Junckers

Climate accounts

We believe in transparency

Working towards a higher level of climate awareness is a priority at Junkers. We are therefore pleased to present the company's 2022 Climate Accounts, which are an important tool in the decision to set concrete targets for how Junckers can actively work to reduce greenhouse gas emissions. The work on setting targets has just begun and concrete measures are expected to be initiated during 2024.

We want to be serious and ambitious about this agenda, which is why we have based our accounts on the GHG Protocol, the leading international standard for measuring and reporting greenhouse gases. On a positive note, the 2022 Climate Accounts confirm that our business model and production methods already take significant account of nature.

Junckers has a long history of utilising 100 % of our purchased raw wood. This means that all by-products from our wood flooring production are converted into biomass and subsequently used in the public energy grid to produce electricity and heating. The mapping shows that the efficient use of these by-products reduces emissions, and we consider this to be a positive contribution to balancing the CO₂-eq emissions identified in our own climate accounts. The premises for this statement and a review of the main conclusions of the climate accounts are explained below.

The GHG Protocol

The GHG Protocol identifies a company's emissions in three scopes:

Direct emissions, including mobile and stationary fuels plus emissions from industrial processes. All related to buildings, vehicles and stationary engines operated by the company.

Indirect emissions, including the purchase of energy generated outside the reporting company's operations, such as electricity, heat, gas and steam cooling systems. This is energy that the company consumes and can control but does not own or produce.

Upstream and downstream activities, further divided into 15 sub-categories. These typically represent 75-95% of a company's total GHG emissions. It is here that opportunities to reduce CO_2eq emissions are typically found. Upstream activities are indirect emissions from purchased goods and services. Downstream activities are indirect emissions related to goods and services sold.

The 7 greenhouse gases - CO_2eq

The GHG protocol requires reporting of the 7 greenhouse gases carbon dioxide (CO₂), methane (CH₄), nitrogen trifluoride (NF₃), hydrofluorocarbons (HFC_S), perfluorocarbons (PFC_S), nitrous oxide N₂O and sulphur hexafluoride (SF₆).

Reported here as CO_2eq, the unit used to assess an overall climate impact.

Development in greenhouse gas emissions

Greenhouse gas emissions are reported as CO₂ equivalents (CO₂eq) and reductions/increases are shown with the year 2021 as baseline.

Mapping of direct and indirect emissions from upstream and downstream activities is delineated into 3 categories as defined in the GHG protocol.

The total emissions from Junckers' operations in 2022 amount to 22,726 tonnes CO₂eq and overall, from the 2021 baseline, we have reduced greenhouse gas emissions by 8.4 % (Table 1.1).

TABLE 1.1 - Development in greenhouse gas emissions

Tonnes CO₂-eq	2021	2022
Scope 1	471	386
Scope 2	4.433	3.958
Scope 3	19.916	18.383
Total, Scope 1, 2 & 3	24.820	22.726
CO2eq reduction, scope 1+2+3 (baseline: 2021)		-8,4 %

Corrected for the difference in production volume, where there is a 15 % decrease from 2021 to 2022, the total emissions per m2 increase by 7.3 %. This effect is created by general price increases in the categories where the "Spend based method" is used as a basis for calculation (Table 1.2)

TABLE 1.2 - Development in greenhouse gas emissions

kg / m² CO₂-eq	2021	2022
Scope 1	0,51	0,49
Scope 2	4,82	5,04
Scope 3	21,65	23,42
Total, Scope 1, 2 & 3	26,98	28,95
CO2eq reduction, scope 1+2+3 (baseline: 2021)		7,3 %

Emissions in scope 1 primarily come from the company's consumption of diesel for vehicles and account for 2 % of total emissions. Scope 2 emissions are primarily from the company's electricity consumption and account for 17 %.

Up-stream activities in scope 3 contribute the majority of the overall picture with 81%.

SCOPE 3

In scope 3 (table 1.3), category 1, Purchased goods and services, naturally generates the highest emissions with a share of 51 %. In the category Purchased goods and services, it is the purchase of raw materials such as chemicals, raw wood, metal and plastic that contribute to the largest share of CO₂-eq. emissions.

Capital Goods contributes 8 % in scope 3, and the 92 % increase is due to extraordinary IT investments in 2022.

