GHG intensity reduction targets were integrated into the Sustainability-Linked Financial Instruments issued as part of our carve-out as Arxada. In 2022, we went even further by submitting science-based targets to be validated by the Science Based Targets initiative (SBTi), establishing the following goals:
Net Zero
By 2050[1]
Reducing our Scope 1, 2, and 3 emissions to zero or to a residual level and neutralizing any residual emissions.
As we are already ahead of our 2030 goal, we will revisit and reset our 2030 goal in 2023.
[1]From our 2021 baseline.
Our Scope 1 & 2 emissions
In 2022, we completed a GHG inventory for our Scope 1 and 2 emissions. Scope 1, which is responsible for most of our combined Scope 1 and 2 emissions, includes emissions from fuel combustion, as well as natural gas and refrigerants used in our manufacturing processes and facilities. Scope 2 is a smaller portion of our emissions and is split between the electricity and steam used in our manufacturing processes and facilities. As we are already ahead of our 2030 goal, we will revisit and reset our 2030 goal in 2023.
To meet our net zero by 2050 target, we will be working to reduce our emissions in line with our SBTi submitted targets. We continue to analyze various emission sources for reduction opportunities across our facilities globally. At the end of 2021, the installation of a catalytic converter in Visp, our largest production site, led to a significant reduction in nitrous oxide (N2O), which forms a significant portion of our global Scope 1 emissions. In its first year of use, the converter has allowed us to reduce our N2O emissions in Visp by over 98%, the equivalent of 520,000 tCO2e. Find out more about the catalytic converter project in the case study.
Reducing our Scope 2 footprint, which is driven by our purchased steam and electricity, is another priority. These energy sources are used to run our daily operations.
Throughout the business, we are setting reduction targets and building decarbonization and sustainability plans. As a result, we are working to identify opportunities to replace equipment with newer and more efficient models. This is particularly impactful as we are seeking to increase the use of renewable energy across the business.
Scope 1 & 2 distribution
Our Scope 3 emissions
As part of our SBTi target submission in 2022, we evaluated our Scope 3 footprint from 2021, which makes up nearly two-thirds of our GHG emissions. Upon validation of our SBTi targets, we will set specific Scope 3 goals. The largest category of our Scope 3 emissions is purchased goods and services which includes raw materials used in production. Alongside efforts to reduce our consumption of raw materials, we work to advance responsible sourcing and waste management efforts, thus helping to reduce our Scope 3 footprint.
Examining our Scope 3 footprint in more detail, we have identified raw materials with the most significant impacts on our emissions by examining their GHG intensity. One of our approaches to reduce our Scope 3 emissions is to explore the feasibility of recovering, recycling and reusing raw materials.
In 2023, we will continue to work to better understand our Scope 3 footprint and reduce our emissions, focusing on our raw materials.
Air pollutants
In addition to the commonly reported GHG emissions, Arxada regularly monitors our emissions for sulfur oxides (SOx), nitrogen oxides (NOx) and volatile organic compounds (VOCs). We ensure these emissions are regularly measured and reported to local authorities in line with the regulations of the various operating regions.
Arxada’s air pollutants
Looking forward to 2023
In 2023, we will formalize our science-based targets, continue to advance our emission reduction initiatives and work to identify additional opportunities to decrease our footprint. To support our goal of reducing emissions, we will develop decarbonization plans throughout the company. We will continue to monitor, track and examine our energy consumption and look to increase efficiency and use of renewable energy. This is important as we consider ways to electrify processes that currently rely on natural gas. We will closely analyze our raw material usage, supply chain and waste management to identify chances to reduce our Scope 3 emissions.
In 2019, we detected that as part of our Vitamin B3 production process at our Visp (Switzerland) manufacturing facility, we emitted N2O. While nitrous oxide does not present a risk to health, it is a potent GHG contributing to our Scope 1 emissions. We saw an opportunity to improve our process efficiency and environmental impact. Following a detailed investigation into the production process and a feasibility study, including the localization of technology to help us reduce our N2O emissions, we installed a new catalytic converter at our facility and began operating it in October 2021. The converter decomposes the N2O into N2 and O2, which can be released into the atmosphere without concern. After the converter’s installation, measurements showed that the conversion of N2O were carried out to almost 100%. In 2022, its first full year of operation, the converter allowed us to reduce approximately 1,750 tons of N2O emissions, the equivalent of 520,000 tCO2e. This has led to a reduction of more than 70% of our global Scope 1 emissions.N2O reduction in Visp, Switzerland
