Parex – 2017 carbon footprint - Skalflex PDF/Parex_carbon...Parex carbon footprint 2017 10 Group...

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Parex – 2017 carbon footprint

Final results

September 2017

Juliette DECQ Alexandre FLORENTIN

[email protected] [email protected]

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P A R E X C L I M A T E P R O G R A M C a r b o n F o o t p r i n t A s s e s s m e n t

Low carbon impact products (ex: EIFS)

Projects helping local communities to adapt

to climate change and regenerate

ecosytems in main countries of operations

Carbon footprint assessment

§  Bilan Carbone

update for France and Carbon Footprint assessment with other Parex countries

§  Identify reduction opportunities (suppliers, freight)

Reduce from a business perspective

§  Procurement

strategy §  suppliers

engagement §  alternative intrants §  freight optimization §  industrial operations

improvement

Reduce from an individual perspective employees initiatives

and involvement

MEASURE REDUCE ADAPT & MITIGATE ACTIVATE

Raise awareness among employees

Federate subsidiaries

on a common ambition

Implement a responsible

procurement strategy

Become a pioneer in sustainable construction

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Words of context

3

�  In 2017, Parex had the ambition to increase the scope of countries covered by the carbon footprint exercise. After France, China and the USA in 2016, 10 countries undertook a carbon footprint assessment in 2017:

§  Australia, Thailand and Singapore

§  Denmark, UK and Spain

§  Brazil, Argentina, Paraguay and Uruguay

�  All together, these countries account for 91% of Parex revenues worldwide.

�  The carbon footprint exercise focused on the significant sources of GHG emissions for Parex business sector: Energy, Purchases, Freight and Travels.

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« Upstream Scope 3 » « Scopes 1 & 2 » « Downstream Scope 3 »

Methodological focus: carbon accounting Different sources of emissions defining the three “scopes”

Upstream activities Company’s activities Downstream activities

Company’s car fleet

Buildings Fossil fuels consumption Electricity consumption

Refrigerant gas leakages

Upstream freight

Travel Business travel

Commuting employees

Customers and visitors travel

Downstream freight

Purchases (Purchase of goods

and services)

Capital assets (fixed assets: buildings, vehicles, IT equipment

…)

Use of sold products

End of life Of sold products

Wastes produced

Main sources of emissions of a carbon footprint and associated French regulatory obligations

Please note that the following sources (which apply for specific activities) are not represented in the figure: investments, franchises (downstream) and leased assets (upstream). The upstream of fossil fuel is not represented neither.

BEGES regulation (+ Art. 173) (French law)

Scope 3: specific to Art. 173 regulation (French law)


4 June 2017 Consolidated proposal

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« Upstream Scope 3 » « Scopes 1 & 2 » « Downstream Scope 3 »

Methodological focus: carbon accounting Sources taken into account for Parex carbon footprint

Upstream activities Company’s activities Downstream activities

Company’s car fleet

Buildings Fossil fuels consumption Electricity consumption

Refrigerant gas leakages

Upstream freight

Travel Business travel

Commuting employees

Downstream freight

Purchases (Purchase of goods

and services)

Main sources of emissions of a carbon footprint and associated French regulatory obligations

Please note that the following sources (which apply for specific activities) are not represented in the figure: investments, franchises (downstream) and leased assets (upstream). The upstream of fossil fuel is not represented neither.

BEGES regulation (+ Art. 173) (French law)



5 June 2017 Consolidated proposal

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Key messages

6

�  The data collection was very good thanks to the participation of all countries

�  For all countries, materials and freight emissions account for around 90% of total emissions

�  Freight emission weight compared to total emissions varies significantly accross countries. A specific action plan could be drawn for freight in order to improve the measurement of emissions and decrease emissions over time.

�  The carbon intensity of production spread between 730 kgCO2eq/tonne produced to 250 kgCO2eq/tonne produced.

§  This diversity can mostly be explained by how much cement countries buy to manufacture 1 tonne of final product.

§  However, for many countries, freight and energy emission differentiate the carbon footprint profile and enable to draw specific action plans for each country.

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Parex Carbon Fooprint 2017 Final results

Performance indicators

Countries’ results

Annexes

Group results

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Data collection

8

Were all the needed data collected?

