Energy & climate protection

Energy and climate protection

Linde understands and knows about the environmental impact of its processes and works constantly to develop solutions which will limit and control such effects. We focus not only on reducing emissions, but also on making continual improvements in our operations to ensure the efficient use of resources, materials and energy. We provide our customers with gases and technologies which decrease the consumption of natural resources and encourage the use of renewable energy.

We control our energy consumption and greenhouse gas emissions worldwide and report thereon based on the standards set out in the internationally recognised Greenhouse Gas Protocol. To make the CO2 balance sheet of the main air gases transparent for our customers, we use a standard formula which has been externally certified. In 2015, Linde was included in CDP’s regional Carbon Disclosure Leadership DACH index for the fourth time in a row. Through this index, the independent organisation recognises the quality of companies’ reporting on climate protection.

Goal

-5 %

energy intensity at installed air separation plants by 2017 (base year 2008)

Measures taken

  • improved efficiency at new air separation plants, e.g. as a result of more efficient compressors and turbines

Status

-6 %

by the end of 2015

Situation

-6 million

tonnes of CO2
in the operation of HyCO plants and air separation plants by 2020 (base year 2009)

Measures taken

  • technical improvements in plant design
  • more efficient production processes in HyCO plants and air separation plants

Status

New target

Global targets

Around 60 percent of the Group’s total CO2 emissions are by-products of electricity generation by energy providers and are reported by us as indirect emissions. Most of this electricity is required for the operation of more than 400 air separation plants. We have already exceeded the global target we had set ourselves of improving the average energy intensity of our air separation plants by 5 percent by 2017. By the end of 2015, we had achieved efficiency improvements of more than 6 percent compared with the reference year 2008. The benchmark is the global average efficiency of the air separation plants operating at the design plant load. This was possible mainly as a result of continuous improvements in efficiency in the air separation plants newly brought on stream: for example, by using more efficient compressors and turbines.

Climate protection target: avoidance of 6 million tonnes of CO2 by 2020

in million t, cumulated

Climate protection target: avoidance of 6 million tonnes of CO2 by 2020 (bar chart)

Direct emissions at Linde stem mainly from the operation of hydrogen and synthesis gas plants (HyCO plants). By 2015, we achieved the target we had set ourselves of increasing the energy efficiency of our HyCO plants installed around the world by 2 percent. We had increased the energy efficiency of the plants concerned by 2.7 percent by the end of the reporting year compared with the reference year 2009.

We have therefore set ourselves a new climate protection target. By 2020, we are seeking to avoid a total of 6 million tonnes of CO2 emissions compared with the year 2009. To meet this target, we are focusing on technical improvements in plant design and more efficient production processes in our HyCO plants and air separation plants.

Another key focus of our climate protection measures is the transportation of products. Our own transport fleet and transport service providers carrying Linde goods covered more than 1 billion kilometres in 2015. Optimised routes, better use of transport capacity and defensive driving training helped us reduce the number of kilometres travelled, cut the amount of fuel consumed and bring down the level of transport emissions.

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Greenhouse gas emissions

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2013

 

2012

Geprüft von KPMG

Assured by KPMG

1

From 2015, this figure also includes greenhouse gas emissions generated by Linde’s transport contractors. The 2014 figure has been recalculated.

2

This includes greenhouse gases specified in the Kyoto Protocol: methane (CH4), nitrous oxide (laughing gas, N2O), perfluorocarbons (PFCs), hydrofluorocarbons (HFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). In 2014, Linde has refined the determination method of the indicator for these GHGs to include additional emitters and emission sources. The reported figure for 2013 was recalculated based on this new method.

3

Since 2014, we also include the Radiative Forcing Index (RFI) to calculate emissions from business travel. Thereby, we take into account the higher impact of air travel on the greenhouse effect. Emissions for the year 2013 have been re-calculated accordingly.

As a result of the application of the revised accounting standards, the sites in the scope of our reporting changed in the 2013 financial year. Accordingly, the key financial, environmental and employee KPIs for 2012 were adjusted retrospectively. In addition, the KPIs for employees, occupational health and safety and environmental protection for the year 2012 were retrospectively adjusted to account for the effects of the acquisition of the US homecare company Lincare.

Direct greenhouse gas emissions (Scope 1)

 

 

 

 

 

 

 

 

CO2 emissions (in million t)Geprüft von KPMG

 

7.1

 

7.3

 

7.2

 

7.6

of which by HyCO plants (in million t)Geprüft von KPMG

 

4.0

 

4.0

 

4.2

 

4.3

Linde transport fleet1 (in million t CO2e)Geprüft von KPMG

 

0.92

 

0.88

 

0.49

 

0.50

Other greenhouse gases2 (in million t CO2e)Geprüft von KPMG

 

1.7

 

1.5

 

1.5

 

0.4

Total (in million t CO2e)Geprüft von KPMG

 

9.7

 

9.7

 

9.2

 

8.5

 

 

 

 

 

 

 

 

 

Indirect greenhouse gas emissions (Scope 2)

 

 

 

 

 

 

 

 

CO2 emissions (in million t)Geprüft von KPMG

 

15.4

 

15.0

 

13.0

 

12.8

of which by air separation plants (in million t)Geprüft von KPMG

 

13.7

 

13.5

 

11.8

 

11.6

Total Scope 1 and 2 emissions (in million t CO2e)Geprüft von KPMG

 

25.1

 

24.7

 

22.2

 

21.3

Emissions per million EUR sales (in t CO2e)

 

1,399

 

1,449

 

1,333

 

1,345

Emissions per Linde employee (in t CO2e)

 

389

 

377

 

350

 

339

 

 

 

 

 

 

 

 

 

Other indirect greenhouse gas emissions (Scope 3)

 

 

 

 

 

 

 

 

Business travel3 (in thousand t CO2e)Geprüft von KPMG

 

68.8

 

72.9

 

81.0

 

34.1

Energy consumption

As an energy-intensive company, we require a reliable and competitively priced energy supply and are constantly reviewing the energy efficiency of our production processes. In 2015, our energy consumption was around 1 percent higher than in 2014. In the reporting year, we took part in the European Union’s Emissions Trading System at seven of our production sites. There were around 1.1 million tonnes of CO2 emissions at these plants during the year. Linde was allocated emissions allowances for around 0.9 million tonnes of CO2 in 2015. Further certificates were purchased.

