Climate Change Data

Arc Holdings S.A.S.

Climate Impact & Sustainability Data (2020-2021, 2022, 2023)

Reporting Period: 2020-2021

Environmental Metrics

Total Carbon Emissions:135,000 metric tons of CO2 avoided every year (Arc France)
Renewable Energy Share:8% (China, aiming for 20% by end of 2022)
Total Energy Consumption:2,402,986 MWh/year (2021)
Water Consumption:2,496,512 m3/year (2021)
Waste Generated:30,170 tons/year (2021)
Carbon Intensity:0.96 metric tons of CO2 per metric ton of premium glass produced (2021)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions per ton of premium glass produced by 24.4% between 2010 and 2021.
  • Reduced energy consumption by 6% since 2010 while production increased by 27%.
  • 92% of in-house cullet is remelted.
  • Arc France site has more than 90% of water flows in a closed circuit.
  • UAE production site does not discharge any wastewater.

Social Achievements

  • Reduced lost time injury frequency rate by more than 40% at Ras al Khaimah site between 2019 and 2021.
  • 1024 vaccine doses administered at Arc France between March and December 2021.
  • Launched an innovative approach to culture and organization within Arc France to improve working conditions.
  • Offered 150 apprenticeship and vocational training contracts in 2021.
  • Developed a new management model, called Alliance.

Governance Achievements

  • Implemented a Code of Ethics applicable to all Group subsidiaries worldwide.
  • Established a whistleblowing procedure for reporting breaches of the Code of Ethics.
  • Arc France awarded the silver medal by Ecovadis in June 2021 for its Corporate Social Responsibility (CSR) actions.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce CO2 emissions at Arc France site by 37% by 2030.
  • Reduce fossil fuel consumption at Arc France by nearly 40% by 2030.
  • Reduce water withdrawals at Arc France by 80% by 2030.
  • Reduce direct CO2 emissions by 20% by 2030 (Group target).
Short-term Goals:
  • Integrate 20% external cullet into production by 2025.
  • 100% of new products to be eco-designed by 2025.

Environmental Challenges

  • Climate change
  • Supply chain disruptions
  • High turnover in skilled operators at Arc North America
  • Demographic trend among employees (average age 49)
Mitigation Strategies
  • Reviewed business model to focus on responsible manufacturing.
  • Developed new melting technologies, closed water networks, and improved heat exchange installations.
  • Prioritized local sourcing of raw materials (98% European for Arc France).
  • Increased use of rail transport for raw materials and goods.
  • Developed a cutting-edge technological innovation to convert soda-lime furnaces from natural gas to electricity.
  • Developed accelerated training programs for skilled operators.

Supply Chain Management

Supplier Audits: Annual assessment of main suppliers; SMETA-4P audit every two years.

Responsible Procurement
  • Sustainable development charter signed by all suppliers
  • Prioritization of local sourcing
  • Use of non-road transport

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products
  • Transition to electricity for furnaces

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 50001 (pending for Arc France), FSC® (packaging), Origine France Garantie

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

See cross-reference table in report

Sustainable Products & Innovation

  • Eco-designed products (from 2025)
  • Solidarity mugs
  • Reusable glass containers

Awards & Recognition

  • Ecovadis Silver Medal (Arc France)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:55,000 tons less CO2 in 2022 than 2019 (due to reduced operations); 0.97 tCO2/t of glass produced in 2022
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,075,238 MWh/year (2022)
Water Consumption:2,412,946 m3/year (2022)
Waste Generated:13,992 tons/year (2022)
Carbon Intensity:0.97 tCO2e/ton of glass produced (2022)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced water intake at Arc France site by 15% compared to 2019.
  • Installed solar panels at Arc Glass China, generating 1,900 MWh in 2022, avoiding over 1,000 tons of CO2.
  • Arc France achieved ISO 50001 certification for its energy management system.
  • 90% of in-house cullet is remelted in company furnaces.

Social Achievements

  • Increased the share of women in the workforce by around 8% between 2019 and 2022.
  • Completed 112,821 hours of employee training.
  • Various partnerships supporting local communities (e.g., donations to Red Cross, YMCA).

Governance Achievements

  • Implemented a Code of Ethics covering respect for people, the law, the environment, company assets, confidentiality, and anti-corruption.
  • Arc France updated its 2020 materiality matrix, involving stakeholders.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce CO2 emissions at Arc France site by over a third, fossil fuel consumption by almost 40%, and water consumption by 80% by 2030.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Soaring energy costs (€100 million increase in France alone).
  • Geopolitical tensions impacting the glass sector.
  • Heat waves and droughts affecting production capacities.
  • Need to reduce greenhouse gas emissions by 20% by 2030.
Mitigation Strategies
  • Significantly cut back operations while maintaining customer service.
  • Implemented energy management systems to maintain consumption per ton produced.
  • Investing in low-carbon fusion technologies and electrification of heat treatments.
  • Developing a decarbonization roadmap within Arc France.

