PL
Integrated
Report 2021

Greenhouse gas emissions

Total direct and indirect greenhouse gas emissions and their intensity

  • GRI: 305-1
  • GRI: 305-2
  • GRI: 103-1 as regards ‘Emissions’
  • GRI: 103-2 as regards ‘Emissions’
  • GRI: 103-3 as regards ‘Emissions’

Climate protection is the key issue for the companies of the Grupa Kęty S.A. Capital Group. The companies undertake a series of actions to improve the efficiency of production processes and reduce electric energy and heat consumption, thus limiting the emissions of greenhouse gases. New investment projects avail of energy-saving equipment as well as environmentally-friendly sources of energy. This contributed to the reduction of unit consumption of natural gas, electric energy and heat, and thus intensity of emissions by 4.45% compared to 2020 (Scopes 1 and 2). A major share in that regard had the projects improving energy efficiency of systems performed by Grupa Kęty S.A. in the years 2020 and 2021, such as replacement of transformers, modernisation of compressed air system, cooling water circulation pump system, or lighting systems at the production halls. Within Grupa Kęty S.A. only, the activities reduced GHG emissions by 1,864 MgCO2eq a year. For all these processes there were carried out energy-efficiency audits, and the plant additionally obtained PLN 684,000 on the sales of ‘white certificates’.

Since 2016, the domestic companies of the Capital Group of Grupa Kęty S.A. have been recording climate-related emissions. Carbon footprint calculations are based on the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, Revised Edition. The balance covers for emissions in Scope 1 – direct GHG emissions controlled by the Company, covering specifically fuel consumption for process purposes, heating buildings, combustion by vehicles, as well as fugitive emissions related to the operation of cooling systems; and Scope 2 – indirect GHG emissions which result from the electric energy, heat or steam used to supply or heat buildings, which have been purchased from external suppliers. Moreover, we have started recording GHG emissions within Scope 3, covering the materials purchased, business travel and commuting. Since 2020, we have also been monitoring the carbon footprint of foreign companies within Scope 1 and 2. Additionally, for the selected products (aluminium billets and profiles manufactured by the EPS, or the selected building systems of the ASS) we prepared Environmental Product Declarations (EPD), determining their Cradle-to-Gate carbon footprint, in consideration of GHG emissions within Scopes 1, 2, and 3. The documents were verified by external organisations, which confirmed the low value of carbon footprint, for example for the aluminium billets made by the Kęty plant of soft alloys with high scrap content.

The report presents:

  • direct greenhouse gas emissions (Scope 1);
  • indirect emissions related to the energy purchased (Scope 2);
  • selected emissions within Scope 3;
  • GHG emissions intensity.

The emissions within Scope 2 are generated outside of the Group companies and refer to the stage of production of the electric and thermal energy purchased. Therefore, the companies are capable to reduce the emissions solely by actions aimed at limiting the demand for energy. The goal has been attained by way of improving energy efficiency of the manufacturing processes and the buildings used. The effects achieved are presented in a table, where a change in the intensity of GHG emissions may be seen. The total emissions by the Capital Group in 2021 equalled 177,700 tons of CO2e (domestic companies, Scopes 1 and 2, location‑based method). The emissions of Grupy Kęty S.A. equal 80,500 tons of CO2e, and those of our foreign companies – 8,900 tons of CO2e. Direct emissions represented approximately 20% of the stated values. The average carbon footprint of the products of the Capital Group, i.e. GHG emission per production unit, equalled 0.56 MgCO2e/Mg, and was as much as 4.45% lower than the value in 2020. In 2021, the carbon footprint was: extruded and drawn products (at the EPS) – 0.61 Mg (-7.41% y/y); building systems (at the ASS) – 0.27 MgCO2e/Mg (-1,6% y/y); packaging laminates – 0.78 MgCO2e/Mg (-2.19% y/y); and packaging films – 0.62 MgCO2e/Mg (-1.15% y/y).

