GHG PROTOCOL: EMISSIONS ACROSS THE VALUE CHAIN CO 2 CH 4 N 2 O HFC S PFC S SF 6 SCOPE 1 Direct SCOPE 2 Indirect SCOPE 3 Indirect SCOPE 3 Indirect Transportation and distribution Purchased electricity Leased assets Company facilities Purchased goods and services Business travel Company vehicles Processing of solid products Waste generated in operations End of life treatment of sold products Capital goods Fuel and energyrelated activities Transportation and distribution Upstream activities <strong>Report</strong>ing company Downstream activities
PLANET ESG REPORT DESTER <strong>2022</strong> GREENHOUSE GAS EMISSIONS The main risk that emerged from our environmental assessment was <strong>deSter</strong>’s contribution to global warming through greenhouse gas emissions. We are comitted to reducing these both on site and throughout our value chain. However, to act, we must first identify which of our activities generate greenhouse gas emissions. To calculate and report our emissions, we follow the Greenhouse Gas Protocol. According to this international standard, there are three different scopes for greenhouse gas emissions. These scopes are described in more detail on the following pages. We calculate the previous’ years emissions each January, when the data becomes available. The data from the production facilities are sent to the environmental footprint manager, who calculates the emissions using the GHG Protocol tool (for scope 1 and 2). An external assessment was conducted by an auditor of DQS based on the calculations of <strong>2022</strong> GHG emissions. This assessment verified that our scope 1 and 2 emissions in <strong>2022</strong> at our production sites are in accordance with the Greenhouse Gas Protocol and the underlying data is correct. We follow the operational control approach. This means our reporting considers all greenhouse gas emissions over which we have operational control. Group-level emissions (gategroup) are excluded here. Our calculations of scope 1 and 2 cover our three manufacturing sites: • Hoogstraten, Belgium • Prachinburi, Thailand • Lima, Ohio, USA The included and excluded emissions are listed below: Included scope 1: Direct emissions • Stationary combustion: natural gas, liquified petroleum gas (LPG), and distillate fuel oil combustion on site at the three production locations. • Mobile combustion: fuel use of the leased and owned company vehicles at the three production locations. • Refrigerants: the leakage of refrigerants from the three production facilities. Included scope 2: Indirect emissions Electricity procured and consumed at the three production facilities. Excluded emissions are: • Scope 1 process emissions: does not apply to our processes. • Scope 2: procurement of heat and steam: does not apply, we do not buy heat or steam. • Scope 2: sold electricity, heat, or steam: does not apply, we do not sell any electricity to third parties. • Scope 3 emissions: not yet calculated. • Emissions from biofuel CO2: these are calculated, but account for 0.03% of total emissions. This is well below the set threshold of 5%, so these are not reported separately. OUR TARGETS We aligned our targets with the Paris Agreement and the 1.5⁰C warming scenario. Therefore, we committed to Science Based Target initiative in January 2023 and plan to have our reduction targets validated by SBTi in the coming two years. This commitment enables us to set targets based on the latest climate science and work toward them over time. Since we were able to create full transparency on our scope 1 and 2 emissions, our next step in preparing for SBTi validation is transparency on our scope 3 footprint, which we are currently working on. What’s more, as <strong>deSter</strong>, we became a member of the Belgian Alliance for Climate Action (BACA) in <strong>2022</strong>. This nonprofit supports us and other organizations across Belgium in reaching the Science Based Targets initiative commitments. With events, webinars, articles and a wide network, BACA helps companies in their journey to reduce their environmental impact and develop a carbon-neutral society. Our greenhouse gas reduction targets are: 2023 Commit to SBTi and calculate our scope 3 footprint in line with the GHG protocol 2024 Validation of science based reduction targets by SBTi. 2025 25% reduction of carbon footprint in all operations (scope 1,2 and 3), compared to 2019. 2030 75% carbon footprint reduction in scope 3, compared to 2019 and achieve net-zero-carbon in our scope 1 and 2 emissions compared to 2019 2050 Achieve net-zero carbon in our entire supply chain. Scope 1,2 and 3 65
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