Performance review

Environment

Glass is a sustainable packaging material because it is manufactured from natural raw materials, and can often be 100% recycled without limitations. Nevertheless, there is great potential for improvement within the industry for making production more sustainable in the long term. We therefore aspire to evolve as a glass producer known as a pioneer of environment-friendly practices and products.

«Clearly Sustainable» is the primary pillar of our Strategy 2030. We want to play a decisive role in shaping the green transformation in the glass industry as a pioneer. To achieve this goal, we pursue a holistic approach to sustainability based on two main initiatives:

  • Continuously reducing the environmental footprint of all business activities and
  • Closing material cycles in the value chain.

Because: in the glass industry, it is the energy-intensive melting processes that generate the main impact on the environment and natural resources. As regards the supply chain, the primary factors influencing energy efficiency are processing of raw materials and packaging materials on the one hand, and transportation of raw materials and finished products on the other. Since these aspects account for the majority of our environmental impact, these are also the areas where we need to focus our efforts.

We have established key indicators as well as relevant short-, medium- and long-term targets so we can measure progress towards these objectives.

Chapter our focus: Clearly Sustainable

Energy efficiency and lower greenhouse gas emissions

Central elements of our environmental protection efforts are the improvement of energy efficiency and the reduction of greenhouse gas emissions. We have the greatest leverage in these areas when repairing furnaces or building new ones. We aim to improve energy efficiency by 10% to 15% with every furnace renovation. In addition, we are gradually evaluating fundamental technical changes such as the conversion to oxy-fuel, hybrid or fully electric furnaces. To this end, we participate in various research projects that focus on new technologies to reduce greenhouse gas emissions in glass production: our membership of International Partners in Glass Research (IPGR) is just one example.

We also aim to achieve climate-neutral internal logistics by 2030. To achieve this, we will (for example) switch our vehicle and forklift fleet to alternative drive systems. We are also making additional investments to optimise our supply chain and shift transport from road to rail.

By pledging to minimise the impact of our glass production on the environment, we are contributing actively to attaining the UN’s Sustainable Development Goal (SDG) 13: Climate Action.

Progress and events in the reporting year

Science-based targets to reduce emissions

In the «Clearly Sustainable» pillar of our Strategy 2030, we have established relevant key indicators as well as short-, medium- and long-term emission reduction targets: we aim to reduce CO₂ emissions per metric ton of glass produced by 30 percent (against the 2019 benchmark). In November 2022, we also committed to the Science Based Targets initiative (SBTi) and defined near-term Group-wide emission reduction targets in line with climate science.

Media release: «Vetropack participates in Science Based Targets initiative (SBTi)» (11 November 2022)

Supplier Leadership on Climate Transition (Supplier LoCT)

In 2022, we completed the analysis modules on our own operations (Scopes 1 & 2) as part of the Supplier Leadership on Climate Transition (LoCT) initiative – and we will continue by focusing on Scope 3 emissions as the next step.

Media release: «Vetropack participates in Science Based Targets initiative (SBTi)» (11 November 2022)

Energy management system and energy efficiency

We are currently rolling out a new energy management system – Siemens Simatic Energy Management PRO – to boost the energy efficiency of our furnaces. This system was developed specifically for Vetropack and is designed to optimise energy consumption management while evaluating improvement potential. Simatic Energy Management PRO monitors strategic, economic and technical factors related to energy management and includes add-on functions for structured energy procurement.

A parallel system was introduced at our plants in Croatia and Austria during the period under review, and we also collaborated with Montanuniversität Leoben (Austria) to investigate further potential for energy-saving.

A new glassworks for a new era

We are investing in a new flagship facility to serve the long-established Italian market. This cutting-edge production plant is due to start operating in 2023 at Boffalora sopra Ticino near Milan, not far from our existing site. The new facility is designed to ensure maximum future viability, flexibility and sustainability.

