Sustainability Report 2020 - Greenergy
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2 Contents / 2020 Group highlights Our purpose To drive transport decarbonisation through continued leadership in waste-derived renewables. 2020 Group highlights 81.29% Our biofuel blending saved 6.2million tonnes CO₂e, the equivalent of taking carbon savings from our own biofuels 3.1 million cars off the road Biofuels sustainability p28 2020 carbon emissions p35 88.4kt CO₂e emissions across the Group Carbon emissions p34 Fuel efficiency of 3kg CO₂e saved for every litre 9.19mpg across our haulage fleet of biodiesel that replaces diesel above the industry average of 7.9mpg 2020 carbon emissions p35 Delivering scalable efficiencies p30 VICC Virtual Incident Control Centre for emergency preparedness 101 introduced Process safety p21 safety audits conducted Process safety p19
Greenergy > Sustainability Report 2020 3 Contents >1,300 2 Overview 2 2020 Group highlightts 4 Our mission and values 6 History employees globally 8 Our business model 10 Chairman’s message Our people p36 11 CEO’s message 12 Sustainability 13 Our approach 14 Process Integrity 14 Safety record 25,169 16 COVID-19 18 Personal safety 19 Process safety training courses were completed 22 Our environment 23 Lower carbon fuels D&I by our staff 25 Our global biofuels supply chain Our people p38 26 Case study: waste tyre project 27 Increasing obligations Employee-led 28 Biofuels sustainability diversity and inclusion 30 Delivering scalable efficiencies group formed 31 Waste and waste water 32 Energy consumption Our people p38 33 Carbon emission targets 34 2020 carbon emissions 36 Our people 41 Community £362k 44 Governance 45 Governance framework 47 Policies charity budget 50 Data sheets across the Group Community p41
4 Overview > Our mission / Our values Our mission To deliver long-term value We do this by: for our stakeholders • Evolving our supply chain: maintaining through the production quality and reliable supply and distribution of • Retaining strong customer relationships: waste-derived renewable honesty and transparency in how we work transportation fuels. • Delivering change through innovation: developing and driving renewable projects • Responsibility and accountability: do no harm to people or place
Greenergy > Sustainability Report 2020 5 white Our values Our values underpin every Respect interaction we have, whether with colleagues, customers, suppliers and the communities Integrity Ownership in which we operate. Care
6 Overview > Our history Our history Greenergy was founded in the early 1990s as we saw an opportunity 1992 to improve air quality through the development of low sulphur fuels. to 2000 Improving local air quality In the early 90s, standard- grade petrol and diesel had very high levels of sulphur. Diesel in particular produced extremely high levels of nitrogen oxide As Greenergy has grown, our commitment to do and particulates that the right thing remains and has seen Greenergy created black smoke and become the largest producer of waste-derived led to significant adverse biodiesel in Europe, reducing the carbon emissions in fuels we supply. health effects. In response, Greenergy created Greenergy’s lower carbon fuels have been a new grade of low sulphur developed for existing vehicles, without requiring fuel. Initially supplying into engine modification reducing the carbon emissions the environmentally conscious of vehicles on the road today. Swedish market, Greenergy demonstrated its potential to reduce harmful local air pollutants. Building on this, Greenergy was the first to introduce low sulphur diesel to the UK market and countries in Europe. In 1998 Greenergy’s ultra-low sulphur petrol was rolled out on supermarket forecourts, and established the standard for fuels at that time.
