SHV acknowledges we are reaching several planetary boundaries and is committed to proactively reducing its impact on the world, to safeguard the planet for generations to come. We continue to place sustainability at the heart of our purpose in the face of issues such as climate change, resource scarcity, biodiversity loss, and pollution.
Continuously looking to the outside world to understand current and future critical developments, we have not only reconfirmed our focus on reducing Greenhouse Gas (GHG) emissions, but are now also preparing to broaden the sustainability scope of impacts and opportunities to address. This involves all Groups conducting a Double Materiality Assessment (DMA) that looks at both impact materiality (our impact on people and environment) and financial materiality (the financial impact of sustainability issues on our business). Our DMA will cover both positive and negative impacts. Based on the outcomes, new focus areas will potentially be added to the existing ones, and SHV will secure alignment across the Groups.
SHV Energy and Nutreco have commenced their assessments and plan to finalise them early 2023. All other Groups have begun their preparations using SHV Energy and Nutreco as the blueprint. SHV will then take the Group-wide outcomes to shape a consolidated DMA later in the year. This will in turn form one of the main pillars in preparation for the upcoming Corporate Sustainability Reporting Directive (CSRD). The CSRD obliges businesses to provide independently verified reports on the environmental and social impact of their activities for greater levels of transparency. SHV will begin to report in line with CSRD requirements from 2025.
A reduction in GHG emissions is essential for keeping the rise in global warming to well below two degrees Celsius compared to pre-industrial levels. At the same time, our own impact materiality assessments clearly show that GHG represents one of the most material environmental issues across SHV. We therefore aim to contribute to the Paris Agreement by reducing consolidated absolute Scope 1 and 2 emissions by 30% by 2030, taking 2018 as our base year – the first year in which consolidated data became available.
2022 consolidated emission for Scope 1 and 2 is around 730 ktons, an increase compared to 2018.
Scope 1 emissions are those emissions directly generated by assets owned or controlled by the Groups, while Scope 2 emissions relate to the electricity we purchase. Given the nature of their businesses, SHV Energy, Nutreco, and ONE-Dyas are the main contributors to Scope 1 and 2 emissions. Kiwa is not yet included, as the data are expected to become available in 2023, as Kiwa joined the SHV Family of Companies in 2021. ONE-Dyas’ emissions are included in line with the SHV share percentage of 49%.
GHG classifications also include Scope 3, which covers all other indirect emissions across a company’s value chain, both upstream and downstream, not captured in Scope 1 or 2. Scope 3 emissions are the most complex to measure due to the varied scope of activities across the value chain. Consolidated Scope 3 GHG emissions are estimated to comprise more than 90 percent of total emissions.
In 2022, we focused on further enhancing our GHG data. Accurate data represent one of the main requirements not only for monitoring emissions, but also for actively reducing them. As part of a deep dive into our GHG emissions over 2018-2021, we have examined reporting practices to identify gaps in our reporting guidelines, which are themselves based on the GHG Protocol - a widely recognised, global accounting standard.
The results have also identified areas that require fine-tuning, as well as differences in the reporting practices between the Groups. These findings will be followed-up in 2023 and subsequent actions will continually be monitored. We also plan to reconfirm the accuracy of the 2018 baseline data, as well as to assess whether this data has been adequately adjusted to reflect investments and divestments in line with GHG Protocol. Since all data requires further optimisation, GHG emission data of 2022 for all scopes remains indicative.
In addition to enhancing data quality, the next step for the Groups in 2023 is defining detailed GHG reduction plans. These plans will form the roadmap for reaching our shared 2030 reduction target.
Although at different stages of maturity, all Groups deploy various Group specific initiatives aimed at further reducing GHG emissions, all linked to their sustainability ambitions.
Nutreco’s purpose is encapsulated by Feeding the Future. This means helping industries to sustainably produce enough nutritious, high-quality food for the growing world population through the responsible use of natural resources, and protecting biodiversity, and ecosystems.
Nutreco’s Scope 1 emissions largely originate from livestock manure as well as the use of natural gas and fuel oil in production. As the Group’s main consumer of fuel oil, which is around fifty percent more polluting than natural gas, Skretting Ecuador plans to switch to gas later in 2023. Scope 2 emissions are relatively low, following significant reductions over the last few years thanks to the procurement of green electricity. Scope 3 accounts for the highest emissions by far, mostly driven by the use of raw materials such as soy, palm oil, and amino acids.
As one of the main contributors to SHV’s consolidated GHG emissions, Nutreco has committed to Science Based Targets initiative (SBTi) for Scopes 1, 2 and 3. These targets are based on the latest scientific evidence for meeting Paris Agreement goals.
SHV Energy supplies business and residential customers worldwide with the energy they need for heating, cooking, and transportation. By serving off-grid communities, the company makes cleaner energy more accessible and affordable, as LPG and LNG are less polluting compared to higher carbon fuels, such as coal and heating oil.
