Frigoglass Group
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Marketplace
- Environment
- Workplace
- Community
Environmental Achievements
- Achieved validation from SBTi for near-term, long-term, and Net Zero science-based emissions reduction targets.
- Installation of Liquefied Natural Gas (LNG) tanks to reduce reliance on diesel.
Social Achievements
- Maintained a global rate of above 90% of local origin workforce.
- Continued contributing coolers and other critical supplies for infrastructure developments in operating countries.
- Launched Augmented Reality technology, increasing customer satisfaction and improving efficiency while reducing business travel and emissions.
Governance Achievements
- Sixth consecutive year of Platinum rating from EcoVadis.
- Implementation of a new Operational Risk Management program.
Climate Goals & Targets
- Reduce absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2019 base year.
- Reduce absolute scope 3 GHG emissions 90% by 2050 from a 2019 base year.
- Achieve Net Zero greenhouse emissions across the value chain by 2050.
- Not disclosed
- Reduce absolute scope 1 and 2 GHG emissions 48.3% by 2030 from a 2019 base year.
- Reduce absolute scope 3 GHG emissions 27.5% by 2030 from a 2019 base year.
- Increase annual sales share in green ICMs over 90% by 2025.
- Maintain high annual local spent on procurement over 40%
- Achieve 100% renewable electricity by 2025 in Romania.
- Achieve a minimum of 50% average recycled content across all three glass colours by 2025.
Environmental Challenges
- Continued disruptions from the Romania plant rebuild and the war in Ukraine.
- Exceptional circumstances created by the fire incident in Romania and the Ukraine war affecting emissions and energy intensity.
- Unstable energy supply in Glass operations nearly doubling intensity indices.
- Increased energy and labor costs, particularly in Europe.
Mitigation Strategies
- Equipped Romania temporary operations with cabin insulation capabilities.
- Ongoing product standardization and component outsourcing projects.
- Procurement related initiatives improving manufacturing efficiencies.
- Stabilizing newly established operations in Switzerland and strengthening those in South Africa.
- Securing competitive supply sourcing and continuity through collaboration with long-term strategic partners and introducing new alternative supply sources.
- Investment in research and development to produce ICMs that use natural refrigerants and consume minimum possible power.
- LNG system installation as a backup energy source in case of natural gas outages.
Supply Chain Management
Supplier Audits: Over 50% of suppliers representing over 90% of total annual spend audited on-site in the last 3 years.
Responsible Procurement
- Supplier Code outlining standards and principles on ethics, labor, human rights, health & safety, and environment.
- Sustainable procurement practices and supplier assessment processes.
- Supplier training programs on sustainability criteria.
- Risk analysis on key purchasing categories to ensure security of supply.
Climate-Related Risks & Opportunities
Physical Risks
- Greater variability of temperature including high temperature which may lead to production downtime.
- Increase in average temperature over longer time frames which may lead to increased operation and production costs associated with cooling in factories.
Transition Risks
- Increasing reporting obligations imposed by regulators.
- Participation in the EU ETS and introduction of similar schemes.
- Changes to refrigerant regulation.
- Expectations of major customers with respect to environmental performance.
Opportunities
- Energy efficiency opportunities at a number of plants.
- Development of energy-efficient ICMs.
Reporting Standards
Frameworks Used: GRI Standards, UN Sustainable Development Goals (SDGs), Science Based Targets initiative (SBTi), UN Global Compact
Certifications: ISO 14001, ISO 45001, ISO 17025, ISO 9001
Third-party Assurance: TUV Hellas (Scope 1 and 2 emissions, excluding Russia; parts of Scope 3)
UN Sustainable Development Goals
- 6
- 7
- 8
- 9
- 12
- 13
- 3
- 4
- 5
- 10
- 16
- 17
Mapping of material issues against SDGs.
