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deSter Sustainability Report 2022

deSter launched its first-ever Sustainability Report, showcasing deSter's dedication to environmental responsibility, social impact, and ethical governance, reflecting the company's holistic approach toward sustainability.

deSter launched its first-ever Sustainability Report, showcasing deSter's dedication to environmental responsibility, social impact, and ethical governance, reflecting the company's holistic approach toward sustainability.

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PLANET ESG REPORT DESTER <strong>2022</strong><br />

GREENHOUSE GAS<br />

EMISSIONS<br />

The main risk that emerged from our environmental<br />

assessment was <strong>deSter</strong>’s<br />

contribution to global warming through<br />

greenhouse gas emissions. We are comitted<br />

to reducing these both on site and<br />

throughout our value chain. However,<br />

to act, we must first identify which of<br />

our activities generate greenhouse gas<br />

emissions. To calculate and report our<br />

emissions, we follow the Greenhouse<br />

Gas Protocol. According to this international<br />

standard, there are three different<br />

scopes for greenhouse gas emissions.<br />

These scopes are described in more detail<br />

on the following pages. We calculate<br />

the previous’ years emissions each January,<br />

when the data becomes available.<br />

The data from the production facilities<br />

are sent to the environmental footprint<br />

manager, who calculates the emissions<br />

using the GHG Protocol tool (for scope<br />

1 and 2).<br />

An external assessment was conducted<br />

by an auditor of DQS based on the calculations<br />

of <strong>2022</strong> GHG emissions. This<br />

assessment verified that our scope 1 and<br />

2 emissions in <strong>2022</strong> at our production<br />

sites are in accordance with the Greenhouse<br />

Gas Protocol and the underlying<br />

data is correct.<br />

We follow the operational control approach.<br />

This means our reporting considers<br />

all greenhouse gas emissions<br />

over which we have operational control.<br />

Group-level emissions (gategroup) are<br />

excluded here.<br />

Our calculations of scope 1 and 2<br />

cover our three manufacturing sites:<br />

• Hoogstraten, Belgium<br />

• Prachinburi, Thailand<br />

• Lima, Ohio, USA<br />

The included and excluded emissions<br />

are listed below:<br />

Included scope 1: Direct emissions<br />

• Stationary combustion: natural gas,<br />

liquified petroleum gas (LPG), and<br />

distillate fuel oil combustion on site<br />

at the three production locations.<br />

• Mobile combustion: fuel use of the<br />

leased and owned company vehicles<br />

at the three production locations.<br />

• Refrigerants: the leakage of refrigerants<br />

from the three production<br />

facilities.<br />

Included scope 2: Indirect emissions<br />

Electricity procured and consumed at<br />

the three production facilities.<br />

Excluded emissions are:<br />

• Scope 1 process emissions: does<br />

not apply to our processes.<br />

• Scope 2: procurement of heat and<br />

steam: does not apply, we do not<br />

buy heat or steam.<br />

• Scope 2: sold electricity, heat, or<br />

steam: does not apply, we do not sell<br />

any electricity to third parties.<br />

• Scope 3 emissions: not yet calculated.<br />

• Emissions from biofuel CO2: these<br />

are calculated, but account for<br />

0.03% of total emissions. This is well<br />

below the set threshold of 5%, so<br />

these are not reported separately.<br />

OUR TARGETS<br />

We aligned our targets with the Paris<br />

Agreement and the 1.5⁰C warming<br />

scenario. Therefore, we committed to<br />

Science Based Target initiative in January<br />

2023 and plan to have our reduction<br />

targets validated by SBTi in the coming<br />

two years. This commitment enables us<br />

to set targets based on the latest climate<br />

science and work toward them over time.<br />

Since we were able to create full transparency<br />

on our scope 1 and 2 emissions, our<br />

next step in preparing for SBTi validation<br />

is transparency on our scope 3 footprint,<br />

which we are currently working on.<br />

What’s more, as <strong>deSter</strong>, we became a<br />

member of the Belgian Alliance for Climate<br />

Action (BACA) in <strong>2022</strong>. This nonprofit<br />

supports us and other organizations<br />

across Belgium in reaching the<br />

Science Based Targets initiative commitments.<br />

With events, webinars, articles<br />

and a wide network, BACA helps<br />

companies in their journey to reduce<br />

their environmental impact and develop<br />

a carbon-neutral society.<br />

Our greenhouse gas reduction<br />

targets are:<br />

2023<br />

Commit to SBTi and calculate our<br />

scope 3 footprint in line with the GHG<br />

protocol<br />

2024<br />

Validation of science based reduction<br />

targets by SBTi.<br />

2025<br />

25% reduction of carbon footprint<br />

in all operations (scope 1,2 and 3),<br />

compared to 2019.<br />

2030<br />

75% carbon footprint reduction in<br />

scope 3, compared to 2019 and achieve<br />

net-zero-carbon in our scope 1 and 2<br />

emissions compared to 2019<br />

2050<br />

Achieve net-zero carbon in our entire<br />

supply chain. Scope 1,2 and 3<br />

65

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