Integrated Report 2023

Total direct and indirect greenhouse gas emissions and their intensity

  • GRI 305-1
  • GRI 305-2

Since 2016, the domestic companies of the Capital Group of Grupa KĘTY S.A. have been recording climate-related emissions. Thanks to that, it has been possible to precisely define goals for the subsequent years. Since 2020, we have been reporting our emissions within the Climate Change programme run by the Carbon Disclosure Project (CDP), which is an international non-profit organisation researching the level of climate awareness among companies for many years. Carbon footprint calculations are based on the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard. The value of emission is reported in metric tons, as an equivalent of CO2. The greenhouse gas emitted by the Capital Group 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 1 – direct GHG emissions controlled by the Capital Group, covering specifically fuel consumption for process purposes, heating buildings, combustion by vehicles, as well as fugitive emissions related to the operation of cooling systems;
  • Scope 2 – indirect GHG emissions which result from the consumption of electric and thermal energy purchased.
  • the materials purchased;
  • the ‘upstream’ transport of materials.

The emissions reporting covers the parent company and the Polish companies of the Capital Group of Grupa KĘTY S.A. For the purpose of deeper analysis of changes and trends, extended emission figures for the years 2020-2023 and for the base year 2016 have been presented.

Indirect GHG emissions have been calculated with two methods.

The ‘location-based’ method covers for the average emissions intensity of electric grids to which the companies are connected.

The ‘market-based’ method covers for the emissions calculated based on intensity characteristic to the relevant supplier, and also enables discounting for the purchase of offset solutions.

 

The basic emissions intensity indicator used for management purposes are direct and indirect GHG emissions calculated with the ‘location-based’ and referred to the production size.

For the year 2016 and 2020-2023, below presented are:

  • direct greenhouse gas emissions (Scope 1);
  • indirect emissions related to the purchased electricity and heat (Scope 2: ‘location-based’ and ‘market-based’ methods);
  • intensity of greenhouse gas emissions in reference to production size (Scopes 1 and 2);
  • selected Scope 3 emissions for Grupa KĘTY S.A. plant.

Direct and indirect GHG emissions (scopes 1 and 2) by the companies of the capital group based in Poland
(Mg CO2e/year)

Scope Type of activity 2016 2020 2021 2022 2023 Change 2023/2022
Scope 1 Fuels burning in the plant systems 25,467 33,977 36,886 30,178 30,651 2%
Fuels burning by vehicles 1,278 1,291 1,346 1,225 1,462 19%
Fugitive emissions of cooling agents 230 476 562 774 488 -37%
Scope 1 – Total 26,975 35,744 38,794 32,177 32,601 1%
Scope 2 Electric energy purchased (location-based) 98,623 124,951 131,059 124,416 118,052 -5%
Electric energy purchased (market-based) 98,623 130,130 112,396 97,750 117,918 20.63%
Thermal energy purchased 4,368 6,812 7,865 6,552 6,259 -4%
Scope 2 (location-based + heat) 102,991 131,763 138,924 130,967 124,312 -5%
Scope 2 (market-based + heat) 102,991 136,941 120,261 104,302 124.177 19.06%
Scope 1+2 Scopes 1+2 (location-based)

129,966

167,507 177,718 163,144 156,913 -4%
Scope 1+2 Scopes 1+2 (market-based) 129,966 172,685 159,054 136,478 156,778 14.87%

Direct and indirect GHG emissions (scopes 1 and 2) by Grupa Kęty S.A. (Mg CO2e/year)

Scope Type of activity 2016 2020 2021 2022 2023 Change 2023/2022
Scope 1 Fuels burning in the plant systems 13,601 18,087 19,807 15,059 15,754 5%
Fuels burning by vehicles 423 465 523 562 619 10%
Fugitive emissions of cooling agents 28 14 8 146 36 -75%
Scope 1 – Total 14,052 18,566 20,338 15,767 16,409 4%
Scope 2 Electric energy purchased (location-based) 55,724 50,093 55,363 53,129 50,496 -5%
Electric energy purchased (market-based) 55,724 52,169 51,304 39,768 50 836 27.83%
Thermal energy purchased 2,716 3,897 4,750 4,206 3,865 -8%
Scope 2 (location-based + heat) 58,439 53,990 60,113 57,335 54,360 -5%
Scope 2 (market-based + heat) 58,439 56,067 56,054 43,975 54 701 24.39%
Scopes 1+2 Scopes 1+2 (location-based + heat) 72,491 72,557 80,451 73,103 70,770 -3%
Scopes 1+2 Scopes 1+2 (market-based + heat) 72,491 74,633 76,392 59,742 71 110 19.03%
  • GRI 305-4

