Green House Gas Emissions

In our diverse and global business, greenhouse gas (GHG) emissions represent one of the most material environmental issues across SHV. We are, however, reaching the point where we now have the capability to report accurate, complete, and auditable GHG emission data. In doing so, we follow the Green House Gas Reporting Protocol, the world's most widely used accounting standard for measuring and managing greenhouse gas emissions.

Scope 1, 2, and 3 are the three categories of greenhouse gas emissions that companies report on to measure their impact and progress towards net-zero.

Scope 1 are direct emissions from sources that are owned or controlled by the company, such as emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc. Scope 2 are indirect emissions from the consumption of purchased electricity, heat, or steam. Scope 3 are all other indirect emissions that occur in a company's value chain, including both upstream and downstream own operation. The boundaries between these scopes are not always clear-cut, and there can be some overlap between them. 

In 2023, we adjusted the 2018 Scope 1 and 2 baseline, taking into account significant investments and divestments, while also improving the accuracy of the figures. Between our baseline year of 2018 and 2023, business growth has offset the improvements we achieved, meaning overall performance has remained almost level.

The reported numbers exclude the emissions from NPM participations and our emission share of ONE-Dyas because we do not have operational control over these entities, which is the criteria for reporting. 

We are restating our 2030 targets to bring these in line with the Paris Agreement goals, which limit global warming to 1.5°C above pre-industrial levels. Starting in 2024, Senior Management compensation will be linked to emission reduction in line with the agreed goals.

The reduction of Scope 3 emissions remains the most challenging objective, with the vast majority attributed to Nutreco (driven by the sourcing of agricultural raw materials and changes in land use) and SHV Energy. For Nutreco 50% of the Scope 3 emissions are due to fossil energy consumption in the value chain for production and transportation. Thus, we need to step-up our efforts to influence supply chain partners to reduce their scope 1 and 2 emissions. For SHV Energy the largest Scope 3 contribution is from consumers burning fossil fuels. Reduction will come from the transition to renewable energy sources like solar and alternative molecules for which ambitious R&D programmes are in place. 

SHV Energy has introduced a first groundbreaking electric LPG truck designed for shorter distances, while planning renewable alternatives to diesel for the rest of the fleet. The company’s sustainable fuel subsidiary, Futuria, develops renewable alternatives to fossil-based propane and butane. Futuria is also actively exploring an entire portfolio of innovations such as green hydrogen, ammonia, and methanol for development in the medium- to long-term. Although exciting, these will involve significant investment to bring to market.

SunSource, an SHV Energy solar generating company in India, is a leading provider of solar-based energy and storage solutions to commercial and industrial (C&I) customers and manages the entire lifecycle of distributed solar projects. SunSource Energy announced that it will double its solar energy deployment target. The target will increase from 550 megawatts to one gigawatt by 2027.

The increased solar energy capacity will help to support a growing customer base across India that wishes to make the transition to cleaner, more sustainable power.

Nutreco started an ambitious investment plan to reduce their Scope 1 and 2 emissions in line with the Paris Agreement goals. This includes a large portfolio of energy efficiency and green energy investments at their global manufacturing sites. The Scope 3 emissions at Nutreco are much more difficult to reduce, because of the high dependency on cooperation across the value chain, especially the commodity suppliers.

Mammoet continued to pursue development plans for the electrification of its fleet, while an industry-first electric crane went into operation. The business is also fitting data collection instruments to mobile equipment, allowing energy consumption performance to be monitored in real-time and with a high degree of accuracy.

Kiwa activities itself do not generate a carbon footprint of any significance. As a CSRD-accredited auditor, however, the company enjoys access to a significant number of opportunities in the ESG space and has been heavily involved in testing solar, wind, and hydrogen installations - all of which represent a major growth opportunity.

ONE-Dyas continued efforts to minimise GHG emissions and establish itself as one of the industry’s most environmentally responsible producers. With natural gas set to play an essential role in the energy mix over the medium-term, ONE-Dyas aims to reduce emissions to near-zero from operated oil & gas assets by 2030, and from its entire portfolio by 2035. Progress continues on the GEMS (N05-A) gas field development, the first Dutch offshore gas treatment platform to run entirely on wind energy. First gas is expected by the winter of 2024-2025. 

Many of the initiatives are supported by EM3 – an SHV Energy-owned consultancy firm that works to identify and implement reduction initiatives primarily aimed at Scopes 1 & 2.