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Environmental protection

Environment, climate and energy

thyssenkrupp attaches great importance to the topics of environmental protection, climate change and energy efficiency – from supply chain to internal processes to customers. With our solutions we want to help meet rising demand for goods and services in a resource-efficient way. Environmental protection is therefore a core element of thyssenkrupp’s sustainability efforts and thus its corporate strategy.

Internal training in environmental protection and energy efficiency
Internal training in environmental protection and energy efficiency

thyssenkrupp’s global environmental and energy management system is based on the Group’s environment and energy policy and a corresponding Group Regulation. In addition standards and three Indirect Financial Targets (IFTs) have been defined for the areas of energy efficiency, energy management and environmental management. Implementation of these targets is supported by internal committees and auditor training; exchanges of experience at different levels and conferences also help towards this aim.

Environmental protection in our own processes

Our binding aim for environmental protection is for all Group companies with environmentally relevant activities as defined within the Group to have implemented an ISO 14001 environmental management system by fiscal year 2019 / 2020. This standard contains requirements on environmental management systems related to continuous improvements in environmental performance, the meeting of legal and other obligations, and the formulation of concrete environmental goals at the individual sites. It covers all relevant environmental aspects from water and waste to the environmental performance of the products. As at September 30, 2017 this environmental management IFT relates to almost 70 companies, of which around 85% already comply with the standard. Related to the overall workforce that means almost 60% of environmental management activities at thyssenkrupp are handled in accordance with ISO 14001.

Continuous improvements in energy efficiency

tk gerlach energy efficiency
Energy efficiency makes good business sense for thyssenkrupp.

With annual energy consumption of the continuing operations of more than 70 terawatt hours (TWh), energy efficiency makes good business sense for thyssenkrupp. To achieve continuous improvements in energy efficiency, we launched the Groupwide Energy Efficiency Program (GEEP) in fiscal 2013 / 2014; in the reporting year the program was adjusted to the new Group structure. The original goal of the program was to improve efficiency by 3.5 TWh by 2020. Efficiency gains of 2.75 TWh had already been achieved by September 30, 2016. Due to the structural changes resulting from the sale of the Brazilian steel mill CSA with retroactive effect at September 30, 2016 and the planned joint venture with Tata Steel Europe, the program and the corresponding IFT have been switched to annual targets.

For fiscal year 2016 / 2017 the target was efficiency gains of 125 GWh. At 330 GWh, this target was clearly exceeded. The measures included improved utilization of waste heat, reduction of standby times and replacement of plant components. Translated mathematically into emissions the efficiency gains achieved enable us to avoid more than 100,000 tons of greenhouse gas emissions. The target for the current fiscal year 2017 / 2018 is further efficiency gains of around 150 GWh. Moreover, all relevant activities as defined by the Group are required to install an ISO 50001 energy management system by 2019 / 2020. Energy management systems under this standard require that concrete energy targets are set for each site, energy flows measured, and organizational and technical processes defined. As at September 30, 2017 this IFT for energy management relates to almost 60 companies, of which around 66% comply with the standard. As a result, more than 90%of energy management activities at thyssenkrupp in terms of energy consumption are covered by ISO 50001.

Climate protection in production and products

CDP
CDP has placed thyssenkrupp on its global “A List” of the top 5% climate friendly companies.

The goals of the Paris Climate Agreement provide both opportunities and risks for thyssenkrupp. The member countries aim to limit the increase in global average temperature to below two degrees and achieve net greenhouse gas neutrality in the second half of the century. To meet these goals thyssenkrupp intends to apply its engineering expertise to two main approaches: enhanced efficiency and innovative solutions for our own processes and our customers.

Steel production in particular at thyssenkrupp involves greenhouse gas-intensive processes. Emissions of the continuing operations amount to more than 20 million tons per year (Scope 1+2 emissions as per Greenhouse Gas Protocol). thyssenkrupp aims to reduce these emissions through continuous energy efficiency improvements, but also through long-term disruptive innovations such as Carbon2Chem, a cross-industry project to transform steel mill gases into base chemicals.

Innovative products are another major lever for thyssenkrupp. Analysis and modeling of our portfolio revealed that more than 90% of thyssenkrupp’s overall footprint as per the Greenhouse Gas Protocol (combined Scope 1, 2, 3 emissions) arises in connection with the use phase of the products, for example from the operation by our customers of cement plants built by us. This presents business opportunities for thyssenkrupp, which we aim to address in particular in our innovation strategy and through an innovative product portfolio (see section “Technology and Innovations”). thyssenkrupp’s good position in climate protection is also recognized by its CDP rating (formerly Carbon Disclosure Project), with thyssenkrupp awarded the highest grade A for the second year in a row and placed on CDP’s global “A list”, which includes around 100 companies worldwide and only three DAX enterprises.

Key environmental data

Groupwide performance indicators and data on environmental and climate protection are used to assess opportunities and risks and serve as an instrument for global environmental, energy, and climate management. Unless otherwise stated, the data reported relates to fully consolidated Group companies of the actual fiscal years. Since fiscal year 2013/2014, the figures include the 50 percent share in Hüttenwerke Krupp Mannesmann under IFRS rules. Figures of the fiscal year 2016/2017 are shown without the Steel Americas business, which was sold at the beginning of September 2017. Absolute values may also vary due to portfolio changes and different production levels and are therefore not a direct reflection of environmental performance.

The fiscal year commences on October 1 and ends on September 30.

Energy

Total net energy consumption in TWh

Energy Consumption
in TWh 2014/2015 2015/2016 2016/2017
Total net energy consumption 99.3 99.4 72.6

Greenhouse Gas Emissions

Greenhouse Gas Emissions in Mio. t (Scope 1+2)

Greenhouse Gas Emissions
in Mio. t 2014/2015 2015/2016 2016/2017
Scope 1 32.6 32.6 22.1
Scope 2 1.2 1.2 1.3
Scope 3
(from fuel-and-energy-related activities and not included in Scope 1 or 2)
5.3 5.3 4.0

Waste

Waste in Mio. t

Waste

Waste in Mio. t

2014/2015 2015/2016 2016/2017
Total waste 2.1 2.0 2.2
Waste for recycling 1.3 1.4 1.7
- thereof hazardous waste 0.1 0.1 0.1
Waste for disposal 0.8 0.6 0.5
- thereof hazardous waste 0.1 0.2 0.1

Water

Water consumption in Mio. m³

Water consumption
in m³ 2014/2015 2015/2016 2016/2017
Water consumption 938 1,023 492
- thereof stream cooling 786 856 331
Waste water 914 984 451
- thereof stream cooling 786 856 331

Air emissions

Air emissions in 1,000 t

2014/2015 2015/2016 2016/2017
Dust, total 10.1 9.3 4.9
NOx, total 16.6 16.3 12.5
SOx, total 30.6 25.6 13.7
VOC, total 1.1 0.8 0.5

Management Systems

Management systems

2014/2015 2015/2016 2016/2017
ISO 14001 certification of operations (in % of employees) 58% 58% 59%
ISO 50001 certification of operations (in % of energy consumption) 69% 68% 94%
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