Annual Report 2022

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Creating tomorrow’s solutions

Emissions

Greenhouse Gases

Global warming due to rising greenhouse gas emissions is a socially and economically relevant environmental factor. We see a reduction in greenhouse gases as a key to ecologically effective climate protection.

The Group-wide greenhouse-gas accounting system – the tool we use for recording our greenhouse gas emissions – covers three different areas referred to officially as “scopes”:

  • Scope 1 covers direct greenhouse gas emissions from sources of emissions at WACKER sites worldwide. Examples of these include production facilities and power plants generating electricity and steam, as well as waste disposal systems and emissions from mobile combustion (vehicles).
  • Scope 2 covers indirect greenhouse gas emissions produced by energy suppliers that generate the electricity, steam and heat that WACKER purchases.
  • Scope 3 includes all greenhouse gas emissions in the supply chain that are produced upstream or downstream in relation to WACKER. Examples of such emissions include those created by the production or transportation of raw materials, the generation of fuels or by the disposal of end-of-life products. The GHG (Greenhouse Gas) Protocol divides these emissions into 15 categories, with WACKER reporting on those emissions that are relevant to its operations.

We report our indirect emissions from purchased energy (Scope 2) in accordance with both the location-based method (using the national energy mix) and the market-based method (using the supplier-specific energy mix). In its 2022 annual report, WACKER began publishing Scope 3 data as well.

In 2022, we once again forwarded our emissions data to the Carbon Disclosure Project (CDP), which WACKER joined in 2007. In the CDP’s Climate Change Report for the chemical sector, Wacker Chemie AG achieved a score of B as in the previous year (on a scale from A to D, representing the levels Leadership (A), Management (B), Awareness (C) and Disclosure (D)). Registered CDP users can download the details.

Overview and Explanations of Greenhouse Gases

 

 

 

 

 

 

 

CO2-equivalent emissions (kt CO2e) 1

 

2022

 

2021

 

2020

 

 

 

 

 

 

 

Scope 1 (direct emissions), of which:

 

1,304

 

1,290

 

1,285

CO2 emissions (carbon dioxide)2

 

1,294

 

1,303

 

1,264

Of which fossil

 

1,226.6

 

1,247.0

 

1,208.0

Of which biogenic

 

67.4

 

56.0

 

56.0

CH4 (methane)3

 

0.7

 

0.7

 

0.8

N2O (nitrous oxide)

 

10.6

 

10.6

 

10.9

HFCs (hydrofluorocarbons)4

 

66.2

 

31.6

 

65.6

PFCs (perfluorocarbons)

 

 

 

NF3 (nitrogen trifluoride)

 

 

 

SF6 (sulfur hexafluoride)

 

0.2

 

 

 

 

 

 

 

 

 

Scope 2 (indirect emissions):

 

 

 

 

 

 

Location-based (kt)5

 

1,324

 

1,390

 

1,579

Market-based (kt)6

 

1,930

 

2,357

 

2,340

 

 

 

 

 

 

 

Total Scope 3 (indirect emissions), of which:

 

6,621

 

6,927

 

7,754

Upstream activities

 

 

 

 

 

 

Category 1 – Purchased goods and services

 

4,549

 

4,844

 

5,238

Category 3 – Fuel and energy-related activities (not included in Scopes 1 and 2)

 

407

 

497

 

1,021

Total of all other upstream activities7

 

269

 

278

 

281

Downstream activities

 

 

 

 

 

 

Total of all downstream activities8

 

1,396

 

1,308

 

1,214

1

CO2e = CO2 equivalents, as defined in the Greenhouse Gas Protocol. CO2 emissions are measured on the basis of the Greenhouse Gas Protocol of the World Resources Institute and World Business Council for Sustainable Development, “A Corporate Accounting and Reporting Standard” (GHG Protocol). Scope 1: direct CO2 emissions. Scope 2: indirect emissions from the consumption of purchased energy (converted into CO2 equivalents for purchased electricity, steam and heat). Scope 3: all greenhouse gas emissions in the value chain that occur upstream and downstream of WACKER.

