sustainabilitymatrixemissionen

Emissions

Reducing direct and indirect emissions along the entire value chain is the key measure for achieving the Paris climate goals, which stipulate limiting global warming to below 2° or 1.5° Celsius. SFS aims to reduce its CO2 emissions (Scope 1 & 2) by ≥90% by 2030. By 2040, indirect emissions for the entire value chain (Scope 3) are also to be reduced to the same extent. CO2 emissions for Scope 1 and 2 were reduced by 4.5% in the year under review. Using a like-to-like approach, the improvement is as high as a reduction of –11.9%. SFS will continue to press ahead with its CO2 emissions reduction agenda in the year to come by expanding ongoing initiatives such as the expansion of photovoltaic plants and the electrification of the vehicle fleet.

GRI 103: MANAGEMENT APPROACH 2016

GRI 103-1 Explanation of the material topic and its boundary
A sustainable mindset and approach are part of SFS’s DNA and are also an important driver of innovation. As value creators, the employees use their expertise and embrace the “Inventing success together” corporate principle to develop more sustainable products and solutions that reduce direct and indirect emissions along the entire value chain, thereby contributing to the achievement of the Paris climate goals and offering customers corresponding added value.

Cold forming, one of SFS’s core technologies, achieves significant energy and material savings compared to alternative manufacturing processes (such as milling or turning). No material is removed during the cold forming process, rather the blank is brought into its final form during two to six shaping stages with virtually no material loss. The material savings are estimated at around 67% across the entire range of parts manufactured at SFS. Based on the Group’s annual consumption of raw materials, the emissions generated during steel production and the cutting performance no longer required, around 300,000 ton of CO2 emissions are prevented by using the cold forming process. This roughly corresponds to the annual CO2 emissions of approx. 50,000 single-family homes using a conventional oil or gas heater.

Since even the use of efficient technologies can have negative effects on the environment, society and climate, SFS constantly strives to improve them and continuously reduce its own emissions.

Environmental impact modeling is conducted together with Sinum and based on the principles of the company ecobalance, the greenhouse gas inventory according to the GHG Protocol (Corporate Accounting and Reporting Standard) and the methodology prescribed by the principles of the ISO 14040 standard. The holistic approach takes into account three different areas, referred to as scopes:

Scope 1: Emissions generated by direct sources of emissions within the company. At SFS, direct emissions are primarily caused by heat treatment and heating systems, the company’s own vehicle fleet and the use of process materials that result in direct emissions (refrigerants, etc.).

Scope 2: Emissions that arise during the production of externally sourced energy. At SFS, these are mainly generated through energy consumed (electricity) in connection with production at the individual sites of operations.

Scope 3: Emissions caused by the company’s activities but that are not under the company’s direct control (emissions caused by suppliers, service providers and waste disposal companies, etc.). Materials such as steel, non-ferrous metals, plastics and packaging materials are purchased from SFS. Other material sources of emissions include the transport of materials and products as well as employees’ business-related and commuter traffic.

A distinction is made between “upstream and downstream categories” in line with the upstream and downstream business processes in a value chain.

Upstream business processes
Scope 2:

  • Purchased electricity, steam, heating and cooling for own use

Scope 3:

  • Operational waste
  • Purchased goods and services
  • Rented assets for upstream business processes
  • Business trips
  • Capital goods
  • Fuels for energy generation
  • Employees’ commuter traffic
  • Transport and distribution

Reporting company
Scope 1:

  • Operational facilities
  • Company vehicles
  • Production processes / use of process materials

Grafik_upstream_neu

Downstream business processes
Scope 3:

  • Disposal of sold products
  • Rented assets for downstream business processes
  • Investments
  • Use of products sold
  • Transport and distribution
  • Processing of products sold

GRI 103-2 The management approach and its components
As a leading technology company, SFS not only strives to make its own processes as energy-efficient, environmentally friendly and resource-conserving as possible, but also to offer solutions that offer its customers long-term benefits in terms of application. SFS’s environmental management takes the entire supply chain into account, which also helps it contribute to its customers’ achievement of their own sustainability goals.