In the reporting year, we identified some 200 projects around the world that helped reduce our energy consumption and CO2 emissions. Implementing these projects generated cost savings of over EUR 23 m in 2015 and avoided around 160,000 tonnes of CO2 emissions. For example, we increased the energy efficiency of compressors at 14 production sites by replacing old installations with new and more energy-efficient models. As a result of these projects alone, we achieved cost savings in the reporting year of over EUR 1.6 m.

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Energy consumption (in million MWh)

 

 

 

 

 

 

 

 

 

 

 

2015

 

2014

 

2013

 

2012

Geprüft von KPMG

Assured by KPMG

1

Examples of other energy sources are heating oil, biofuel energy, propane, butane, thermal energy and diesel fuel. From 2015, this figure also includes diesel consumption by Linde’s transport contractors. The 2014 figure has been recalculated.

As a result of the application of the revised accounting standards, the sites in the scope of our reporting changed in the 2013 financial year. Accordingly, the key financial, environmental and employee KPIs for 2012 were adjusted retrospectively. In addition, the KPIs for employees, occupational health and safety and environmental protection for the year 2012 were retrospectively adjusted to account for the effects of the acquisition of the US homecare company Lincare.

Electricity consumptionGeprüft von KPMG

 

26.8

 

26.2

 

23.4

 

23.5

of which by air separation plantsGeprüft von KPMG

 

23.9

 

23.5

 

20.7

 

20.8

Natural gas consumptionGeprüft von KPMG

 

39.5

 

39.5

 

36.4

 

35.9

of which by HyCO plantsGeprüft von KPMG

 

25.4

 

24.9

 

23.0

 

22.8

Consumption of other energy sources1 Geprüft von KPMG

 

12.6

 

12.2

 

14.8

 

13.4

In Europe, we worked on the implementation of the provisions of the European Union’s Energy Efficiency Directive (EED). These include regular energy audits for companies at production sites, distribution sites and offices, or alternatively certification in accordance with ISO 50001. The global standard testifies to systematic energy management, which allows efficiency potential to be recognised. Since 2012, around 85 percent of Linde Gas production plants in Germany have been certified according to ISO 50001. We are also exploring the use of renewable energy, the current level of which largely reflects the energy mix applicable in the various regions.

In the US State of California, we won the 2015 COOL Planet Award presented by Southern California Edison and non-profit organisation The Climate Registry in recognition of our energy management and commitment to reducing greenhouse gases.

Products for energy efficiency and climate protection

We offer our customers various solutions to make production and energy generation processes more environmentally friendly. Our gases and technologies help our customers to reduce emissions to a large extent. In oxyfuel plants, which are used for example by the glass and steel industries, the combustion air is enriched with oxygen, resulting in much more efficient combustion than if normal ambient air was used. Hydrogen produced by Linde is utilised by the oil industry in desulphurisation. Desulphurised fuel combined with a filter significantly reduces emissions of soot particles, which like CO2 contribute to the greenhouse effect. In 2015, the use of these two technologies alone by our customers avoided around 30 million tonnes of CO2.

Our products are also deployed in the mobility sector to reduce environmental pollution. The use of liquefied natural gas (LNG) or hydrogen reduces or eliminates emissions from cars, buses, trucks and ships. We are investing in the development of forward-looking, efficient refuelling technology as well as cooperating with partners to set up a supply infrastructure. In the UK, we introduced cryogenic refrigeration trucks in 2015 which use liquid nitrogen as the refrigerant. Not only do these trucks emit 64 percent less CO2 than conventional trucks with diesel-powered refrigeration units, they are also significantly quieter. This means that they can be used around the clock even in urban areas with noise restrictions.

In addition, we are researching projects involving the recycling and storage of CO2. In Germany, we opened our own Pilot Reformer research facility in Pullach in 2015. New processes for the production of synthesis gas using CO2 will be tested at this facility. In Sweden, Linde won an environmental award in the reporting year for a process which converts the waste product CO2 into carbonic acid, which can be used in the drinks industry, in freezing or in firefighting.

Materiality: Energy and climate protection

Key indicators

  • CO2 emissions
  • Energy consumption
  • Energy efficiency

Targets

  • - 5 percent energy intensity at installed air separation plants by 2017 (base year 2008)
  • - 6 tonnes of CO2 emissions in our HyCO plants and air separation plants by 2020 (base year 2009)

Business case

Financial

  • Cost savings of EUR 23 m as a result of energy efficiency projects in 2015
  • Contribution towards the target of reducing gross costs by a total of between EUR 750 m and EUR 900 m in the four-year period from 2013 to 2016 
  • Contribution towards the target for Group operating profit in 2017 as a result of products in the energy and environmental sector, gaining access to new markets and customers 

Environmental

  • 2.5 million tonnes of CO2 emissions avoided since 2008 due to improvement in energy intensity at air separation plants

Corporate governance

  • Compliance with legal and regulatory provisions