CO₂ and Energy

The topic of "CO₂ and energy" is important to Arbonia in two respects: With a share of over 30%, buildings have a great potential for reducing greenhouse gases; they are the largest source of CO₂ emissions in Europe after mobility. Accordingly, there is a 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.

We are also aware that conventional energy generation consumes finite resources that contribute to climate change. At the same time, we 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 emissions of the upstream and downstream 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 that influence the Scope 3 emissions, in order to formulate reduction targets and measures for this as well. In an initial step, the divisions determined the following categories in a materiality analysis:

–   Purchased goods and services
–   Capital goods
–   Energy-related upstream chain
–   Upstream and downstream transport
–   Waste
–   Commuter traffic

Environment-related activities affect all business processes – from research and development through production to logistics and transport. It is correspondingly important that contributions to reducing greenhouse gas emissions and saving energy are made at each level. As Arbonia, we have been paying special attention to this issue for many years and are continually taking new measures to further improve our environmental impact. The optimisation of energy consumption – and thus the improvement of the CO₂ balance – has long since become a task of all companies, departments, and areas. Specifically, everyone has the possibility to work towards this goal and make their own contributions in the form of improvement suggestions. All targets in the area of energy efficiency are defined annually and advanced with corresponding measures.

One decisive measure for more energy efficiency are certifications of various production sites according to the ISO standard 50001, which requires a complete monitoring of energy key figures, among other things. The monitoring and assessment of energy efficiency within Arbonia are therefore standard. For this purpose, clear competencies and in-house energy officers have been designated. These officers from the areas of production and logistics continuously monitor the target achievement.

On the basis of the Science Based Targets Initiative, we have determined a path for reducing our own CO₂ emissions (Scope 1 and 2) and defined corresponding targets and measures. We aim for an average annual reduction of 4.2% (incl. growth) by the year 2035 (reference year 2020). Initial measures include increasing the share of electricity from renewable energies by expanding the photovoltaic systems, enlarging the fleet of electric cars, and increasing energy efficiency with new machines. A certified energy and environmental management reviews the target achievement and the effectiveness of the implemented measures.

A complete monitoring of the key figures in energy management is the most important instrument for Arbonia to continue to pursue the strategic targets relating to energy efficiency and CO₂ emissions. This also makes it possible to measure the share of renewable energy. The main objective of all companies is to grow responsibly and to aim for maximum energy efficiency.

In the reporting year, Arbonia already succeeded in increasing the share of renewable energy in the total energy consumption to 46.9% (previous year 41.0%). Together with large amounts of green energy, Arbonia was able to increase the overall share of renewable electricity in the total electricity consumption from 32.7% to 43.3%. A further success was the reduction in heating oil consumption for heat production by 24.4%. In total, Arbonia thereby succeeded in reducing its greenhouse gas intensity (greenhouse gas emissions in kgCO₂e / CHF net revenue) by 9.1% (Scope 1 – 2).

Arbonia’s commitment in the area of CO₂ and energy benefits the company by enabling it to meet rising customer expectations regarding sustainability as well as increasing legal requirements.

Key environmental figures

	2022	2021	2020
Energy consumption in MWh	303 721	325 618	319 136
Thereof renewable	46.9%	41.0%	38.1%
Electricity	103 402	107 268	102 461
Own electricity production ^₁	12.9%	12.2%	10.6%
Total renewable electricity	43.3%	32.7%	23.6%
Heat	177 999	194 464	193 924
Own heat production(wood chips/shavings)	97 787	98 374	97 343
Natural gas	78 485	93 806	93 772
Heating oil	1 727	2 285	2 810
Fuels	22 321	23 886	22 751
Diesel	21 534	22 624	21 402
Petrol and Liquified Petroleum Gas (LPG)	786	1 262	1 349
Energy consumption in kWh/CHF Net revenues	0.25	0.28	0.31
Greenhouse gas emissions (Scope 1+2) in tCO₂e	60 588	65 759	65 046
Scope 1	23 858	27 719	27 530
Own heat production (wood chips/shavings) ²	1 480	1 520	1 504
Natural gas	15 847	19 227	19 220
Heating oil	461	611	751
Diesel	5 805	6 049	5 722
Petrol and Liquified Petroleum Gas (LPG)	266	312	332
Scope 2	36 730	38 040	37 516
Electricity	36 730	38 040	37 516
Greenhouse gas emissions (Scope 1+2) in kgCO₂e/CHF Net revenues	0.050	0.055	0.063
Scope 3³	-	-	-
Energy-related upstream chain	15 038	15 104	-
Commuting of employees	11 733	11 822	-

^{¹ The company's own electricity is produced by means of photovoltaic systems and a wind turbine. These plants do not cause any CO₂ emissions during operation.
² Direct emissions due to the production of the greenhouse gases methane and nitrous oxide, which are not absorbed during growth. Biogenic CO₂ emissions are reported outside of scopes according to the GHG protocol and
amounted to 34 616 t CO₂e in 2022 and 34 782 t CO₂e in 2021.
³ Scope 3 emissions will only be fully calculated for the next reporting year. The calculation of the emissions for the present categories was according to the information from the Arbonia Sustainability Report 2021.}

Energy consumption by energy source (MWh)

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

Energy consumption composition (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 3.3 Fuel- and energy-related emissions and 3.7 Employee commuting are reported in accordance with the Greenhouse Gas Protocol. Country-specific emission factors are also used here ("location-based approach"). Used emission factors: EEA 2022, DBEIS, LfU Bavaria, and DEFRA.