Methodology
The value of emission is presented in metric tons, as an equivalent of CO2. Carbon dioxide equivalent (CO2e) is a universal unit serving the measurement of greenhouse gas emissions, which reflects the varied global-warming potential. It determines the concentration of carbon dioxide, which when emitted to the atmosphere would have an effect identical as the respective concentration of the compared greenhouse gas.
The total level of direct greenhouse gas emissions is relatively low due to the nature of the in-house processes and high thermal efficiency of the systems and devices used. The Capital Group companies are not subject to the EU Emissions Trading System (ETS). The greenhouse gas emitted by the plants is mainly carbon dioxide originating from the processes of natural gas combustion in heaters and industrial furnaces, boilers, radiators, and thermal oxidisers. Moreover GHG include also CH4 and N2O from the combustion of fuels in vehicles, as well as HFC used as cooling medium.

Scope Type of activity 2020 2021
Scope 1 Fuels burning in the plant systems 33,977 36,886
Fuels burning by vehicles 1,291 1,346
Fugitive emissions of cooling agents 476 562
Scope 1 – Total 35,744 38,794
Scope 2 Electric energy purchased – location based 124,951 131,059
Thermal energy purchased 6,812 7,865
Scope 2 – Total 131,763 138,924
Scopes 1+2 Scopes 1+2 – Total 167,507 177,718
Production 286,179 317,768

Scope Type of activity 2020 2021
Scope 1 Fuels burning in the plant systems 1,577 1,656
Fuels burning by vehicles 29 27
Fugitive emissions of cooling agents 0 11
Scope 1 – Total 1,606 1,694
Scope 1 (Biogenic) 1,143 1,252
Scope 2 Electric energy purchased – location based 5,704 6,006
Thermal energy purchased 0 0
Scope 2 – Total 5,704 6,006
Scopes 1+2 Scopes 1+2 – Total 8,454 8,952
Production 8,284 9,368

Scope Type of activity 2020 2021
Scope 1 Fuels burning in the plant systems 18,087 19,807
Fuels burning by vehicles 465 523
Fugitive emissions of cooling agents 14 8
  Scope 1 – Total 18,566 20,338
  Scope 1 (Biogenic)
Scope 2 Electric energy purchased – location based 50,093 55,363
Thermal energy purchased 3,897 4,750
  Scope 2 – Total 53,990 60,113
Scopes 1+2 Scopes 1+2 – Total 72,557 80,451
Production   110,790 132,682
  • GRI: 305-4

GHG emissions intensity (Mg CO2eq/Mg) 2020 2021 Change y/y
Companies located in Poland 0.585 0.559 -4.45%
Companies located in other countries 1.020 0.956 -6.36%
Grupa KĘTY S.A. 0.655 0.606 -7.41%

GHG emissions reduction

The analysis of our products’ carbon footprint shows the areas and methods of the possible reduction of GHG emissions. As regards the companies of Grupa Kety, the largest potential refers to Scope 2 emissions as regards the use of electric energy. Therefore, we have concentrated our actions mainly in that area. We have performed a series of projects improving energy efficiency, the examples of which are presented below. Moreover, starting from January 2022, we plan to change the supplier of energy to one with higher share of renewable energy sources in energy generation. In the future, we plan to build a system for high-efficiency electric energy and heat co-generation with a gas-fuelled engine, and also consider increased use of green electric energy generated from renewable sources, e.g. photovoltaic panels, or purchase of energy at a special tariff from the operator or directly from the green energy generators. We have also considered emission neutralisation (carbon offset) by way of reduction of GHG emissions in another place in the world. Such mechanisms were defined in the Kyoto Protocol and are used in the emissions trading systems. Below presented are the example tasks that contributed to the reduction of carbon footprint at the particular Segments.

  1. Replacement of transformers
  2. Modernisation of compressed air system
  3. Modernisation of cooling water circulation pump system
  4. Modernisation of lighting system at production halls
  5. Optimisation of thermal treatment process in the Ebner furnace
  6. Modernisation of the anodising technology
  7. Purchase of electric forklift trucks
  8. Implementation of software to simulate and optimise the extrusion process
  1. Heat recuperation from three compressors to heat process water in a multi-stage washer of the powder-coating plant
  2. Replacement of heating boilers with energy-saving ones
  3. Replacement of a transformer at the Goleszów plant
  4. Thermal performance improvement of the roof and external walls of the plant in Goleszów
  5. Replacement of lighting system at the plant production halls
  6. Systematic replacement of Diesel vehicles with hybrid-fuelled ones
  1. Modernisation of lighting system at production halls
  2. Modernisation and optimisation of the operation of air handling units
  3. Energy recuperation from production halls in order to heat fresh air
  4. Utilities consumption monitoring system
  5. Heaters operation in technical rooms only during working hours
  6. Increased share of recycled granulates in the production of transparent and speciality films
  7. Use of recycled materials to replace multi-material solutions
  8. Replacement of two-component paint with one-component one for a key customer
  9. Adjustment of boilers, afterburners and drying tunnels

