GHG emissions across our value chain

SCOPE 3

61.9%

EMPLOYEE COMMUTING

SCOPE 2 14.5%

SCOPE 1 0.7%

0.1%

1,406,191 tCO2e TOTAL

SCOPE 3

84.8%

RECYCLING SITE

COLLECTION WASTE MANAGEMENT FACILITY

END-OF-LIFE TREATMENT

The GHG emission calculations follow the GHG Protocol reporting standards. Scope 1 emissions comprise of direct CO2e emissions from sources that are owned or controlled by Faerch A/S. Scope 2 emissions are based on consumed electricity, steam, heat and cooling. Of the 15 scope 3 categories in the GHG Protocol, only 10 categories are determined as applicable to Faerch’s business model and activities. The excluded categories are category 10: processing of sold products, category 11: use of sold products, category 13: downstream leased assets, category 14: franchises and category 15: investment. For more information please refer to note 6.4 on page 103-104.

Programme. We will assess our suppliers and split them into two groups; high emitters and low emitters. Firstly, we will engage with the high emitters, being mostly our resin suppliers, due to their large quantities provided; ensuring they support our targets and are encouraged to set their own Science Based Targets with the SBTi. We will then continue to the low emitters.

Carbon footprint on products

In 2023, we will make a strong effort to ensure further transparency to respond to the increasing

Our roadmap to net zero emissions

SCOPE 1 & 2

Own Operations

All sites powered by 100% renewable energy through PPAs and on-site solar panels

Initiate “Power of Faerch” to ensure continuous energy efficiency and reduction in consumption

Transition to electrical car fleet

Convert all forklift trucks and other equipment from fossil fuels to electrical/renewable fuel customer requests concerning our products’ carbon footprint and other environmental impacts. We are convinced that by helping our customers decarbonise and achieving their environmental targets, we will move closer to achieving our circularity ambitions.

We want to unlock low carbon and circular solutions for our customers. Mono-PET is currently the sustainable material of choice being fully circular and naturally lower in carbon emission compared to virgin material.

Furthermore, we expect the emissions for recycled PET (rPET) to approach zero in the coming years through greener waste collection, sorting processes and production of recycled material.

In 2023, we will perform an externally audited Life Cycle Assessment (LCA) of the recycled tray PET material being produced at our recycling plant, Cirrec. The assessment will enable us to demonstrate the environmental benefits of the material to stakeholders and to provide a baseline for systematically making the rPET material even more sustainable over time, as there is always room for improvements until reaching zero environmental impact.

SCOPE 3

Value Chain Focus

Convert to low carbon input material by scaling our recycling business and engaging with suppliers

Begin transition to low carbon transportation using electrical trucks and vans or renewable fuels

Focus on increasing recyclable or reusable external packaging

Waste reduction and segregation for reuse and recycling

Delivering Net Zero

Together with our partners and customers, we will support and further develop a net zero food packaging sector of the future, with a wide array of low carbon and circular products. Active partnerships supporting circularity are essential to lower carbon footprint and to measure and manage the sustainability impacts of our value chain. We will balance any remaining emissions through trusted third party verified climate solutions that benefit society as whole.

Committed to Science

Based Targets initiative (SBTi) Net Zero Standard

2030 2040

Higher standard for renewable energy

Faerch Group’s energy consumption is spread across 32 locations in 15 countries, and our annual consumption is currently reaching over 560 GWh.

Previously, Faerch Group had bought guarantees of origin (green certificates) to secure the use of 100 % renewable energy. However, with the recent developments in the market it has become clear that guarantees of origin are not an effective tool for ensuring 100% renewable energy. Therefore, we have initiated a more ambitious plan focusing on contributing with additionality to the electricity grid. This will be through Power Purchasing Agreements (PPAs) and on-site solar panels, as we believe it is a more legitimate wayto help accelerate the transition to a society powered 100% by renewable energy.

“As part of our commitment to secure 100% renewable energy, we are launching a new renewable energy procurement strategy focusing on long-term Power Purchase Agreements (PPAs) and on-site solar panels. Moving our focus is a major step towards achieving our goal to ensure 100% renewable energy consumption through additionality, where possible, by 2030. At the same time, we are actively helping to increase the amount of renewable energy in society and thereby reducing emissions”, says Thomas Peter

Vikkelsø Tranders, Group Category Director, Sourcing and Procurement and continues:

“With PPAs, we are ensured a long-term and attractive price agreement which will help secure long-term input price certainty at Faerch. The same goes for renewable energy developers and their lenders, where PPAs can help make new renewable energy projects financially viable.”

We expect to have entered into PPAs for all sites no later than the end of 2025 and for all PPAs to be fully implemented 1-2 years later for solar and 2-3 years for wind. This will bring Faerch in line with the overall 1.5°C ambition of the Paris Agreement for our scope 2 emissions. When fully implemented, the PPAs will cover 80-100% of our energy consumption with on-site solar panels covering the rest. Our goal is to ensure renewable energy consumption and to achieve the best possible terms and attractive prices for electricity in the long run, being a sustainable solution both in terms of climate and finances. We also commit to transparent reporting on our progress made and will work to align our CO2e-reporting with the 24/7 carbon-free energy principles.

Our ambition is to support our planet by minimising waste and create circular loops to decouple natural resource use from economic growth, reduce carbon emissions and protect our ecosystems, as no waste should ever end up in our water or nature regardless of material. We want to turn waste into value.