Sustainability
Report 2022

We pass on the knowledge we have continuously built up and expanded over 65 years to our customers and business partners in the form of innovative and customized product solutions and services.

Our corporate slogan “When excellence matters” underlines our efforts to always offer our customers excellent products and services and to set standards in quality and service – with a clear focus on the respective added value for our customers, business partners and employees.

For this reason, we have committed to the Science Based Targets Initiative (SBTi) at the end of 2022. Under SBTi, we will set ourselves new targets for scopes 1, 2 and 3 to achieve the goals of the Paris Climate Agreement.

Once our SBTi targets are set, they will replace the emissions reduction targets in our “Strategy 2025“ and, together with the corresponding measures, will form an essential part of our sustainability strategy.

Comparable requirements (DIN EN 16247) also apply to the majority of the non-ISO-certified production sites in Europe. In addition, further data analysis systems for monitoring consumption are in use at the RKW Group‘s non-European sites.

After we converted all our German sites to electricity from renewable sources in 2020, five sites in France, Belgium and Sweden followed in 2021.

Due to the economic challenge caused by the Ukraine crisis and the resulting increase in energy costs, we were unable to further expand our renewable energy Renewable energies purchases in 2022. In 2022, we purchased renewable energy certificates for around 170,000 MWh, or over 61% of our global electricity consumption (around 270,000 MWh).

A pilot project was launched at the Gronau site (Germany) in 2021 to identify potential in the area of in-house power generation – e.g., for the use of photovoltaic systems. The aim is to develop a decarbonization strategy and define concrete investment measures, including those relating to own power generation. In parallel, we are evaluating further options for covering our energy needs with renewable energies for the entire RKW Group.

With the help of a group-wide energy management system, it has been possible to leverage this potential and at the same time establish best practices.

Pending the setting of our ambitious SBTi targets, we have set ourselves the short-term goal of reducing our energy consumption by 1% per year (kWh/t) for the years 2023-2025. Starting initially with 7 sites (5 in Germany, 1 in North America, 1 in Asia), we will expand our program to the remaining sites. The program analyzes the greatest potential at the focus sites and promotes measures that can be implemented quickly without bigger investment, such as optimizing the standby consumption of our sites. The next step is to make the investments that we expect will have the greatest impact and, wherever possible, install components of the best possible energy efficiency classes. Regular meetings are also held with the energy experts at the individual sites to share ideas and best practices.

Our energy experts at the sites are continuously assessing how the energy efficiency of the production facilities and infrastructure can be improved through targeted measures or investments. We are working to reduce our energy consumption through consistent savings measures and investments in highly efficient machines and lighting systems.

In addition to the further conversion to modern LED lighting systems and motion detectors at many sites, in 2022 we have also made investments in more efficient compressors and compressor controls (sites in Ho Chi Minh City/Vietnam, Hoogstraten/Belgium and Nordhorn/ Germany) or speed-controlled drive motors (Michelstadt/ Germany site), optimization of the cooling and heating supply for production and heating systems (sites in Wasserburg, Gronau and Kalefeld/Germany, and Hoogstraten) or the use of solar energy for water heating (Ho Chi Minh City site).

At the site in Helsingborg (Sweden), thanks to a new sophisticated cooling system, the surplus heat from production can be fully used to heat the site. This means that the site will no longer need to purchase district heating in the future.

In total, the RKW Group’s energy consumption in 2022 was around 320,000 gigawatt hours – of which 85% was electric power, 11% gas and 4 % other energy sources. The total energy consumption was reduced by 10% compared to 2021.

* Due to the insignificance (< 1%), only the consumption of main energy sources (stationary combustion, electricity, district heating) are reported here. The sites closed or sold since 2017 have been omitted from the calculation for consistency, in line with the GHG Protocol Corporate Standard. In parallel to absolute energy consumption, we measure our energy efficiency with an energy performance indicator (EnPI), which expresses our energy performance per metric ton of good production (kWh/t). Despite the energy efficiency measures implemented, this increased slightly in 2021 and 2022, opposite to the reduction in absolute energy consumption. This increase can be explained by various factors influencing the EnPI, e.g. the increased average outside temperature last year (more cooling capacity required) or also lower production volumes due to a drop in demand (shift of divisor).

Until 2020, the calculation of our Scope 1&2 GHG emissions focused on the consumption and resulting emissions of our main energy sources (gas, oil, electricity, district heating).

Since 2021, we have been reporting Scope 1&2 GHG emissions under our operational control in accordance with the GHG Protocol. Based on the complete recording of our data, we can target measures and investments where we see the greatest savings potential for our CO₂ emissions.

To ensure comparability, the data from 2021 were used as an approximation for recalculating emission sources that have not been previously recorded and are not reproducible. The emission factors for calculating the „location-based“ emissions come from publicly available databases such as the Association of Issuing Bodies, the Institute for Global Environment Strategies, and the United States Environmental Protection Agency. To calculate „market-based“ emissions, direct information from utilities was used where available. For emissions from stationary and mobile combustion, the emission factors from the Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle) were used. Sites closed or sold since 2017 were not included in the recalculation for consistency reasons in accordance with the GHG Protocol Corporate Standard.

