VARO Energy B.V.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:79,859 thousand tonnes CO2e
Scope 1 Emissions:1,217,116 metric tonnes CO2e
Scope 2 Emissions:189,752 metric tonnes CO2e (market-based), 111,728 metric tonnes CO2e (location-based)
Scope 3 Emissions:78,451,178 metric tonnes CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:23,917 TJ
Water Consumption:2,915 megalitres
Waste Generated:31,457 metric tonnes
Carbon Intensity:83.7 gCO2e/MJ (sold products in 2022)
ESG Focus Areas
- Climate Change
- Health and Safety
- Sustainable Energies
- Employee Satisfaction and Development
- Equity, Inclusion and Diversity
- Sustainability Reporting
- Energy Efficiency of Operations
Environmental Achievements
- Saved 2.3 million tonnes CO2e emissions by enabling VARO customers to replace conventional fuels with renewable alternatives (10% increase vs 2021)
- 100% renewable electricity sourced for operations in Cressier in 2022
- 6.6% energy efficiency improvement in 2022 compared with 2014 at Cressier
- VARO’s sold products had a carbon intensity of 83 gCO2/MJ, a 5% reduction compared to 2020 baseline
Social Achievements
- Increased representation of women in VARO’s senior leadership team from 14% to 16% in 2022
- Voluntary employee retention rate of 94%
- One-off payment to compensate employees for higher living costs
- Support for Ukraine through monetary donations and providing employment opportunities
Governance Achievements
- Established a new ESG governance framework, including an ESG committee at the Executive Board level
- Introduced internal carbon pricing and integrated ESG and CO2 target impacts in all M&A and business development decisions
- 84.2% of employees completed Code of Conduct training by the end of 2022
Climate Goals & Targets
Long-term Goals:
- Net-zero emissions by 2040
Medium-term Goals:
- At least 50% female employees (office based) by 2030
- 50% women in senior management by 2030
- Gender pay equality across all geographies: 0.9–1.1 pay gap by 2030
- >75% engagement level by 2025
- Maintain >90% voluntary retention rate by 2025
- ~5 Mt of annual customer carbon emissions avoided by 2030
- >50% of renewable EBITDA by 2026
Short-term Goals:
- Reduce scope 1 and 2 emissions by 40% by 2030 (vs. 2022 baseline)
- Reduce scope 3 carbon intensity by 15% by 2030 (vs. 2022 baseline)
- More than two-thirds renewable electricity in operations by 2023
Environmental Challenges
- European energy crisis caused by Russia’s invasion of Ukraine
- Increased scope 1 and 2 emissions due to higher production volumes and a switch to LPG
- Inadequate regulation and/or financial incentive support to drive upstream emission reductions for conventional fuels
Mitigation Strategies
- Developing and promoting sustainable energy solutions (biofuels, biomethane, bio-LNG, hydrogen, e-mobility, carbon removals)
- Implementing energy efficiency measures, sourcing renewable electricity, and replacing grey hydrogen with green hydrogen
- Investing in decarbonisation projects and CO2 removal projects
- Updated CO2 accounting methodology to include dual reporting of scope 2 data and more precise quantification of upstream crude oil extraction and transportation
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Strategic partnerships with suppliers
- Regular audits of biofuel producers (ISCC, RSB, RedCert-EU, 2BSVS)
- Random checks on compliance with licence criteria for bio-component suppliers
- Due diligence of vendors in relation to data handling processes
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (storms, floods)
- Changes in precipitation patterns
- Rising mean temperature, sea and river levels
Transition Risks
- Changes in demand for certain products
- Regulatory changes
- Market shifts
Opportunities
- Growth in sustainable energies business
- Benefits from future legislative changes
Reporting Standards
Frameworks Used: GRI Standards 2021, TCFD
Certifications: ISO 9001, ISO 14001, ISO 45001, EMAS
Third-party Assurance: Ernst & Young Accountants LLP (limited assurance)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation and Infrastructure)
- Goal 13 (Climate Action)
VARO's initiatives contribute to these goals through decarbonization efforts, investments in renewable energy, and sustainable product development.
