, in 2023, some companies introduced policies stipulating that only electric cars may be used.

Material risks and how they are handled (own scope of business and, where applicable, business relationships)
Growing customer expectations regarding sustainability as well as increasing legal requirements entail risks that we are able to counter – both at our own company and in the upstream and downstream parts of the value-added chain – with scientifically substantiated climate targets, an improved data situation and corresponding measures. A higher quantity of data and an improved quality of data will allow us to provide more detailed information about material risks and how they are handled in future.

Key performance indicators
The most important key performance indicators are the energy consumption by energy source (MWh) and the composition of energy consumption (MWh). We also record other key environmental figures – these can be found in the table.

The subject area of “Emissions and energy” is important to Arbonia in two respects: A great potential for reducing greenhouse gases lies in buildings, which are the largest source of CO2 emissions in Europe after mobility, with a share of over 30 %. By demonstrating its commitment in this area, Arbonia is aiming to fulfil increasing customer expectations regarding sustainability – there is great demand for products that reduce the energy consumption in buildings and ensure a pleasant indoor climate at the same time. Arbonia identified this trend early on and makes a substantial contribution with its products. Improvements can be achieved in new buildings as well as in renovations – especially through the use of integrated system solutions, as well as through the use of individual components from the Climate Division. Furthermore, the interior doors made of wood and glass also help to lower the energy consumption of buildings thanks to their insulation capacity (see “Product responsibility”).

At the same time, we at Arbonia aim to operate with the lowest possible emissions at our own company, in production and in the area of transport and logistics. In particular, the upstream and downstream parts of the value-added chain (Scope 3) make up a large part of the overall emissions. Arbonia is therefore in the process of identifying the greatest factors influencing the Scope 3 emissions in order to formulate reduction targets and measures on this basis.

We are aware that conventional energy generation consumes finite resources that contribute to climate change. In 2023, we started collecting data for Scope 3 emissions from our own operating activities and the value-added chain in order to identify and mitigate relevant risks more effectively. The materiality analysis from 2022 was updated in 2023, with the divisions defining the following categories:

3.1 Purchased goods and services
3.2 Capital goods
3.3 Upstream fuel- and energy-related emissions
3.4 Transport (upstream)
3.5 Waste
3.7 Employee commuting
3.9 Transport and distribution (downstream)

This means that Arbonia now has valid data for all relevant categories of its value-added chain. As a result, the value indicated for Scope 3 (see “Key environmental figures”, p. 56) is much higher than in previous years. On the basis of the data collected for Scope 3, Arbonia will define appropriate targets and measures which will be reported from 2024 onwards. The aim for 2023 was to gradually improve the quality and quantity of the data.

As far as Scope 1 and Scope 2 are concerned, we are implementing measures on an ongoing basis – including the construction of PV and CHP plants. In the reporting year, Arbonia slightly increased the share of electricity that it produces itself from 12.9 % in the previous year to 14.6 % by installing further PV systems on the roofs of the production plants. A further success was the reduction in heating oil consumption for heat production by 32.0 %. Greenhouse gas emissions from Scope 1 and 2 dropped by 7.6 % overall; however, the greenhouse gas intensity (greenhouse gas emissions in kgCOe / CHF net revenue) increased slightly by 2.7 % due to a higher drop in revenue.

One decisive measure for more energy efficiency is the certification of various production sites according to the ISO standard 50001, which requires a complete monitoring of energy key figures, among other things.

Arbonia is also keen to promote e-mobility. A new company policy stipulates that only electric cars may be used at some sites starting in 2023. Company vehicles with an internal combustion engine will therefore be replaced with electric vehicles on an ongoing basis. Employees are able to charge their cars at many of our sites (charging prices apply) and charging points are also available for visitors.