This project aims to reflect our comprehensive understanding of sustainability. The new factory is intended to be a flagship facility, especially in terms of environmental protection. We have therefore invested intensively to ensure that production in the new plant can be as environment-friendly and resource-efficient as possible.

Our measures to enhance sustainability in the new site:

  • Remediation of the contaminated industrial site
  • Re-use of material from the demolition of the original buildings and installations
  • Low noise emissions 
  • Energy-efficient processes and production equipment (e.g. utilisation of waste heat)
  • Production of green electricity from photovoltaic systems
  • Reduced emissions thanks to latest filtration systems (dust and NOx)
  • Low water consumption ensured by use of closed-loop systems
Media release «Vetropack builds new plant in Italy: state-of-the-art equipment and more sustainability» (21 November 2022)Vetrotime article: «Vetropack builds new production site in northern Italy» (Vetrotime 01.2022, p. 4)

Photovoltaic energy

In 2022, we collaborated with VERBUND (Austria's leading energy company) to install a photovoltaic system on the roofs of our Kremsmünster plant in Austria. The electricity is used directly in the plant for more sustainable glass production.

The plant is to be expanded in several stages. In the first stage of expansion, completed in August 2022, the system already began producing enough solar power to theoretically supply electricity for approximately 400 households in one year.

Vetrotime article: «Clearly Sustainable: using the sun’s power for ourselves» (Vetrotime 01.2022, p. 17)

Disclosures

GRI 302: Energy 2016

302-3 Energy intensity

Key environmental indicators

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

Key environmental indicators

305-2 Energy indirect (Scope 2) GHG emissions

Key environmental indicators

305-4 GHG emissions intensity

Key environmental indicators

Circular economy and resource efficiency

Alongside energy consumption and the associated emissions, consumption of resources is the most significant environmental impact generated by the glass industry. To ensure that glass is manufactured ecologically, it is essential to use a high proportion of cullet (recycled glass) in production – so we have set ourselves the goal of achieving a cullet share of 70 percent by 2030.

Share of used glass in the glass production

in %

Used glass ratio for glass production 2022

(by Group Company)

Used glass ratio for glass production 2022

(by colour)

The availability of high-quality cullet is a major challenge in this regard. In many countries where Vetropack operates, cullet collection rates are significantly lower than in Switzerland or Austria (for instance). Contamination with foreign materials (such as ceramics) can present an additional problem. To overcome these challenges, Vetropack is promoting measures that increase collection rates and cullet quality.

Vetrotime article: «Glass – the infinitely recyclable packaging» (Vetrotime 01.2022, p. 22)

Encouraging sustainable consumption

Because it can be recycled, glass is perceived as a sustainable packaging material. Vetropack is thus in a position to encourage sustainable consumption patterns in keeping with SDG 12: «Responsible Consumption and Production» and SDG 13: «Climate Action».

Reducing our water footprint and waste volume

Alongside this focus on the circularity of our main raw material (as just mentioned), we also aim to reduce our water footprint and volume of waste generated. In glass production, water is only used as a coolant and is circulated in a closed-loop system; this means that the process as such is already very economical on resources. Waste is mainly generated during the processing of used glass, due to the large amounts of foreign materials that are deposited in collection containers.

Progress and events in the reporting year

New «Vetrocycling» plant in Pöchlarn

To separate residual substances such as metals and paper more efficiently, we have invested in a new «Vetrocycling» plant at Pöchlarn (Austria). Since this does not impair the quality of the glass and as processing is also improved, a larger share of cullet can be used in the melt.

Reconstruction of the recycling line in Nemšová

As sand becomes more scarce, the global glass industry is under growing pressure to step up its utilisation of used glass. But in Slovakia, the situation is difficult because glass containers sorted by colour have been abolished there and a mix of brown, green and white cullet is not suitable for producing white glass.