The overarching principles of environmental management are enshrined in the “Policy on Quality, Environment, Occupational Health and Safety” and in the sustainability guidelines. Among other things, SFS undertakes to manufacture and/or offer all products and services in compliance with statutory and official requirements regarding environmental protection, safety and health.

Certification of the production sites in accordance with ISO 14001 is part of the management approach and the comprehensive environmental management system and is aimed at continuously reducing the company’s environmental impact.

If necessary, complaints relating to emissions can also be submitted anonymously via the existing reporting channels. Both employees and external parties can submit complaints to the Compliance Officer using a form provided on the website. No reports relating to emissions were received via this complaint channel in the year under review.

Reduction of emissions by more than 90% by 2030
SFS pursues the goal of reducing its CO2 emissions (Scope 1 & 2) by ≥90% by 2030. This reduction target is based on 2020. Emissions savings are calculated based on the tons of CO2 equivalent per franc of value added.

By 2040, we also want to reduce indirect emissions across the entire value chain (Scope 3) to the same extent. The reference year is defined as soon as the data situation and interpretation are certain. SFS currently expects this to be the case for 2023.

Emission reductions until 2030

Grafik_Emissionsreduktion_de

Measures to reduce emissions
The following fields of action have been identified as ways of reducing CO2 emissions:

  • Procurement of renewable energy
  • Expansion of own renewable energy production (e.g., installation of photovoltaic systems)
  • Continuous reduction of own CO2 emissions (Scope 1 & 2) through process optimization
  • Active sustainability management in the value chain (also taking suppliers’ obligations into account)
  • Creating additional transparency by expanding data collection

The Group Executive Board also adopted an environmental roadmap in December 2020 in addition to the reduction targets. This roadmap is made up of four (main) programs:

1) Optimization of the company’s performance
2) Purchase of renewable energy (mainly electricity at present)
3) Generation of renewable energy
4) Optimization of the entire supply value chain

Environmental roadmap 2020–2025

Grafik_Roadmap_de

Target achievement for 2) and 3) is measured using the “Percentage of renewable energy sources” indicator. SFS’s goal is to achieve at least 50% by 2025 and more than 90% by 2030. Efforts to optimize the company’s performance 1) are aimed at reducing CO2 emissions (Scope 1 & 2) by at least 3% per year. Emissions savings are calculated based on the tons of CO2 equivalent per franc of value added. The starting point for each of these targets is the 2020 reporting year.

Implementation of the roadmap on track
Each program begins with an evaluation of the available potential in order to systematically document any initiatives already implemented in the individual facilities and to generate additional points of leverage. Some examples from the plants include optimization of compressed air and vacuum systems, replacement of the lighting systems (LED), optimization of the cooling, heating and ventilation systems, material recycling and wastewater treatment. SFS was able to complete the potential check in 2021. This has resulted in many investment projects, which will be implemented successively in the year under review and in subsequent years. SFS will make targeted investments, particularly in the further expansion of photovoltaic systems. At the end of the reporting year, the Electronics division alone invested in photovoltaic systems with an installed capacity of more than 5 MWp. Investments were also made in heat pumps to use waste heat and in the first energy storage systems.

To improve its own performance, SFS follows the “Lean & Green Approach”, which combines lean management approaches with environmental and sustainability-related aspects. Here, a material flow analysis is performed to look for further potential within the processes, while simultaneously incorporating the use of lean methods. This approach focuses on recycling opportunities and seven “possible sources of waste”: energy, water, materials, waste, transport, emissions and threats to biodiversity.

Reducing emissions in the supply chain
In the year under review, SFS evaluated suitable software for managing sustainability in the supply chain. This covers all three pillars of sustainability and is intended to meet current and future regulatory requirements such as the EU’s Supply Chain Act. Supplier evaluations performed with the help of the new software as well as compliance with the SFS sustainability guidelines will serve as a basis for deciding whether to collaborate with a supplier in the future.

Another component is the development of a training course on the topic of sustainability. Employees in Switzerland are currently gaining an in-depth insight into global developments and getting to know the points of leverage where they can help SFS achieve its ambitious goals. In the future, this training will also be made available to employees and suppliers internationally.

Achieving goals through shared responsibility
In order to lend greater weight to environmental and social aspects within the framework of corporate governance, specific ESG targets have been included in the target agreement for the entire Group Executive Board since 2021 and form part of the individual targets.

