GREENHOUSE GAS BALANCE SHEET - SCOPE 3.4

In addition to a small number of direct shipments (drop shipping), the substantive part of our business involves ensuring permanent delivery capability to enable us to deliver to our customers at short notice. For this purpose, we have two warehouse locations in Germany. When taking the transport-related greenhouse gas emissions into account, we decided not to include the related goods transport routes in the GHG balance until the goods have been sold and delivered. In this way, we map the entire transport route of the goods for each delivery, i.e. from the production site to the customer's factory gate, within a financial year, . Any inventory quantities as of the balance sheet date are therefore not taken into account and only accounted in the delivery for the following year.

When determining the transport routes, we only consider the part that we commission from logistics service providers and for which we therefore also bear the direct transport costs. We can only control this section of the supply chain ourselves and this also applies to possible measures to reduce greenhouse gas emissions. As a quality and service-oriented company, it is our concern to be responsible for all logistics processes for all of the goods we buy and sell. At the moment this is not fully possible, but we are gradually working on our own logistics.

The distances are calculated in accordance with the data provided by Google Maps . The determined distance relates only to the shortest distance between two locations. A precise examination of the actual distance covered between the exact addresses is not carried out for reasons of effort. In the rare event of a delivery within one location, it is not therefore listed as a transport route in the evaluation. Sea transport distances are determined with the help of the platform: EcoTransITworld.

Against the background of effort and relevance, only shipments of 50 KG or more are recorded (except for the Neocarmin and FESAGO® indicator spray products). Consequently, sample shipments (usually 0.5-1 KG) are excluded from the balance sheet.

Between European seaports and our warehouse locations, the shipments we commission are carried out by inland waterway or freight train as standard and only by truck in exceptional cases. The means of transport actually used on these routes can only be determined retrospectively with great effort, which is why we cannot yet make a distinction between inland waterway vessels, freight trains and trucks in the present greenhouse gas balance sheet. We therefore assume that the most unfavourable emission factor, transport by truck, is used on these routes. Starting with the GHG balance 2020, we will be able to distinguish between the means of transport actually used and show them separately.

Assumptions: ship utilisation 70% | 11 tons per TEU

The Trade Lane Emission Factors of the Clean Cargo Working Group form the basis here

Applied according to CCWG Carbon Emissions Methodology 2015

Example:
CO2e/TEU*Km * 1.086 [factor upstream] / 11 [∅-load per TEU in tons] = 3.0112 g
CO2e/t*Km / 70% [∅-utilisation of container ship]) / 1000 = 0.005 kg CO2e/t*Km

The calculated distances for sea transport were increased by 15% in accordance with the CCWG Carbon Emissions Methodology 2015 to take detours through different ports into account:

Assumptions: Capacity 24t, fuel: diesel, pollutant class, Euro-5, road category: average value, degree of loading 60% and proportion of empty trips 20%, corresponding to 50% capacity utilisation (see Ecotransit Methodology 2018)

0.0823 kg CO2e/t*Km (including upstream chain)

Our FESAGO®products are usually sent by courier service. These deliveries are usually picked up in a smaller transporter, reloaded in the distribution centre and then transported by truck, freight train or plane before delivery is again carried out in a smaller transporter. An exact representation of these shipments is therefore not possible, which is why we use an emission factor here, which should reflect the combination of the means of transport used. Accordingly, this lies between a small delivery vehicle (small shipment quantity,  relatively high CO2 emissions per unit of measure) and a classic truck (large shipment quantity,  lower CO2 emissions per unit of measure):

Assumptions: Trucks, capacity 3.5-7.5 t, fuel: diesel, pollution class Euro-5, road category: average value, capacity 3 t, utilisation 50%.

0.247 kg / ton*km (incl. upstream chain)

Would you like to find out more about our overall 2018 balance sheet? Here you will find a detailed overview of our 2018 greenhouse gas balance sheet in accordance with the GHG and with all associated sources.