Climate Inventory

Climate change is a central sustainability topic that affects and is affected by all KIRKBI’s Business Areas. To manage this impact across everything that KIRKBI does, an ambitious carbon reduction target has been set, approved by the Science Based Targets initiative as one of the first in Denmark under their new financial sector guidance. Efforts in 2022 focused on developing carbon reduction roadmaps across all Business Areas.

Recognising that each employee shares the responsibility to meet KIRKBI sustainability commitments, from 2023, all employees with bonus schemes will have part of their compensation linked to the annual carbon reduction goals.

Limiting KIRKBI’s own negative impact is necessary but not sufficient for solving the climate challenge. As such, KIRKBI is committed to contributing to the sustainable development of the world through an active and responsible ownership role in the companies and funds that are part of the investment portfolio and especially within the Thematic Capital activities by investing in solutions that:

• decarbonise the world’s energy system

• limit lifecycle carbon emissions of plastics by improving circularity and sustainable materials

• deliver carbon removal through afforestation

Performance in 2022

KIRKBI’s carbon footprint is calculated every year. As illustated in the table on page 45, KIRKBI’s own operations saw an increase in emissions in 2022 largely attributed to an increase in travel activity following the end of COVID restrictions in many parts of the world. Emissions from business travel via external commercial flights (Scope 3) increased 26 % since 2019, partly explained by travelers shifting from private aviation (Scope 1), which decreased by 50 % over the same period, to external commercial flights. Combined the resulting net saving is more than 1,600t CO2 per year. Responsible travel will continue to be a focus area in 2023.

Overall emissions from own operations have been reduced by 46 % since the 2019 baseline. Part of this reduction is explained by the conversion of all electricity supply to renewable sources and the use of district heat generated by Billund Varmeværk.

Emissions from the Real Estate portfolio fell by 39 % compared to 2021. The focus on improved quality of energy use data over recent years has provided a more accurate overview of emissions, while providing the insights necessary to reduce energy consumption. Energy consumption decreased 7 % in 2022, despite growth in the portfolio. We will continue to strategically reduce energy use and related emissions from the real estate area.

For the emissions from holdings and investments, the reduction in CO2 emissions amounts to 14 % since the baseline year 2019. As changes in these emissions arise from both company-level factors and portfolio-level factors, focus is mainly on individual company emissions and management of climate-related risks and opportunities, including the setting of reduction targets aligned with science-based targets.