All divisions are responsible for reducing emissions in line with the defined targets by 2030, 2035 or 2040 and therefore for achieving the corporate targets. By drawing up their own roadmap, they have defined measures and projects that take the specific characteristics of the divisions’ businesses into account. The performance assessment is carried out using the management-by-objectives approach. The EHS (Environment Health Safety) peer group helps the divisions plan and implement measures. The Group EHS Manager works together with the divisions’ or locations’ EHS managers to define the general approach. Progress is monitored, corrective measures are taken if necessary and best practices are shared at regular peer group meetings.

GRI 103-3 Evaluation of the management approach
The emissions management approaches and measures described in GRI 103-2 are presented annually to the Group Executive Board by the Group EHS Manager and the achievement of roadmap targets and initiatives is assessed and adjusted in this context. That includes reviewing environmental performance: ISO 14001-certified locations, for example, report on their progress in reducing CO2 emissions.

Consolidation approaches harmonized
The consolidation approach was brought in line with the principles of financial controlling, which are also applied when preparing the annual report. That also paved the way for integrated reporting in the future. The resulting differences are disclosed in each report.

Those primarily relate to an adjustment in how the 50% stake in the joint venture “Sunil SFS” in TianJin is taken into account. Only 50% of the CO2 values are now factored in, which is commensurate with the financial stake in the company. The CO2 equivalents shown in the following tables have been adjusted for previous years, as well.

Data collection process improved
SFS has made major progress in collecting Scope-3-specific data. A great deal of relevant data was collected for the first time (transport, commercial products, services, etc.). Improvements were made not only to the quality of the data, but also underlying data for consumption figures from the Group’s own vehicle fleet and process materials. The business model for recording and calculating CO2 emissions was created using Sinum’s expert system and the ecoinvent database, version 3.8. Changes made included adjustments to the modeling (such as to the granularity of waste disposal) as well as an expanded business model and the addition of numerous new measurement points (for product transport and commuter traffic, for example). The model’s main objectives are to expand the scope of data and improve data quality in order to establish an information system that serves as the basis for internal and external sustainability-related communication. It also creates important prerequisites for the establishment of a combined or integrated reporting system. The activities of the SFS Group in Switzerland (12 locations) and the most important international locations (currently 26 locations) were examined. This report provides an LCA-based (lifecycle assessment) overview of the material environmental aspects at both divisional and Group level for 2021 as well as a comparison with previous years. Data was collected 38 locations during the year under review (2020: 34 locations) with 9,455 employees in FTE (2020: 8,956). This corresponds to around 90% (2020: 84%) of SFS’s entire workforce. The goal is to include all relevant locations by 2025, thus achieving a degree of coverage of more than 95%.

Implementation of ISO 14001 certification
At present, 21 production sites (PY 20) currently have an ISO 14001-certified environmental management system. The aim is to expand the environmental management system to all material production sites by 2025 and to certify them in accordance with ISO 14001. The following diagram shows the current status with regard to planning and actual certification by segment:

Segment Engineered Components Fastening Systems
SFS Scope* 24 10
Certified 19 2
Being planned 5 8
100% achievement 2023 2024

*SFS scope: Material production sites where SFS has a stake of ≥50% and employs more than 50 people. Sites with emissions that have a material impact on the total emissions of the SFS Group are material. As a result, no certification is planned for the Distribution & Logistics segment and smaller individual production sites. (see also 102-45).

GRI 305: EMISSIONS 2016

GRI 305‑1 Direct GHG emissions (Scope 1)
Data collection in Scope 1 has achieved a high degree of coverage. There are still gaps in the collection of data regarding operating supplies and information on fuel consumption for the company’s own vehicle fleet. The plan is to collect the missing information by 2023 and complete the database. This objective only applies to organizations that were already part of the SFS Group in the year under review, however. There were no biogenic CO2 emissions in the reporting period.