End-of-Life waste treatment of sold products creates the second highest contribution to scope 3 emissions. This category accounts for 15% of total scope 3 emissions.

The large increase in the Business travel category reflects the fact that travel activity among employees has normalised after the Covid-19 pandemic.

The decrease in production volume in 2022 generally contributes to the decreases in CO₂-eq emissions seen in the scope 3 subcategories from 2021 to 2022.

TABLE 1.3 - Development in greenhouse gas emissions, scope 3

Tonnes CO₂-eq	2021	2022	2023
1. Purchased goods and services	10.441	9.347	-10 %
2. Capital goods	767	1.475	92 %
3. Fuel/energy activities, excl Scope 1+2 (market based)	1.515	1.285	-15 %
4. Upstream transport and distribution	1.461	1.290	-12 %
5. Waste generated in operations	1.782	1.522	-15 %
6. Business travel	35	119	241 %
7. Employee commuting	562	511	-9 %
12. End-of-life treatment of sold products	3.352	2.835	-15 %
Total emissions, scope 3	19.916	18.383	-8 %

OUT OF SCOPE – SUBSTITUTION

The impact of Junckers' biomass

Substitution occurs when activities minimise the need to produce new energy, raw materials, products, services, etc. At Junckers, the use of biomass for energy is an important factor in our business, and although this by-product cannot be considered substitution in the true sense of the word, we have chosen to consider this factor as a contributor to offsetting the CO₂-eq emissions identified in our own climate accounts.

We do this because it is the activities within the company that create the fundamental opportunity for our by-products to generate emission savings, and even though it is the ordinary energy grid that is responsible for the production of electricity and heat, we believe it is important to communicate this positive effect.

Also in 2022, a positive effect of the company's biomass production is evident.

Table 1.4 shows that our emissions savings amount to a total of 35,425 tonnes CO₂-eq. 27,052 tonnes CO₂-eq (76 %) are created from "Waste generated from operations" (biomass) and 8,373 tonnes CO₂-eq (24 %) from "End-of-life waste treatment of sold products".

There is some uncertainty in estimating the emissions associated with the “End-of-life treatment of sold products", as this takes place well into the future. However, there is no uncertainty regarding the use of our biomass and therefore the impact of the emission savings from this category is outlined here.

TABLE 1.4 - Development in greenhouse gas emissions

Tonnes CO₂-eq	2021	2022
Waste generated in operations	32.536	27.052
End-of-life treatment of sold products	9.176	8.373
Total emisions	41.712	35.425

The company's total emissions identified in scope 1, 2 and 3 are 22,726 tonnes CO₂-eq. (Table 1.5)

When the positive effect created from "Waste generated from operations" (biomass) of 27,052 CO₂-eq is deducted, the company's activities in 2022 reduce the amount of CO₂-eq emissions by -4,326 CO₂-eq.

The 17 % change in the category "Waste generated in operations" should be seen in the context of the 15% decrease in production volume.

TABLE 1.5 - Development in greenhouse gas emissions

Tonnes CO₂-eq	2021	2022
Total, Scope 1, 2 & 3	24.820	22.726
Waste generated in operations	32.536	27.052
Total emisions	-7.716	-4.326

Science Based Targets Initiative (SBTi)

To support the ambition to set targets to reduce the direct and indirect contribution of our company's greenhouse gas emissions, we have joined the Science Based Targets initiative.

SBTi focuses on close collaboration between businesses and climate experts to ensure that member organisations' climate targets are aligned with what the latest climate science says is needed to meet the goals of the Paris Agreement.

The goal of the Paris Agreement is to limit global warming to below 2°C above pre-industrial levels, and preferably to 1.5°C.

In 2024, we will set specific targets for our commitment and describe the actions we will take to ensure we reach our goals.

Corporate Social Responsibility and environmental care

At Junckers, we work strategically to integrate social and environmental considerations into our business activities.

The way we do business is based on openness, trust, respect and responsibility. This means that we are opposed to all forms of corruption, always act in accordance with applicable laws, and respect the environment, people and their rights. We take responsibility for minimising our energy consumption and creating a safe, healthy and happy working environment for our employees.

Since 2011, when we joined the UN Global Compact, we have been sharing our activities in this area, and this year we are able to include the conclusions of the company's first climate accounts in the CSR report.

Junckers CSR report