Energy & climate protection

Energy and climate protection

Linde is an energy-intensive company and therefore requires a reliable and competitively priced energy supply. We have established global energy management of plants and processes around the world. The aim is to use energy efficiently and to reduce emissions. We control our energy consumption and greenhouse gas emissions worldwide and report thereon, complying with the provisions of the Corporate Accounting and Reporting Standard (scope 1 and 2) of the Greenhouse Gas Protocol Initiative convened by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). We offer our customers gases and technologies which reduce the consumption of natural resources and promote the use of renewable energy.

Global target
Goal

-6 million

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

Measures
  • Technical improvements in plant design
  • More efficient production processes
Status

-4.1 million

tonnes of CO2

Global targets

Most of the electricity required by Linde is used in our air separation plants. Around 60 percent of our total CO2 emissions are the by-product of the generation of this electricity by energy providers and are reported by us as indirect emissions. Our direct emissions, which are lower than our indirect emissions, stem mainly from the operation of hydrogen and synthesis gas plants (HyCO plants).

Climate protection target: avoidance of 6 m tonnes of CO2 by 2020 (in m t, cumulated)
Climate protection target: avoidance of 6 million tonnes of CO2 by 2020 (bar chart)

By 2020, we are seeking to avoid a total of 6 million tonnes of CO2 emissions, of which 4.8 million tonnes in air separation plants (scope 2 emissions) and 1.2 million tonnes in HyCO plants (scope 1 emissions). The comparison will be made with the base year 2009. To meet this target, we are focusing on technical improvements in plant design and more efficient production processes in our HyCO and air separation plants. By the end of 2017, we had avoided a total of 4.1 million tonnes of CO2 emissions, of which 0.9 million tonnes were direct emissions and 3.2 million tonnes were indirect emissions. In 2017, we identified more than 170 projects worldwide that helped reduce our energy consumption and CO2 emissions – for example, by using more efficient compressors and by exchanging valves. Implementing these projects generated cost savings for the Group of more than EUR 18 m. We avoided around 126,000 tonnes of CO2 emissions as a result. In 2017, for example, we modernised an air separation plant in Ningbo in China, thereby reducing energy consumption by around 4 percent. This saved around 10,000 tonnes of CO2 in the reporting year. The modernisation also enabled us to reduce our costs by around EUR 1.5 m.

Our climate protection measures also focus on the transportation of our products. Optimised routes, better use of transport capacity and defensive driving training help us to 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 emissions1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

2015

 

2014

 

2013

1

In line with the information in the Financial Report 2017, the figures provided for the years 2015, 2016 and 2017 exclude the business of the logistics service provider Gist, as it has been reported as a discontinued operation.

2

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

3

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.

4

In order to calculate our indirect CO2 emissions we are using site specific factors from the energy provider if available. Wherever such factors are not available we use factors from the International Energy Agency from 2011.

5

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.

Lagebericht 2014

Included in the audited Non-Financial Report

Geprüft von KPMG

Audited by KPMG

Direct greenhouse gas emissions (Scope 1)Geprüft von KPMG

 

 

 

 

 

 

 

 

 

 

CO2 emissionsGeprüft von KPMG

million t

 

Lagebericht 2014 8.3

 

Lagebericht 2014 7.0

 

7.1

 

7.3

 

7.2

of which by HyCO plantsGeprüft von KPMG

million t

 

Lagebericht 2014 5.7

 

Lagebericht 2014 4.7

 

4.0

 

4.0

 

4.2

Linde transport fleet2Geprüft von KPMG

million t CO2e

 

Lagebericht 2014 0.76

 

Lagebericht 2014 0.80

 

0.78

 

0.88

 

0.49

Other greenhouse gases3Geprüft von KPMG

million t CO2e

 

Lagebericht 2014 1.9

 

Lagebericht 2014 1.8

 

1.7

 

1.5

 

1.5

TotalGeprüft von KPMG

million t CO2e

 

Lagebericht 2014 11.0

 

Lagebericht 2014 9.6

 

9.6

 

9.7

 

9.2

 

 

 

 

 

 

 

 

 

 

 

 

