Quarterly Report Climate Q1/2024

WEROCK continues to grow and with it the real greenhouse gas emissions caused by production and logistics. This article shows you which emissions were generated in the first quarter, how we dealt with them and what we are doing to reduce them.

The global community’s fourth and penultimate round of negotiations to combat plastic pollution is in full swing. Since 2022, efforts have been underway to reach a legally binding global plastics agreement. The conference will take place in Ottawa, Canada from April 23-24, 2024.

Our government will also be represented at a high level by Federal Environment Minister Steffi Lemke. The focus will be on a sustainable circular economy. The goal is to produce less plastic and minimize long-term environmental damage. However, plastic waste consists of many different types of plastic whose properties make recycling difficult. The aim is to create incentives and change the way plastic waste is treated, recognizing it as a valuable raw material.

It remains to be seen what politicians will agree on. They have been trying to reach an agreement since 2022, and hopefully the final round of negotiations at the end of 2024 will set clear targets and how to implement them. One thing is certain: the changes will affect individuals and businesses alike, but hopefully they will result in a better environmental balance.

Some countries already have strict regulations against plastic pollution. In Kenya, plastic bags were clogging sewers and threatening drinking water supplies. As a result, in 2017, the Kenyan government passed the toughest law yet against plastic bags. Violators face fines and up to four years in prison. In Rwanda, a law against plastic bags was passed in 2008 that includes not only fines, but also education in schools about the consequences of plastic. Costa Rica has set a goal of completely eliminating single-use plastics by 2021 and replacing them with biodegradable materials. Our neighbor, France, will phase out single-use utensils by 2020, having already banned plastic bags from everyday life in 2017. Other countries are also taking big steps to tackle plastic pollution.

These steps are a good start, but all countries need to take further and stronger action against plastic pollution before we choke on it.

Emissions

As expected, our emissions from the manufacturing and logistics of our products decreased by 32.52% in the first quarter of the new year. However, a comparison with the first quarter of last year shows a significant increase in emissions, mainly due to the strong growth of the company. It is still not possible to calculate emissions precisely, as we do not have the internal resources to do so. All emissions are reported according to the scope concept of the Greenhouse Gas Protocol. In the first quarter, more than 97.7% of emissions were attributable to indirect external emissions (Scope 3 emissions), as production is carried out by external partners. Indirect emissions from purchased energy (Scope 2) and direct emissions (Scope 1) also increased by 0.91% due to the expected lower production volume.

Offsetting

Unfortunately, computers cannot be manufactured in a carbon neutral manner. Part of our corporate philosophy is to offset the emissions that cannot be avoided at this time in order to be carbon neutral, at least on our balance sheet. To offset our emissions, we invest money in sustainable projects. Offsetting makes our products carbon neutral. You can find out who receives these funds and how they are used in our quarterly climate report. We always look for projects with high standards that meet at least five of the United Nations’ 17 sustainability goals.

In the past, we supported the construction of a 22.5 megawatt wind farm in the Indian state of Rajasthan (on the border with Pakistan). Our local partner is Orange Renewable Power Pvt Ltd, a wind and solar farm operator. For us, wind and solar power are important parts of the energy transition. The project will generate 45 GWh of clean electricity per year, enough to power 10,500 homes. The project meets all United Nations sustainability goals:

Goal 3 - Good Health and well-being

To ensure healthy lives and promote well-being for people of all ages. In collaboration with the Akhil Bhartiya Yuva Manch Delhi, the District Hospital and the Cancer Society, a cancer prevention and counseling camp was organized, benefiting 350 people. In addition, 100 children with cancer are sponsored annually through the "Adopt a Child" project to give them a fair chance of survival.

The project has created 88 permanent jobs. Of these, 55 are local employees.

Access to clean water: By constructing a borehole well with a submersible pump and water storage tank, Ambirama Secondary School provides a safe source of water for over 850 students and the local community.

Goal 4 - Quality education

Ensuring inclusive, equitable and high quality education and promoting lifelong learning opportunities for all.

Helping the underprivileged: Distribution of essential school supplies to 150 children in the village of Rampuriya. Bicycles were also distributed to 30 school girls to improve their mobility.

A medical camp for 450 people has been established in the same village. Preventive and curative treatments for common diseases and health problems can be offered there. This also reduces the spread of HIV/AIDS, diabetes and other diseases and infections

Goal 6 - Clean Water and Sanitation

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

Thanks to a 500-meter water pipeline, 100 girls in the government-run hostel now have access to safe and clean water. The police stations of Devgarh and Salamgarh have also been equipped with a water tank and purification system, benefiting both the staff and the community.

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 88 people.

Goal 13 - Climate Action

Take immediate action to address climate change and its impacts.

Goal 13 is, of course, at the forefront of all compensation measures. However, sustainable climate protection in developing regions is not possible without strengthening the local infrastructure, as 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 accordance with the climate protection motto “act consciously”, the e-systems group proactively pursues the path of continuous climate protection while keeping an eye on the effects of its actions on the climate. e-systems is our partner when it comes to the proper licensing and professional disposal of our products.

The calculated Scope 1 and Scope 2 CO2 emissions were offset through carbon offsetting. Great progress has been made in the packaging of our new Rockscan W100. It is very compact and completely plastic-free. The renovation of our office complex is also progressing. Thanks to the fast work of the construction workers, the building has already been insulated by an additional 25 percent.

In the future, WEROCK wants to identify and implement as many reduction measures as possible, so that less and less offsetting will be necessary over time. We are also continuously working to reduce our actual emissions, but as a relatively small company, a complete carbon footprint (including Scope 3 emissions) does not make sense. We prefer to invest the budget required to do so directly in climate protection projects. In other words, we use the “watering can” principle for additional environmental protection. This is how we reduce our emissions; due to the calculation formula, smaller measures are not yet reflected in the emissions data.

Setbacks

Despite repeated clear instructions, we still receive tablet cartons from one of our packaging suppliers that, for whatever reason, have some foam in the lid. In the interest of sustainability, we are using this box rather than returning it, as the material has already been used. We are keeping an eye on the matter to avoid this in the future.

Outlook

For the coming quarter, we expect a slight decrease in issuance. For the last two quarters, we expect issuance to increase due to the strong order book.

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 this journey. You too can join us. Equip your employees with durable and robust equipment from WEROCK. This will provide you with climate-neutral, modern technology that will increase the efficiency of your company. At the same time, we can use our profits to do even more for climate protection. We look forward to hearing from you!

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