Greenergy > Sustainability Report 2020 7 2000 2020 to 2020 onwards Focus on climate change Looking to the future Greenergy has long Initially, Greenergy’s biodiesel We believe everyone has recognised that climate blends were to be derived from a role to play in reducing crops (UK-grown rapeseed change was going to carbon for our future. sourced from UK farmers under be one of the greatest the Field to Forecourt contract) We are continuing to invest in challenges of the future. and over time Greenergy the development of new forms converted its production to waste of renewable and low carbon fuel We took early action by investing oils, recognising the greater that will be needed to support the in world-leading expertise in environmental benefit of this energy transition. carbon measurement with the Edinburgh Centre for Carbon feedstock. Our waste tyre project supports Management (ECCM) and Energy In order to secure a sustainable the circular economy, reusing for Sustainable Developments biodiesel supply, we invested in our a waste resource – tyres – (ESD). own production capability – first to produce recovered Carbon at Immingham (opened 2007) and Black (rCB) that can be used to Our ambition was to be the first then Teesside (purchased 2015) manufacture new tyres, advanced business to supply biofuel blends and Amsterdam (purchased in biofuels that will displace on a commercial basis and we 2018 and converted from virgin petroleum products, and metal applied our low carbon expertise oils to waste oils in 2019). that can be recycled. to our core business model. Today, Greenergy continues Our experience with global waste to be a market-leader in waste- origination uniquely positions based renewable fuel production us to transition into more and supply. complicated wastes, delivering real carbon reductions today, and Lower carbon fuels p23 we are continuing to progress projects in this space. Advanced biofuels p26
8 Overview > Our Business business model model Our business model From supplier Our unique global supply chain enables us to source and produce renewable fuels in the most efficient way to supply our customers and our own retail network. From supplier Global origination We source from around the world in order to find the lowest-cost gasoline, diesel, biofuel feedstock and products. By maintaining flexibility and optionality in our purchasing, we are able to respond quickly to market requirements. To customer To customer
Greenergy > Sustainability Report 2020 9 > Renewable fuel production We continue to expand our waste-to-biodiesel manufacturing capability and invest in new development fuels. This gives us a low-cost and sustainable supply of biofuel with which Retail to meet rising renewable fuel We own and operate forecourts supply obligations. in Ireland and Canada. Leveraging our unique supply chains, we provide our forecourt customers with reliable supply of quality fuels and are able to meet their convenience needs. Customer sales We supply fuel to customers in the UK, Ireland, Canada and Brazil. Our customers come from all key segments, including oil companies, supermarkets, independently-owned forecourts, commercial and marine users. Logistics We manage the fuel supply chain for many of our customers, taking care of stock management and delivery as well as fuel supply. In the UK, our in-house haulage operation provides flexibility to deliver from the lowest-cost supply location and control over the quality of service we provide to customers.
10 Overview > Messages Chairman’s message ‘Originally founded to reduce unhealthy emissions and to create a uniquely respectful and meritocratic working environment, Greenergy has for almost 30 years had environmental and social values at the core of everything we do.’ Welcome to our 2020 Sustainability Report. As society considers the decarbonisation of the transport sector and the pathway to Net Zero, it is We have a unique history and track record of important that these pathways build on the products leadership in the environmental aspects of and supply chains that are already in place. Greenergy transportation fuels. Reducing smog and particulate is looking forward to playing its role in providing creating emissions from vehicles in the 90s, reducing products and solutions that put us firmly on course carbon emissions in the 2000s, the development to Net Zero. of waste-based low carbon fuels in the 2010s and now building on all of our experience to reduce Thank you for reading our report and thank you to the and recycle waste to create advanced drop-in team for creating what follows. renewable biofuels. In all of the regions we operate, governments are looking at the transport sector and introducing increasing mandates that specify the amount and type of renewable biofuels that are required to be supplied into the market to reduce emissions. Andrew Owens Already being Europe’s largest producer of waste- Chairman, derived biodiesel – with the team, traceable waste Greenergy Group supply chain and major customer outlets already in place – that in combination represent around a quarter of all types of fuel sales. In the UK, we are in a tremendously positive position to invest in and supply advanced renewable biofuels made from waste. Our waste tyre project is particularly exciting, playing its part in the circular economy by processing worn out waste tyres into metals that can be recycled again, carbon black that once recovered can be used in the production of new tyres, and renewable biofuels to be supplied through our existing outlets into transport fuels to reduce their emissions. The tyre project, along with others we have under development, will play a significant role in our future and the low carbon objectives of the countries we operate in. Waste tyre project p26
11 CEO’s message ‘Our mission is to drive transport decarbonisation through continued leadership in renewables.’ Sustainability is in our DNA. Reducing the environmental impact of our industry is why Greenergy was established and this approach is embedded in our operations, governance structure and the way we interact with our stakeholders. We are transparent in our approach and committed One of the key strengths of Greenergy is our resilience to doing no harm to people or place. and ability to adapt. Safety underpins everything we do at Greenergy. Throughout the pandemic, we have continued to It is pleasing to see our safety record improve in 2020, support our customers, offering flexibility and and a particular focus for us in 2021 is to increase our responsive customer service, all underpinned with hazard observations, particularly as we return more reliable fuel supply. We could not have done this staff to our sites and offices following the pandemic. without our people. Safety record p15 As essential workers, many of our staff continued to work at our plants, terminals and delivering fuels, all I would like to thank our people for the dedication while adapting to new processes and procedures that and commitment they have shown to our business have be introduced to ensure our working practices throughout 2020. are COVID-secure and to protect our people. Today we supply low carbon transport fuels in the We recognise the effect the pandemic has had on UK, Ireland, Canada and Brazil. We are also a leading our staff, and the health and safety of our people is our producer in waste-derived biofuels, and continue to key priority. To assist our staff through the pandemic, invest in advanced biofuel projects such as turning we have implemented a number of wellness initiatives waste tyres into ‘drop in’ fuels that reduce emissions to support the physical and mental health of our in the transport sector today. workforce, and this remains a focus for us in 2021. I would like to thank our people for the dedication This year, we established an Environmental, and commitment they have shown to our business Social and Corporate Governance (ESG) Committee throughout 2020, a year that will not be forgotten. and a working group of champions to develop our ESG framework across the Greenergy Group. In this, our first Sustainability Report, we outline the This has never been more important, as the events existing processes and reporting within Greenergy. of 2020 have accelerated plans to decarbonise as I am confident that the values on which Greenergy has governments around the world have pledged to been built and our ESG principles will guide us as we reduce emissions. develop a framework that supports our growth. We will lead our stakeholders through the energy transition At Greenergy, challenge presents opportunity, and as we drive transport decarbonisation through our decarbonisation is one of the greatest challenges we continued leadership in waste-based renewables. face. Our business has been built on change – and recognising that the disruption that often comes from change is an opportunity for innovation. In the UK, the Government announced they would phase out Internal Combustion Engines by 2030 and hybrid vehicles by 2035, ahead of the original 2050 targets. Similar strategies are being considered Christian Flach in other regions. These policies are changing the Chief Executive Officer, traditional fuel market, creating opportunities for Greenergy Group innovation. Greenergy’s established track record of innovation uniquely positions us to respond to these challenges. While alternatives become more widely adopted, there remains a continued role for liquid fuels in the energy mix and circular economy.
