Emissions

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.

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.

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.

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.

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.

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.

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.

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.

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.