Sustainable Products & Innovation
- Biofuels
- Biomethane and bio-LNG
- Hydrogen
- e-mobility solutions
- Carbon removals
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:74,411,000 tCO2e/year
Scope 1 Emissions:1,016,124 tCO2e/year
Scope 2 Emissions:96,061 tCO2e/year
Scope 3 Emissions:73,378,384 tCO2e/year
Renewable Energy Share:87% of total electricity consumed
Water Consumption:2,866 megalitres/year
Waste Generated:10,969 metric tonnes/year
Carbon Intensity:85.8 gCO2e/MJ in 2023
ESG Focus Areas
- Sustainable Energies
- GHG Emissions
- Health and Safety
- Employee Satisfaction and Development
- Equity, Inclusion and Diversity
Environmental Achievements
- Scope 1 and 2 emissions decreased by 24%, mainly through lower volumes of crude processed and sourcing 87% electricity from certified renewable sources.
- Avoided 2.6 million tonnes CO2e emissions by enabling VARO customers to replace conventional fuels with renewable alternatives (increase of 11% savings compared with 2022).
- Switzerland’s largest ground-mounted solar power park at Cressier commissioned, expected to meet around 7% of Cressier’s annual electric power needs.
Social Achievements
- 22% women in senior positions (vs 16% in 2022)
- Voluntary employee retention rate of 94%
- Improved employee development opportunities.
Governance Achievements
- Formation of an ESG Committee to oversee ESG programmes and manage risk.
- Implementation of a ‘Just Culture’ initiative to improve safety awareness and reporting culture.
- Development of a new competitive and transparent employee bonus scheme to promote equity.
Climate Goals & Targets
Long-term Goals:
- Achieve net-zero emissions throughout the value chain by 2040.
Medium-term Goals:
- Reduce carbon intensity in marketed energy by 15% by 2030.
- Achieve at least 50% female employees in office-based positions by 2030.
- Achieve 50% women in senior management by 2030.
Short-term Goals:
- Reduce scope 1 and 2 CO2e emissions by 40% by 2030 compared with 2022.
- Achieve a TRIR of ≤ 0.50 per 200,000 work hours by 2025.
Environmental Challenges
- Volatility and instability in the energy market.
- Need to reduce the carbon intensity of sold products by 15% by 2030 and achieve net-zero emissions from products by 2040.
- Potential for human rights risks in some direct operations and supply chain.
Mitigation Strategies
- Implementation of the ONE VARO Transformation strategy to develop sustainable energy businesses.
- Investment of USD 3.5 billion between 2022 and 2026, with more than two-thirds committed to sustainable energies.
- Development of a human rights policy and commitment to conducting human rights due diligence.
Supply Chain Management
Responsible Procurement
- Long-term cooperation, reliability, and trust with suppliers.
- Sustainability requirements for bio-feedstock suppliers (ISCC certification).
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (storms, floods)
- Changes in precipitation patterns
- Rising mean temperature, sea and river levels
Transition Risks
- Changes in demand for certain products due to regulatory developments, technology, and market shifts.
- Increased severity of extreme weather events.
Opportunities
- Development of sustainable energy solutions (biofuels, biomethane, hydrogen, e-mobility, carbon removals).
Reporting Standards
Frameworks Used: GRI Universal Standards 2021, TCFD
Certifications: ISO 9001, ISO 14001, ISO 45001, EMAS, ISO 27001, ISCC, Forest Stewardship Council
Third-party Assurance: Ernst & Young Accountants LLP (limited assurance on selected indicators)
UN Sustainable Development Goals
- SDG 5
- SDG 7
- SDG 8
- SDG 9
- SDG 13
VARO's strategy contributes to these goals through initiatives related to gender equality, access to modern energy, economic growth, sustainable infrastructure, and climate action.
Sustainable Products & Innovation
- Biofuels
- Biomethane and bio-LNG
- Green hydrogen
- E-mobility solutions
- Carbon removals