SustainabilityFocus on the environmentPrincipal initiatives to combat climate change

In order to reduced energy consumption and atmospheric emissions, the Recordati group is implementing various actions in Group plants and branches. 

As confirmation of this commitment, in 2019 the Group began participating in the CDP climate change programme. The CDP climate change programme aims to reduce companies’ greenhouse gas emissions and mitigate the risk of climate change. CDP requests information on climate risks and the opportunities and performance of the world's largest companies, acknowledging the companies' commitment through an annual scoring process (from A to F) based on a self-assessment of the company. In 2020, the Recordati group achieved a score of B, improving its score (C in 2019) and demonstrating its awareness and commitment in this regard.

Below is a description of the principal initiatives launched by the Group aimed at increasing energy efficiency and reducing emissions. These initiatives include, for example: purchase of renewable electricity, energy-efficiency initiatives for plants and lighting systems, continuous monitoring of consumption and feasibility studies to identify further areas for action, and progressive incentivisation of vehicles with low environmental impacts in the company fleet. 

Regarding electricity consumption, evidence of the commitment to combating climate change can be seen in the Group’s increased purchase of renewable energy, which reached around 50% of total energy purchased by the Group in 2020 (approximately 85% if considering only electricity purchased by European plants) and set itself the goal of 100% renewable electricity for European manufacturing and packaging sites and annexed offices by 2021. In 2020, completing activity started in 2019, the Group continued with implementation of the online portal (e.point) for management of energy-consumption data, pooling supply contracts and invoices for the Italian sites in Milan and Campoverde di Aprilia, the Spanish site in Utebo, the French sites in Saint Victor and Nanterre and the Irish site in Cork. In addition to precise monitoring and efficient management of energy consumption, the information system has allowed assessment and establishment of new supply contracts, with Guarantees of Origin certifying that 100% of the energy purchased comes from renewable sources. For the French plants, the Guarantees of Origin purchased in 2020 certify the renewable origin of energy purchased from October 2020. For the manufacturing sites and connected offices in Italy, Spain and Ireland, the purchase of 100% renewable energy and the absence of greenhouse-gas emissions linked to the purchase of electricity for 2020 was confirmed by the “Zero Emission Electricity” certificate. 

In addition, with reference to renewable energy, it is noted that for 2021, there are plans for the installation of solar panels to generate electricity on the roof of the Spanish production plant in Utebo and to launch a feasibility study to assess the possibility of installing photovoltaic panels at the Irish production plant in Cork. Regarding the Italian plant in Campoverde di Aprilia, for 2021 there are plans for installation of a thermal solar system to produce hot water for the changing rooms of the manufacturing site. 

In terms of lighting systems, in recent years, the Group has implemented various energy-efficiency initiatives, including the gradual, programmed replacement of lights with LED lighting systems or, in certain cases, installation of movement sensors to reduce electricity consumption. Today, many areas of Group manufacturing sites and offices are already equipped with LED lighting systems. This progressive process of replacement and efficiency actions will continue in coming years. The Group’s goals include complete replacement of current lighting systems with LED lights at the Spanish manufacturing site in Utebo and the chemical intermediates warehouse of the Italian plant in Campoverde di Aprilia by 2021 and initiation of the plan for replacement of current lights with LED systems in the manufacturing area of the Milan plant, to be completed by 2023. 

In recent years the Irish plant in Cork has been committed to optimising and streamlining its production chain through the use of a programming procedure and preventive maintenance. The Energy Manager at the plant has implemented actions to increase employee awareness regarding energy saving according to a training plan and projects approved at local level. 

The Italian chemical pharmaceutical in Campoverde di Aprilia has also implemented various initiatives over the years to increase energy efficiency, including: installation of an air conditioning system in the office building that consumes less electricity, installation of a new low-power-consumption air-treatment unit for supply of primary air in the building, also thanks to its heat-recovery system and upgrading of the compressed-air distribution system. It is estimated that the latter project saved 131,000 KWh in 2020, therefore avoiding emission of approximately 45 tonnes of CO2.

