Together, we Build A Sustainable Future
Sustainability is fully integrated into Stellana’s business model, we believe that this is one of the fundamentals for the company’s growth and it will enable us to tackle the challenges in the future. As part of the Hexpol Group, climate change is high on our strategic agenda, the target is to reduce CO2 emission (tons/net sales) by 75 percent by 2025 compared with the average for 2018/2019. The target refers to the emission caused by our energy consumption (Scope 1 and 2).
What Are Scope 1,2 & 3 Carbon Emissions?
According to the Green House Gas (GHG) protocol, Scope 1 accounts for the direct GHG emissions from the sources that are owned or controlled by the company itself, for example, production in owned factories or emissions from owned vehicles/machinery. Scope 2 covers the electricity indirect GHG emissions, which mainly refers to all the GHG emissions generated from the purchased electricity consumed by the company. For example, electricity, district heating, or cooling. Scope 3 Emissions are from the purchase of goods and services. Some examples of scope 3 activities are extraction and production of purchased materials; transportation of purchased fuels; and use of sold products and services.
Why Should We Care?
Stellana’s customers impose rigorous demands and place high expectations on us in order to tackle any new challenges. The fundamental key to sustainable economic development is to build a growing economy that is not too destructive to the environment. We are fully aware of the importance of sustainability and strive to reduce the impact on the environment significantly while lowering our energy consumption.
What Have We Done?
The 2030 Sustainable Development Agenda, which was adopted by United Nation Member States in 2015, shares 17 Sustainable Development Goals (SDGs). It urges actions for all countries, everyone has the responsibility and obligation to contribute to sustainable development. With a global footprint of local production sites in different countries, we are undoubtedly part of this journey, it helps us set up corporate objectives in line with the SDGs. We always strive to reduce our carbon footprint and evaluate how climate change impacts our business operations. We are keen to be more climate-smart and drive innovations for our customers.
Stellana has been adopting different various methods to reduce CO2 emissions and minimize the impact on the climate. In Sweden, we reduced 94% of CO2 emissions (scope 2) in the last 20 years compared to the sales, it includes replacing oil heating with district heating, which mainly uses biofuel, changing to nuclear power only in 2020, etc.
In Sri Lanka, the total annual CO2 emission reduction is 36% annually, and the main success factor is that we have successfully installed solar panels and biomass boilers, which significantly reduced our energy consumption and CO2 emission.
In China, new machines have been installed to improve the recycling of dichloromethane, 30% of the dichloromethane can be recycled and reused during production, and more volatile organic compounds (VOC)- absorbing equipment will be installed shortly, which will enormously decrease the environmental pollution.
What Are The Next Steps?
Hexpol’s climate objective for 2025 particularly in CO2 emission has almost already been achieved, which is a big step forward for us. However, we are always aiming high and pushing our limits. We will continue to reduce the operation’s CO2 emissions over time by transitioning to renewable electricity from wind, solar, and hydropower sources in all of our productions as well as supply chains. What’s more, we have not calculated the Scope 3 emissions in detail, we understand the raw materials such as polymer carbon black are the main source that causes the CO2 emission under scope 3 in this industry, So, it is absolutely on our to do list, we will continuously dedicate to CO2 reduction (Scope 1,2&3) and contribute to the climate improving globally.