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Mandatory Greenhouse Gas Reporting 2019

Macfarlane Group seeks to minimise the impact of our operations on the environment and is committed to reducing its greenhouse gas (’GHG’) emissions.

This report outlines Macfarlane’s GHG emissions for 2019. Using an operational approach, the Group identified its boundaries to ensure all activities and facilities for which it is responsible were being recorded and reported in line with Scope 1 and 2 of the Mandatory Greenhouse Gas Reporting regulation.

Relevant data was provided to an independent consultant, EcoAct. The validity, accuracy and completeness of the data was audited by EcoAct and then used to calculate the GHG for Macfarlane Group.

Calculations were completed in accordance with the main requirements of ISO-14064-1:2006 standard and deliver both absolute values and an intensity ratio for Macfarlane’s emissions. Acquisitions made during 2019 have been included in GHG reporting and an assumption has been made regarding usage based on equivalent Group sites.

Macfarlane Group uses total turnover (£000) in the reporting period to calculate the intensity ratio, as this allows emissions to be monitored over time taking into account changes in the size of the Group. This factor was chosen because it provides the greatest degree of accuracy and is the metric best aligned to business growth.

The results in tables 1 and 2 show that total gross GHG emissions in the period were 6,752 tonnes of CO2e, (2018: 7,297 tonnes) comprised of the following:

  • Direct Emissions (Scope 1)

    5,312 tonnes of CO2e – 79% (2018: 5,646 tonnes – 77%)

  • Indirect Emissions (Scope 2)

    1,440 tonnes of CO2e – 21% (2018: 1,651 tonnes – 23%)

72% of emissions came from diesel, 21% from electricity, and 7% from natural gas.

Broken down by business unit the results were as follows;

  • Distribution

    5,412 tonnes of CO2e – 80% (2018: 5,277 tonnes – 72%)

  • Manufacturing Operations

    1,340 tonnes of CO2e – 20% (2018: 2,020 tonnes – 28%)

As set out in Table 3 below, Manufacturing Operations have a proportionately higher impact on emissions than the Distribution business. However recent investments in Labels are focusing on moving from high carbon intensity activities to lower carbon methods such as digital printing.

Macfarlane’s overall footprint decreased 7.5% from 7,297 tonnes to 6,752 tonnes. The intensity calculation for 2019 reflects the work completed with a reduction in emissions based on turnover from 0.034 to 0.030.

This is predominantly due to a switch to hybrid petrol vehicles with reduced consumption at some manufacturing sites. However, decreasing electricity emission factors caused by decarbonisation of the national grids of the UK and Ireland has also been significant.

Emissions from natural gas consumption decreased by 17% at least partly due to a warm 2018/19 winter.

Electricity consumption decreased by 7.3% which, due to the decarbonisation of the UK and Ireland national grids, resulted in emission reductions from purchased electricity of 11.8%.

Emissions from diesel fuel decreased by 11.3%, largely driven by a shift to diesel reclaims, but also to a lesser extent by a slight material increase in usage of petrol hybrid vehicles.

Our policy of leasing the vast majority of our premises allows us to vary our property footprint to ensure the maximum efficiency of our operations, thereby minimising the impact on the environment.

Given the growth of the business, continued reductions in the overall Gross tCO2e/Sales result will be a challenging target, however the Group is committed to see a further year on year reduction in 2020.

Taskforce on Climate-related Financial Disclosures (TCFD)

Macfarlane Group supports the recommendations of the Financial Stability Board’s TCFD and continues to make progress in our consideration and response to the issue of climate change.

The Board considers climate change risk as part of its risk management oversight. Areas where climate related risks could impact the business include increased raw material prices, increased business interruption and/or reduced economic activity due to the increased frequency of extreme weather incidents.

Climate related risks and opportunities are an integral part of the Macfarlane Group strategy as we seek to provide our customers with the information and options to allow them to make better informed decisions about the impact of our products and services on the environment. Packaging is an essential commodity for many businesses, but it is important to consider ways to minimise the impact that packaging can have on the environment, without compromising on product protection.

The assessment of climate related risks and opportunities is an ongoing area of focus for Macfarlane Group and further work is planned to fully understand the impact of climate change on our business and to ensure that we have the appropriate mitigation in place to mitigate these risks.

Table 1: emissions data

 

Table 2: Intensity Ratio

 

Table 3: Emissions data – business segments

Table 4: Recycling and recovery rate

 

Registration to ISO 14001

With the exception of certain recent acquisitions, all our UK packaging sites are registered to BSI ISO 14001 Environmental Management Standard. As an internationally recognised standard on environmental management, registration involves a process of continual assessment of our environmental standards and processes. A key objective in 2020 is the development of a transition plan to register recent acquisitions under the standard.

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