The table below illustrates the significant increase in the amount of data collected regarding sources of emissions (especially for process gases, fuels and process materials), emissions increasing by more than 46% compared to the previous year. In a “like-to-like” comparison, which only considers the figures that had already been collected in the same period of the previous year, emissions increased by merely 4.3% with organic growth of 16.8%. The savings were achieved through many small projects relating to consumption attributable to heating and to process gases. For example, heat exchangers are only run in summer and replaced by thermal heat pumps in winter. The waste heat generated by the thermal heat pump is stored in buffers and used to heat the buildings. At the location in Korneuburg (Austria), for example, gas consumption for heating was reduced by approximately 80%. The roll-out is currently underway at our plant in India, with initial savings of 88% reported.

Scope 1

Tons of CO2eq
Ecoinvent calculation
2021
V3.8
2020
V3.71
2019
V3.71
Share
Change to prior year
Scope 1 (in tons of CO2eq) 30,864 21,077 17,258 +46.4%
Scope 1 (in tons of CO2eq)*
"Like-to-like"
20,593 19,742 16,940 +4.3%
Scope 1 (in tons of Co2eq)*
– Fuels for passenger cars
– Heating oil/gas
– Process gases
– Operating materials
29,680
3,629
10,005
14,588
1,458
19,742
1,562
10,702
7,450
28
16,940
0
9,335
7,605
0

12.2%
33.7%
49.2%
4.9%
+50.0%
+132.0%
–7.0%
+96.0%
+5,107.0%

* The figures in the table show the recalculation of absolute emissions to CO2 equivalents in Scope 1 attributable to changes in the group of consolidated companies as well as the individual sources of emissions since 2019.

Source of emission factors: Ecoinvent v3.71; 3.8 (from 2021 onward) / values used for global warming potential (GWP) or a reference to the GWP source.

Greenhouse gas emissions (as CO2eq). Climate Change 2013, Fifth Assessment Report (AR5) of the United Nations Intergovernmental Panel on Climate Change (IPCC 2013)

Standard according to the GHG Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) was used as part of Sinum’s ECOPRO efficiency profile. The methodology is based on the principles of ISO 14040. The aim is to monitor the company ecobalance in order gain a global overview of the impacts and to provide information and underlying data on an annual basis that can be used for decision-making and communication. Data collection is standardized and ecoinvent data is used. The methods used are Ecoscarcity and CO2 equivalence factors from IPCC 2013.

Computing programs used: REGIS – EcoPerformance Systems

GRI 305-2 Energy indirect GHG emissions (Scope 2)
The trend in Scope 2 emissions shows the positive effects of measures implemented to reduce CO2 emissions. Overall, SFS recorded an increase in absolute CO2 emissions of just 2.5%, which accompanied growth in value added of 16.8%. The purchase of renewable electricity (71,511 MWh) and the expansion of in-house electricity production (5,129 MWh) contributed significantly to this. The share of renewable electricity was increased from 6% to a total of 36%, bringing the proportion of renewable energy to 23% (previous year: 4%). Nearly 100% of Scope 2 energy is obtained in the form of electricity, with district heating playing a minor role in the company.

Scope 2

Tons of CO2eq
Ecoinvent calculation
2021
V3.8
2020
V3.71
2019
V3.71
Share
Change to prior year
Scope 2 (in tons of CO2eq) 93,459 91,364 93,224 2.3%
Before recalculation
Scope 2 (in tons of CO2eq)
– Electricity
– District heating
87,201
87,195
6
85,080 87,963
99.99%
0.01%
2.5%
Initial inclusion of the breakdown

* The figures in the table show the recalculation of absolute emissions to CO2 equivalents in Scope 2 attributable to changes in the group of consolidated companies as well as the individual sources of emissions since 2019.

Source of emission factors: Ecoinvent v3.71; 3.8 (from 2021 onward) / values used for global warming potential (GWP) or a reference to the GWP source.

Greenhouse gas emissions (as CO2eq). Climate Change 2013, Fifth Assessment Report (AR5) of the United Nations Intergovernmental Panel on Climate Change (IPCC 2013)

Standard according to the GHG Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) was used as part of Sinum’s ECOPRO efficiency profile. The methodology is based on the principles of ISO 14040. The aim is to monitor the company ecobalance in order gain a global overview of the impacts and to provide information and underlying data on an annual basis that can be used for decision-making and communication. Data collection is standardized and ecoinvent data is used. The methods used are Ecoscarcity and CO2 equivalence factors from IPCC 2013.

