GRI 103-1 Explanation of the material topic and its boundary
The manufacturing processes and technologies used at SFS are extremely efficient. Cold forming, one of the Group’s core technologies, in particular is a highly energy and material-efficient approach compared with alternative manufacturing technologies. However, since the combustion of fossil fuels to generate energy in addition to other direct and indirect sources of emissions found in the manufacturing process have a negative impact on both the environment and the climate, SFS strives to continuously reduce its emissions – in compliance with the Paris Climate Agreement. The boundaries of this topic can be defined as follows:
Scope 1: Emissions from sources within the company. At SFS, direct emissions are generated mainly by heat treatment systems and the company’s own heating systems.
Scope 2: Emissions from the generation of energy purchased from an external source. At SFS, these arise mainly through energy consumption (electricity) and industrial gases attributable to manufacturing activities at the individual sites..
Scope 3: Emissions that arise as a result of the company’s operations but are generated by sources not controlled by the organization (for example, emissions originating from suppliers or service providers). At SFS, materials such as steel, non-ferrous metals, plastic and packing materials are procured from external sources. Other significant sources of emissions include the transport of materials and products, and employee business-related travel and commuting.
During the year under review, data was collected at 34 locations (2019: 33 locations) with 8,956 FTE employees (SFS Group employees, 2019: 9,047). This corresponds to about 84% (2019: 86%) of the entire workforce of SFS Group. The goal is to include all relevant locations by 2025 and reach a coverage level of more than 95%.