Perimeter of data collection

§  Overall, almost all data were collected

§  For the UK, missing data in the freight tab (the average distance is missing for outgoing freight)

UK Denmark Spain Thailand SingaporeEnergy OK OK OK OK OKMaterials OK OK OK OK OKPackaging OK OK OK OK OKFreight Missing data OK OK OK OKTravel OK OK OK OK OK

Australia Brazil Argentina Paraguay UruguayEnergy OK OK OK OK OKMaterials OK OK OK OK OKPackaging OK OK OK OK OKFreight OK OK OK OK OKTravel OK OK OK OK OK

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191 600

48 300

190 800

7 700 3 000 11 900 33 300

75 600

21 800

72 200 55 500

4 700 1 700

37 700

18 000

53 700

12 400 6 800

20 100

23 300

55 200 47 200

-

50 000

100 000

150 000

200 000

250 000

300 000

Fra

nce

USA

Chi

na

UK

De

nma

rk

Spa

in

Tha

iland

Sing

ap

ore

Aus

tra

lia

Bra

zil

Arg

ent

ina

Para

gua

y

Uru

gua

y

Europe Asia and Pacific Latin America

Energy Materials Packaging Freight Travel

Parex carbon footprint 2017

9

Group result: 1 MtCO2eq

Parex carbon footprint – 2017 – emissions by country and GHG sources Unit: tCO2eq

1 MtCO2eq

1300 tCO2eq/M€ revenues / compared to 1700 tCO2eq/M€ for the cement industry

385 kgCO2eq/tonne produced

13 countries

55% by FR, China and USA

2016 results

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Group results: weight of specific emission sources

Parex carbon footprint – 2017 – weight of emission sources by country Unit: % of tCO2eq

�  For all countries, freight and materials acount for around 90% of total emissions.

�  Freight emissions weight almost half of Spain, Brazil, Argentina and Australia carbon footprint exercice.

1% 4% 2% 4% 2% 2% 2% 5% 5% 3% 7% 7% 5%

79% 65% 71% 82%

71%

46%

76% 72%

44% 53% 48%

82% 77%

3%

4% 5%

7%

5%

1%

3% 3%

2% 2% 3%

4% 5%

15% 24% 20%

4% 19%

48%

16% 19%

48% 41% 41%

7% 14%

3% 2% 2% 2% 2% 3% 0% 1% 1% 1% 0% 0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Fr

anc

e

USA

Chi

na

UK

De

nma

rk

Spa

in

Tha

iland

Sing

ap

ore

Aus

tra

lia

Bra

zil

Arg

ent

ina

Para

gua

y

Uru

gua

y

Europe Asia and Pacific Latin America

Energy Materials Packaging Freight Travel

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Annexes

Group results

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731

490 486 480 413 389 385 380 378 372

304 280 275 250

Australia

Spain

Thaila

nd

China - 20

16

Argentin

a

USA -

2016

Pare

x gro

up ave

rage

UK

Brazil

Singapore

Para

guay

France -

2016

Uruguay

Denmark


12

Carbon intensity of production: how to explain the differences?

Parex carbon footprint – 2017 – carbon intensity of production Unit: kgCO2eq / tonnes produced

�  There is an important diversity (factor 3) regarding the production carbon intensity of countries.

�  How can this diversity be explained?

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731

490 486 480 413 389 385 380 378 372

304 280 275 250

Australia

Spain

Thaila

nd

China - 20

16

Argentin

a

USA -

2016

Pare

x gro

up ave

rage

UK

Brazil

Singapore

Para

guay

France -

2016

Uruguay

Denmark


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The main driver of diversity is caused by materials emissions

Parex carbon footprint – 2017 – carbon intensity of production Unit: kgCO2eq / tonnes of production

ENERGY Carbon intensity of production

Energy kgCO2eq/tonnes of production

MATERIALS Carbon intensity of production

Materials kgCO2eq/tonnes of production

FREIGHT Carbon intensity of production

Freight kgCO2eq/tonnes of production

Main driver of production carbon intensity diversity

Minor driver of diversity, except for Australia, Singapore, Argentina and

Paraguay

Minor driver of diversity, except for Australia, Spain, Argentina and Brazil

32

10 11 9 13

29

20 16

10

22

4

16 8

Australia

Spain

Thaila

nd

China - 20

16

USA -

2016

Argentin

a

Singapore

UK

Brazil

Para

guay

France -

2016

Uruguay

Denmark

Carbon intensity of production - ENERGY

Unit : tCO2eq energy / ktonnes 323

222

74 96 95 167

71 14

150

20 43 38 46

Australia

Spain

Thaila

nd

China - 20

16

USA -

2016

Argentin

a

Singapore

UK

Brazil

Para

guay

France -

2016

Uruguay

Denmark

Carbon intensity of production - FREIGHT

Unit : tCO2eq freight / ktonnes

352

244

373 341

202 254

314

207 268 253 220 216 175

Australia

Spain

Thaila

nd

China - 20

16

Argentin

a

USA -

2016

UK

Brazil

Singapore

Para

guay

France -

2016

Uruguay

Denmark

Carbon intensity of production - MATERIALS

Unit : tCO2eq materials / ktonnes

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373 352 341 314 268 254 257 253 244 220 216 207 202 175