Sustainable Products & Innovation
- ICOOL 2.0 and Max/Plus ranges of coolers
- Hybrid and Solar models
Awards & Recognition
- Platinum medal from EcoVadis (six consecutive years)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Marketplace
- Environment
- Workplace
- Community
Environmental Achievements
- Slightly decreased emissions and energy intensity indices in Commercial Coolers; significantly reduced emission intensity index in Glass Containers due to stable electricity supply and use of LNG.
- Successfully validated near-term, long-term, and Net-Zero science-based emissions reduction targets through SBTi in 2023.
Social Achievements
- Investments in Health and Safety ensured optimal working conditions; improvements in processes and skill enhancement initiatives increased efficiency in Frigoserve.
- Rebuilt Romanian commercial coolers plant, furthering close relationship with local community; workforce is locally recruited at a global rate exceeding 90%.
Governance Achievements
- Received Platinum rating from EcoVadis for the seventh consecutive year with a record overall score of 86%; this acknowledges responsible business practices in all four ESG categories.
Climate Goals & Targets
- Reduce absolute scope 1 and 2 GHG emissions by 90% by 2050 from a 2019 base year; reduce absolute scope 3 GHG emissions by 90% by 2050.
- Reach Net Zero GHG emissions across its value chain by 2050.
- Reduce absolute scope 1 and 2 GHG emissions by 48.3% by 2030 from a 2019 base year; reduce absolute scope 3 GHG emissions by 27.5% by 2030.
- Increase annual sales share in Green Commercial Coolers to over 90% by 2025.
- 100% renewable electricity in Romanian plant by 2025.
- 100% ISO45001 and SA8000 certification of operational sites by 2025.
Environmental Challenges
- Continued disruptions caused by the ongoing war in Ukraine, affecting operations in Russia and impacting the supply chain.
- Increased energy and labor costs, particularly in Europe.
- Power outages in Nigeria impacting Scope 1 and 2 emissions.
- Supply chain disruptions due to the war in Ukraine and other factors.
Mitigation Strategies
- Upgraded Operational Risk Management tool and reporting system to better assess potential risks and develop mitigation actions.
- Securing competitive supply sourcing and continuity through working with long-term strategic partners and introducing new alternative supply sources.
- Implementing comprehensive plans to mitigate power outages in Nigeria, including the extension of gas tank installations and the use of alternative fuels.
- Developing alternative sourcing strategies and transportation means/routes.
Supply Chain Management
Supplier Audits: Over 60% of suppliers (representing over 90% of total annual spent) audited on-site in the past three years.
Responsible Procurement
- Code of Business Conduct; sustainable procurement practices; supplier assessment processes; sustainability screening criteria; supplier training programs; risk analyses on key purchasing categories; focus on local suppliers (over 50% in 2023).
Climate-Related Risks & Opportunities
Physical Risks
- Greater variability of temperature, including high temperature, leading to production downtime.
- Increase in average temperature over longer time frames, leading to increased operation and production costs associated with cooling.
Transition Risks
- Increasing reporting obligations imposed by regulators.
- Participation in the EU ETS and introduction of similar schemes.
- Changes to refrigerant regulation.
Opportunities
- Energy efficiency opportunities at plants; development of energy-efficient products.
Reporting Standards
Frameworks Used: GRI Standards (update 2021), UN Sustainable Development Goals (SDGs)
Certifications: ISO 14001, ISO 45001, ISO 17025 (product development labs), ISO 27001 (information security management)
Third-party Assurance: TUV Hellas (Scope 1 and 2 emissions, parts of Scope 3)
UN Sustainable Development Goals
- 6
- 7
- 8
- 9
- 12
- 13
- 3
- 4
- 5
- 10
- 16
- 17
Mapped material issues against SDGs to determine relevant goals to contribute to.
Sustainable Products & Innovation
- ICOOL2ECO range; Max B and Plus B ranges; Hybrid and Solar models.
Awards & Recognition
- Platinum rating from EcoVadis for seven consecutive years.