Protecting the climate and the environment
04
Protecting the climate and the environment
With a steadfast commitment to minimising our environmental impact and fostering eco-friendly solutions,
we are dedicated to safeguarding our planet for future generations.
We aim to exceed environmental standards by employing collaborative efforts and innovative strategies, ensuring our actions align with our values of corporate citizenship and environmental stewardship.
Sustainability data is indispensable for steering our environmental strategy in a context where we face unprecedented business challenges.
It is the cornerstone upon which our policies, initiatives and actions are built, driving us towards exemplarity in our operations and more importantly as an enabler in our markets.
04.1
The Blue Planet Commitment (BPC)
As a conscientious organisation, we have diligently evaluated our activities and their associated risks and opportunities, encompassing upstream and downstream operations and our core activities. Accordingly, we have identified that a primary cause to increased environmental impact is energy consumption in the mining industry of our value chain and the products we sell. Further notable ecological implications are due to the use of non-regenerative and non-recycled materials, particularly when it comes to using hazardous chemicals in extraction processes.
We understand that transitioning to sustainable practices may pose short-term financial risks, such as disruptions to our supply chain and increased production costs⁸. However, we are taking a proactive approach to manage these risks. In the long run, these actions will ensure sustainable development and mitigate financial risks related to customer satisfaction, navigate regulatory compliance and rising raw material costs.
The Blue Planet Commitment (BPC) is our commitment to minimise the carbon footprint of our products, solutions and operations. General and function-specific training programmes have been created to foster a collaborative and inclusive approach, notably the Blue Planet Starter training module. These training programmes are accessible to all employees – white and blue collar – the module is mandatory and accessible via Hi!, the group’s corporate University. This foundation module outlining our Blue Planet Commitment covers essential environmental sustainability principles, carbon footprint awareness and best workplace practices. More specialised modules tailored to specific functions, such as engineers and sales teams, focus on topics like eco-design and compliance to provide targeted knowledge and skills.
Developed under Hager brand in France, our newly introduced product line cubyko leaf highlights our concerted effort towards Blue Planet Commitment. cubyko leaf is a range of sockets and switches that ensures economic growth and at the same time reduces our environmental impact and preserves ecosystems.
cubyko leaf
1st product where sustainability aspects guided our design and sourcing process.
27 % – 32 % recycled ocean bound plastic.
At least 3 % savings in CO₂ emissions compared to the non-eco-conscious product equivalent.
At least 10 % savings in fossil fuel in the process compared to non-eco-conscious product equivalent.
Each product in this series prevents the equivalent of 1,5 half-litre plastic bottles from entering the ocean.
1st product developed with agile methodology enabling us to save one year in lead time.
Until 2023, our primary focus with our BPC was to gather extensive data to refine our carbon footprint calculation. We took specific actions to decarbonise our scope 1 & 2 emissions and explored alternatives for our non-recycled plastic packaging (NRPP). Initiatives such as production life cycle assessment and development of Product Environmental Profiles (PEP) were prioritised during this period, demonstrating our commitment to transparency and continuous improvement.
In phase 2 (Sprint 2) of our company Project 2030, we are taking initiatives to transition towards sustainable products and enhance the environmental appeal of our offer while simultaneously ensuring Hager Group’s resilience to withstand climate and resource constraints.
Based on these objectives, priorities and contributions to BPC are set for all the relevant functions at group level, including logistics and supply chain, manufacturing, solution development and marketing (SDM), sourcing and engineering.
Our action plan to move forward includes
Measuring our carbon footprint over several years has enabled us to identify our main sources of emissions and levers.
While we are making progress on reducing our direct emissions (scope 1 & 2), tackling our scope 3 (indirect emissions) remains a huge challenge. A 1.5°C trajectory is a collective effort that requires strong collaboration and commitment from all stakeholders: employees, suppliers and customers. Measuring our impact was a first and crucial first step, now is about action.
04.2
Our carbon strategy
04.2.1
Advancing our decarbonisation commitment
Conscious of climate urgency and the need to contribute to limiting global warming to a maximum of 1.5°C, our decarbonisation commitment continues. We are acting on multiple decarbonisation fronts to achieve the short-term commitment we made with SBTi, i.e., by 2030, we aim to reduce 50 % of our scope 1 & 2 and 25 % of our scope 3 GHG emissions. While we are maintaining the trajectory for scope 1 & 2 emissions in line with our commitment, for scope 3, we are currently deploying projection tools for product development; they will allow product managers and design engineers to make informed decisions about future product development and offers. The deployment of our responsible sourcing strategy is centred on climate urgency and emission reduction. We deploy a two-fold focus on purchased goods and services and use of sold products.