Greenhouse gas emissions intensity by companies located in Poland (MgCO2e/Mg)

Indicator Type of activity 2016 2020 2021 2022 2023 Change
2023/2022
GHG per ton of production Carbon footprint, Scope 1+2, location-based/production size 0.676 0.585 0.559 0.548 0.529 -3%
Carbon footprint, Scope 1+2, market-based/production size 0.676 0.603 0.501 0.459 0.529 15.34%

Greenhouse gas emissions intensity by Grupa Kęty S.A. (MgCO2eq/Mg)

Indicator Type of activity 2016 2020 2021 2022 2023 Change
2023/2022
GHG per ton of production Carbon footprint, Scope 1+2, location-based/production size 0.775 0.655 0.606 0.632 0.578 -9%
Carbon footprint, Scope 1+2, market-based/production size 0.775 0.674 0.576 0.517 0.581 12.47%
The calculation of greenhouse gas emissions using the “market-based” method relating to 2023 includes the purchase and redemption for Aluprof S.A. of guarantees of origin relating to the introduction of 1,350 MWh of electricity generated in a renewable energy source installation into the distribution network or transmission network, as confirmed on document GP_WBEEZOO_2023-09-26_2168. Market-based GHG emissions calculations for 2022 included:

1) purchase and cancellation of guarantees of origin in favor of Aluprof S.A. concerning the introduction into the distribution grid or transmission network of 16,000 MWh of electricity generated in a renewable energy source installation, which was confirmed on document RGP_WBEEZOO_2022-09-29_1804;

2) purchase and redemption in favor of Grupa KĘTY S.A. of guarantees of origin concerning the introduction into the distribution grid or transmission network of 17,620 MWh of electricity generated in a renewable energy source installation, which was confirmed on document RGP_WBEEZOO_2022-11-15_2073;

3) purchase and redemption for Aluform Sp. z o.o. of guarantees of origin relating to the introduction into the distribution network or transmission network of 2,350 MWh of electricity generated in a renewable energy source installation, as confirmed on document RGP_WBEEZOO_2022-11-15_2027. The calculation of greenhouse gas emissions using the market-based method for 2021 includes the purchase and redemption in favor of Aluprof S.A. of guarantees of origin concerning the introduction into the distribution network or transmission network of 14,000 MWh of electricity generated in a renewable energy source installation, as confirmed on document RGP_TRMEWOBR_2021-09-02_0967.

gradual machinery improvements, optimisation of processes, and the implemented energy efficiency improving activities have brought effects in the form of actual GHG emissions intensity reduction. In 2023, the total emissions by the domestic companies of the Capital Group amounted to 156,900 tons of CO2e (Scopes 1 and 2 – location-based method) and were by 3.8% lower than in 2022, and 12% lower than in 2021. Similarly, the emissions of Grupa KĘTY S.A. equalled 70,700 tons of CO2e and were by 3% lower than in 2022, and 12% lower than in 2021.

The analysis of emission levels confirms that

The total level of direct greenhouse gas emissions (Scope 1) 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).

Compared with the base year 2016, the emissions intensity of the domestic companies of Grupa KĘTY S.A. Capital Group (Scopes 1+2, location-based/production size) decreased by 22% in reference to the production size, and by 25% for Grupa KĘTY S.A. alone. This means that the basic goal of the Climate Policy adopted in the currently binding Strategy, to be achieved by the year 2025, was attained in 2023.

Other indirect greenhouse gas emissions (Scope 3)

  • GRI 305-3

Apart from monitoring direct and indirect emissions related to energy consumption (Scopes 1 and 2), Grupa KĘTY S.A. started to register major categories of Scope 3 emissions, i.e. ones related to the purchased materials and their transport.

Moreover, carbon footprint of the basic products of Grupa KĘTY S.A. and Aluprof S.A. determined in Type III Environmental Product Declarations (EPDs) was presented. The carbon footprint of profiles manufactured from in-house produced billets is only 3.3 kg of CO2e/kg. The value was determined based on the results of the Life Cycle Assessment, in compliance with the EN 15804 standard. The document has been verified by an external expert and has the status of a European ‘ECO-EPD verified’ declaration. The certificate has been published on the ITB [the Polish Building Technology Institute] sustainable building portal, thanks to which the profiles are acceptable in the ‘green buildings’ certification systems, such as BREEAM, LEED, or DGNB. This facilitates their use in creating sustainable architectural aluminium systems. Low carbon footprint of Grupa KĘTY S.A.’s products was achieved thanks to the high content of aluminium scrap in the melting charge. Recycled in the melting process is both pre-consumer and post-consumer scrap. The scrap is a component of materials for the production of aluminium billets, which are further used in extruding profiles.