12 Sustainability > Principles Sustainability Sustainability is integral to the way ESG Committee in which Greenergy operates. It is This year, we established an ESG Committee to steward our embedded in our history and is a key strategy for the future. part of our values and culture. The ESG Committee has established its Terms of Reference, and will promote continuous We are formalising our existing practices and improvement in ESG across the sustainability practices into an ESG framework. entire Group. We recognise that clarifying our approach is important for all of our stakeholders and will The Committee is made up of enable us to implement a transparent programme six members of the Management of continual improvement. Team, and includes a dedicated secretary and Chairperson elected by its members from the Group Board. Meeting quarterly at a minimum, the role of the group is to review and guide policies, whilst monitoring the development of objectives and external trends in the ESG space. The Committee identifies ESG related risk, reviews external documentation and reports to the Board of Directors. ESG Champions ESG Champions have also been identified to form a Greenergy- wide working group and will help the Committee deliver on our ESG strategy. The ESG Champions are subject matter specialists within the ‘At Greenergy we are always looking business, and will implement the for ways to operate more efficiently strategy, aid in the development of our framework and help set future and reduce our emissions from our targets. own operations, and then sharing and implementing those learnings where possible across the Group.’ Darren Anderson Biofuels Environmental Compliance Manager
Greenergy > Sustainability Report 2020 13 Our approach Our business has been built on innovation and, in a rapidly evolving world, it is essential that we continually assess our business practices, and look to improve them to ensure we are sustainably driving the decarbonisation of transport fuels. By understanding the impacts of our business on the communities and environments that we operate in, we are able to set clear objectives and targets to ensure we can contribute to a better future for all. Our approach is based on the following core principles: Safety Wellbeing, diversity, inclusion Safety is our top priority, and every employee We support the physical and mental health at Greenergy has a role to play in ensuring a of our employees. We strive to create a safe, safe working environment for every individual. inclusive and diverse working environment Our culture of open and honest reporting allows to operate within. us to learn and improve, and plays an essential role in our ‘no-blame’ culture. Community contributions Environment We want to give back and support the communities we operate in. We do this through We continually work to minimise environmental our employee-led charity programme and risk across our businesses and reduce the through the development of an educational environmental impact in all of our activities. and STEM programme. We ensure we manage these risks in line with our values to cause no harm to people or place Ethical sourcing, human rights and comply with all relevant environmental legislation. The Group is committed to acting responsibly and ethically at all times and in every part of We aim to use our resources appropriately its business. We aim to deliver our success free and in a way that makes a positive difference of bribery, corruption and other unethical acts to everyone that interacts with the business, and are committed to opposing slavery and including shareholders, employees, customers, human trafficking in any form. suppliers and the wider community. Governance Climate change We maintain robust corporate governance We aim to reduce our impact on climate policies across our Group, operating a change by lowering our carbon emissions across governance framework with engagement our supply chain to drive the decarbonisation from senior management to non-executive of transport. We do this by maximising the directors. This framework allows the Group carbon savings from the waste-based biodiesel to evaluate, consult and act upon the various we supply, investing in our supply chain and needs of different stakeholders. adopting more efficient technologies aiming to give preference to suppliers based on their carbon emissions.
