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.
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 management at our sites
thyssenkrupp has set itself the binding target for all Group companies with environmentally relevant activities to have implemented an ISO 14001 environmental management system by fiscal year 2019/2020. This international standard covers all relevant environmental aspects, from the reduction of wastewater, waste and emissions to the environmental impact of products during use through to disposal. We have set out clear requirements for our Group companies: They must continuously improve their environmental performance and at the same time meet legal and other requirements and concrete environmental goals at their individual sites.
Activities regarded as environmentally relevant are defined in our Group Regulation. At September 30, 2018 almost 70 thyssenkrupp companies (around 60 in the continuing operations) were determined as environmentally relevant in line with this Regulation. Of these around 90% already comply with the required standard (continuing operations: around 90%). Related to the overall workforce the Group therefore handles around 60% of its environmental management activities in accordance with ISO 14001.
Continuous improvements in energy efficiency and energy management
The Group’s energy consumption came to more than 70 terawatt hours (TWh) in the 2017/2018 fiscal year, with the continuing operations accounting for more than 6 TWh. Energy efficiency has always played an important role at thyssenkrupp. Launched four years ago, the global Groupwide Energy Efficiency Program (GEEP) includes measures such as better use of waste heat, the reduction of stand-by times and the replacement of plant components.
In the reporting year we set ourselves the goal under GEEP of increasing energy efficiency in the Group as a whole by 150 GWh. At 253 GWh we exceeded this goal. Mathematically these efficiency gains enabled us to avoid more than 80,000 tons of greenhouse gas emissions. For the continuing operations, the goal for the current fiscal year 2018/2019 is to achieve efficiency gains of 100 GWh.
In addition, all energy-relevant activities are to be covered by an ISO 50001 energy management system by 2019/2020. Among other things this means setting concrete energy targets for each site, measuring energy flows and optimizing organizational and technical processes. At September 30, 2018 this applies to almost 60 companies in the Group; more than 80 % of them already comply with the standard. In the continuing operations this applies to around 50 companies, of these around 80% comply with the requirements. In terms of energy consumption this means that more than 90% of energy management activities at thyssenkrupp are covered by the ISO 50001 standard.
Climate protection in production and products
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.
thyssenkrupp’s commitment to climate protection is demonstrated by the Groupwide climate program CAPS (Climate Action for Sustainable Solutions) that was launched in the reporting year. We support the goals formulated in the Paris Climate Agreement – keeping the global temperature rise to well below two degrees and achieving net greenhouse gas neutrality in the second half of the century – and aim to make our contribution to this with CAPS. The biggest way thyssenkrupp can do this is by providing products and services that significantly reduce greenhouse gas emissions during use by customers. So CAPS not only stipulates efficiency improvements in our own production processes, it also defines concrete targets for existing solutions, such as the use of alternative fuels in cement production and the development of innovative disruptive technologies such as Carbon2Chem for the steel industry. In addition we are planning to work closely with relevant partners and stakeholders to improve the global conditions for climate protection.
Steel production in particular at thyssenkrupp involves greenhouse gas-intensive processes. The Group’s emissions (Scope 1 and 2 emissions as per Greenhouse Gas Protocol) amounted to more than 20 million tons in the reporting period (incl. the discontinued operations). This will change significantly when the steel joint venture starts up: In the future the Group’s share in the steel joint venture will be treated as an investment, so going forward the corresponding greenhouse gas emissions under the Greenhouse Gas Protocol will count as indirect emissions and thus as Scope 3 emissions. For the continuing operations emissions (scope 1 and 2) will then be around 2 million tons.
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. Since fiscal year 2016/2017, figures are shown without the Steel Americas business area. For the fiscal year 2017/2018, figures are shown with and without the discontinued steel operations, which will become part of the 50/50 joint venture with Tata Steel.
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 1st October and ends on 30th September.
Greenhouse Gas Emissions