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Mandatory Greenhouse Gas Reporting 2018

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 2018. 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. The 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 2018 have been included in GHG reporting and an assumption has been made regarding usage based on equivalent sites within the Group.

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 show that total gross GHG emissions in the period were 7,297 tonnes of CO2e, (2017: 7,182 tonnes) comprised of the following:

  • Direct Emissions (Scope 1)

    5,646 tonnes of CO2e – 77% (2017: 5,339 tonnes – 74%)

  • Indirect Emissions (Scope 2)

    1,651 tonnes of CO2e – 23% (2017: 1,843 tonnes – 26%)

70% of emissions came from diesel, 23% from electricity, and 7% from natural gas.

Broken down by business unit the results were as follows;

  • Distribution

    5,277 tonnes of CO2e – 72% (2017: 4,146 tonnes – 58%)

  • Manufacturing Operations

    2,020 tonnes of CO2e – 28% (2017: 3,036 tonnes – 42%)

Our Manufacturing Operations have a proportionately higher impact on emissions than the Distribution business. However forthcoming investments in Labels are focusing on moving from high carbon intensity activities to lower carbon methods such as digital printing.

The 2018 acquisitions of Tyler and Harrisons, together with the full year impact of 2017 acquisitions, have increased emissions in areas such as fuel usage, in line with a larger fleet. The intensity calculation for 2018, reflects the work completed with a reduction in emissions based on turnover from 0.037 to 0.034.

Table 1: emissions data

 

Table 2: Intensity Ratio

Emissions from natural gas consumption increased by 19%, driven by the increased demand for heating at all sites due to the colder than average winter of 2018. Electricity consumption increased by 11%, however, due to the decarbonisation of the UK electricity grid, emissions from purchased electricity decreased by 11%.

During 2019, a programme will be developed with the key objective of reviewing transport efficiency to ensure effective and efficient use of the Company’s fleet including recent acquisitions. The target in 2019 will be to see a reduction in fuel consumption, year on year. This will be aided by a continuous programme to upgrade our fleet (approx. 40% of vehicles were replaced in 2018) with new vehicles having cleaner, more fuel efficient, engine technology. These trucks will also yield a significant reduction in our NOx emissions.

Table 3: Emissions data – business segments

 

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 2019.

Table 4: Recycling and recovery rate

The need for packaging

Whilst packaging often receives poor publicity, most packaging users understand the importance of protecting goods and their handlers from harm during storage and transportation. In addition, packaging is used to provide important information, security and compliance with government regulations relating to the product’s packaging and labelling.

Packaging and 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.

Macfarlane Packaging’s three Rs Principles:

1. Reduce

Macfarlane and our suppliers are constantly improving our techniques and technologies to create more efficient packaging products.

2. Reuse

Re-using a product to prolong its life often makes good sense and many packaging products are designed to be utilised many times before they reach the end of their usable life. However, it is not always the most practical or best environmental option based on life cycle thinking. Therefore, recycling can be a better option over reuse.

3. Recycle (or Compost)

If a product can’t be reused, it should be recycled as this can save energy, reduce rubbish in landfill sites and cut the cost of waste disposal.

Environmentally-friendly packaging solutions

At Macfarlane Packaging, we work closely with our suppliers and manufacturers to provide environmentally friendly packaging products.

View our product range at  www.macfarlanepackaging.com.

ISO 14001

Macfarlane Packaging is committed to achieving ISO 14001 registration at all sites. ISO14001 is an internationally accepted standard that defines the requirements for establishing, implementing and operating an environmental management system and the supporting audit programme.

ISO 14001 provides a framework for the development of an environmental management system and the supporting audit programme. Macfarlane Packaging is a responsible packaging supplier that is registered to, and operates in accordance with ISO 14001 Environmental Management standards.

 

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