14 Process Integrity > Safety record Process Integrity Do no harm to people or place. Safety record Our safety record across the Group We focus on continuous improved in 2020. improvement in safety across our business, and a review of our safety approach is how we begin Process Integrity determines how we perform every meeting, including: Board our roles each and every day. It covers health, meetings, weekly management personal and process safety, quality, environment, meetings, monthly staff meetings security, management of change and compliance. and customer meetings. This year, our safety record across the Group improved. Minor injuries and near misses declined in 2020. We encourage staff to report any near miss, whether it is a business near miss or safety near miss. This allows us to continuously review our processes and ensure they remain appropriate. Hazard observations declined per 100,000 hours worked as we incorporated the retail business in Canada into our reporting. These will continue to be a focus for the Group in 2021, particularly as we look to reopen offices that were closed as a result of COVID-19. There were four separate reportable injuries across the business this period. All but one was reportable because of the duration of lost time, rather than the severity of the injury: • One injury related to retail staff • Three injuries related to drivers. Through our culture of open and honest reporting, we are able to identify trends, and launch relevant campaigns across the 2,340 hours whole Group to raise awareness and share lessons learned. This year, two campaigns centred on The Care Work Triangle and of Health, Safety, Security and Environment ‘Slips, Trips and Falls’. Training hours provided to staff
Greenergy > Sustainability Report 2020 15 Safety record Safety underpins everything we do. We operate a comprehensive central reporting system that supports the systematic investigation of each reported observation and event. Fatalities – – 0.1 Reportable events/injuries 0.3 Lost time injuries 1.2 Minor injuries 7.5 Near misses 173.3 Hazard observations 2,982,603 total hours worked Incident rate per 100,000 hours worked Calendar 2020 Definitions Reportable occurrence: an incident with a high potential to cause death or serious injury – (as defined by the UK RIDDOR regulations). Fatalities Reportable injury: a specified major injury such as a fracture or serious burns, or an injury – 0.3 Reportable events/injuries resulting in an absence from or restricted work for more than seven days. 0.5 Lost time injuries Lost time injury: an injury resulting in an absence from work beyond the shift in which the injury was sustained. 1.4 Minor injuries Minor injury: an injury which does not require time off work or restricted work duties. 9.4 Near misses Near miss: an unplanned event that did not result in injury, illness, damage or 275.5 Hazard observations non-compliance but which had the potential to do so. Hazard observation: an ‘act’ or a ‘condition’ 1,987,986 total hours worked that has the potential to cause injury, loss Incident rate per 100,000 hours worked or damage. Calendar 2019
16 Process Integrity > COVID-19 COVID-19 – Operating through the pandemic We recognise the challenges that have arisen from the pandemic and we have expanded our employee wellbeing programme to support our people. People As an essential business, many For our operational sites such of our staff continued to attend as plants and terminals where When COVID-19 spread across the plants, terminals, scheduling social distancing is more difficult, world, we transitioned as many offices and our drivers remained we have introduced additional of our staff as possible to remote on the road. To help minimise control measures such as rapid working, ahead of Government the risk to these staff, we quickly lateral flow testing. lockdowns and restrictions. implemented additional control We have introduced additional measures and revised our risk resources to support our people assessments that are specific through the pandemic. This has to each role, location and region. included additional training for This work has continued as all people managers within the restrictions have been eased and business on mental health, weekly then tightened. yoga and additional resources. When permitted, we reopened Our people p40 offices on an optional basis to our staff only. We have introduced risk controls including installing sanitising dispensers, screens, temperature monitoring units in offices, one-way pathways, and restricted the number of staff in any setting, ensuring that social distancing is maintained. ‘We have developed appropriate COVID-secure plans for all of our locations, ensuring the health and safety of our people is maintained. We have continued to review and update our risk assessments to ensure we are reflecting the developing situation and latest Government guidance.’ Sean Sexton Head of Technical/Terminals
Greenergy > Sustainability Report 2020 17 We remain confident that our business continuity planning and the strength of our business positions us to manage the effects of COVID-19, and emerge stronger from it as a business. Business continuity We have adapted our training As lockdowns continued around programmes also, and this year the world, supply of used cooking We maintain a robust business saw Process Safety Leadership oil was constricted. Our global continuity plan that is regularly training and Crisis Training sourcing provides us with reviewed and updated based completed virtually for the first optionality to source feedstock upon the most up-to-date advice. time. Our in-house online training from different markets and We also established a COVID-19 platform, Knowledge Hub, allowed maintain supply during periods Taskforce that is responsible for us to continue to train and develop of disruption. staying abreast of the changing our people in a virtual setting. As we consider how regions regulations and requirements, In 2020 the market for biofuel around the world will exit and proactively monitor, propose raw materials and biofuels was lockdowns, we are confident our and implement policies into the significantly impacted by the planning will ensure we meet our business. This ensures we have pandemic. future customer requirements. the most appropriate plans in place to mitigate the impact Despite the decline in road fuel of COVID-19 on our people, volumes owing to government our business, and that of our lockdowns, demand for high customers. quality biofuels such as the ones we produce continued to increase As part of this plan, we introduced as legislative blending obligations strict ‘bubbles’ across our increase in the UK, Europe and scheduling teams, terminals and North America. plants to minimise the risk to our people, and ensure business Increasing obligations p27 continuity. Where staff tested positive to COVID-19, the effect on colleagues and the business has been minimal.