2

CO2 emissions are split into fossil and biogenic sources in accordance with the GHG Protocol. Biogenic emissions arise from the combustion or decomposition of renewable raw materials.

3

CH4: methane emissions from fossil sources, without methane emissions from biogenic sources.

4

The HFC category contains minor quantities of emissions from other partially halogenated HFCs which contribute to the greenhouse effect as well. The GWP factors of the individual substances were used as a basis for calculating the effects of hydrofluorocarbons. The factors range from 5.5 to 14,600 kg CO2e/kg HFC.

5

The electricity volumes supplied by the affiliated company Alzwerke GmbH are included in indirect CO2 emissions in a climate-neutral manner due to the fact that they are not fed into the public electricity grid. Indirect CO2 emissions also include methane and nitrous oxide emissions converted into CO2 equivalents. Purchased electricity volumes are converted into CO2 emissions using emission factors from “CO2 Emissions from Fuel Combustion,” 2021 and 2022 Editions, respectively, issued by the International Energy Agency (location-based).

6

The electricity volumes supplied by the affiliated company Alzwerke GmbH are included in the indirect CO2 emissions in a climate-neutral manner due to the fact that they are not fed into the public electricity grid. Purchased electricity volumes are converted into CO2 emissions using the emission factors of the electricity suppliers (market-based). If the emission factors for the respective suppliers are not available, the residual-mix emission factors are used or the emission factors of the International Energy Agency.

7

Contains CO2e emissions in the following categories: 2 (Capital Goods), 4 (Upstream transportation and distribution), 5 (Waste generated in operations), 6 (Business travel), 7 (Employee commuting) and 8 (Upstream leased assets). Due to their much smaller percentages, these are reported in consolidated form only.

8

In the case of downstream activities, we report in the following categories: 9 (Downstream transportation and distribution), 12 (End-of-life treatment of sold products) and 15 (Investments). As a chemical company, WACKER does not – in line with the GHG Protocol – report any emissions in categories 10 (Processing of sold products) or 11 (Use of sold products). The following Scope-3 categories -13 (Downstream leased assets) and 14 (Franchises) – are not relevant to WACKER and are consequently not recorded.

Scope 1 Emissions

In the reporting year, direct emissions of CO2e from fossil sources rose by 1 percent year over year. A positive development was the reduction in direct CO2e emissions from fossil sources at the Burghausen site. On the other hand, greenhouse gas emissions at the Holla site rose due to increased production, and there were unexpected coolant leaks at other sites.

In the cooling units we use in our production processes at many sites, we have been gradually replacing existing coolants with alternative materials that pose as little global warming potential as possible. That helps us keep reducing greenhouse gas emissions from coolant leaks.

Scope 2 Emissions

In 2022, indirect emissions from purchased energy declined year over year despite the larger quantities procured at our production plants in Burghausen and Nünchritz (Germany) and in Holla (Norway).

This was due to the greater quantities of renewable electricity purchased. That enabled WACKER to reduce its indirect CO2e emissions (Scope 2, market-based) by approx. 18 percent overall in the reporting year.

Location-based Scope 2 emissions also declined further in the reporting period due to the fact that more renewable energy was procured worldwide.

Scope 3 Emissions

To calculate the indirect Scope 3 emissions relevant to WACKER, we use methods in line with the GHG Protocol (Corporate Value Chain Standard) based on WBCSD (World Business Council for Sustainable Development) guidance for chemical-sector companies.

