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41 About Strategy and Governance Our People Our Business Our Outcome AppendixOur enhanced HSE Management System is drawn up with reference to the ISO 14001 standard. The local country HSE Steering Committees are responsible for ensuring its effective deployment across all markets. In turn, local HSE Managers support the practical implementation of management systems and processes.Targets and Progress We have been reporting greenhouse gas emissions related to our operations since 2018 and have launched several initiatives to reduce our carbon footprint. In addition to cutting fuel consumption, DKSH initiated a program in 2019 to use more energy from renewable sources. Our goal: to become climate-neutral in our own operations by 2030. We achieved our greenhouse gas emissions target %u2013 to reduce greenhouse gas emissions from our own operations by 35% by 2025 compared with a 2020 baseline %u2013 four years early. That is why we are constantly setting ourselves new interim targets. We want to reduce our total emissions by 55% by 2024 and by 70 % by 2027 compared to a base year of 2020. We calculate the change in greenhouse gas emissions using the market-based approach for Scope 2. In 2023, we cut greenhouse gas emissions (Scope 1 and 2) from our own operations by 50 % compared with our base year 2020 and by 14% compared with 2022, proving the effectiveness of our emissions reduction measures. In addition to CO2 emissions, we include CH4 and N2O emissions in the calculation of our greenhouse gas emissions. In addition to CO2 emissions, we include CH4, N2O, and CFC emissions in the calculation of our greenhouse gas emissions. In 2023, our Scope 1 and 2 (location-based) emissions amounted to 64,023 metric tons of CO2, 95 metric tons of CO2e of CH4, 277 metric tonsof CO2e of N2O, and 2,693 metric tons CO2e of CFC, resulting in CO2e of 67,089 metric tons . Please turn to the Sustainability Strategy chapter for further information on our progress and goals in reducing emissions. The following initiatives contribute to the reduction of greenhouse gas emissions:%u2023 Purchasing International Renewable Energy Certificates (I-RECs) as a credible claim for renewable energy use, in compliance with the GHG Protocol Scope 2 Guidance%u2023 Purchasing renewable electricity directly from energy providers%u2023 Generating renewable electricity by installing solar panels at our distribution centers and other premises%u2023 Reducing emissions at the source by optimizing transport routes and ensuring more efficient use of electricity at our sitesGreenhouse Gas Emissions (Location-Based Accounting) in Metric Tons CO2 EquivalentThe graph at right shows our gross emissions. Scope 2 figures are calculated using location-based factors for each market relating to the carbon intensity of the national grid.Outsourced transport (Scope 3)Air travel (Scope 3)24Electricity (Scope 2)Fuel and refrigerants(Scope 1)Greenhouse Gas Emissions (Market-Based Accounting) in Metric Tons CO2 EquivalentThe graph at right shows our net emissions. Our Scope 2 figures23are calculated using market-based factors relating to the carbon intensity of the electricity we buy from our energy providers, plus our additional purchases of I-RECs. To learn more about I-RECs, please turn to the section on Reporting Approach.%u2023 GRI 305-1, GRI 305-2, GRI 305-3Outsourced transport (Scope 3)Air travel (Scope 3)24Electricity (Scope 2)Fuel and refrigerants(Scope 1)23 Before 2021, market-based = location-based. With the purchasing of Renewable Energy Certificates (I-RECs) starting in 2021, we began to apply market-based methodology to Scope 2.24%u2002 New calculation approach for Scope 3 business flights emissions since 2023.9,11279,89952,9064,970 5,7422020(base year)2022 20234,01514,44771,81719,78964,26227,87712,35114,44771,81757,9779,11279,89952,9064,97064,26256,9445,7422020(base year)2022 202312,351 4,015