The purchase of renewable energies and our energy efficiency measures led to a total reduction in CO₂ emissions of more than 70,000 metric tons – equivalent to a reduction of around 52%. We thus exceeded our strategic target of reducing CO₂ emissions by 50% (baseline 2017).

The initial results, including in the validated environmental statement from our Gronau (Germany) site, show that our Scope 3 accounts for around 95% (market-based approach) of the total emissions attributable to us. With 95%, the majority of our total emissions fall within Scope 3 and are therefore outside of our direct control. Nevertheless, we work with all relevant stakeholders, within the scope of our influence, to ensure that emissions are continuously reduced along the entire lifecycle.

We are already actively looking for ways to reduce the corresponding emissions. For example, further internal warehouse space was optimized in 2022 to avoid the use of external warehouses and additional transport. In addition, wherever possible and reasonable, we try to adjust order sizes – in consultation with our customers – so that transport capacities are utilized as optimally as possible.

However, the greatest opportunity for plastics processing companies to reduce Scope 3 emissions is the type of raw materials used. In the plastics industry, the use of sustainable raw materials (“sustainable feedstock“) is directly linked to drive circular economy (see Section “Circular Economy”).

To determine the GHG Protocol Scope 3 category “Employee Commuting“, we conducted a survey on our intranet at all sites and countries on the distance to the workplace and the choice of transport. Thanks to the numerous participants from our employees, we were able to compile representative data that will be used in our Scope 3 calculations.

Choosing the right packaging material is supported by life cycle analysis – a systematic analysis of the potential environmental impacts and energy footprint associated with all stages of the life cycle of a commercial product, process or service.

Recent life cycle analysis results from the Institute for Energy and Environmental Research in Heidelberg (Germany) confirm that PE-based bags such as our FFS sack RKW ProVent®, prevent at least 2% product loss during transportation and storage. For CO₂ intensive products such as cement, FFS PE sacks perform significantly better than paper sacks due to their protective and barrier properties (tear strength and moisture protection) and are therefore a beneficial solution that can minimize product losses and thus reduce the overall environmental impact.

The CO₂ emissions resulting from combustion, in addition to the combustion of energy sources, such as gas and oil for heat and steam generation, account for a not insignificant share of our direct CO₂ emission sources (Scope 1).

In order not only to keep the air as clean as possible, but also to make this as energy-efficient as possible, we are continuously optimizing our RTOs so that they can ideally run self-sufficiently (without feeding in additional fuel such as gas) and are also successively expanding heat recovery, of the heat generated by combustion.

We benefit greatly from the expertise of employees from a wide range of specialist areas, which enables us to find excellent solutions through joint exchange. Another great advantage is the internationality of the team, which enables us to observe and take advantage of global developments and options.

In Germany, employees at the Wasserburg, Gronau and Nordhorn sites carried out waste collection campaigns around the sites as part of their annual campaigns.

The Guangzhou site (China) honored the theme “We live sustainability“ with several activities at once: By promoting environmental awareness through posters and video messages, a walking activity, a garbage collection campaign, and a quiz on environmental protection.

Employees at our Saultain (France) site planted apple trees – for a healthy and sustainable supply of fruit for employees.

Acting sustainably – that was the goal of the sustainability campaign and the Global Team Run also served this purpose. Under the motto “Stronger Together,“ our employees motivated each other on the intranet to run, bike, walk or skate. In this way, 160 participants covered more than 63,000 kilometers from July 1 to September 17 and thus not only kept themselves fit, but also took the opportunity to reduce their carbon footprint.

The resulting wastewater is not contaminated by additives or chemicals and can be discharged into the sewage system or discharged into the groundwater cycle without further treatment or purification.

Measures to reduce water withdrawal help to keep it as low as possible. For example, our site in Sweden was able to reduce its withdrawal of cooling water by 85% by installing dry vacuum pumps for the compounding plants.

In total, the RKW Group‘s water withdrawal from municipal water supply in 2022 amounted to around 130,000 cubic meters. We were thus able to reduce the absolute water withdrawal by 20,000 cubic meters, or by over 15% compared to 2017.

We are committed to ensure that our own plastic pellets, powders and flakes do not end up in the trash or wastewater. We actively seek ways to reduce the escape of plastic pellets into the environment during production, storage, transportation and processing. RKW, along with numerous other companies, is therefore implementing the Zero Pellet Loss initiative at its sites. This was realized in cooperation with the two industry associations, with special support from the Industrievereinigung Kunststoffverpackungen e.V. (IK).

The first step in participating in the Zero Pellet Loss initiative was to conduct internal audits at all our sites. This involved identifying entry points such as the filling of silos, the transport of raw materials, and on the raw material lines. The necessary measures were then initiated to eliminate existing leaks and successfully obtain certification from the IK. All RKW sites are “Zero Pellet Loss“ certified. The measures are continuously monitored and optimized. In addition, training courses are held for employees at our sites.

