Energy efficiency and greenhouse gas emissions

Vossloh is particularly focused on CO2e (CO2 equivalents) emissions due to their impact on climate change. The company has set itself the goal of achieving CO2e neutrality (Scope 1 and Scope 2) in stages by 2030. The extent to which this aim is achieved is measured using the indicators for CO2e emissions, CO2e intensity (CO2e tons /sales revenues in € million) and energy intensity (energy consumption in MWh/sales revenues in € million). Energy intensity and CO2e intensity are the key indicators used by Vossloh to measure its progress in terms of energy efficiency and minimizing CO2e emissions, while also taking the company‘s growth targets into account.

As part of the Group-wide Carbon Neutrality 2030 (Scope 1 & 2) initiative, a cross-divisional team led by the head of Corporate Sustainability introduced plans to reduce energy consumption and CO2e emissions in 2022 with a focus on both the most energy-intensive processes and equipment and the most CO2-intensive energy sources. The project team compiled data on the initial situation in all units, established detailed targets and defined the measurement tools. The next step was to train employees in all departments.

A comprehensive package of measures was put together at the level of each individual company and site to help them achieve annual reduction targets in stages. Some projects based on these measures were implemented in 2022 and have produced some initial results. For example, all of Vossloh‘s sites in Germany as well as several units in Serbia, Finland, Sweden, the UK and the Netherlands now use „green“ energy for all of their electricity needs. Over the next few years, Vossloh expects its action plans to result in a continuous reduction of direct and indirect CO2e emissions in relation to the Vossloh Group‘s sales revenues.

The following tables present the consumption of significant energy sources within the Vossloh Group for the year under review and the comparative figures from 2021:

MWh (Vossloh Group)20222021
Gas consumption80,391.690,854.2
Electricity consumption74,454.571,529.5
District heating consumption3,887.74,586.4
Liters (Vossloh Group)20222021
Heating oil consumption101,638.0244,403.1
Fuel consumption1,744,685.5969,009.0

The amount of Vossloh’s carbon and greenhouse gas (GHG) emissions was determined, as in previous years, on the basis of the Greenhouse Gas Protocol in the categories of scope 1 and scope 2. The results were as follows:

t CO2 equivalents, scope 1 (Vossloh Group)20222021
Gas consumption14,676.216,643.5
Heating oil consumption258.2620.8
Fuel consumption4,384.42,390.8
Scope 119,318.819,655.1
t CO2 equivalents, scope 2 (Vossloh Group)20222021
Electricity consumption24,281.626,496.0
District heating consumption1,252.21,333.4
Scope 225,533.827,829.4

The following table shows the energy and Co2e intensity, each in relation to the Vossloh Group’s total sales revenues.

Energy and CO2 equivalent intensity (Vossloh Group)20222021
Energy intensity (MWh/€ million)170.4190.7
CO2e intensity (CO2e tons/€ million)42.950.4

The Vossloh Group noticeably reduced its CO2e emissions (Scope 1 and 2) in the 2022 fiscal year despite a significant increase in sales revenues. While sales revenues went up by 11.0 percent, scope 1 and scope 2 emissions declined by 5.5 percent compared to the previous year. In 2022, Vossloh reduced its CO2e intensity, i.e. its CO2e emissions in tons per € million in sales revenues, by a significant 14.9 percent. This remarkable improvement was mainly driven by a major decrease in gas consumption, especially as a result of efficiency improvements and intensified energy-saving measures, which more than offset a significant increase in fuel consumption due to increased business and travel activities. The lower CO2e intensity was also due to a steadily increasing share of green or lower carbon electricity purchases.

Vossloh does not have sufficient data yet to determine the greenhouse gas emissions relating to the upstream and downstream areas (Scope 3).

All the divisions have been making investments to reduce energy consumption and boost energy efficiency for years. Exemplary measures are the conversion of lighting to LED technology, the use of lost heat from production at several sites and the switch of an increasing number of units over to green energy providers. The units are performing systematic reviews to determine whether installing photovoltaic systems and/or heat pumps could help them to become more energy-efficient. In 2022, the Customized Modules division commissioned an investigation into whether selected sites could integrate a biomass power plant into their energy supply. Energy consumption is an essential decision-making criterion for investment choices and process optimization, particularly in light of rising energy prices. In 2022, Vossloh optimized the heating at its production facilities and administrative buildings, with a particular focus on its European sites. This allowed us to save a significant amount of energy and reduce CO2e emissions while still ensuring pleasant working conditions.

The company’s operating units are working on further reducing CO2 emissions through a wide range of measures. Energy efficiency was one of the guiding principles followed by Vossloh Fastening Systems when building and outfitting the „Factory of the Future“ in Werdohl. Thanks to this focus, the amount of energy used per 1,000 bent tension clamps is now significantly lower compared to the previous production process. Despite this success, the company is always looking for further opportunities to improve – even on a small scale. Making changes to the weekend shutdown of the pickling line and the compressed air leakage testing system were two of the ways Vossloh saved electricity in 2022. The Fastening Systems business unit is also investing in renewable energies. Solar panels have been ordered for the Werdohl site. These are due to be installed in 2023 and will supply up to 560 MWh of energy annually when fully operational. Our site in Anyang, China, also began the process of installing a photovoltaic system on the roof of its plant in 2022. Vossloh started planning the installation of solar cells and heat pumps at its Polish production site.

Along with other measures, the Customized Modules division introduced an energy-based „Gemba“ concept to make it easier to assess the current situation on site during plant tours or training sessions and raise awareness. Rooftop solar systems were installed at an Indian site to cover some of the site‘s energy needs. Another Indian site significantly reduced its gas consumption by upgrading its heat treatment plant for switch castings. Significant improvements were made in heating oil consumption at a site in the UK through the use of new and more efficient boilers and continuously monitoring temperatures.