Although we are focused on our 2030 science-based targets, we have not committed to the Net Zero targets as of now. Aware of this, we have publicly communicated only on our own 2030⁹ targets and accept to be removed from the SBTi website as a company with Net Zero targets. We have chosen to focus our efforts on short-term targets. Nevertheless, we continue to debate internally as to the right time to commit to the ambition of contributing to carbon neutrality as a company in 2050.
Our GHG emission reduction trajectory w.r.t SBTi short-term commitment
04.2.2
The baseline
As depicted in the table below, it is crucial to highlight a significant update concerning scope 3 emissions. Hager Group is an active member of the PEP Ecopassport Association, a globally recognised programme for environmental product declarations in the electrical, electronic, heating, and cooling industries. By adopting the latest product-specific rules provided by the association, we have made notable improvements in our reporting accuracy. These updated rules, integrating more precise assumptions, have resulted in a substantial reduction of over 1 ktCO₂e (from the previously reported approx. 2,7 ktCO₂e) in our base year scope 3 emissions, mainly attributed to the use of sold products.
GRI 2-4 General disclosures and GRI 305-1 to 305-3 and 305-5 Emissions
GHG Emissions baseline correction
The significant change in the scope 3 baseline has changed the overall GHG emission percentages in each category. In the categories “use of sold products” and “purchased goods and services”, this adjustment led to a redistribution in their order and company priorities:
- With the significant correction in the use of sold products emission data, its contribution to the updated GHG emission result has dropped to 37 % against the previously reported 61 %. While we cannot directly control the carbon intensity of the electricity grids where our products are used, we can focus on eco-design principles to enhance their energy efficiency throughout their lifecycle. Additionally, a product’s longevity could contribute to reduce carbon intensity as short to medium term replacements would not be necessary. Innovation and testing for alternative solutions are therefore essential in developing more sustainable products.
- Due to the adjustment emissions from purchased goods and services is now 35 %, 11 % higher than the previously estimated 24 %. This change highlights the role of responsible sourcing in our Climate Strategy, underlining the need to promote local procurement, suppliers’ environmental improvement, and suppliers’ alignment with our own sustainability strategy in committing to science based targets.
Hager Group’s updated baseline (2021): 1.539 ktCO₂e
04.2.3
Our emission reduction
To estimate our emissions, we considered all GHG gases outlined in the GHG protocol, including CO₂, CH₄, N₂O, HFCs, PFCs, SF₆, and NF₃. Furthermore, we used emission factors from the International Energy Agency (IEA) for electricity and the French Environment and Energy Management Agency (ADEME) database for other emissions.
Our GHG emissions
Our carbon footprint 2022: 1.517 ktCO₂e
Our decarbonisation plan
By 2023, we achieved a 14% reduction in our Scope 1 and 2 GHG emissions compared to the 2021 baseline, surpassing our estimated target for maintaining the SBTi short-term commitment by 3%. However, Scope 3 emissions increased by approximately 1% during the same period. This increase is mainly due to the construction of our new factory in Bieruń, which raised emissions from our capital goods, and an increase in emissions from purchased goods and services, primarily driven by the higher volume of purchased batteries for our storage systems. The increase in purchased batteries has significantly impacted the carbon footprint of our purchased goods and services, making it the highest contributor to our scope 3 emissions since 2022.
Our decarbonisation projects in different production sites
Telford, UK:
We have reduced our oven temperature in the powder coating process from 200°C to 160°C, which has reduced our gas consumption by 20 %.
Dongguan, China:
We have reduced the dryer temperature from 145°C to 140°C, which has saved us 10 % of gas consumption.
Bischwiller, France:
We established a direct connection of hot water from a nearby biomass power plant for heat supply. This initiative has drastically reduced our gas consumption, reducing our direct emissions by almost 300 tCO₂e.
As of 2023, our annual consumption of photovoltaic (PV) electricity has reached 2,5 GWh. Energy production has commenced in production units at Blieskastel, Heltersberg, and Ottfingen in Germany, and Obernai in France. Meanwhile, developments continue at Telford in the United Kingdom and Emmenbrücke in Switzerland.
Besides the site specific projects, in 2023, the following initiatives were introduced to our production sites:
- We have initiated improvements in our compressed air production, which we estimate will reduce our annual emissions by approximately 100 tCO₂e. These actions include eliminating air leakages, reducing pressure set points, using compressor heat recovery to heat buildings and replacing old compressors with more efficient equipment. These initiatives are pilot projects in six of our production sites.
- Efficient energy use in all our site buildings. This includes reducing the temperature set point in winter, renovating the façades and roofs to retain heat. It also includes replacing light fixtures with LED lighting and managing building lighting according to occupancy. By simply changing to LED lighting in eight sites, we estimate a potential GHG emission reduction of 207 tCO₂e per year (557 MWh/year).