The awareness of our impact on the climate helps our customers in calculating the carbon footprint of their own products. We will continue supporting our customers and suppliers in that regard, striving to reduce carbon footprint within the whole value chain. The awareness and knowledge of that subject has become growingly important, and it might probably soon be a legal requirement.

The long-term objective is to arrive at climate neutrality by the year 2050, based on the existing and newly developed engineering solutions. We plan an increase in the share of aluminium scrap in the products made of soft alloys, extruded from the billets cast at the Kęty plant. We will also extend the offer of aluminium building systems fulfilling the requirements of environmentally-friendly, passive buildings. In the packaging segment, we will increase the production of packaging films and laminates fit for recycling. In the coming years we wish to better avail of the competitive advantage provided by aluminium, owing to the fact that no other material is better fit for recycling. The metal does not degrade, thanks to which it may be recycled many times, without losing properties. This makes us see the challenges related to achieving climate balance, as well as new requirements and climate goals not only as a burden but also as an opportunity to develop.

Other indirect greenhouse gas emissions (Scope 3)

  • GRI: 305-3
  • GRI: 305-4

Apart from monitoring direct and indirect emissions related to energy consumption (Scopes 1 and 2), Grupa Kęty S.A. started to register Scope 3 emissions related to the purchased materials for extruded profiles manufacturing from in-house billets made of soft alloys, together with the transport of the materials. Moreover, GHG emissions related to staff business travel (outside of Scope 1) and commuting have been estimated. Additionally, carbon footprint within all three Scopes was verified for the selected products: aluminium billets and profiles manufactured in Kęty, and the selected façade systems and window-and-door systems of Aluprof S.A. The particular stages of the product life cycle (Cradle-to-Gate) as well as gross emissions related to the purchase and processing of raw materials, production of primary raw materials, and waste management were taken into account. The value of GHG emissions (Scopes 1, 2, and 3) is disclosed in metric tons of CO2 equivalent. The verification of the values was carried out by Bureau Veritas and the Building Technology Institute, based on the ISO 14064-3 standard: ‘Greenhouse gases – Specification with guidance for the verification and validation of greenhouse gas statements’. The carbon footprint of the aluminium billets manufactured in Kęty dropped in 2021 from 2.8 to 2.4 tons of CO2e/t. Just to compare, the production of 1 ton of primary aluminium in Europe causes the emission of 6.7 tons of CO2e on the average (according to EAA 2018). The low-emission characteristics of billets and the resulting profiles was possible to achieve thanks to the high share of aluminium scrap in the remelting charge. The Kęty plant recycles not only aluminium waste manufactured by all the Capital Group subsidiaries, but also waste purchased on the market. By recovering aluminium, the plant saves a lot of energy needed to produce primary aluminium from bauxite ores, thus limiting air and water pollution.

Other indirect greenhouse gas emissions (Scope 3)

Grupa Kęty S.A. 2020 2021
GHG emissions related to the materials purchased (1) (Mg CO2eq) no data 89,486
GHG emissions related to the ‘upstream’ transport of materials (2) (Mg CO2eq) no data 912
GHG emissions related to business travel, outside of scope 1 (Mg CO2eq) no data 0.6
GHG emissions related to plant staff commuting (Mg CO2eq) no data 2.2
(1) Materials for manufacturing billets used in extruding profiles of soft alloys
(2) - Transport of materials for manufacturing billets used in extruding profiles of soft alloys

Carbon footprint of selected products

Grupa Kęty S.A. 2020 2021
Aluminium ingots (3) Mg CO2e/Mg 2.79 2.49
Aluprof S.A.
Façade systems (4) Mg CO2e/Mg no data 7.58
Window and door systems (5) Mg CO2e/Mg no data 8.11
(3) Environmental Product Declaration Type III Bureau Veritas
(4) Environmental Product Declaration Type III ITB No. 087/2019
(5) Environmental Product Declaration Type III ITB No. 088/2019