Key environmental figures

	2023	2022	2021
Energy consumption in MWh	283 922	303 721	325 618
Thereof renewable	44.9 %	46.9%	41.0%
Electricity	93 588	103 402	107 268
Own electricity production	14.6%	12.9%	12.2%
Total renewable electricity	35.5%	43.3%	32.7%
Heat	161 752	177 999	194 464
Own heat production (wood chips/shavings)	94 367	97 787	98 374
Natural gas	66 177	78 485	93 806
Heating oil	1 208	1 727	2 285
Fuels	28 582	22 321	23 886
Diesel	27 027	2 1534	2 2624
Petrol and Liquified Petroleum Gas (LPG)	1 555	786	1 262
Energy consumption in kWh/CHF net revenues	0.26	0.25	0.28
Greenhouse gas emissions (Scope 1 – 3) in tCO2e	472 766	87 359	77 581
Greenhouse gas emissions (Scope 1 – 2) in tCO2e	55 964	60 588	65 759
Scope 1	22 844	23 858	27 719
Own heat production (wood chips/shavings) ¹	1 428	1 480	1 520
Natural gas	13 432	15 847	19 227
Heating oil	314	461	611
Diesel	7 285	5 805	6 049
Petrol and Liquified Petroleum Gas (LPG)	385	266	312
Scope 2 (Location-based)	33 120	36 730	38 040
Strom	33 120	36 730	38 040
Scope 3 ²	416 802	26 771	11 822
3.1 Purchased goods and services ³	346 923	–	–
3.2 Capital goods ⁴	3 774	–	–
3.3 Upstream fuel- and energy-related emissions	12 143	15 038	15 104
Energy-related upstream chain electricity	7 655	9 859	9 636
Heating-related fuels	2 809	3 883	3 955
Transport-related fuels	1 680	1 296	1 513
3.4 Transport (upstream) ⁵	9 292	–	–
3.5 Waste ⁶	5 967	–	–
3.7 Employee commuting⁷	11 275	11 733	11 822
3.9 Transport and distribution (downstream) ⁸	27 570	–	–
Greenhouse gas emissions (Scope 1 – 2) in kg CO2e / CHF net revenues	0.052	0.050	0.055
Greenhouse gas emissions (Scope 1 – 3) in kg CO2e / CHF net revenues	0.385	0.073	0.066

1 Direct emissions due to the production of the greenhouse gases methane and nitrous oxide, which are not absorbed during growth.Biogenic CO2 emissions emissions are reported outside of scopes according to the GHG protocol and amounted to 33 406 t CO2e in 2023 and 34 616 t CO2e in 2022.
2 For Scope 3.1, 3.2, 3.4, 3.5, 3.9: headquarters in Arbon (CH), AFG RUS in Stupino (RU) and Brugman Fabryka Grzejników Sp. z o.o. in Legnica (PL) are not part of the scope.
3 Refers to production-related products from Tier 1 suppliers.
4 Refers to machinery, equipment, buildings and vehicles from Tier 1 suppliers with a value of CHF / EUR > 10 000.–
5 Refers to the transport of the goods considered in Scope 3.1.
6 Refers to the waste of the goods considered in Scope 3.1.
7 The calculation is based on an employee survey on commuter behaviour from 2022.
8 Transport of the products sold and marketed to customers. Storage is excluded.

Energy consumption by energy source (MWh)

Other
Natural gas
Own heat production (wood chips/shavings)
Electricity

Composition of energy consumption (MWh)

Renewable energy incl. own production
Own heat production from renewable energy sources
Fuel
Conventional electricity
Conventional heat

Data and calculation basis

The calculation of the greenhouse gas inventory follows the guidelines of the WRI / WBCSD Greenhouse Gas Protocol.

Scope 1: Emissions from fuels.
Scope 2: Emissions that result from the production of purchased electricity. Country-specific emission factors are used here (“location-based approach”).
Scope 3: The categories 3.1 Purchased goods and services; 3.2 Capital goods; 3.3 Upstream fuel- and energy-related emissions; 3.4 Transport (upstream); 3.5 Waste; 3.7 Employee commuting and 3.9 Transport and distribution (downstream) are reported in accordance with the Greenhouse Gas Protocol. Country-specific emission factors are also used here (“location-based approach”).

Emission factors used: IEA (2023), DESNZ (2023), LfU Bayern, AIB (2023), US EPA (2023) and Ecoinvent 3.10

Climate Division

Conserving energy – and producing it ourselves

The Climate Division is continually expanding its capacities for generating its own electricity and heat from renewable energies. In 2023, a PV system with 300 kWp was installed on the roof of the production plant in Stříbro (CZ) to supply the production facilities with renewable energy. Plans are under way to expand this system by 400 kWp. A further 100 kWp system will be installed at the second Czech production site in Opočno in 2024, with plans in place to gradually expand this system in future too. The PV system at the production site in Kladovo (RS) is already generating around one third of the site’s own power requirements (11 482 MWh in the reporting year). This share is set to be increased to 50 % by employing a more efficient means of feeding power into the grid. The heat production and cooling take place through heat pumps with higher capacities, so that the need for gas is eliminated entirely.