We’re dedicated to aligning the logistics and supply chain functions to the sciences-based targets of the Group.
I'm proud to lead this effort and look forward to the positive changes we'll make together.
We intend to realign scope 3 emission reductions with our 2030 target.
Therefore, in addition to engaging suppliers at multiple levels and focusing on eco-design, we have taken specific steps that underscore our environmental commitment and readiness to challenge our practices and take actions coherent in line with our E3 strategy.
- Besides the suppliers’ engagement at multiple levels to mitigate our value chain environment risks, we have also initiated procuring recycled raw materials. In 2022, we procured 667 tons of recycled metal from our 42-kiloton raw metal requirement (approximately 2 %). In the same year, 416 tons of recycled plastic was procured to facilitate our 60-kiloton plastic requirement (approximately 0,7 %). Sourcing alternative sustainable materials remains a challenge that comes with additional stress on the different departments involved in testing, design, and procurement of the different components required to the safe and easy operations of our products.
- In 2023, we sold over 400 million Electrical and Electronic Equipment (EEE) products, corresponding to over 100 kilotons of materials used. These EEE products constitute 15 % of our scope 3 emissions in their end-of-life. Their treatment is mandated to EEE recycling and waste treatment associations in different European countries where we are operating.
04.3
Our energy mix
The bar graph shows the change in our energy consumption from 2021 (the base year) to 2023. 2021 is considered the base year as it is the year when Hager Group initiated the high-quality data collection and calculations.
We consume natural gas, diesel/ heating oil, liquified petroleum gas (LPG) and propane in our manufacturing processes. The graph below is noteworthy as we observe a marginal alteration to fuel consumption associated with the use of company vehicles, the shift in fuel consumption for manufacturing is significant, especially natural gas, which has dropped by around 31 % from the 103 GWh in 2021. It is also interesting to note that we have compensated our Diesel/Heating Oil requirement with the lesser carbon footprint alternative Liquified Petroleum Gas (LPG) and Propane wherever possible.
Energy consumption at Hager Group
It is crucial to recognise the significant role differences in the energy mix play in GHG emissions, particularly regarding electricity sources. For instance, our sites in France exhibit considerably lower GHG emissions compared to others. These lower emissions are primarily attributed to France’s reliance on nuclear power, which emits fewer GHGs. Therefore, as we focus on reducing energy consumption, we’re also committed to transitioning towards renewable energy sources.
Furthermore, start 2022, we took steps to account for energy consumption outside our organisation directly linked to our operations, specifically third-party logistics. Initially estimated at approximately 10,2 GWh in 2022, energy consumption in this category decreased to approximately 4,9 GWh. Although this significant reduction is primarily due to market slowdowns, introducing electric vehicles into logistics has also contributed to this reduction.
04.4
Biodiversity and water
While these topics may be deemed immaterial in the immediate context, Hager Group recognises the importance of identifying gaps and strives to improve these areas to foster a holistic and sustainable ecosystem. Proactively working to enhance our performance in these aspects demonstrates our commitment to environmental stewardship and responsible corporate citizenship, therefore contributing to our ecosystem’s overall health and resilience.
04.4.1
Biodiversity footprint
Hager Group has recently achieved a milestone by concluding its first comprehensive Biodiversity Footprint Assessment (BFA) of its operations, with the Global Biodiversity Score (GBS) tool developed by Caisse des Dépôts et Consignations Biodiversité. GBS provides nuanced and customisable insights, allowing for segmentation by input type (e.g., metal, plastic, chemical), biodiversity pressures (e.g., land use, climate change, fragmentation, encroachment), or presentation by scopes in Mean Species Abundance in one square kilometre (MSA.km²)11.
The latest findings shed light on our terrestrial biodiversity impacts throughout the value chain. The assessment revealed that our terrestrial dynamic impact is 11 MSA.km2, i.e., our operations have disrupted the 11 km2 natural ecosystem. Climate change concerning scope 3 emissions is the main impact driver for this disruption. This impact is particularly pronounced upstream in our value chain, stemming from our reliance on extracted raw materials whose pressures are driven by mining activities.
Hager Group terrestrial dynamic impact
Climate change
Land use
Encroachment
In 2023, we also used the Integrated Biodiversity Assessment tool (IBAT) to identify protected areas and Key Biodiversity Areas (KBAs) within the selected radius of operational sites and counts of critically endangered, endangered and vulnerable IUCN red list species that are potentially found within a 50 km radius. The report showed that of a total 21 production sites, seven of our sites are adjacent to protected areas within a 1 to 8 km range, and two sites are within 1 km of a KBA. Additionally, many of our sites are located within a 50 km radius of habitats of 230 critically endangered, 604 endangered and 1.395 vulnerable species. These are valuable insights that we aim to integrate in our decision-making processes regarding site developments. In this regard, the assessment also helps determine the relative opportunities for positive biodiversity measures at our sites, even contributing to biodiversity enhancement in some areas.
