Climate Change Data

Messer Group GmbH

Climate Impact & Sustainability Data (2010, 2014, 2016)

Reporting Period: 2010

Environmental Metrics

ESG Focus Areas

  • Environmental aspects
  • Social projects
  • Employee commitment
  • Safety
  • Health
  • Responsible resource management

Environmental Achievements

  • Reached the 2008 target of reducing average energy consumption in European air separation units by seven percent by 2010.
  • New air separation units built with energy efficiency in mind.
  • 13 Messer companies certified according to ISO 14001 under EMAS (Eco-Management and Audit Scheme).

Social Achievements

  • Messer Cutting Systems fostered social culture with a traditional “Children’s Day”.
  • Messer Ibérica formed a “padel” league to encourage sports activities and teamwork.
  • Supported the “JCC – Jovens Construindo a Cidadania” project in Brazil, helping young people transition from school to employment.
  • Dr. Hans Messer Social Foundation built and equipped the “Messer Library” at Minjiang Primary School in Dujiangyan, China.

Governance Achievements

  • Management Board adopted the Compliance Code for all employees.
  • Stefan Messer received the “Focus for Excellence” business prize and the “2010 Family Entrepreneur of the Year” award.
  • Implementation of a company-wide code of conduct.

Climate Goals & Targets

Medium-term Goals:
  • Improve the energy efficiency of air separation units in Europe by an average of 0.5 percent per year through 2020.

Environmental Challenges

  • Accident rate increased to 2.9 industrial accidents per million hours worked.
  • Bottlenecks and delays in obtaining raw materials and pre-products due to worldwide economic upswing.
  • Increase in raw material prices.
Mitigation Strategies
  • Implemented measures for cost and spending discipline.
  • Particular attention paid to working capital management.
  • SHEQ projects and risk analyses to improve work safety.
  • Continuous improvement of labor standards to prevent danger to people or the environment.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • Focus for Excellence 2010
  • Family Entrepreneur of the Year 2010
  • Various EIGA safety awards

Reporting Period: 2014

Environmental Metrics

Total Carbon Emissions:2,670,000 tCO2e (approx.)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:2,498,461 tonnes CO2e
Scope 3 Emissions:59,300 tonnes CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:4,034.4 GWh
Water Consumption:5.1 million m3
Waste Generated:38.9 million kg (non-toxic), 300 tons (hazardous)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Safety
  • Environmental and climate protection
  • Employees
  • Economy and company
  • Society
  • Customers and markets
  • Values

Environmental Achievements

  • Reduced specific energy consumption of air separation units by more than 0.5% in the last five years.
  • Increased number of production/filling companies in the EU certified to ISO 14001 from 14 to 16.
  • CO2 saving of approximately nine per cent in the production of publications by using black-and-white versions.

Social Achievements

  • Reduced number of Lost Time Injuries (LTIs) from 36 to 18.
  • Reduced number of Recordable Working Injuries (RWIs) from 63 to 36.
  • Reduced number of sick days per employee from 3.33 to 2.96.
  • Increased average length of service to 9.7 years.
  • Increased number of apprentices and trainees to 85.

Governance Achievements

  • Implemented Key Performance Indicators (KPIs) to measure progress in various areas.
  • Established a cross-divisional Corporate Responsibility function.
  • No corruption cases or proceedings reported.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Consolidate net debt levels for operations outside China, aiming for a ratio of net financial debt to EBITDA not exceeding 2.5 by the end of 2015.
Short-term Goals:
  • Reduce specific energy consumption by 0.5% per year from 2010 to 2020.

Environmental Challenges

  • Slowdown in relevant economic sectors in China, persistently low levels of steel production.
  • Difficult economic conditions in China.
  • Weaker economic situation in Europe.
  • Downturn in the economy affecting Messer Cutting Systems, particularly in Russia due to export controls.
  • Continued generally difficult economic climate in South-Eastern Europe.
Mitigation Strategies
  • C7 efficiency program for Europe focusing on expansion in growth markets, future competitiveness, process optimization, improving bulk margin, focus on cylinder gas sales, knowledge management, and personnel development.
  • Diversification strategy in China.
  • Italy-France country swap with Praxair Group.
  • Investments in growth projects in Estonia and Poland.
  • Close cooperation with BUSE in plant engineering.
  • Acquisition of US company Whertec Inc.