In addition, we collect so-called “spills“, which are produced during cleaning measures in production, for recycling. These measures resulted in the return of over 360 tons of granulate to the plastics cycle in 2022.

We are convinced that risks can be reduced through technical and organizational measures, thereby permanently eliminating potential causes of accidents. However, some accidents are simply caused by human error. In order to eliminate these, the “Golden Safety Rules“ apply to all our sites. These operating principles are a compilation of best practices that cover the greatest risks and potentially dangerous situations in our company.

Based on this, further safety training and regular safety and production tours are now being carried out at the sites to support and motivate operations leaders to give feedback and orientation. The tours can be digitally supported by an app, which makes it easy to document incidents or weak points and forward them to the right people.

At our global Safety Meeting at the end of the year 2022, the knowledge gained from the Academy was refreshed, supplemented by expert contributions, and the action plan for “Glidepath to Zero Accident“ was defined.

Johannes Heintges, Site Director at the Wasserburg site (Germany), RKW‘s largest European site, says: “This change starts with me as Site Director. If I consistently and reliably exemplify my attitude to occupational safety, while at the same time making organizational and technical changes that lead to immediate improvements, then I will also succeed in bringing my colleagues along with me.“

RKW has launched the “Zero Cut“ initiative. The aim of this initiative is to develop several safety recommendations and procedures and to raise awareness in the handling of blades. For example, the introduction of special safety knives has helped reduce the number of cuts.

As part of the group-wide “Zero Fire“ initiative, a harmonized risk assessment was carried out at all sites with regard to fire hazards and investments were made in the resulting preventive fire protection measures – e.g., for automated CO₂ fire extinguishing systems. Fire drills are held regularly at the sites and employees are trained for special tasks or as fire safety assistants. At our Petersaurach site (Germany) , an extinguishing device was purchased for realistic fire simulations to prepare employees not only theoretically but also practically for a fire. A new fire truck was also purchased for our site fire department in Michelstadt (Germany).

In production, optimized and new technologies support, e.g., the monitoring of temperatures to prevent fires, the reduction of noise levels, the extraction of dust and solvents, and the use of lifting equipment for heavy loads (e.g., 25-kilogram bags).

Working environment and conditions at RKW are continuously monitored and additionally improved through regular audits and assessments by external companies. In order to comply with legal requirements, an electronic legal register has been introduced at all German sites for the areas of occupational safety, the environment and energy.

For the “Leading KPIs,“ we track progress on zero cut, LockoutTagout (LOTO), evacuation drills, thermography, etc. The development with regard to “Zero Accidents“ is regularly tracked via the lagging indicators LTA (Lost Time Accident) and LTIFR (Lost Time Injury Frequency Rate) and shows significant improvements over the years.

In 2022, the “Zero LTA Award“ was presented to our German sites in Nordhorn and in Kalefeld as well as in Helsingborg (Sweden), with Helsingborg now receiving this award for the third time without an LTA.

In addition to our occupational health and safety standards that also apply to externals, such as our “Golden Safety Rules” and PPE standard, contractor coordinators ensure that the various contractors are thoroughly briefed based on hazard assessments and given work permits for necessary hazardous work.

As part of the company health management (BGM) program, set out in an overall company agreement, specific campaigns are offered, such as voluntary flu vaccinations, healthy food options in the canteen (fresh fruit, salads, free supply of mineral water), annual participation in „Cycle to Work” and in the company run as well as discounted access to fitness studios and the job bike. In addition, our sites in Europe and Vietnam receive company medical care.

With our new Employee Assistance Program (EAP; starting in 2023), we will offer RKW employees and their families free and anonymous short-term professional counseling for health, career and personal issues.

We are also well positioned in the area of addiction prevention. We offer employees concrete help with corresponding company agreements and addiction support groups at the RKW sites.

That is why we place a lot of emphasis on direct contact with our employees at all levels and promote this through global interactive and informative communication via our intranet and employee app ONERKW, employee surveys and our „CxO Open Door“ – virtual meetings with our senior executives and internal experts, in which questions or criticism can be addressed openly.

A collective agreement on working conditions has been concluded in the form of a collective agreement between the tariff parties. In Germany, there are two collective agreements for RKW: one for chemical companies and one for plastic packaging companies.

Depending on location, tariff and local conditions and laws, we offer our employees a wide range of additional benefits, e.g., health insurance in our European locations or health care insurance in the USA, supplementary nursing care insurance, company pension plan, continued payment of wages in the event of illness, maternity protection, parental leave and time off for further training. With the link to the collective bargaining associations, remuneration is always significantly higher than the respective local legal minimum wage.

Employees‘ working hours generally comply with local working time laws and are generally bound by collective bargaining agreements. At the same time, time compensation for overtime (overtime reduction in the form of free shifts or flextime) is regulated in the form of company agreements. In addition, all employees who are not bound to a shift system for production reasons, have the option of organizing their working hours flexibly. In combination with the option of working 60% of the weekly working time on a mobile basis (where possible), this creates flexibility for employees in organizing their working time.