GRI 304-1 and GRI 304-4 Biodiversity
04.4.2
Water management
We have taken measures such as arresting leakages in water storage tank and implementing a rainwater harvesting system to reduce our water consumption. As a result, there is a significant reduction of 27 % in our water consumption intensity from 113 m³/m€ gross turnover in 2021 to 82 m³/m€ in 2023.
As in 2021, in 2023 we also proactively conducted a water scarcity assessment. It was aimed at identifying sites operating in regions facing high water stress risks. The assessment revealed that two of our Hager Group manufacturing sites are situated in areas categorised as high or extremely high water stress basins and consumes 5 % of our overall water footprint. In response, we are committed to reducing our water footprint in these areas. Additionally, we are actively implementing water efficiency initiatives across our five key factories, which collectively account for nearly 80 % of the total reported water withdrawn.
Proportion of water withdrawal types in 202312
Third-party water
Ground water
High-risk water stress areas
04.5
Waste
In the past two years, Hager Group has made a concerted effort to account for and manage the waste it generates. Due to this improved accountancy of waste, we estimated a 28 % rise in our generated weight to 25.805 tons in 2023 compared to 2021 data. We have also included and accounted for hazardous industrial waste such as solvents & soiled rags, absorbents, contaminated filters, as well as paint and spray cans in the waste categorisation. In 2023, the hazardous waste was 2 % of our overall waste. While almost 89 % of waste is sent to recycling, nearly 82 % of the hazardous waste goes to incineration. This waste accounting and management is crucial in optimising our resource use and circularity aspirations. Additionally, waste management methods have an environmental impact, which we consider for our scope 3 emission reduction strategy.
Waste quantity distribution in tons
04.6
Management of substances of concern
04.6.1
Hazardous substances management
At Hager Group, we are dedicated to ensuring the safety and well-being of our customers, employees, and the environment. Therefore, we make sure we meet regulatory requirements such as REACH, RoHS, Halogen, PFAs and Conflict Minerals, to ensure the safety of our products.
The first step in meeting regulatory requirements is obtaining the composition details of all the components used in our finished products. This information allows us to make informed decisions about our input materials. To enhance our data collection effectiveness and ensure high-quality data, we have recently collaborated with Assent13, a digital compliance platform that supports us in managing supply chain data related to regulatory compliance.
Using inputs from our suppliers’ portal, we are mapping our suppliers based on the material type, spend level, and requirements to comply with REACH, RoHS, Halogen, Conflict Mineral and PFAs regulations. The suppliers’ portal facilitates communication, expedites data collection, and compiles data reported by our suppliers.
The focus is on collecting hazardous substances and chemical data of Hager Group products representing 90 % of our turnover sold in the European Union (EU), in compliance with REACH and RoHS regulations. So far we have collected data on risky chemicals, including SVHCs, for 88.7 % of the product components, in compliance with REACH (all versions). We have also collected hazardous substances details for 49.6 % of our product components, in compliance with the latest version of RoHS (3).
Chemical and hazardous substances calculation method
Part
% of chemical and hazardous substances x weight
Bill of Material (BOM)
Chemical and hazardous substances data per part in the BOM
Production
Sum of Chemical and hazardous substances per manufactured product
On a global scale, our KPI is to compile the REACH and RoHS compliance data for every component purchased by Hager Group and used in at least in one finished good sold in the EU. In 2024, we have already compiled REACH related compliance data for 93.8 % of input components.
Our concerted effort underscores our commitment to being a leader in the responsible management of hazardous substances. By prioritising safety, sustainability, and innovation, we believe we can contribute to a healthier and safer world for everyone.
Prioritising socially responsible sourcing | McKinsey
Our first sustainability report confirms the validation of our short-term objectives
Note that our SBTi commitment for Scope 3 emissions does not include end-of-life emissions which explains the slight difference between the figures in the SBTi trajectory and our GRI communicated GHG emissions reductions
The increase in the share of water withdrawal from water stress areas is due to the use of real data measurement in 2023 as opposed to an extrapolation in 2021. We continue to monitor water withdrawal with special care in the areas identified.
Assent provides solutions for collecting, tracking, and reporting data on various regulations, including REACH, RoHS, PFAs and other similar standards. Its database also leverages declaration catalogues and databases to match certificates of conformity to the Hager’s supply chain.