Thaila

nd

Australia

China - 20

16

UK

Singapore

USA -

2016

Pare

x Gro

up ave

rage

Para

guay

Spain

France -

2016

Uruguay

Brazil

Argentin

a

Denmark

Carbon intensity of production - MATERIALS Unit : kgCO2eq materials / tonnes produced

Zoom on materials purchased

14

The diversity is caused by the weight and emission factor of cement

ZOOM on MATERIALS

ZOOM on FREIGHT

ZOOM on ENERGY

1 Weight of cement in products 2 Cement average emission factor

377

256 290 320 248 227

275 213

149 205 234

145 176

Thaila

nd

Australia

China - 20

16

UK

Singapore

USA -

2016

Para

guay

Spain

France -

2016

Uruguay

Brazil

Denmark

Argentin

a

Cement intensity of production Unit : tonnes of cement / ktonnes produced

924 1 063 994 915 1 019 803 724

916 866 865 810 975 893

Thaila

nd

Australia

China - 20

16

UK

Singapore

USA -

2016

Para

guay

Spain

France -

2016

Uruguay

Brazil

Denmark

Argentin

a

Average emission factor of cement Unit : kgCO2eq / tonnes of cement

�  All countries above average have a high cement intensity of production and/or a high cement emission factor

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323

222 167 150

97 96 95 74 71 46 43 38 20 14

Australia

Spain

Argentin

a

Brazil

Pare

x Gro

up ave

rage

China - 20

16

USA -

2016

Thaila

nd

Singapore

Denmark

France -

2016

Uruguay

Para

guay UK

Carbon intensity of production - FREIGHT Unit : kgCO2eq/tonnes produced

Zoom on freight

15

The average distance of freight is the main explanation of the weight of freight emissions compared to total emissions

1 Average distance travelled for incoming and outgoing freight (tonnes.km incoming freight / tonnes of materials purchased ; tonnes.km outgoing freight / tonnes produced)

ZOOM on MATERIALS

ZOOM on FREIGHT

ZOOM on ENERGY

�  All countries above average have a high average distance travelled for incoming and/or outgoing freight

208

416 255

595

222

735

78 150 140 64 43

908

400 445

145 303

136 101 200 147

56 31

Australia Spain Argentina Brazil China - 2016 Singapore Denmark France - 2016 Thailand Uruguay Paraguay

Average distance for incoming and outgoing freight in km

Average km - incoming freight Average km - outgoing freight

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32 29

22 20 16 16 13 12 11 10 10 9 8

4

Australia

Argentin

a

Para

guay

Singapore

Uruguay UK

USA -

2016

Pare

x Gro

up ave

rage

Thaila

nd

Spain

Brazil

China - 20

16

Denmark

France -

2016

Carbon intensity of production - ENERGY Unit : tCO2eq energy / ktonnes

50

102 78 69

52 31 21 29

43 38

12 29 22

Australia

Argentin

a

Para

guay

Singapore

Uruguay

USA -

2016

Thaila

nd

Spain

Brazil

UK

China - 20

16

Denmark

France -

2016

Energy intensity of production Unit : kWh energy / tonnes

Zoom on energy

16

The diversity is caused by the energy intensity and emission factor

ZOOM on MATERIALS

ZOOM on FREIGHT

ZOOM on ENERGY

1 Energy intensity of production Countries with on-site sand drying 2 Energy average emission factor

647

288 279 294 302 432

533

338 226

414

713

271 164

Australia

Argentin

a

Para

guay

Singapore

Uruguay

USA -

2016

Thaila

nd

Spain

Brazil

UK

China - 20

16

Denmark

France -

2016

Energy average emission factor Unit : kgCO2eq/MWh consummed

�  All countries above average have a high energy intensity of production and/or average emission factor

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Zoom on energy

17

Focus on sand drying

65% 89% 66% 79% 17%

Natural gas

GPL

Natural gas

88% 100%

12%

Energy used for sand drying / total energy consumption

Source of energy used for sand drying

�  The major issue with sand drying is to improve the energy efficiency of dryers