SHV Energy’s Scope 1 emissions primarily relate to diesel usage by vehicles in the distribution network and energy consumption in filling operations. Scope 2 emissions are limited compared to Scope 1, thanks to the procurement of green electricity. Further lowering Scope 1 and 2 emissions is achieved by driving energy efficiency and adopting cleaner forms of energy, such as installing solar panels, and using alternative fuels for trucks and bioLPG in the company’s own operations. Scope 3 represents most of the emissions, which are largely driven by purchased goods and services, as well as the use of products sold by the company. Reducing these emissions is an ongoing effort, which involves dedicated investments and partnerships with other industry leaders. The objective is to lead the industry on a path to more sustainable molecules to replace fossil ones, starting with HVO bioLPG and rDME. Besides this, SHV Energy is building businesses which offer end customers renewable energy solutions. The solar solutions of SunSource in India as well as Energy Efficiency services of EM3 focused on Europe are part of this.
As a leading specialised industrial service provider, ERIKS helps industry to work better. The company’s expertise in products and applications also supports customer sustainability goals: using energy efficient motors to realise major energy savings, being just one example.
ERIKS’ Scope 1 emissions are mostly generated by natural gas used for heating, in addition to the gasoline and diesel that power the car fleet. However, these emissions are relatively low as logistics are generally outsourced. Scope 2 emissions, meanwhile, are very limited, with electricity supplies largely classified as green. Scope 3, accounting for the major part of emissions, relates to the goods purchased to be sold on to customers as well as the use of sold products.
Makro is a multinational cash and carry wholesaler striving to make a positive impact on the planet through both its products and its business practices. These efforts include minimising the use of natural resources and reducing GHG emissions.
Makro’s Scope 1 emissions are limited, and Scope 2 emissions primarily originate from in-store refrigeration systems, although these have been significantly decreased over the past few years thanks to the procurement of green electricity. Other energy-efficient measures, such as LED lighting, have also been taken in the design and construction of stores. Scope 3 represents the lion’s share of emissions, however, principally driven by the production of purchased goods and shipping logistics.
As the market leader in the heavy lifting and transportation industry, Mammoet is committed to taking action and setting inspiring sustainability goals. These ambitions are driving innovation and shaping new, more sustainable ways of working.
Mammoet’s Scope 1 and 2 emissions principally derive from equipment, resulting in a need to develop new, ‘fit for the future’ equipment. Before this happens, however, data accuracy will be honed to provide a sound basis for defining further actions. Scope 3 emissions are largely driven by the procurement of equipment and estimated to represent a limited part of the consolidated SHV figure.
Kiwa’s testing, inspection, and certification activities support the health and safety of people. They also contribute to a more sustainable world in which quality assurance brings transparency and creates trust. Kiwa validates sustainable entrepreneurship by certifying sustainability initiatives such as ISO 14001 for environmental management, a standard that sets out the requirements for an environmental management system.
Kiwa started measuring GHG emissions in 2019 and extended their framework after joining the SHV Family of Companies in 2021. The next step lies in preparing more comprehensive GHG data from 2023 onwards, enabling the company to focus on further GHG reductions in line with overall SHV goals.
ONE-Dyas is committed to conducting its operations in the most sustainable manner possible, making every effort to prevent pollution and protect the environment. The business is focused on establishing itself as one of the industry's most responsible producers, using its core capabilities to improve the environmental performance of its portfolio, and create pragmatic solutions that contribute to the objectives of the energy transition.
ONE-Dyas’ Scope 1 emissions primarily originate from operations and include combustion, flaring and venting. The company has developed a detailed GHG abatement plan at an asset and portfolio level to target Scopes 1 and 2, which aims for operational improvements, efficiency measures, and electrification. Scope 3 emissions chiefly arise from the product use of both oil & gas and accounts for the most significant proportion of emissions.
As a significant contributor to SHV’s overall emissions, ONE-Dyas has pledged to reduce emissions to near-zero from operated oil & gas assets by 2030, and from its entire portfolio by 2035. All newly-built operated assets within the North Sea will produce with near-zero emissions – as demonstrated by the innovative GEMS gas field development, the first Dutch offshore gas treatment platform to run entirely on wind energy.
All Groups are fully aware of their responsibility to act in line with our Purpose and care for our planet. Going forward they will continue and increase efforts in order to achieve the goals that have been set.
Every initiative related to a reduction in GHG emissions stems from an unwavering commitment to care for our planet. This ethos remains at the very heart of our organisation, and we will never stop doing all we can to act as a force for positive change, proactively minimise the impact we have on the world around us, and act as a custodian of our planet for generations to come.
Greenhouse gas emissions
Nutreco – Feeding the future
SHV Energy – Advancing energy together
ERIKS – Let’s make industry work for a better tomorrow
Makro – Driving sustainable cash and carry wholesale
Mammoet – Helping the world grow sustainably
Kiwa – Certifying businesses to become more sustainable
ONE-Dyas – Responsible oil & gas production