Page 43 - Demo

43 About Strategy and Governance Our People Our Business Our Outcome AppendixEmissions from Business Travel Travel is a key part of our people-driven business. We have put in place internal approval systems to prevent any unnecessary travel. Most journeys are carried out by business flights, by sales and service teams in their own cars, and by taking public transportation.We experienced a significant drop in business travel in 2020 and 2021 because of the COVID-19 pandemic. While deliveries of goods were able to proceed, meetings with customers were restricted. Our digital and hybrid engagements with clients, which were widely adopted during the pandemic, are the new norm. We will continue to use online communication, whenever feasible, to minimize our emissions. That being said, some travel to connect with colleagues and business partners in person is inevitable. Applying the new calculation approach for the years 2022 and 2023 results in a 31% increase in emissions from business flights in 2023 compared to 2022. Renewable Energy In 2023, we increased our renewable electricity purchases. Our food-blending plant in the Philippines switched to 100 % renewable electricity in early 2021. We also purchase renewable electricity from our energy providers for our operations in Myanmar (partially), Japan (partially), Laos, New Zealand (partially), Italy, Germany (partially), Portugal (partially), Spain (partially), and Switzerland (partially). For other markets, we purchase International Renewable Energy Certificates (I-RECs) to reach our target of being climate-neutral from our own operations by 2030.A total of 63,903 MWh of electricity use across the following markets was backed by I-RECs for the period 1 October 2022 to 30 September 2023 in compliance with the GHG Protocol%u2019s Scope 2 Guidelines: Cambodia, China, Hong Kong, India, Macau, Malaysia, Myanmar, Singapore, Thailand, and Vietnam.In addition, we constantly explore potential ways to increase the number of solar panels at our DCs. To this end, in 2022, we conducted an analysis across all DCs to identify those suitable for solar panels. In 2023, we continued our efforts by equipping more DCs with solar panels. As of 2023, we can report a total of ten solar panel systems across multiple DCs within our Southeast Asia markets. These installations span key regions, including Thailand, the Philippines, Singapore, Laos, and Taiwan. The installed solar panel capacity varies from 11 kWh to 1,000,000 kWh. Both DKSH and, to a significant degree, the landlords of the building premises contributed the investments needed for these projects. The potential for solar panels now forms part of the regular evaluation process when deciding on new DCs.As announced in the 2022 Sustainability Report%u2019s Progress highlights, we have installed solar panels at Business Unit Performance Material%u2019s brand-new DCs in Bang Plee, Thailand. Reporting Approach We calculate our emissions in accordance with the GHG Protocol standards, using 2020 as a base year. All relevant greenhouse gases are included in these calculations, i.e. CO2, CH4, and N2O, along with the impacts of radiative forcing for business flights. We use operational control as our consolidation approach of choice for emissions.All figures showing the consumption of energy and refrigerants in our buildings relate to DCs and offices. We also have a small retail footprint in some markets, such as Thailand. These shops are mainly leased units within larger complexes, where we have limited or no access to energy data. All retail data is excluded as it is not considered material for the Group%u2019s footprint.Since 2023, we have used an external IT solution to collect the raw data needed to calculate our company%u2019s carbon footprint. This IT solution collects data on our own fleet, our external fleet (natural gas, diesel, and gasoline consumption), generators, boilers, MHE (LPG, diesel, and gasoline consumption), and refrigerants, as well as energy consumption data. Emissions factors are built into this IT solution, allowing us to perform direct calculations in the tool. We collect data by site. Users who perform data entry work are required to upload supporting evidence (e.g. invoices or purchase orders) to ensure data accuracy. Data is first entered by a contributor and then verified by a validator who compares the data entered with the supporting evidence. The new IT solution has a range of advantages. Its centralized data management approach allows multiple users from all our markets to access and analyze data at various levels, from location and market to business unit. Other features, such as plausibility checks and automated carbon footprint calculation, help to assure data accuracy. This easy-to-use tool also features automated reporting against major standards and is highly auditable. We calculate our Scope 1 emissions by mapping data on refrigerants, our own fleet (natural gas, diesel, and gasoline consumption), and generators, boilers, and material handling equipment (liquefied petroleum gas (LPG), diesel, and gasoline consumption). This process is followed for markets with the highest use of refrigerated storage and the largest distribution networks, including Cambodia, Hong Kong, Malaysia, Myanmar, New Zealand, Singapore, Taiwan, Thailand, and Vietnam. Fuel usage includes compressed natural gas (CNG), LPG, diesel, and gasoline for our internal fleet of delivery vehicles and backup electricity generators. When gathering information on outsourced logistics services, major suppliers have specified their diesel consumption data in liters based on billing data. For consistency purposes, all fuel properties and emission factors were sourced from the Greenhouse Gas Protocol (2017). The Global Warming Potentials are from the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (AR4) over a 100-year period.