Indirect greenhouse gas emissions (Scope 2)4Geprüft von KPMG

 

 

 

 

 

 

 

 

 

 

CO2 emissionsGeprüft von KPMG

million t

 

Lagebericht 2014 17.4

 

Lagebericht 2014 16.2

 

15.4

 

15.0

 

13.0

of which by air separation plantsGeprüft von KPMG

million t

 

Lagebericht 2014 15.9

 

Lagebericht 2014 14.7

 

13.7

 

13.5

 

11.8

 

 

 

 

 

 

 

 

 

 

 

 

Total Scope 1 and 2 emissionsGeprüft von KPMG

million t CO2e

 

Lagebericht 2014 28.4

 

Lagebericht 2014 25.8

 

25.0

 

24.7

 

22.2

Emissions per million EUR sales

t CO2e

 

1,657

 

1,522

 

1,440

 

1,449

 

1,333

Emissions per Linde employee

t CO2e

 

492

 

432

 

418

 

377

 

350

 

 

 

 

 

 

 

 

 

 

 

 

Other indirect greenhouse gas emissions (Scope 3)

 

 

 

 

 

 

 

 

 

 

Business travel5Geprüft von KPMG

thousand t CO2e

 

53.0

 

58.7

 

68.5

 

72.9

 

81.0

Energy consumption

Our energy consumption increased by around 8 percent in 2017 compared with 2016. The increase in our energy consumption over the past few years is mainly due to the expansion of our business operations. Other factors which may have an impact on our energy consumption are fluctuations in product demand and capacity utilisation at individual plants. Most of the increase relates to the consumption of natural gas, which has risen mainly as a result of the coming on stream of new HyCO plants in Saudi Arabia and Finland.

In 2017, we took part in the European Union’s Emissions Trading System at ten of our hydrogen and synthesis gas production sites. There were around 1.2 million tonnes of CO2 emissions from these plants during the year. Our Group was allocated emissions allowances for around 0.9 million tonnes of CO2. The remaining certificates were additionally procured.

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Energy consumption (in million MWh)1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

2016

 

2015

 

2014

 

2013

1

In line with the information in the Financial Report 2017, the figures provided for the years 2015, 2016 and 2017 exclude the business of the logistics service provider Gist, as it has been reported as a discontinued operation.

2

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.

Lagebericht 2014

Included in the audited Non-Financial Report

Geprüft von KPMG

Audited by KPMG

Electricity consumptionGeprüft von KPMG

 

 

Lagebericht 2014 28.9

 

Lagebericht 2014 27.5

 

26.8

 

26.2

 

23.4

of which by air separation plantsGeprüft von KPMG

 

 

Lagebericht 2014 26.3

 

Lagebericht 2014 24.8

 

23.9

 

23.5

 

20.7

Natural gas consumptionGeprüft von KPMG

 

 

Lagebericht 2014 45.1

 

Lagebericht 2014 39.4

 

39.5

 

39.5

 

36.4

of which by HyCO plantsGeprüft von KPMG

 

 

Lagebericht 2014 33.8

 

Lagebericht 2014 29.3

 

25.4

 

24.9

 

23.0

Consumption of other energy sources2Geprüft von KPMG

 

 

Lagebericht 2014 11.7

 

Lagebericht 2014 12.8

 

12.1

 

12.2

 

14.8

Total energy consumptionGeprüft von KPMG

 

 

Lagebericht 2014 85.7

 

Lagebericht 2014 79.7

 

78.4

 

77.9

 

74.6

We are continuing to work on the implementation of the provisions of the European Union’s Energy Efficiency Directive (EED). This includes regular energy audits for companies at production sites, distribution sites and offices, or alternatively energy certification in accordance with ISO 50001. In Germany, for example, all filling plants are certified in accordance with ISO 50001.

We keep the use of renewable energy in our production under constant review. The current level of use of renewable energy largely reflects the regional energy mix available in each country. In Germany, we extract our medical oxygen CONOXIA® using only electricity from renewable energy sources. In 2017, this covered 40,000 MWh of our electricity consumption.

UNGC Indicators

Sustainable Development Goals