Metrics

Energy consumption and mix

The following table lists the WACKER Group’s energy consumption and mix in 2024. The energy consumption and mix is calculated as a single figure combining all WACKER production sites. As a chemical company, WACKER is allocated to Sector C.

When calculating the Group’s energy consumption, we primarily use information from energy suppliers or our own measurements. We obtain information on electricity composition from suppliers or use publicly available sources.

Energy intensity

The energy intensity is calculated as the ratio of total energy consumption of all production sites to net Group sales as shown in the consolidated financial statements.

Consolidated statement of income

Contractual instruments (Scope 2 GHG emissions)

Gross Scopes 1, 2, 3 and total GHG emissions

The following table provides the WACKER Group’s gross Scope 1, Scope 2 and Scope 3 GHG emissions in the year under review compared with the previous year. The GHG emissions (Scopes 1, 2 and 3) for the consolidated subsidiaries are disclosed to the same extent as in the consolidated financial statements. There were no changes to the methods used to calculate the greenhouse gases as against the previous year.

Greenhouse gas calculation methods

The calculation methods and emissions factors described in the following were chosen to ensure that WACKER is in line with internationally accepted standards. They are based on the GHG Protocol Corporate Value Chain Standard with due consideration to the World Business Council for Sustainable Development (WBCSD) for the chemical sector.

Scope 1

Scope 1 includes direct greenhouse gas emissions from sources of emissions at WACKER sites worldwide. These emissions cover chemical production facilities, power plants for electricity and steam generation, facilities for waste disposal, as well as emissions from mobile combustion (vehicles). Scope 1 emissions from direct greenhouse gas emissions are calculated by multiplying the greenhouse gas amounts of all WACKER production sites by their greenhouse gas potential (IPCC Sixth Assessment Report).

Scope 2

Scope 2 includes indirect greenhouse gas emissions incurred by our energy providers whenever they create the amounts of electricity, steam, heat and cooling purchased by WACKER.

Location-based (LB) data is calculated using country-specific emissions factors from the International Energy Agency (IEA Emissions Factors 2024).

Market-based (MB) data for WACKER sites is calculated on the basis of data from our energy suppliers. If no supplier data is available, the following data is used:

• WACKER sites in Europe: “European Residual Mixes 2022 Association of Issuing Bodies; Version 1.0, June 1, 2023; figure 4; CO₂ direct”.
• WACKER sites in the USA: “eGRID Summary Tables 2021”.
• Other WACKER sites: Calculated using the above-mentioned IEA factors.

Scope 3

Primary data from our own measurements and supplier data were used to calculate Scope 3 emissions in 2024. The Scope 3 emissions calculated from this primary data for 2024 account for 41 percent. With the exception of categories 10, 11, 13 and 14, WACKER reports all other Scope 3 emissions categories, even if many of these categories are currently only of minor importance, as regards WACKER’s overall level of greenhouse gas emissions.

Category 1 (Purchased goods and services):
WACKER reports the emissions data for 100 percent of its feedstocks. To this end, the volume of feedstocks is multiplied by the emissions factors. The emissions factors originate from our own calculation models or from databases commercially available. Effects from the procurement of technical goods and services are not taken into account.

Category 2 (Capital goods):
Emissions from investments in new production plants are calculated on the basis of a defined standard WACKER plant. Average material shares of concrete, steel and copper are multiplied for this by the corresponding emissions factors from commercially available databases.

Category 3 (Fuel- and energy-related activities, not included in Scope 2):
We calculate fuel- and energy-related activities (not included in Scopes 1 or 2) on the basis of purchased energy amounts that we multiply by the emissions factors from publicly accessible databases relating to the underlying fuels. GHG emissions from purchased energy are calculated on the basis of information about the electricity mix of suppliers or the national electricity mix. Transportation and distribution losses are calculated from Scope 2 emissions (location-based approach) with factors for the individual grids being calculated using database values.

Category 4 (Upstream transportation and distribution):
Transportation and distribution emissions are calculated on the basis of the amounts of purchased goods transported and distributed and on their means of transportation (rail, ship, truck, aircraft). We use a geodata model to help us calculate the distances between suppliers and WACKER sites. The GHG emissions are determined using DEFRA’s well-to-wheel emissions factors. This category also includes product transportation to customers that fall under WACKER’s responsibility (Incoterms).

Category 5 (Waste generated in operations):
We calculate any waste incurred in operations on the basis of WACKER waste treatment (recycling, incineration, landfill) and the carbon content. Emissions for recycled products are assumed as zero. Since a negligible portion of waste incurred at WACKER is bio-based, it is assumed that 100 percent of the carbon contained will be turned into carbon dioxide (GWP=1).

