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Resource efficiency
We have an important role to play in abating climate change. Climate control systems play a pivotal role in managing energy consumption for our customers. By optimizing these systems, we empower our customers to reduce their energy and water usage.
Our environmental footprint originates from the use of electricity and fossil fuels in our production processes and from the use of our sold products. The goal is to continuously reduce our energy use and make our factories and processes more efficient but also to develop even more resource-efficient products, efficient transports and to make choices of materials and suppliers that reduces negative impact.
These three areas provide the framework for the Munters sustainability agenda. We integrate these into our strategy and strategic priorities:
Gradually transitioning to energy from renewable sources is one of the most effective ways to reduce the climate impact of our factories. We made significant progress in 2023 and reached 80% renewable electricity in our production facilities, which we had set out to achieve by 2026. The goal is 100% and with the progress we have made, we have the possibility to achieve this before 2030.
Result – Share of electricity from renewable sources in our production plants
80% (2023)
(2022: 72%)
Target: By 2026, we aim to source at least 80% of the electricity in our production facilities from renewable sources. Transitioning to 100% renewable electricity is our long-term ambition.
We take action to reduce waste and increase recycling and reuse rates in our production facilities through systematic quality improvements. Every facility works proactively to cut waste by increasing productivity, improving material utilization, and looking for new areas for reuse or local recycling.
Our innovation and product development experts consider the choice of materials when designing or redesigning new or existing ones. In 2023, our in-house leadership program MovE developed a process for and the governance of product Eco-design, which was approved and integrated into the product development process with a Sustainability Advisory Board.
Result - Waste and recycling
55% (2023)
(2022: 52%)
Target:
Continuously raise the recycling rate
We separate chemicals and particles in wastewater from our facilities. However,
most of our production activities consists of assembly where water is primarily used
for sanitation needs, resulting in low water usage relative to our total turnover. We are primarily focused on reducing water usage in the production of rotor blocks, which accounts for the majority of our water usage.
Outcome*
0.01
(2022: 0.01)
Target:
Gradually reduce water consumption and treat
wastewater in our production plants and processes.
* m3/1 000 net sales swedish crown
Dedicated to minimizing our environmental footprint
To accelerate our work in this area, we have committed to setting near-term company-wide emission reductions in line with the Science Based Targets initiative (SBTi). By committing to this important initiative, we will have our previously set targets for Scope 1 and 2 validated and set new targets for Scope 3.
The strategic targets for 2030 are:
- reduce CO2e emissions in Scope 1 and 2 to net zero
- reduce CO2e emissions in Scope 3 in line with the Paris Agreement's 1.5°C target
Reducing emissions in our operations
We report our Scope 1, 2, and 3 emissions in accordance with Greenhouse Gas (GHG) Protocol.
Scope 1 and 2 include emissions from factory operations, offices and other non-production locations, and company vehicles. In 2022, we established guidelines and targets to increase energy efficiency and source renewable electricity for our production facilities. We also mapped energy sources in our offices and other properties not involved in production.
This allows us to constantly monitor our operation’s Scope 1 and 2, which are direct emissions and indirect emissions from energy purchased.
We significantly increased the share of renewable electricity during 2023, contributing to emissions reductions. We are also identifying potential renewable electricity sources for offices and other properties not involved in production.
Reducing emissions in our entire value chain
We are mapping relevant greenhouse gas emissions from our suppliers, transportation providers, and products used by customers, known as Scope 3 emissions or indirect emissions. We see that category 11, Use of Sold Products, accounts for most emissions.
Besides focusing on minimizing emissions from our operations, we are committed to reducing the climate footprint of our products through constant innovation, transportation efficiency, and responsible choices of materials and suppliers.
Learn how we are working to reduce emissions in the entire value chain by watching the video below
Innovate for tomorrow
Continued focus on investing in our core technologies, solutions and digitalization optimizes our product portfolio. Launching novel products, such as SyCool and DSS Pro, is a testament to innovating for tomorrow. We always consider the choice of materials, recycling possibilities, and energy use when applied. After evaluating these aspects, we define the customer value, technical opportunities and profitability potential.
Expand our service business
Services, which include maintenance, upgrades and product retrofits, are essential to our customers, not least from a sustainability perspective. Services extend product lifespan and enhance the efficiency of our installed products. The goal is to grow our service business to 30% of net sales in the long term.
Accelerating the circularity agenda
We are actively improving our circularity efforts by formalizing our work into a circularity strategy during 2024. Some of the ongoing initiatives include:
- Since 2023, we have integrated environmental aspects into product development by promoting the "Ten Golden Rules" (Conrad Luttropp – KTH, 2006) eco design methodology. This new approach has led us to implement a sustainability scorecard to evaluate circularity in new product design concepts.
- We have created a polymer design guidebook on how to choose or replace certain plastics with other more sustainable, or recyclable, alternatives.
- We have been using the SimaPro software for lifecycle assessments (LCA) since 2022 to compare the environmental impact of our products and identify improvement areas. We aim to have ISO-standard certified LCAs for all major product families by 2030.
- In March 2024, we joined the Circular Development Program, initiated and led by Combient Pure, to explore and identify circularity opportunities along our entire value chain, from procurement to end of life.
Initiating focus on biodiversity
Biodiversity, the variety of life at genetic, species, and habitat levels, is crucial for maintaining natural balance and providing essential resources like oxygen, clean air, water, and food. However, global biodiversity has been declining for decades, and urgent action is needed.
As a global industry company using materials like steel, aluminum, copper, and plastic, we are committed to safeguarding biodiversity.
We have launched a workstream to understand our sector's biodiversity impacts and dependencies, identify high-risk regions, and develop a targeted action plan. Biodiversity will become a prioritized focus area for us in 2025.