Supply Chain Management

Supplier Audits: Main suppliers assessed each year; SMETA-4P audits every two years.

Responsible Procurement
  • Supplier code of conduct.
  • Prioritizing local sourcing (98% European suppliers for Arc France).

Climate-Related Risks & Opportunities

Physical Risks
  • Heat waves and droughts
Transition Risks
  • Regulatory changes to reduce greenhouse gas emissions.
Opportunities
  • Development of low-carbon fusion technologies.

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 9001 (3/4 manufacturing entities), ISO 50001 (2/4 manufacturing entities, including Arc France), ISO 14001 (Arc France), ISO 45001 (AEG R&D, AGC)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Ecovadis silver medal (Arc France)

Reporting Period: 2023

Environmental Metrics

Carbon Intensity:0.96 tCO2e/tonne of glass (Arc France)

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Employee Well-being
  • Diversity & Inclusion
  • Supply Chain Responsibility
  • Community Engagement

Environmental Achievements

  • Reduced CO2 emissions by more than 115,000 tonnes compared to 2019 (Arc France), mainly due to reduced activity and furnace shutdown.
  • Reduced water withdrawals by 15% between 2019 and 2022 (Arc France), and almost 30% in 2023 compared to 2019.
  • 86% of waste generated by Arc France is recycled.
  • Reduced raw materials by more than 4 million pounds and eliminated 100 truckloads of raw materials (Arc Americas).
  • 30% reduction in energy consumption through production process optimization (Arc Americas).
  • Reduced packaging costs by almost 800,000 RMB (€100,000) per year (Arc China).
  • Reduced weight of 10 products (9 million items) by an average of 6.4% (Arc China).

Social Achievements

  • Increased female representation in the workforce by more than 5 points (Arc France).
  • Provided 44,243 hours of training (Arc France).
  • Organized several events to showcase local suppliers offering health and wellness benefits (Arc Americas).
  • Donated over 1,000 gifts and household items to local families in need (Arc Americas).
  • Provided over 14,000 hours of training (Arc Americas).
  • Launched a multi-skilling program, certifying 37 employees (Arc China).
  • Provided an average of over 50 hours of training per employee (Arc China).

Governance Achievements

  • Implemented a Code of Ethics covering respect for people, the environment, and the law.
  • Conducted SMETA-4P audits every two years.
  • Achieved an Ecovadis bronze medal in 2023 (Arc France).

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions (implied).
Medium-term Goals:
  • Increase recycled glass content to 20% by 2028 (Arc Americas).
Short-term Goals:
  • Reduce CO2 emissions by a third by 2030 compared with 2019 (Arc France).
  • Reduce water consumption by 40% by 2030 compared with 2019 (Arc France).
  • Obtain ISO 50001 certification by December 2024 (Arc Middle East).

Environmental Challenges

  • High energy prices and inflation.
  • Geopolitical uncertainty.
  • Flooding at the French site.
  • Reduced activity leading to decreased energy performance and increased energy consumption per tonne of glass (Arc France).
  • Need to reduce reliance on fossil fuels.
  • Lack of post-consumer cullet collection for tableware glass (Arc France).
  • Need to improve water efficiency despite plant safety requirements (Arc France).
Mitigation Strategies
  • Developed a decarbonization roadmap (Arc France).
  • Implemented an action plan to reduce water withdrawals (Arc France).
  • Implemented a responsible purchasing policy and supplier code of conduct (Arc France).
  • Developed Circularc initiative for on-site glass recycling (Arc Americas).
  • Streamlined stock levels and warehousing strategy (Arc Americas).
  • Increased use of rail transport (Arc Americas).
  • Installed solar panels (Arc China).
  • Implemented energy efficiency measures (Arc China, Arc Middle East).
  • Implemented water reuse systems (Arc China, Arc Middle East).

Supply Chain Management

Supplier Audits: Annual CSR risk analysis and audits (Arc France, Arc China).

Responsible Procurement
  • Supplier code of conduct (Arc France, Arc Americas).
  • Preference for local suppliers (Arc Americas, Arc China, Arc Middle East).

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding (Arc France)
  • Drought (Arc France, Arc Middle East)
  • Heatwaves (Arc France)
Transition Risks
  • Energy price volatility
  • Regulatory changes
Opportunities
  • Development of low-carbon melting technologies (Arc France).

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 50001 (Arc France, Arc China, Arc Middle East), ISO 14001 (Arc China), ISO 45001 (Arc France, Arc China), FSC® (Arc France), Origine France Garantie (Arc France)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

See page 11 for SDG alignment.

Sustainable Products & Innovation

  • Eco-designed products (Arc France, Arc Americas, Arc China).

Awards & Recognition

  • Entreprise du Patrimoine Vivant (EPV) label (Arc France).