In 2023, the PV system in Plattling (D), which has a capacity of 1.6 MW, produced around 1 500 MWh of electricity. This system was also expanded in the reporting year and is about to be put into operation. From 2024 onwards, the division is expecting to produce around 2 500 MWh of PV electricity in total at this site, corresponding to around 14 % of the site’s power requirements. In combination with the new CHP system, the share of self-produced electricity is set to rise to around 21 % in 2024.

Sabiana in Corbetta (IT) is also gradually increasing its share of self-produced electricity. At the moment, the site covers 62 % of its total electricity consumption thanks to the PV systems on all production plant roofs, saving 535 tonnes of CO2 emissions each year. The approval of a new investment will make it possible to increase energy production to 1 660 kWp, covering 75 % of the total consumption and saving 654 tonnes of CO2 per year. This new PV system started production at the end of 2023 and will be fully operational in 2024. Another initiative helping to reduce energy consumption at this site is the replacement of traditional lighting in the factories/offices with energy-efficient LED lamps. This work was completed in 2023. In addition, the Corbetta production site (IT) already has charging stations for electric cars and new electric vehicles have been added to the company fleet.

At the site in Dilsen (BE), around 60 % of the total power requirements are covered by a wind turbine with an output of 2 MW. The site also has a PV system to help generate green electricity. Additionally, the offices were ecologically renovated in the reporting year. Heat pumps were installed here as well, so that gas is no longer needed to generate heat.

In Opočno (CZ) up-to-date energy standards have been taken into account with regard to the new construction of the heat pump plant and an investment in new compressors. A heat pump – developed in-house – was also installed to heat the entire site. The reduction of the energy consumption is analysed and monitored at this site in the framework of Six-Sigma projects, a management system for process optimisation.

Improved logistics

The division wants to decrease traffic in logistics by optimally bundling loads together. With this in mind, Termovent in Serbia has increased the quantity of goods loaded on each transport pallet by around a third, roughly halving the number of transports. In addition, the division uses telematics data to review and optimise driving behaviour and driving distances. High-emission vehicles are being replaced by new ones; for example, at the Corbetta (IT) site, where the fleet was switched to the “Euro 6” emissions standard.

Greening at local sites

Maintaining biological diversity is closely connected to engagement in the area of emissions and energy. The creation of green spaces and planting of additional trees on the company premises will promote biodiversity at the local sites of the division. After an analysis of the biodiversity at the Plattling (D) site, initial measures were initiated to protect and strengthen the flora and fauna. In September 2023, the division acquired a new plot of land in Corbetta (IT), close to the existing production facilities, to allow production capacity to be expanded in future. Around 100 m² of the land will be dedicated to biodiversity.

In addition to greening at production sites, efficient production and sales processes also play an important role. Despite volume growth, the Climate Division is committed to manufacturing in existing or reduced spaces to consolidate production. Intensively built areas in the production plant are compensated for with organically cultivated compensation areas.

Doors Division

Numerous measures for greater climate protection

A large proportion of the companies in the Doors Division regularly carry out certification audits according to the standards ISO 9001, 14001 and 50001. Energy efficiency is an important factor especially in the modernisation of production lines and peripheral systems because it allows significant reductions in power consumption. And the degree of self-sufficiency is continually increasing through the construction of new or the expansion of existing energy generation systems. Attention is also paid to energy-saving technology in new buildings and renovations at the operating sites. For example, in 2023 all lighting systems in the production facilities were fitted with the latest LED technology and movement sensors. At Invado alone, an area of over 21 000 m³ was equipped with new LED lighting in 2023.

A compensation system for high-frequency reactive components was installed as a pilot project at the Prüm site, making it possible to filter non-usable energy components directly without incurring any costs. As a result, energy costs were reduced by up to 3 %. The project is now going to be rolled out to other sites. Optimisation measures are under way in procurement to ensure that collection and return transport arrangements are agreed with as many suppliers as possible in order to avoid empty trips. An energy efficiency analysis project is also ongoing with the aim of deriving new measures. The production facilities were optimised in the reporting period, leading to increased energy efficiency. Progress was also made with regard to using residual materials from door production to generate heat and power: At the end of 2023, the old CHP system was replaced with a more modern and more efficient biomass CHP plant which can produce more than twice the amount of electricity. This means that, from mid-2024 onwards, the site will be able to generate up to 60 % of its power requirements internally and also supply power to neighbouring companies. Furthermore, the new biomass CHP plant will no longer use evaporative cooling during operation. Cooling is carried out using radiators that are connected to a closed circuit, reducing total water consumption by up to 25 %.