The line that has been operating since 2008 was unable to separate out enough white glass from the mix. This prompted our decision to convert the plant so as to maximise the yield of used white glass. Thanks to a 50 percent increase in the plant’s capacity, we can now process around 140,000 metric tons of cullet each year. We expect the glassworks to save about 4,100 tonnes of original raw material – and as an additional benefit, greenhouse gas emissions will be slashed by 550 metric tons. For a 10% increase in the share of cullet in the volume of glass, energy savings are about 3% and greenhouse gas emissions are cut by 7%.

Thanks to the investment in this plant, we are now the only processor in the country to meet current and future requirements for the recycling of used glass.

Vetrotime article: «Reconstruction of the recycling line in Nemšová» (Vetrotime 01.2022, p. 16)

Disclosures

GRI 303: Water and Effluents 2018

303-1 Interactions with water as a shared resource

In our glass production facilities, water is mainly used as a coolant in a closed-cycle system and is only replaced very occasionally. Water consumption is therefore of minor importance. 

Key environmental indicators

303-2 Management of water discharge-related impacts

Vetropack undertakes to comply with the wastewater discharge regulations that apply to its production sites. If Vetropack identifies a deviation, action is taken immediately in cooperation with the responsible authorities.

Key environmental indicators

303-3 Water withdrawl

Key environmental indicators

GRI 306: Waste 2020

306-3 Waste generated

Key environmental indicators

Key environmental indicatory

 

2022

in %

2021

in %

Total energy consumption in GWh

2 563

 

3 188

 

Electricity

439

17%

546

17%

Natural gas 1)

2 124

83%

2 641

83%

Specific energy consumption in MWh/t 2)

1.72

 

1.96

 

Greenhouse gas emissions in tCO2e 3)

650 995

 

718 373

 

Scope 1 (heat)

430 024

66%

482 823

67%

Scope 1 (process emissions) 4)

126 488

19%

123 018

17%

Scope 2 (electricity) 5)

94 482

15%

112 532

16%

 

 

 

 

 

Specific greenhouse gas emissions in tCO2e/t

0.433

 

0.441

 

 

 

 

 

 

Material consumption: recycled glass

 

 

 

 

Used glass green

66%

 

63%

 

Used glass brown

71%

 

61%

 

Used glass white

41%

 

41%

 

 

 

 

 

 

Water in m 3

 

 

 

 

Total water withdrawal

1 418 023

 

1 319 963

 

Municipal water supply

336 320

24%

318 839

24%

Groundwater

1 081 703

76%

1 001 124

76%

Total water discharge

1 386 172

 

1 227 932

 

 

 

 

 

 

Waste disposal in tons

66 614

 

80 883

 

Non-hazardous waste

64 682

97%

74 210

92%

of which continuously (routinely generated)

64 073

99%

73 433

99%

of which produced sporadically (extraordinary event) 6)

609

1%

776

1%

Hazardous waste

1 932

3%

6 673

8%

of which continuously (routinely generated)

1 673

87%

3 189

48%

of which produced sporadically (extraordinary event) 6)

260

13%

3 484

52%

1) Incl. 5.0 GWh heating oil in 2022 and 10.6 GWh heating oil in 2021.

2) Per tonnage of glass produced that satisfies all quality and safety requirements thus qualifying for sale.

3) Greenhouse gas inventory calculated in accordance with the Greenhouse Gas Protocol.

4) The method on calculating process emissions has been optimized for 2022 and is – for the first time- based on the actual consumption of materials used. Until 2021, an average sector methodology was applied for the calculation of emissions.

5) Emissions for 2021 and 2022 are calculated acc. to the "market-based approach" (using energy certificates - where available - which represent approx. 43% of overall electricity consumption). The optimized method leads to a correction of calculated emission numbers for the reporting year 2021 compared to the last report. According to the “location-based approach”, 113'371 tCO2e and 131'151 tCO2e result for 2022 and 2021, respectively

6) Waste not generated every year from ongoing operations (e.g. furnace repairs).

Total energy consumption (GWh)

947,4

Mio. CHF

Greenhouse gas emissions by source (t CO2e)

947,4

Mio. CHF

Mixing ratio raw materials and used glass

947,4

Mio. CHF