18 Process Integrity > Personal safety / Process safety Personal safety We operate with safety and environmental care as our first priority in a culture of open and honest reporting. Open and honest reporting Investigation and learning Safety awareness We encourage observation and Our comprehensive central Recognising the importance reporting of hazards, near misses reporting system supports the of extending our strong SHEQ and unwanted events, however detailed reporting and systematic (Safety, Health, Environment and small, without fear of blame. investigation of each reported Quality) culture to all parts of our observation and unwanted event business remains a priority for us As a business, we capture so that we can identify lessons as we continue to expand. information about minor hazards learned from individual events, and incidents, so that we can Gap assessments and audits are and also broader trends. We then reduce risks and improve safe completed on all new business act to correct issues that have the working practices across all parts areas to gain an understanding potential to lead to injuries, asset of the Group. This year, we have of the SHEQ culture. From these, damage, environmental impacts or implemented QR codes at our a tailored programme of training significant business impacts. sites to enable efficient reporting. in safety awareness, hazard These will be extended across the Where key learnings are identified, observations and Greenergy Group in 2021. a ‘lesson learned’ brief is shared expectations of safety walks, event across the Group via noticeboards, reporting and investigations is New staff, contractors, and new our online training hub, monthly developed and implemented into businesses are rapidly introduced safety updates and toolbox talks. new businesses. to the Greenergy culture of open and honest reporting. Following our acquisition of over 200 Canadian retail forecourts in February 2020, the integration of our Process Integrity approach has been a key priority and we have expanded the team in Canada to support the business.
Greenergy > Sustainability Report 2020 19 Process safety We maintain a strong reporting culture across all parts of the business, and across all locations – from high hazard operating sites and haulage operations to offices and retail forecourts. 101 Safe Operating Standards Auditing We continue to review, extend Despite the additional challenges and improve our Safe Operating posed by the pandemic, Group Standards to provide a structured Process Integrity audits continued safety audits completed and consistent approach to safety throughout the year, however across the Group in 2020 across all of our operations, third party terminal audits were globally. suspended due to COVID-19. Risk assessments form part To ensure compliance with of these standards, and are Greenergy performance completed across the entire requirements, we include third- business, including where there party terminals and contract is a change in process, a new haulage operations within our customer for haulage or where audit programme. a new retail forecourt may have In 2020, we completed 101 audits, planned opening events. Our risk spread across Greenergy owned assessments also take into account terminals and plants, haulage public safety. This year, staff depots and third party operations, were also required to complete an increase from previous years. individual risk assessments relating As lockdowns and restrictions to COVID-19. were introduced as a result of Continual improvement of the the pandemic, we transitioned to standards is driven by the Process virtual audits to ensure we could Integrity team. The team shares complete our audit programme. knowledge and experience Where opportunities for from all parts of the Group. This improvement of facilities or includes joint venture businesses processes are identified, follow-up and contract operators working audits take place to ensure on behalf of Greenergy, formally recommendations have been and informally, through team and implemented. cross-site meetings, publications, intranet and management As part of our programme of leadership. continual improvement, in 2021 we will introduce a new Process Safety Audit based on HSE criteria. An intensive three-day on-site process, it will bring a new perspective.
20 Process Integrity > Process safety continued Where we have gained important learning from events, that information is communicated across the entire business as part of our policy of prevention and continual improvement. Management of change Focus on human factors Preventative measures We operate a robust management Human factors are vital Driver preparedness of change programme. Where a considerations for our business. All our drivers undertake change is occurring within the Throughout 2020, we have extensive, ongoing training and business, we bring together the undertaken significant work to assessment. This includes safe necessary internal stakeholders to review and understand the impact and defensive driving and correct workshop the process. This aims of human factors in our business. loading and delivery procedures. to reduce the risk of any adverse For COMAH1 regulated sites, Maintenance and monitoring consequences from change. such as our Plymouth terminal, programmes are in place for trucks This year, we began supply of human factors consideration is and equipment to ensure they a new product to one of our mandatory. remain in good condition. customers. To ensure the smooth We utilise a specialist human For employees who drive implementation, stakeholders factors consultant to provide often for work (outside of the from Commercial, Product expertise and software for task professional driver cohort), we Quality, Haulage, IT and Finance analysis. They also provided provide additional training via the were brought together to work training critical task analysis. Smith System, an industry leading through the process and ensure programme, to promote safe and the product would be introduced In 2021, we are looking to begin a effficient driving. safely and with no disruption to programme of conducting human our customers. factors critical task analysis on our haulage and biofuels. Customer site safety We visit and risk assess all our customers’ sites to ensure the safe delivery of our fuels. This has proved more challenging with COVID-19 this year, however we have adapted our processes to ensure we can still complete these whilst keeping our team safe. Our drivers have extensive training on spill containment and are equipped to respond appropriately in the event of an incident at a third party site. 1Sites regulated by The Control of Major Accident Hazards