Computing programs used: REGIS – EcoPerformance Systems

305-3 Other indirect GHG emissions (Scope 3)
SFS is publishing data on Scope 3 emissions for the first time. As expected, efforts to optimize data quality and completeness have more than doubled the volume of data already collected internally. Here, too, the company aims to further reduce any existing gaps by 2023. This goal only applies to organizations that were already part of the SFS Group in the current reporting year, however.

In terms of Scope 3 emissions (in CO2eq), the material sources are currently the purchase of goods and services (e.g., raw materials, external processing), which come in at around 81%, followed by commuter traffic at around 9% and the purchase of fuel and energy-related services (not included in Scope 1 or 2) at around 5%. Other relevant areas are waste disposal (2.31%) as well as upstream and downstream transport (2.4%).

Scope 3

Tons of CO2eq
Ecoinvent calculation
2021
V3.8
2020
V3.71
2019
V3.71
Share
Change to prior year
Scope 3 (in tons of CO2eq)*
- Purchased goods and services
- Capital goods
- Fuel and energy-related activities (not included in Scope 1 or 2)
- Upstream transport and sales
- Waste from the plant
- Business trips
- Commuter traffic
- Downstream transport and sales
Other (upstream)
411,417
331,965
1,098
21,224
3,174
9,516
100
37,524
6,646
171
192,071 49,588
80.69%
0.27%
5.16%
0.77%
2.31%
0.02%
9.12%
1.62%
0.04%
+112%
(completion compared to previous year)
Initial inclusion of the subdivision

Source of emission factors: Ecoinvent v3.71/values used for the global warming potential (GWP) or a reference to the GWP source.

Greenhouse gas emissions (as CO2eq). Climate Change 2013, Fifth Assessment Report (AR5) of the United Nations Intergovernmental Panel on Climate Change (IPCC 2013).

Standard in accordance with the GHG Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) was used within the scope of the ECOPRO Efficiency Profile from ( www.sinum.com) AG, a lifecycle assessment expert with 25 years of experience. The methodology is based on the principles of ISO 14040. The goal is to monitor lifecycle assessment, gain a global overview of its repercussions, and provide information and data on an annual basis that serves as a foundation for decision making and communication. Data collection is standardized and ecoinvent data used. The methods used comprise eco-scarcity and CO2 equivalent factors from IPCC 2013.

Calculation programs used: REGIS – EcoPerformance Systems

GRI 305-4 GHG emissions intensity
SFS made some initial progress with a reduction of –4.5% on its way to reducing CO2 emissions by at least 90% by 2030 (2020 reference). Excluding the emissions from Scope 1, which the plants reported for the first time, the result would actually be –11.9%. Energy savings at the locations and purchases (34%) of renewable Scope 2 energy made a material contribution to the reduction. The installation of photovoltaic systems increased the proportion of self-generated renewable electricity from 1.4% (2,560 MWh) to 2.5% (5,129 MWh) compared to the previous year.

Ton CO2eq / million value added 2021 2020 2019 Change to prior year
Total Scope 1&2 in tons* 116,881 104,822 104,903
KPI Scope 1&2 CO2/CHF million* 105.6 110.6 99.3 –4.5%

* The values in the table show the absolute emission values expressed as CO2 equivalents. The year-over-year change in the figures from last year’s report is due to changes made to the group of consolidated companies.

Source of emission factors: Ecoinvent v3.71; 3.8 (from 2021 onward) / values used for global warming potential (GWP) or a reference to the GWP source.

Greenhouse gas emissions (as CO2eq). Climate Change 2013, Fifth Assessment Report (AR5) of the United Nations Intergovernmental Panel on Climate Change (IPCC 2013)

Standard according to the GHG Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) was used as part of Sinum’s ECOPRO efficiency profile. The methodology is based on the principles of ISO 14040. The aim is to monitor the company ecobalance in order gain a global overview of the impacts and to provide information and underlying data on an annual basis that can be used for decision-making and communication. Data collection is standardized and ecoinvent data is used. The methods used are Ecoscarcity and CO2 equivalence factors from IPCC 2013.

Computing programs used: REGIS – EcoPerformance Systems