Other indirect greenhouse gas emissions (Scope 3)

Grupa KĘTY S.A. 2022 2023 Change
2023/2022
GHG emissions related to the materials purchased (1) 545,651 532,897 -2%
GHG emissions related to the ‘upstream’ transport of materials (2) 4,175 3,726 -11%

Carbon footprint of selected products

2023
Grupa KĘTY S.A.

Profiles extruded from 6xxx series billets cast in Kęty (1) kgCO2e/kg

3.3

Aluprof S.A.
Façade systems (2) kgCO2e/kg 7.58
Window and door systems (3) kgCO2e/kg 8.11
(1) Environmental Product Declaration Type III ITB No. 348/2022
(2) Environmental Product Declaration Type III ITB No. 087/2019
(3) Environmental Product Declaration Type III ITB No. 088/2019

Dusts and other gases emissions to air

  • GRI 305-7

Grupa KĘTY has implemented the Environmental Policy, which covers the goals related to pollutants emission to air. Every year, in the management system efficiency review based on the ISO 14001, measurable goals and tasks aimed at dusts and gases emission reduction are approved.

The companies of the Capital Group control the quantity of the substances emitted. 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 greenhouse gases, the EPS emits to air: sulphur dioxide, nitrogen oxides, carbon monoxide, dust and small amounts of inorganic compounds. The sources of emission are the processes of natural gas combustion and chemical treatment of aluminium elements. The main pollutants emitted by the ASS plants include sulphur dioxide, nitrogen oxides, carbon monoxide, dust, sulphuric acid, 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 gas combustion in engineering and heating plants, plus sulphuric acid from the electroplating line.

The emission calculations are made in compliance with the applicable methods of determining pollution emissions, depending on the specifics of the processes involved in the emissions origination.

The pollution emissions disclosed in the report were determined with the use of calculation methods based on the results of periodical measurements (measuring indicators) in reference to process balances, the National Centre for Emissions Management (KOBIZE) indicators applicable to the combustion of fuels, as well as indicators available in literature.

Compared with 2022, higher emissions of dusts, sulphur dioxide, nitrogen oxides and carbon oxide were determined at Grupa KĘTY S.A. This resulted from commissioning of aluminium bars homogenisation system and a new line for extrusion and heat treatment of aluminium profiles. With regard to the total emissions by the domestic companies of the Capital Group, changes were due to the following reasons.

  • At the ASS there were higher emissions of inorganic acids and aliphatic hydrocarbons from the newly launched two powder coating lines at the plant in Bielsko-Biała. At the same time, liquidation of the electroplating shop in Złotów brought about reduced emissions of dusts, halogens, and hydrogen chloride.
  • At the FPS a major increase in the emission of sulphur oxides was recorded. This resulted from a response to the appeal of the European Commission with regard to limiting the consumption of natural gas due to its deficit in the first quarter of 2023. The FPS decided to use alternative fuel, i.e. lightweight furnace oil in the stationary combustion sources (engineering boilers), which resulted in the higher emissions. The values measured fall within the limits of the obtained environmental decision. At the same time, actions were implemented to decommission one of the boilers and optimise afterburning with the use of regenerative thermal oxidation, which enabled a significant reduction of volatile organic compounds (VOC) emissions.

Value of dusts and gases emissions to air, the load of which exceeded 1 mg in 2023

Capital Group Unit 2022 2023 Change y/y
Companies located in Poland
Total dust Mg p.a. 4.54 3.65 -20%
SO2 Mg p.a. 0.69 2.75 298%
NO2 Mg p.a. 34.99 30.62 -12%
CO Mg p.a. 9.82 10.85 10%
Inorganic acids Mg p.a. 14.76 1.44 -90%
Metal hydroxides Mg p.a. 1.63 1.47 -10%
VOCs Mg p.a. 86.56 81.00 -6%
Ozone Mg p.a. 3.31 4.01 21%
Aliphatic hydrocarbons Mg p.a. 1.53 1.75 14%
Acetone Mg p.a. 0.88 1.05 19%
Other locations
Total dust Mg p.a. 2.95 3.00 2%
NO2 Mg p.a. 4.40 4.65 6%
CO Mg p.a. 4.86 5.06 4%
Grupa KĘTY S.A. Unit 2022 2023 Change y/y
Total dust Mg p.a. 1.62 1.67 3%
NO2 Mg p.a. 16.58 19.85 20%
CO Mg p.a. 7.06 7.77 10%
Inorganic acids Mg p.a. 1.40 1.26 -10%
Metal hydroxides Mg p.a. 1.61 1.47 -9%