At WACKER, indirect Scope 3 emissions belong predominantly to Category 1 (Purchased goods and services ) and Category 3 (Fuel and energy-related activities (not included in Scopes 1 or 2)). In the reporting year, indirect emissions in Category 1 fell by around 6 percent, mainly due to reduced quantities of raw materials and to raw-material purchases with smaller product carbon footprints. In addition, Category 3 emissions decreased by around 18 percent thanks to the greater quantities of renewable electricity purchased, the upstream emissions of which are lower than with electricity from fossil sources. The other upstream categories (2, 4-8) and the downstream categories (9, 12, 15) reported are of minor importance and are thus presented as a single combined figure.

Reduction in Greenhouse Gas Emissions

As we pursue our goal of achieving net zero, we aim to reduce the Group’s absolute greenhouse gas emissions (Scopes 1 and 2) to half of our 2020 value by 2030.

2030 Target: Reduce Absolute CO2 Emissions (Scopes 1 and 2) by 50%

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2020

 

 

 

 

 

 

 

Absolute CO2 emissions (kt CO2)

 

3,235

 

3,660

 

3,626

Absolute CO2 emissions (%)

 

89.2

 

100.9

 

100

Change in %

 

-10.8

 

0.9

 

During the year under review, reductions in emissions were on the linear trajectory that had been mapped out for a 10-percent reduction in 2022 relative to 2020. The main factors in this were optimized operation of the power plant in Burghausen and increasing use of renewable electricity.

WACKER is also committed to reducing its absolute greenhouse gas emissions from purchased goods and services, such as fuel- and energy-related activities (Scope 3, Categories 1 and 3), by 25 percent between 2020 and 2030.

2030 Target: Reduce Absolute CO2 Emissions (Upstream Scope 3, Categories 1 and 3) by 25%

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2020

 

 

 

 

 

 

 

Absolute CO2 emissions (kt CO2)

 

4,172

 

4,490

 

5,218

Absolute CO2 emissions (%)

 

80.0

 

86.1

 

100

Change in %

 

-20.0

 

-13.9

 

During the year under review, emissions (Scope 3) were down 20 percent, so that reductions in emissions were above the linear trajectory that had been mapped out for a 5-percent reduction in 2022 relative to 2020. This was due not only to continually enhanced computational models, but also to the fact that lower quantities of raw materials were used. In addition, we procured raw materials with a smaller carbon footprint as well as an increasing amount of electricity from renewable sources.

Air Pollutants

Overview and Explanations of Emissions of Airborne Pollutants

 

 

 

 

 

 

 

t

 

2022

 

2021

 

2020

 

 

 

 

 

 

 

NOx (nitrogen oxides)

 

2,200

 

2,440

 

2,330

NMVOCs (non-methane volatile organic compounds)

 

950

 

1,130

 

890

CO (carbon monoxide)

 

508

 

487

 

501

Dust

 

415

 

428

 

500

SO2 (sulfur dioxide)

 

1,248

 

1,075

 

1,145

In the reporting period, the Group reduced its nitrogen oxide emissions by 10 percent thanks to significant process improvements at the Holla site and decreased utilization of the power station at Burghausen.

Emissions of non-methane volatile organic compounds (NMVOCs) declined by 16 percent, chiefly due to WACKER POLYMERS’ lower production-capacity utilization at Burghausen and Ulsan.

In addition, total dust emissions were reduced by 3 percent, due mainly to continued stable operation of the furnaces at Holla and of the powder-drying facility at Burghausen.

Water

Water plays an important role in many of WACKER’s production processes, whether for cooling, cleaning or as a formulation component. Safe, cost-effective availability of water, in both the quality and quantity needed, has a substantial effect on the company’s added value.

Climate change may increasingly lead to limitations on the available quantity and quality of water.

It follows that water stewardship is a significant part of our sustainability strategy. The WACKER Water Stewardship program we have developed and introduced groupwide takes a systematic approach to water management at our production sites, committing our business divisions and sites to the responsible use of water resources throughout the entire supply chain.

