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APPROACH TO ENVIRONMENTAL MANAGEMENTOur material topics reinforce our focus on driving efficient operations through energy efficiency and renewable energy, emission reduction strategies and waste diversion. To ensure proper management of our environmental impact, we maintain an environmental management system (EMS), which spans across four production sites and six service offices globally, with the majority of our manufacturing operations occurring in Germany. TPG’s Project Engineer of Sustainable Development and Occupational Safety Specialist are responsible for managing our EMS. They lead our environmental initiatives, embedding environmental responsibility within our health and safety practices and measuring our performance. The Project Engineer of Sustainable Development reports biweekly to leadership regarding our environmental performance and progress toward our goals. We prioritize compliance with environmental laws and regulations at all locations and experienced no violations during 2022. We align our practices in accordance with internationally recognized standards and frameworks such as ISO 14000 environmental management standards and the GHG Protocol. For several customers, we participate in Sedex Members Ethical Trade Audits (SMETA), which conduct an in-person review and validation of our operations’ sustainability every three years across a variety of criteria, including an environmental assessment. We often assess our operations to identify areas where we can reduce our environmental footprint, with a focus on enhancing energy efficiency while reducing greenhouse gas (GHG) emissions and waste. Water use does not represent a substantial contribution to our environmental footprint as there is minimal use in our manufacturing processes and operations. However, in the spirit of continuous improvement, we monitor our usage of water and other resources to address any potential inefficiencies.
"TPG is proud to announce our commitment to net-zero greenhouse gas emissions by 2030, as validated by The Science-Based Targets initiative. To reach this ambitious goal, we must unpack the way we operate, looking for greener, cleaner and more efficient solutions in every corner of our facilities and value chain. As we work toward this goal throughout the next decade, it will enable us to bring our ability to innovate, collaborate and operate sustainably to new heights."
Akram Ezzat, Project Engineer/ Sustainable Development
LAUNCHING OUR NET-ZERO 2030 COMMITMENT. As a leading manufacturer of industrial machinery and goods for packaging, we recognize our important role in combatting climate change by reducing GHG emissions, enhancing energy efficiency and introducing more renewable energy solutions within the packaging supply chain. That is why in 2022, we formalized our climate strategy and launched a companywide commitment to achieving netzero Scope 1 and 2 GHG emissions by 2030. In addition, we also set a target to achieve a 50% reduction in Scope 3 emissions by 2030 compared to our 2021 baseline. We submitted our GHG reduction goals to the Science Based Targets initiative (SBTi) in 2022 and expect to receive their validation in 2023. We believe that to achieve our net-zero goal and significantly reduce our carbon footprint, we must have a robust plan of action that embraces renewable energy, addresses Scope 1, 2 and 3 emissions and enhances manufacturing efficiency. In 2021, we identified several actions to consider implementing within the next few years.
GREENHOUSE GAS EMISSIONS. According to the Climate Collaborative, packaging is a significant source of GHG emissions, accounting for about 5% of the energy used in the lifecycle of a food product. TPG recognizes the importance of reducing our carbon footprint while also helping customers reduce their overall environmental impact. Beginning in 2020, TPG set out to better understand our carbon footprint by conducting a pilot GHG inventory at one of our facilities in Germany. The results revealed invaluable insights regarding our carbon footprint, including the efficiency of our operations, our largest sources of emissions and the cost-effectiveness of practices and technologies. Total emissions at HDG that year were 1000.6 metric tons of CO2e. This inventory included our own emissions (scope 1 and 2 emissions) and upstream emissions in our supply chain (scope 3 emissions). As this pilot offered many important insights, we expanded our GHG inventory companywide in 2021. The 2021 GHG inventory measured Scope 1 and 2 emissions for all of our locations in Germany, encompassing key emission sources such as electricity usage, and heating and cooling. We also began measuring Scope 3 emissions as indicated in the GHG Emissions table. Throughout 2022 and 2023, we plan to expand our Scope 3 boundaries to include product life cycle and supply chain emissions.
ENERGY MANAGEMENTAs we manufacture high-quality machines, our operations can be energy intensive during certain stages of product development. Therefore, we closely monitor our consumption and continuously explore ways to enhance efficiency and increase reliance on renewable energy sources such as solar. Across our manufacturing sites, we have implemented LED lighting when possible and are assessing the feasibility of additional installations. We incrementally evaluate our machines and manufacturing technologies to ensure they are operating at peak efficiency. At one of our locations, we insulated several machines to enhance energy efficiency. We also automated part of our heating system. In May 2022, we transitioned to 100% renewable energy grid consumption with our local energy supplier. We are excited about the immense strides made through this transition and are exploring additional ways to expand our use of renewable energy through on-site generation and power purchasing agreements. Currently, we are assessing the feasibility of an onsite solar installation at our HDG site, we plan to install on-site solar systems by 2024.
Research from the Ellen MacArthur Foundation indicates that approximately 45% of global GHG emissions are associated with how we make and use products and how we produce food. It concluded that a substantial amount of product emissions can be mitigated by embracing circular practices2. This includes keeping materials in circulation longer and eliminating waste throughout the value chain. TPG machines play a vital role in enabling customers to eliminate packaging waste as they are compatible with a variety of green packaging materials such as recycled plastic and paper. In addition, our machines promote the optimal use of packaging materials. For example, in collaboration with one of our customers, we were able to reduce the amount of material necessary to package their food product by packing it more compactly. We look forward to future collaborations and innovations to address issues where circularity and climate change intersect.
WASTE MANAGEMENT Waste prevention and management help improve efficiency, health and safety while reducing environmental impact. At our manufacturing locations in Germany, we maintain a waste management system that prioritizes waste diversion through recycling, composting and other techniques. In addition, we closely monitor our usage of raw materials and resources to promote efficient manufacturing processes and prevent excessive waste. The types of waste we generate as a result of our operations include wood-based waste such as packaging and paper, as well as metal, foil, and green waste. A third-party waste management company collects our waste and recycles or recovers waste when feasible. We generate a minimal amount of hazardous waste such as oil byproducts and lubricants due to product manufacturing. We abide by local laws and regulations in safely managing and disposing of all hazardous waste, we recycle it when it is lawfully permitted and feasible. We often collaborate with customers and suppliers to eliminate waste. For example, with several suppliers, we use reusable and recyclable bins to transport materials. Besides addressing waste impacts within our direct operations, we believe one of our greatest opportunities to positively impact the waste stream is by advancing the circular economy through our products and services since they enable customers to use more reusable, recyclable and biodegradable materials. Read more about this in the Products section.