Supply Chain Management

Supplier Audits: Regular audits of long-standing suppliers, comprehensive audits for new suppliers

Responsible Procurement
  • Regular checks as part of ISO 9001 certification

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 14001 (16 companies), ISO 9001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • DuoCondex process for solvent recovery
  • EcoVap vaporizer
  • MegaPack cylinder bundle
  • Messer ValveGuard VG1

Awards & Recognition

  • Quality Performance & Compliance Award 2013 from Coca-Cola Hellenic Bottling Company
  • One of “Austria’s 100 Leading Companies”,
  • EMAS Award 2014 (Messer Austria)
  • Six EIGA Safety Awards
  • Responsible Care certificate (Messer Austria)
  • Family Business Entrepreneur of the Year award (Stefan Messer)

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:3,015,500 tonnes of CO2e
Scope 1 Emissions:132,981 tonnes of CO2e
Scope 2 Emissions:2,817,754 tonnes of CO2e
Scope 3 Emissions:64,772 tonnes of CO2e
Total Energy Consumption:4,432.7 GWh
Water Consumption:8.2 million cubic metres
Waste Generated:38,396.89 tonnes (non-toxic), 494 tonnes (hazardous)

ESG Focus Areas

  • Safety
  • Environmental and climate protection
  • Employees
  • Society
  • Economy and company
  • Customers and markets
  • Compliance

Environmental Achievements

  • Reduced specific power consumption (energy consumption in relation to sold product) from 1.3760 kWh to 1.3680 kWh
  • Successfully commissioned a new production facility for air gases in Hengyang, China
  • Commissioned its third air separation unit in Vietnam
  • Implemented a new CO2 recovery facility in Ghent, Belgium
  • Installed a cryogenic nitrogen generator at Duslo Šaľa, Slovakia
  • Installed a nitrogen generator for Ibiden Hungary
  • Implemented the fourth FILTRAC upgrade at Gondecourt’s filling plant in France
  • Received ISO 50001:2011 certification for its production site at the air separation unit in Resita, Romania
  • Received ISO 50001:2012 certification in Hungary
  • AmpaCity pilot project for efficient power transmission won the German Climate and Environment Innovation Award

Social Achievements

  • Total staff turnover decreased from 8.0% to 5.6%
  • Number of sick days per employee decreased slightly from 3.9 to 3.8
  • Average spend on training and professional development increased from 214 euros to 296 euros per employee
  • Launched the second “Junior Circle” international support programme
  • Offered English courses across the Group
  • Organized a Christmas market, donating proceeds to a charity for children with cancer
  • Supported numerous scientific projects at universities and social projects

Governance Achievements

  • Implemented the Messer Compliance Management System (Messer CMS)
  • Appointed a Corporate Compliance Officer (CCO) and Local Compliance Officers (LCOs)
  • Developed the Messer Code of Conduct
  • Established a “help desk” for compliance inquiries

Climate Goals & Targets

Medium-term Goals:
  • Reduce the specific energy consumption of air separation units by 0.5% a year from 2010 to 2020
Short-term Goals:
  • Enhance the reliability and flexibility of gas supply in Hungary
  • Boost efficiency through integration of Air Liquide Hungary Ipari Gáztermelő Kft.
  • Further develop cylinder gases business
  • Continue strengthening leadership position in Vietnamese market

Environmental Challenges

  • Increasing price pressure and exchange rate differences
  • Consolidation in the steel industry
  • Difficult economic environment in some regions
  • Low oil prices impacting Messer Eutectic Castolin Group
  • Political uncertainties and global changes
Mitigation Strategies
  • Efficiency improvements and cost savings
  • Successful diversification strategy in China
  • Development of new solutions and services for cylinder gas customers
  • Investments in new air separation units and joint ventures
  • Strengthening production and supply capacities

Supply Chain Management

Supplier Audits: Regular audits of long-standing suppliers; comprehensive audits of new suppliers

Responsible Procurement
  • Central purchasing policy for tanks, tankers, and gas cylinders

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 14001 (21 companies), ISO 9001 (37 companies), ISO 50001 (Germany and Spain)

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

  • ASCO Dry Ice Pelletizer P28
  • ASCOJET 608 dry ice blaster
  • Fiberblade fiber laser machine

Awards & Recognition

  • Top 500 Family Businesses
  • Top Sustainable Family Business 2016
  • Axia Award 2016 (Best Family Successor)
  • German Climate and Environment Innovation Award 2015
  • Various safety awards from EIGA
  • Various awards from local authorities in China