Our water stewardship plays out at the local level, so that we can accommodate the unique circumstances and requirements of the areas where our sites are located. To this end, we focus on the following:

  • Giving our production processes a secure supply of water, in a quantity and quality (temperature, substance loads) appropriate to demand – adapted to the ecological capacity of the water reservoir in question
  • Treating wastewater safely and preventing harmful substances from entering waterways
  • Meeting society’s demands for sustainable water use and fulfilling legal and regulatory specifications for water consumption and wastewater/sewage disposal
  • Ensuring our production sites can be adapted to physical and regulatory changes both to head off risks to sustainable development and to take advantage of economic opportunities.
  • Strengthening the degree to which the production portfolio supports our sustainability efforts by incorporating impacts on water into our WACKER Sustainable Solutions program

In doing so, we are gearing our efforts to international standards such as the EWS (European Water Stewardship), the AWS (Alliance for Water Stewardship) and the WASH (Water, Sanitation and Hygiene) standards.

We also began submitting water data to the CDP in 2018. In 2022, we scored an A- in the CDP’s Water Security Report (prior year: B; on a scale from A to D, representing the levels Leadership (A), Management (B), Awareness (C) and Disclosure (D)). Registered CDP users can download the details.

Overview and Explanations of Water Consumption and Emissions to Water

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2020

 

 

 

 

 

 

 

Water withdrawal (thousand m3)

 

275,489

 

273,107

 

264,077

Utilized by WACKER

 

241,383

 

237,479

 

229,930

Supplied to third parties

 

34,106

 

35,628

 

34,147

Cooling water volume ( thousand m3 )

 

259,578

 

257,172

 

237,829

Utilized by WACKER

 

228,084

 

224,293

 

206,228

Supplied to third parties

 

31,494

 

32,879

 

31,601

Wastewater volume (thousand m3)

 

17,885

 

17,898

 

16,926

WACKER

 

12,685

 

12,592

 

11,142

Third parties

 

5,200

 

5,306

 

5,784

COD (chemical oxygen demand) (t)

 

1,321

 

1,528

 

1,053

Heavy metals (t)

 

1.4

 

1.3

 

1.1

Total nitrogen (t)

 

203

 

207

 

171

Total phosphorus (t)

 

7.0

 

7.8

 

7.5

In the reporting year, water withdrawal for the Group’s own use increased by 2 percent. This rise was attributable chiefly to the weather-related increase in the use of cooling water at the Burghausen site.

Wastewater volume remained on par with the previous year.

The discharge of residual organics in wastewater, expressed es the chemical oxygen demand (COD), fell by 14 percent, due in part to the good performance of the biological wastewater treatment plant at Burghausen.

To assess our water risks, we use the WWF (World Wildlife Fund) Water Risk Filter, which rated the maximum global basin risk of our production sites as 3.8 in 2022 (scale: 1 = no risk, 5 = high risk). The basin risk indicators prescribed by the WWF Water Risk Filter comprise several risk types (physical, regulatory, reputational) subdivided into twelve risk categories. We take the information from this classification into account when analyzing water usage at our sites.

Reducing Specific Water Withdrawal

To help decrease the size of our water consumption footprint, we have set ourselves the target of reducing specific water withdrawal by 15 percent across the Group between 2020 and 2030.

2030 Target: Reduce Specific Water Withdrawal by 15%

 

 

 

 

 

 

 

%

 

2022

 

2021

 

2020

 

 

 

 

 

 

 

Specific water withdrawal

 

102.2

 

98.4

 

100

Change

 

2.2

 

-1.6

 

Emission
Substance outputs, noise, vibrations, light, heat or radiation emitted into the environment by an industrial plant.
Volatile Organic Compounds (VOCs)
Volatile organic compounds (VOCs) are gaseous and vaporous substances of organic origin that are present in the air. They include hydrocarbons, alcohols, aldehydes and organic acids. Solvents, liquid fuels and synthetic substances can be VOCs, as can organic compounds originating from biological processes. High VOC concentrations can be irritating to the eyes, nose and throat and may cause headaches, dizziness and tiredness.