Greenergy > Sustainability Report 2020 21 Crisis planning Recognition Process containment/ and management RoSPA spill prevention Our Process Integrity management The RoSPA2 Health & Safety Awards We implement preventative systems focus strongly on the offer the opportunity to benchmark measures to avoid spill incidents at prevention of unwanted events. safety performance year-on-year terminals, on the road and during We recognise however the and ensure consistent performance the transfer of supply. If a spill or potential for such events to occur, between sites. loss of primary containment does and the need to be prepared for them. In 2020, Greenergy received three occur, we ensure an immediate gold medals for response to provide scene We ensure all of our facilities and containment and recovery. business operations have effective • Immingham emergency management plans (nine consecutive gold awards) Across our company-owned and in place, and we review and test • Teesside leased retail forecourts in Canada these plans on a regular basis. (five consecutive gold awards) we maintain a robust fuel inventory • Plymouth terminals monitoring process that allows us Leveraging the experience of (seven consecutive gold awards). to promptly detect and mitigate an existing partner, this year, any unexpected fuel inventory we undertook a significant Our UK business is also ISO 9001 variances. We also have a risk- review and update of our crisis certified. based approach to prioritising plan to ensure it aligns with our the upgrading of our fuel systems business operations, anticipates to reduce the likelihood of further growth and provides the Flexigrid environmental releases. management team with clear We take every possible step to processes to facilitate effective ensure our drivers, vehicles and In 2020, we have installed decision-making in a crisis. equipment are prepared for all electronic line leak detection at We introduced a Virtual Incident foreseeable hazards. all our Ontario sites well ahead of regulatory deadlines. Control Centre (VICC) for Our drivers carry hazardous emergency preparedness that product on the public highway allows us to convene without and operate around members of assembling at a physical location, the public at customer forecourts. and with the addition of real time It is of paramount importance sharing and data saving. that they are equipped and As part of this process, the competent for the tasks they Executive team and senior perform. management undertook various To ensure the safety of our drivers training on the new structure and and those around them, we provide processes outlined within the ongoing training and assessment, plan, and further VICC training is exceeding industry norms, to ensure planned for 2021. that safety standards on the road, in the terminal and at the customer site are maintained. In 2019, Flexigrid’s approach to safety was recognised with Motor Transport’s Safety in Operation Award. 2Royal Society for the Prevention of Accidents
22 Our environment > Climate change / Lower carbon fuels Climate change Our business was founded to supply low emission diesel that offered significant air quality benefits. As we have grown, we have remained committed to reducing emissions in transport fuels. As the transport sector moves to decarbonisation, the role of petrol and diesel fuels remain vital until other affordable alternatives are widely adopted. Different geographies have also introduced differing timescales to decarbonise. Therefore the most effective way to reduce carbon emissions for existing transport today comes from the blending of biofuels into petrol and diesel. As Europe’s largest manufacturer of waste-based biodiesel, renewables are integral to our core strategy, and we continue to deploy significant capital to this area. This investment enables us to make both incremental improvements in our biodiesel manufacturing operations, and also progress new advanced biofuel projects, such as converting waste tyres into development fuels. Our priority has always been to tangibly reduce our emissions in both the fuel we supply and our own operations. We continue to review credible opportunities for emissions reduction across the wider Group.
Greenergy > Sustainability Report 2020 23 Our environment We blend sustainably-produced biofuel Lower carbon fuels into our gasoline and diesel in order to We are continuing to increase our reduce the greenhouse gas emissions of biofuel blending, both from our own production and sourced from the fuel we supply. third parties, in line with rising renewable fuel obligations in the UK, Ireland, Canada and beyond. Our expertise allows us to meet customer-specific sustainability and local quality requirements, recognising the characteristics of different countries and markets. By applying our unique sustainability IP, we create value for customers and maximise the sustainability of the biofuel we supply. We continue to invest in the development, production and supply of liquid fuels made from renewable sources, to support the transition to a lower carbon future. Operational KPis Biodieselmanufacturing Biodiesel manufacturing output KPI cbm We have increased the greenhouse gas saving of the fuel we supply by 71% 2018 2019 2020 Combined output from Immingham, Teesside and over the last five years. Amsterdam (cbm).