The carbon content of the waste incurred in operations is calculated on the assumption that it corresponds to the average carbon content of the feedstocks used. Our approach ensures that all the carbon procured by WACKER, either under Scope 1, Scope 3, category 5, or Scope 3, category 12, is taken into account. We use the molecular weights for the conversion ratios.

Category 6 (Business travel):
We calculate emissions from business trips on the basis of kilometers traveled and/or fuel consumed. We multiply them by the emissions factors of the respective means of transportation. The emissions factors are taken from the DEFRA database.

Category 7 (Employee commuting):
To calculate emissions from commuting, we perform a model calculation based on known and estimated information about employee commuting and the average commuting distance of WACKER employees. The emissions factors multiplied by this are taken from commercially or publicly available databases, studies or publications issued by transportation service providers.

Category 8 (Upstream leased assets):
To calculate emissions from leased production plants that WACKER supplies with feedstocks, the natural gas and electricity consumption of these plants is multiplied by the respective emissions factors applicable at the site (market-based). We calculate this category independently of the type of lease (operating or financial).

In addition, we report the emissions of leased vehicles operated by WACKER employees under this category. The fuel consumption is multiplied here by the emissions factors from the DEFRA database.

Category 9 (Downstream transportation and distribution):
Transportation and distribution emissions are calculated on the basis of the amounts of WACKER products transported and distributed and on the means of transportation (aircraft, rail, ship, truck). We use a geodata model to calculate the distances between WACKER sites and customers. Only transportation that falls under the customer’s responsibility (Incoterms) is reported in this category. Product transportation that falls under WACKER’s responsibility is included in category 4.

Category 10 (Use) – irrelevant:
Emissions from the use of WACKER products sold are not relevant as use of them does not produce these kinds of direct emissions.

Category 11 (Processing) – irrelevant:
Emissions from processing our sold products are irrelevant since WACKER products do not produce any Scope 1 GHG emissions when they are processed further. WACKER does not sell any fuels or chemicals that produce GHG emissions when processed.

Category 12 (End-of-life treatment of sold products):
Emissions of sold products at the end of their lives are calculated on the basis of publicly available information on region-specific waste disposal. It is assumed that the end products are disposed of/recycled/incinerated in the regions in which a particular WACKER product is sold. Calculation is on the basis of the carbon content of the sold product and its ability to be recycled. Since a negligible percentage of WACKER products are biologically disposed of at the end of their life cycle, it is assumed that except in the case of long-lasting plastics, 100 percent of the carbon contained is turned into carbon dioxide (GWP=1). Emissions for recycled products are given as zero. Our approach ensures that all the carbon procured by WACKER, either under Scope 1, Scope 3, category 5, or Scope 3, category 12, is taken into account. The molecular weights are used for the conversion ratios.

Categories 13 (Downstream leased assets) and category 14 (Franchises) – irrelevant:
Emissions from downstream leased assets or from franchises are irrelevant since WACKER does not operate either.

Category 15 (Investments):
WACKER calculates the sum of Scope 1 and Scope 2 emissions of non-consolidated investments in which we hold a stake of at least 20 percent. Under this category, we report on the share of Scope 1 and 2 emissions of our investment in Siltronic AG and Dow Siloxane (Zhangjiagang) Holding Co. Private Ltd.

GHG intensity

The GHG intensity is calculated as the ratio of total GHG emissions of all production sites to net Group sales, as shown in the consolidated financial statements.

Consolidated statement of income

Carbon credits

In line with the SBTi’s Corporate Net-Zero Standard, WACKER sees carbon credits as a last resort to offset remaining emissions after all other reduction actions have been exhausted. As a result, WACKER does not currently participate in the market for carbon credits.

Internal carbon pricing

WACKER uses the system of internal carbon pricing for Scopes 1 and 2. The carbon price is taken into account when we recognize internal investment assumptions according to origination (e.g. CO₂ emissions in the production of a metric ton of steam). For the purchase of electricity, our investment assumptions take a price markup for evidence of origin into account. We take the impacts of current and future coal prices into account when pricing. Future prices are derived, for example, from the price of forwards under an emissions trading system. The carbon price was €98 in 2024. We use investment assumptions including carbon pricing to assess all our investment decisions. At present, 1,065 kt (90 percent) of Scope 1 emissions, 1,317 kt (100 percent) of Scope 2 emissions and 0 kt (0 percent) of Scope 3 emissions are covered by internal carbon pricing. The carbon price for emissions is identical to the carbon price for financial statements.