GPL

100%

184

94 89 87 63 55

Brazil Paraguay Argentina Singapore France - 2016

Uruguay

Sand drying energy efficiency Unit : kWh drying / tonnes of sand

81%

GPL

100%

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Key indicators Main recommendations

kgCO2eq/tonne produced

tCO2eq/M€ revenues

250 330 �  Materials: reduce the average

emission factor of cement / work on material composition of products to decrease cement weight

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490 1800 �  Freight: get local suppliers for incoming materials / optimize incoming freight

�  Freight: work with outgoing freight subcontractors to optimize freight process / reduce travel distance / improve fuel efficiency

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380 320 �  Energy: supply from low-carbon energy sources

�  Freight : measure the tonnes.km of outgoint freight (missing data)

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The weight of revenues generally match the weight of CO2 emissions

Parex carbon footprint – 2017 – comparison of weight of emissions and weight of revenues per country

22% 29%

7%

11%

25%

22% 1%

4%

0%

2%

3%

2%

4%

3% 10%

6% 5%

5% 13%

7%

10% 9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CO2 emissions - 2017 Revenues - 2017

Uruguay

Paraguay

Argentina

Brazil

Australia

Singapore

Thailand

Spain

Denmark

UK

China - 2016

USA - 2016

France - 2016

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Zoom on materials purchased Carbon intensity of cement

25

1063 1019 975 924 916 915 893 865 810 724

Weight of cement type per country (in %) and Cement average emission factor (in kgCO2e/tonnes of cement)

FE C

EM I

GRE

Y

kgC

O2e

q/t

on

ne

s)

26%

2%

100%

4% 0% 2% 7% 17%

0% 66%

0%

4%

98% 96%

19%

98% 78%

70%

15%

100% 77%

6%

100%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Australia Singapore Denmark Thailand Spain UK Argentina Uruguay Brazil Paraguay

Cement purchase - GREY cement - CEM V

Cement purchase - GREY cement - CEM IV

Cement purchase - GREY cement - CEM II

Cement purchase - GREY cement - CEM I

Cement purchase - WHITE cement - CEM II

Cement purchase - WHITE cement - CEM I

26%

2%

100%

4% 0% 2% 7% 17%

0% 66%

0%

4%

98% 96%

19%

98% 78%

70%

15%

100% 77%

6%

100%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%








26%

2%

100%

4% 0% 2% 7% 17%

0% 66%

0%

4%

98% 96%

19%

98% 78%

70%

15%

100% 77%

6%

100%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%








26%

2%

100%

4% 0% 2% 7% 17%

0% 66%

0%

4%

98% 96%

19%

98% 78%

70%

15%

100% 77%

6%

100%

15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%








1 094 1 017 871 919 979 913 940 940 855 940


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Zoom on energy

26

Energy mix by country

Energy mix per country (in %) and Energy supply average emission factor (in kgCO2e/kWh consumed)

713 647 533 432 414 338 302 294 271 164 226 279 288

FE e

lec

tric

ity a

nd

oth

er e

nerg

ies

kgC

O2e

q/M

Wh

)

80% 52%

79% 66% 74%

15% 20% 35% 46%

9% 19% 4%

52%

0%

22%

0% 0%

16%

0% 13%

0% 0% 86%

22%

92% 11%

0% 10% 0% 34% 0%

79% 63%

3%

34%

0%

53%

0%

30% 20% 16% 21%

0% 10% 6% 4%

62%

19% 4% 6% 4% 7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

China - 20

16

Australia

Thaila

nd

USA -

2016

Spain

Singapore

Argentin

a UK

Denmark

Uruguay

Brazil

Para

guay

France -

2016

Energy mix by countries - %

% of electricity % of GPL % of natural gas % of fuel

932 807 585 554 551 529 431 354 324 320 307 305 272 244 111 82

Australia

China - 20

16

Thaila

nd UK

Singapore

USA -

2016

Argentin

a

Spain

Domesti

c fuel

Para

guay

Uruguay

Denmark

GPL

Natura

l gas

Brazil

France -

2016

81% 56%

80% 66%

36%

78%

13% 15% 20% 5%

46% 20%

54%

0%

16% 0%

0%

0%

12%

81%

0% 9%

89% 0%

16%

8%

0% 10% 0% 34%

3%

0% 0%

79% 66%

0%

34% 57% 31%

19% 17% 20% 0%

62%

10% 6% 5% 5% 5% 19% 6% 7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100%

China - 20

16

Australia

Thaila

nd

USA -

2016

UK

Spain

Uruguay

Singapore

Argentin

a

Para

guay

Denmark

Brazil

France -

2016

Energy mix by countries - %

% of electricity % of GPL % of natural gas % of fuel

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