Quarterly Report Climate Q1/2023

After a slight delay, the first quarterly report Climate for the year 2023 is finally available.
WEROCK continues to grow and with it the real emissions that arise from production and logistics.
Since a few days, the last three nuclear power plants in Germany are now off the grid, which provides for increased emissions from gas and coal-fired power plants. All in all, a very unsatisfactory action and motivation for us to get even more involved.

Emissions

As already expected, emissions resulting from the production and logistics of our products decreased by about one third in the first quarter compared to the fourth quarter of 2022, but were about three times as high as in the first quarter of 2022. This is due to the enormous growth WEROCK has experienced. As before, emissions are not calculated exactly, as we lack the internal resources to do so. All emissions are recorded in accordance with the scope concept from the Greenhouse Gas Protocol. In the first quarter, more than 97% of emissions were indirect external emissions (Scope 3 emissions), as manufacturing is carried out by external partners.

Offsetting

Unfortunately, computers cannot be manufactured in a climate-neutral way. Part of our corporate philosophy is to offset emissions that cannot be avoided at the moment, so that we are at least carbon neutral on balance. To offset our emissions, we invest money in sustainable projects. In the end, our products are climate neutral through offsetting. You can find out who receives these funds and how they are used regularly in our quarterly climate report. At all times, we pay attention to projects with high standards that meet at least five of the 17 United Nations Sustainable Development Goals.
In the past, we have already supported the construction of a 22.5 megawatt wind power plant in the state of Rajasthan in India (on the border with Pakistan). Unfortunately, the project is still not fully financed. Our local partner is Orange Renewable Power Pvt Ltd, an operator of wind turbines and solar parks. Unfortunately, the project is still not fully financed, which is why we want to support the project again. Wind and solar power are in our eyes extremely important helpers for the energy transition. The project fulfills five Sustainable Development Goals of the United Nations:

Goal 3 - Good Health and well-being

Ensure healthy lives for all people of all ages and promote their well-being.

In collaboration with the Madhya Pradesh State AIDS Control Society, motivational workshops were held for HIV-infected and AIDS sufferers, and the importance of anti-retroviral therapy to their lives was communicated, benefiting over 60 people. Regular organization of camps/rallies for smoking cessation and sensitization of the participants.

For project implementation, 21.6 km of roads were built in the villages near the project, which are now available to the general public.

Access to clean water: water tanks and water treatment plants were installed, benefiting the public on a large scale, providing easy access to clean and safe drinking water. Clean India: development of sanitation facilities such as the construction of toilets in public places.

Goal 4 - Quality education

Ensure inclusive, equal and quality education and promote lifelong learning opportunities for all.

Help the underprivileged: distribute computers, bicycles and stationery to orphanages, benefiting more than 60 children, and distribute clothing to homes for the elderly. Distribution of necessary infrastructure such as furniture, school supplies including stationery, math and science materials, sports materials and scholarships to deserving students of more than 25 schools, benefiting more than 5,000 children.

Organized large medical camps in surrounding villages and distributed free medicines in the camps, benefiting over 1000 people in 7 villages. Education programs on nutrition, prenatal care, sexually transmitted diseases (STD) and hygiene were also conducted.

Goal 6 - Clean Water and Sanitation

Ensure availability and sustainable management of water and sanitation for all.

Installation of a hand pump in Mutidham, Tada village. This pump is for public use and helps reduce the pressure on women to walk long distances for clean water.

Deepen pond in Tada village to improve capacity and access to water.

Goal 8 - Decent work and economic growth

Promote durable, broad-based and sustainable economic growth, full and productive employment and decent work for all.

The project has resulted in the creation of 730 direct jobs during the construction phase (including laborers, supervisors, and engineers), of which 266 have been hired locally. The project has also provided permanent employment for 76 people.

Goal 13 - Climate Action

Take immediate action to address climate change and its impacts.

Of all the compensatory measures, Goal 13 is, of course, the most important for us. Nevertheless, sustainable climate protection in developing areas cannot be achieved without strengthening the local infrastructure, because ultimately the climate protection projects should also have a long-term character.

In addition to the construction of the wind turbines, which are in themselves a significant climate protection measure, tree planting campaigns are regularly carried out in schools, substations and public places.

Progress

We are pleased that more and more indirect partners are also increasing their commitment to climate protection. In line with the climate protection slogan “acting consciously”, the e-systems group is proactively pursuing its continuous climate protection path, thus keeping an eye on the impact of its actions on the climate. E-Systems is our partner when it comes to proper licensing and professional disposal of our products.
On the basis of prepared climate protection balances, the calculated CO2 emissions from Scope 1 and Scope 2 were compensated. As an offset measure, the company participated in the Guacamaya Program in Honduras, which promotes the development of small run-of-river power plants connected to the state power grid in remote and underdeveloped regions. In the future, the company aims to establish and implement as many reduction measures as possible so that less and less compensation will be required over time.
WEROCK is also continuously working to reduce real emissions, but as a still quite small company, a complete climate accounting (including scope 3 emissions) is not beneficial. We prefer to invest the budgets that would be necessary for the preparation directly in climate protection projects. In this way, we reduce our emissions, but due to the calculation formula, smaller measures are not yet reflected in the emissions data.

Setbacks

Fortunately, we have no specific setbacks to report for the first quarter. Due to our move to a larger area, we are now able to keep larger quantities in stock, which not only improves our ability to deliver to our customers, but also enables a higher consolidation of shipments, resulting in lower logistics emissions.

Outlook

Due to the new office and increasing headcount, our Scope 1 & 2 emissions are also increasing. For the coming quarter, we expect emissions to be similar to those in the first quarter, with a slight upward trend due to a good order situation.
We have already achieved a lot at WEROCK in the first quarter, but we still have a lot to do this year and I would be delighted if you would join us on our journey.
You too can help. Equip your employees with durable, robust devices from WEROCK. This will bring you climate-neutral, modern technology that will improve your company’s efficiency. At the same time, our profits allow you to do even more in the area of climate protection. I am looking forward to your inquiry!

Your Markus Nicoleit

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