RWD Schlatter also installed another PV system on the new logistics centre in Roggwil (CH), allowing around 335 MWh to be fed into the power grid per year. The flow of goods has also been optimised thanks to this new logistics centre. Various stock relocations and transport routes have been eliminated, saving around 15 tonnes of CO2 per year. Furthermore, as part of the construction work, RWD Schlatter pre-equipped all of its parking spaces for the subsequent installation of charging stations and installed 18 charging points for electric cars. Two electric cars have already been purchased for business purposes.

In 2021, the Garant production plant in Ichtershausen (D) started the planning phase for a state-of-the-art biomass CHP plant which is set to commence operations in 2025. This plant will cover around 50 % of the power requirements of the production plant.

Meanwhile, Invado has installed a PV system with an output of 50 kW and a silo measuring 50 m³ for biomass. Invado has also obtained approval to build a PV system with an output of up to 2 100 kW and plans to start construction in 2024.

In the Glass Solutions Business Unit, work was completed on a new production hall at the end of June 2023. The new hall features up-to-date insulation values and was partly built to replace old parts of the building. In October 2023, a new PV system with an annual capacity of 402 000 kWh was put into operation in Dagmersellen (CH). The new hall is heated with a modern heat pump and a new heating system featuring state-of-the-art technology was also installed in the old building.

In addition, the division is also optimising its production processes – for example with the implementation of shop floor management at various sites. Furthermore, packaging material will no longer contain any films whatsoever in the future, saving 60 tonnes of packaging foil per year. An additional 280 m³ of gas will be saved every year by dispensing with a shrink film machine.

We are also focusing on sustainability when it comes to the construction materials for our buildings. Lignum Holzwirtschaft Schweiz, the umbrella organisation for the Swiss forestry and wood industry, awarded RWD Schlatter AG a certificate for the construction of its new warehouse. Only certified Swiss wood was used for the entire structure, with the 171 m³ of timber binding 126 tonnes of CO2e according to the certificate.

Maintaining biodiversity

The Doors Division is implementing concrete measures and is driving innovations to minimise the negative impact on biodiversity. It has reduced the total solvent emissions for the manufacture of doors by one third in the past ten years, for example and is now increasingly relying on water-based coating materials. As a result, the proportion of solvents used was only around 5.1 % in 2023. By changing over the painting process, Prüm and Garant have also succeeded in achieving considerable savings in paint consumption. They have reduced the consumption by 18 and 40 tonnes to less than 100 tonnes of paint per year respectively. Prüm has also contributed to the renaturation of a compensation area of 12 567 m² and has guaranteed financial support for the required maintenance of the deciduous mixed forest for the next 30 years.

For their practice and test pieces, the trainee workshops only use leftover wood from the neighbouring wood processing company that would otherwise be disposed of. This means there is no need to purchase any new sawn timber or building timber. The new spraying robot at Prüm will be operated with a cyclone separator in future, keeping the system’s water consumption to a minimum.

Consistently monitored objectives

A certified energy management system has made it possible to considerably simplify the monitoring at several companies. This has led to a greater sensitivity for energy savings. At the Plattling (D) site, for example, measurements are regularly taken in production via a state-of-the-art data acquisition system to identify any weak points and immediately replace inefficient consumers. At the Weinsheim (D) site, approximately 100 in-plant energy measurement points are in operation for the machines and the infrastructure. At the Deggendorf site (D), all consumption is called up in real time with a state-of-the-art energy management system. An automated reporting system makes it possible to take countermeasures when defined limit values are exceeded. An annual budget is available for measures to increase efficiency.

Prüm and Garant each have an energy team which is responsible for the current status and initiates improvements. Both companies determine energy key figures defined on a monthly basis and have their energy management systems externally checked and certified (TÜV and ICG) according to ISO 50001 on an annual basis. At Prüm and Garant, energy and environmental management is also evaluated as part of the annual management reviews. The power consumption at the Invado site in Poland is also regularly monitored and compared with the figure for the previous year. To check the effectiveness of the measures taken, the power consumption as well as the CO2 emission is determined for each manufactured product. Audits are additionally carried out at regular intervals. RWD Schlatter also has an energy management system: Targeted measures are derived from the energy key figures that are collected and analysed at least once a year.