24 Our environment > Lower carbon fuels continued / Our global biofuels supply chain We continually seek to reduce the carbon emissions from the fuel we supply, and our priorities are: 1 2 3 Expand production and Establish diverse and Develop new forms supply of waste-based sustainable supply chains of renewable liquid fuels biodiesel with robust certification We are actively exploring Wherever possible, we blend systems opportunities to develop new biofuels derived from wastes and advanced forms of renewable We continue to expand our because they deliver the greatest ‘drop-in’ fuels, capable of purchasing of waste oils from carbon benefit and have a lower replacing petrol and diesel in around the world as raw materials land-use impact than biofuels conventional combustion engines. for our biodiesel manufacturing made from crops. operations. Our waste tyre project, Green In order to secure our own supply Tyre Technology Ltd (GTT) is one We source not only in the UK and of waste-based biofuel, we have such project. Using pyrolysis and Europe, but also from countries invested significantly in our own hydrotreatment technologies, we where comparable biofuel manufacturing capability, now will produce renewable fuels that incentives do not exist and often operating three production plants, act as a direct replacement for waste oils are not disposed of with further investments planned petrol and diesel. responsibly. to increase capacity. This will allow us to expand our supply of In order to demonstrate that the waste-based biofuel to meet rising oils we are using really are a waste, renewable fuel obligations. we rely on robust supply chain certification processes that meet We also source waste-based the International Sustainability ethanol from third parties for and Carbon Certification (ISCC) blending into our gasoline. standards that trace every litre of oil back to the specific restaurant or food producer. Choosing biofuels from waste p28 ‘We recognise the urgent need to further reduce emissions in the transportation sector. We continue to invest in the development, production and supply of liquid fuels from renewable sources, to support the transition to a lower carbon future.’ Paul Bateson Chief Operating Officer, Chairman of ESG Committee, Greenergy Group
Greenergy > Sustainability Report 2020 25 Our global biofuels supply chain Global sourcing We purchase waste oils as feedstock for our biodiesel manufacturing activities. We have invested upstream to ensure our ability to secure raw materials for our biodiesel manufacturing operations, and to integrate the entire supply chain. This enables us to keep custody and quality- control of the fuel supply chain. By diversifying our supply chains globally, we are able to source increasing quantities of feedstock that best meet our technical abilities and sustainability specifications to meet our growing production requirements. Biodiesel production With two manufacturing facilities on the east coast of England, and a third in Amsterdam, we are Europe’s largest producer of waste-based biodiesel. We continue to expand our production and invest in ongoing process and technical improvements to improve efficiency and increase output to meet rising demand for biodiesel as a result of increasing Government mandates. Storage and supply We blend biodiesel and bioethanol into the petrol and diesel we supply in the UK, Ireland and Canada to meet regulatory requirements. We also supply biodiesel and bioethanol to other oil companies in the UK, Ireland and in Canada, meeting customer-specific sustainability requirements. We obtain verifiable evidence on the origin and sustainability impact of every litre of biofuel we blend into our fuel and sell. Our storage facilities in Europe, Canada, USA and Asia give us capacity to meet biofuel demand in different markets.
26 Our environment > Advanced biofuels / Increasing obligations Case study Advanced biofuels: playing our part in a lower carbon future As a leading producer of waste- With a view to commence based biofuels, we believe commercial production in 2025, development fuels (dRTFCs) the manufacturing process also are a significant opportunity for creates recovered carbon black, Greenergy. Our waste tyre project, a product that can be used in the now at the Front End Engineering circular economy to produce new Design stage, will process over tyres and other industrial rubber 300 tonnes of shredded tyres products. The plant will also each day into renewable drop-in have the capability to produce fuels that can be blended into sustainable aviation fuel (SAF). diesel and petrol. The disposal of used tyres in the UK and around the world creates significant waste, and under a European Directive, used tyres have been banned from landfill, often resulting in their export to the developing world. In the UK alone, some 55 million* waste tyres are disposed of each year. *Source: Department for Environment, Food and Rural Affairs
Greenergy > Sustainability Report 2020 27 Increasing obligations Rising biofuel obligations are being introduced in all of our key markets, as governments around the world look to decarbonise transport. Rising biofuel obligations Development fuels Greenhouse Gas legislation In 2018, the percentage of As part of the UK legislation, the In 2019, the UK Government also biofuel that UK fuel suppliers RTFO also requires that a growing introduced new Greenhouse were required to blend into their percentage of biofuel must be Gas (GHG) legislation requiring petrol and diesel increased as classed as development fuels. GHG savings from renewable fuel the UK government amended inclusion of 4% in 2019 and 6% Defined as advanced biofuels the Renewable Transport Fuel in 2020. made from sustainable wastes Obligation (RTFO). and residues of non-biological To comply, suppliers obtain The legislation significantly origin, they are required to have a a certain number of GHG credits increases the amount of waste- greenhouse gas savings threshold which are awarded according based biofuels that can be of at least 65%. the carbon intensity of the fuel blended into fuel in the UK, and