In order to reduce energy use, during 2021, there are plans for installation of 2 inverter blowers at the Italian Campoverde di Aprilia production plant to control the oxygenation levels of the wastewater treatment plant, enabling the regulation — and thereby improving the efficiency — of the machine's power based on the actual needs of the treatment plant resulting in a reduction in energy use (estimated 50% reduction in electricity consumption compared to the current operating conditions of the unit scheduled for replacement). The dual installation will provide continuity to this optimisation of energy use in the case of shutdown due to a fault.

With the goal of continuous improvement, Recordati is committed to measuring, evaluating and monitoring its energy consumption also through performance of energy audits by specialised third parties. In 2020, at the Spanish plant in Utebo and the French plant in Saint Victor, energy audits were preformed to identify and evaluate possible future investments aimed at reducing energy consumption.

Furthermore, at the Turkish plant in Çerkezköy, in 2020 an energy study was performed by a specialised consulting company aimed at reducing energy consumption and increasing energy efficiency. This involved measuring and current analysing energy consumption of equipment and systems used by the plant (e.g. consumption of steam boilers, pumps, cooling systems, etc.) in order to identify and implement energy-efficiency projects.

In 2020 the Group also carried out a monitoring and control activity to assess the emissions of its global fleet of company vehicles. In addition, the introduction of a software platform is in its final phase that allows a constant updating of the branches’ car fleet through a connection of the renters that allows us to verify the acquisition of new rental contracts and the emissions of new cars. In 2020, a total of approximately 2,000 company cars were in use by employees of the Recordati group, while the average CO2 emissions emitted by the vehicles was approximately 118 g/km, according to the new Worldwide Harmonized Light-Duty Vehicles Test Procedures (WLTP). In this regard, the Group proposes to launch analysis of the fleet to assess the progressive introduction of technologically advanced hybrid solutions in future which have a reduced environmental impact. It is noted that in 2020 the Milan plant installed three electric-vehicle charging stations. 

In 2020, Scope 1 direct emissions primarily relating to the use of energy for industrial production (natural gas and diesel) remained largely in line with those of the previous year. In addition to this, there was a lower proportion (approximately 17% of the total Scope 1 direct emissions) for consumption of the Group’s vehicle fleet. In 2020 there was a significant reduction in emissions attributable to the company fleet (-23% compared to 2019) due to reduced travel following legislation in countries where the Group operates to tackle the COVID-19 pandemic.

Instead, Scope 2 indirect emissions due to the purchase of electricity from the grid decreased by 6% according to the Location based approach and by 29% under the Market based approach. This large reduction is due to the purchase of renewable energy certified by Guarantees of Origin at the majority of European plants, reaching approximately 85% of the total electricity purchased in Europe in 2020.
Greenhouse-gas emissions (tons of CO2) of the Recordati group's production plants and car fleet*
*Source of emission coefficient data for natural gas and diesel: Italian Ministry of the Environment and the Protection of Land and Sea, Table of National Standard Limits, 2020.
*Scope 1 emissions relating to the use of fuel by company vehicles have been estimated based on the average mileage of each car defined in the leasing contract and the average emission factor of fleet vehicles (118 g/km). On the basis of applicable legislation and actions taken to deal with the health emergency that have led to a reduction in mobility, for 2020 a reduction of 30% was reasonably assumed compared to expected annual use.
 *The reporting standards applied (GRI Sustainability Reporting Standards 2016) provide for two different approaches for the calculation of Scope 2 emissions: “location-based” and “market-based”. The location-based approach uses national average emission factors relating to the specific configuration of national electricity production (source of emission factors: TERNA, Confronti Internazionali, 2018).
 *The market-based approach uses an emission factor defined on a contractual basis with the electricity supplier and defines that the purchase of renewable electricity with Guarantee of Origin does not imply emissions of greenhouse gases calculated according to this approach. For this reason, the plants in Milan (Italy), Campoverde di Aprilia (Italy), Utebo (Spain), Saint Victor (France), Nanterre (France) and Cork (Ireland) there has been exclusion from calculation of Scope 2 emissions (according to the market-based approach) of consumption of electricity with Guarantees of Origin. For calculation of emissions using the market-based approach, the national “residual-mix” emission factors were applied (source of residual-mixes: AIB European Residual Mixes - Version 1.1 updated on 08/09/2020).

Additional information can be found in the Consolidated Non – Financial Statement