Climate Division

Saving energy – and producing it ourselves

The Climate Division is continually expanding its capacities for generating its own electricity and heat from renewable energies. A photovoltaic system at the production site in Kladovo (RS) generates around one third of the site’s own power requirements (114.82 MWh in the reporting year). This share is to increase to 50% through a more efficient network supply. The heat production and cooling take place through heat pumps with higher capacities, so that the need for gas is eliminated entirely. The Corbetta (IT) production site is also continually increasing the share of self-generated electricity. Currently, over half of the power requirements are covered by photovoltaics. Further investments are planned in order to further increase this share. In addition, charging stations for electric cars are being installed.

At the Dilsen (BE) site, a wind power generator with an output of two megawatts provides for an improved energy balance. 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. Furthermore, a new company policy stipulates that only electric cars may be used starting in 2023.

At the Plattling (D) site, the division put a CHP system into operation in 2022 that will lead to CO₂ savings of at least 425 tonnes annually. In Opočno, Czech Republic, the most modern energy standards were taken into account in the new construction of a heat pump plant and in the investment in new compressors (see introductory interview for the chapter). The reduction of the energy consumption is analysed and monitored at these sites in the framework of Six-Sigma projects, a management system for process optimisation.

Improvement of the CO₂ footprint as a target

The division wants to decrease travel in logistics by optimally bundling loads together. In addition, the division uses telematics data to review and optimise driving behaviour and driving distances. High-emission vehicles are replaced by new ones, for example, at the Corbetta (IT) site, where the fleet was switched to the "Euro 6" emissions standard.

Provision of green areas at local sites

Maintaining biological diversity is closely connected to engagement in the area of CO₂ and energy. After an analysis of the biodiversity at the Plattling (D) site, initial measures were initiated to protect and strengthen the flora and fauna. The creation of green spaces and planting of additional trees on the company premises will promote biodiversity at the local sites of the division.

In addition to greening, efficient production and sales processes also play a decisive role in promoting biodiversity. Despite volume growth, the division is committed to manufacturing in existing or reduced spaces to consolidate production. Intensively built areas in the production plant are compensated for by organically cultivated compensation areas.

Doors Division

Numerous measures for greater environmental protection

The measures of the Doors Division for increasing efficiency are reviewed and ensured by a consistent energy management. At the Deggendorf site, 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. In addition, a majority of the companies 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. Further investments in reducing power consumption concern entrance gates, a planned hall roof with new insulation, as well as a photovoltaic system, LED lighting, and the replacement of a filter system. Of course, attention is also paid to the use of energy-saving technology in new buildings and renovations at the operating sites. In addition, a project for energy efficiency analysis is being carried out from which new measures will be derived.

And the degree of self-sufficiency will ultimately be continually increased through the construction of new or the expansion of existing energy generation systems. At the Prüm doors plant, residual materials from production are used to generate heat and electricity: The 30-year-old CHP system there has reached the end of its life cycle and is currently being replaced by a more modern and more efficient system. The new CHP system, which will be commissioned in 2023, can produce more than double the amount of electricity from biomass waste as the old system. This means that the Weinsheim (D) site will be able to generate up to 60% of the power requirements internally. The Garant production plant in Amt Wachsenburg (D) will take a similar path: In 2021, the planning phase started for a state-of-the-art CHP system, which will commence operations in 2024. Likewise, this system will also cover around 50% of the power requirements of the production plant.

In addition to the above-mentioned objectives, the division is also optimising its production processes – as for example with the implementation of shop floor management at various sites. Furthermore, packaging material will no longer contain any foils whatsoever in the future. This will save 60 t of packaging foil as well as additionally 280 m³ of gas per year by dispensing with a foil shrink machine.

Conservation of biodiversity

The Doors Division is implementing concrete measures and is driving innovations to maintain biological diversity. 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. The share of solvents is currently only around 7.4% in this regard. 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 respectively to less than 100 tonnes of paint per year. The Prüm company has contributed to the renaturation of a compensation area of 12 567 m² and guarantees the financial support of the required maintenance of the deciduous mixed forest for the next 30 years. In addition, the division is involved in the production of beehives and bee colonies in the framework of their wood training workshop.

The Garant company used the proceeds from a raffle on the occasion of their 30-year anniversary to initiate a tree-planting campaign to reforest a nearby forest. Over an area of around two hectares, numerous spruces that were befallen by bark beetles had to be felled. In cooperation with the forest conservation organisation Schutzgemeinschaft Deutscher Wald and the Rockhausen forestry cooperative, Garant used the donated money to buy saplings that were planted with the help of numerous volunteers.

Consistently monitored goals

A certified power 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 Prüm and at Garant, one energy team each 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, the energy and environmental management is also evaluated as part of the annual management review. The power consumption during operation at the Invado site in Poland is also regularly monitored and compared with the figures 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 analysed energy key figures that are collected at least once a year.