Emission of other gases and dusts to air

  • GRI: 305-7

The companies of the Capital Group control the quantity of dusts and gases emitted to air. The monitoring proves that the limits set out by law and administrative decisions have been kept. The total emissions level is well below the allowed limits. Apart from the greenhouse gases, the EPS emits sulphur dioxide, nitrogen oxides, carbon monoxide, dust and small amounts of inorganic compounds to air. The sources of emission are the processes of natural gas combustion and chemical treatment of aluminium elements. The main pollutants emitted by the ASS include sulphur dioxide, nitrogen oxides, carbon monoxide, dust, sulphuric acid, hydrogen chloride, fluorine, inorganic acids and aliphatic hydrocarbons. The FPS companies emit volatile organic compounds (VOC) to air, originating from the processes of printing, coating and lamination of packaging, as well as dust and gases from natural gas combustion in engineering and heating plants, plus sulphuric acid and chromium compounds from the electroplating line.

As referred to production, the value of most emission indicators was lower. What is more, despite a growth in production, the nominal value for a number of compounds was reduced compared to 2020. This refers mainly to sulphur dioxide and fluorine emitted by the EPS. At the FPS, the total value of emissions dropped by 4.2% compared to 2020, despite production extension. Apart from the optimisation and adjustment, the reduction resulted from the transfer of production from Alupol Packaging S.A. to Alupol Packaging Kęty Sp. z o.o., as well as the use of new machines generating lower emissions. At the ASS, higher emissions of gases and dusts to air were recorded in 2021 compared to the preceding year. The differences result from longer working hours of the equipment, higher natural gas consumption, and launching of a new paint shop in one of the locations.

Methodology
The emission calculations were made in compliance with the applicable methods of determining pollution emissions for the purpose of charging fees for the use of the environment, depending on the specifics of the processes involved in the emissions origination. The pollution emissions were determined with the use of the following calculation methods, based on the results of periodical measurements (measuring indicators), in reference to process balances and the National Centre for Emissions Management (KOBIZE) indicators applicable to the combustion of fuels, as well as indicators available in literature, among other things.

The companies of the Capital Group have been successfully carrying out actions for the limitation of the emissions to air for many years. In order to further reduce the emissions to air, we have planned further optimisation of the processes and modernisation of infrastructure.

Capital Group Unit 2020 2021 Change y/y
companies located in Poland
Total dust Mg p.a. 4.59 4.86 5%
SO2 Mg p.a. 1.89 1.06 -79%
NO2 Mg p.a. 34.67 40.62 15%
CO Mg p.a. 12.38 12.95 4%
Fluorine Mg p.a. 0.12 0.05 -140%
Chlorine Mg p.a. 0.01 0.06 91%
Inorganic acids Mg p.a. 14.77 17.92 18%
Metal hydroxides Mg p.a. 1.60 1.95 18%
VOCs Mg p.a. 87.75 84.04 -4%
Ozone Mg p.a. 3.31 2.61 -27%
Halogens Mg p.a. 1.65 2.08 20%
Hydrogen chloride Mg p.a. 5.56 6.83 19%
Aliphatic hydrocarbons Mg p.a. 1.38 1.60 14%
Aromatic hydrocarbons Mg p.a. 0.10 0.18 45%
Methyl chloride Mg p.a. 0.53 0.55 4%
Methyl ethyl ketone Mg p.a. 0.36 0.42 14%
Acetone Mg p.a. 0.82 0.90 9%
other locations
Total dust Mg p.a. 3.05 2.97 -3%
SO2 Mg p.a. 0.00 0.00 25%
NO2 Mg p.a. 4.84 4.73 -2%
CO Mg p.a. 2.78 2.66 -4%
Grupa Kęty S.A. Unit 2020 2021 Change y/y
Total dust Mg p.a. 1.77 1.96 10%
SO2 Mg p.a. 1.62 0.75 -116%
NO2 Mg p.a. 15.19 18.73 19%
CO Mg p.a. 9.65 9.94 3%
Fluorine Mg p.a. 0.12 0.05 -140%
Chlorine Mg p.a. 0.01 0.06 91%
Inorganic acids Mg p.a. 1.35 1.60 16%
Metal hydroxides Mg p.a. 1.58 1.92 18%