they supply. When complete, our waste tyre introduces maximum levels for the project, GTT, will exceed this This legislation incentivised the use of crop-based biofuels. requirement. lowest carbon biofuels, such as If a supplier is unable to meet the waste-based biodiesel we We are proactively progressing their obligation, they are required manufacture. The legislation does with projects to convert different to pay a buy out price. From not apply from 2021 onwards. types of waste, including 1 January 2021, the buy out price household waste and commercial has increased to 50p per litre. waste to produce liquid fuels We welcome the UK’s plans to or SNG, as defined under the increase the RTFO obligations legislation. further and beyond 2032 to reflect the continuing drive to lower carbon emissions from the cars that are on the road today. We acknowledge the part that we play in helping our customers to reduce the emissions from their transportation fuel usage and we look forward to responding Legislated increases in to the Government’s consultation Renewable Transport Fuel Obligations in due course. and development fuels Legislated increases in Renewable Transport Fuel Obligations (RTFO) and development fuels1 14 12 RTFO Development fuels 10 Percentage % 8 6 4 2 0 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 Percentage biofuel inclusion rates required under the Renewable Transport Fuel Obligation
28 Our environment > Biofuels sustainability / What is our biofuel made from? Biofuels sustainability We work to ensure we only use biofuels that use the world’s resources responsibly. Our focus is on using biofuels which deliver the greatest carbon benefit and have minimal land-use impacts. Maximising the carbon We continue to work to maximise Preventing land-use change savings from the biofuels the carbon savings from the and protecting biodiversity biofuel we blend by choosing we choose biofuels from waste with higher We sustainably source and obtain We devote time and resources into carbon savings and capturing verifiable evidence on the origin sourcing low carbon biofuels. detailed information to ensure and environmental impact of every traceability throughout the litre of biofuel we blend into our Our aim is to achieve at least fuel, to demonstrate compliance supply chain. 70% carbon saving from the with the requirements of the biofuels we produce. This is Where we do use biofuels derived EU Renewable Energy Directive. significantly above Government from crops, we ensure they are These prohibit use of crops grown mandates of 50% and is a highly produced in accordance with on newly deforested land and ambitious target. approved biofuel sustainability ensures traceability of wastes from standards. Of the crop-based the point of origin. biofuel we supplied, 100% was verified as compliant with one of these standards. Choosing biofuels made from waste To minimise the land-use change impacts and improve the emission savings of our biofuel, we use biofuels from wastes where possible. We have carried out pioneering work with waste oil suppliers Carbon savings globally to demonstrate traceability back to the restaurant. 100 We recognise the importance of Greenergy technological innovation to help actual 80 drive continuous improvement, Greenergy and we have been working target with industry innovators such Percentage % 60 as Bioledger to introduce a Government mandates blockchain database that will 40 further improve the efficiency of data collection. 20 0 2018 2019 2020 81.29% 31 carbon savings from audits of our biofuel the biofuels we blend supply chains
Greenergy > Sustainability Report 2020 29 What is our biofuel made from? Biodiesel accounts for 74% of our biofuels sold. Since 2017, 95% of our total biodiesel sold has come from wastes. Biodiesel blended into diesel supplied in the UK Creating sustainable Biodiesel blended into diesel Biodiesel supplied in the UK biofuel supply chains We have made significant Greenergy has been an industry investments in our biodiesel leader in the development manufacturing infrastructure of biofuel sustainability and in order to be able to increase traceability standards since 2007, our production of biodiesel when we developed the first from wastes, with ongoing standard for Brazilian bioethanol. technical enhancements to our We have continued to collaborate manufacturing facilities giving the with NGOs, governments, and ability to process a broader range regulatory bodies, along with the of waste oils and fats. Used cooking oil agricultural, waste management As a result, most of the Crops and oil industries to continuously biodiesel used in Greenergy's Food waste improve the audit standards that diesel has been derived from Other wastes are used to verify environmental waste products. Since 2017, 95% sustainability and traceability of our total biodesel sold has through our global biofuel and raw come from wastes. material supply chains. With various countries in In 2020, we conducted 31 lockdown during 2020 and independent audits of the biofuels restaurants closed, the volume we supplied, with no adverse of used cooking oil was findings. Our audit programme significantly affected. Bioethanol blended into petrol ensures we have the most robust supplied in the UK checks on biofuel procurement and production within the industry. Bioethanol blended into petrol supplied in the UK Bioethanol Our team works closely with the supply chain to source Although we are not ourselves biofuels that deliver against our an ethanol producer, we work sustainability objectives which with innovative third-party are conducted according to EU manufacturers to maximise our approved standards. use of waste-derived ethanol as a petrol blend component. We continue to work with industry standards bodies and national biofuel regulators to help them improve the quality of the certification process and adapt to Waste materials new biofuel supply chains. Corn Sugar cane Wheat Sugar beet 1ISCC, 2BVS and Bonsucro EU, all recognised under EU RED recognised voluntary scheme
30 Our environment > Delivering scalable efficiencies / Waste water Delivering scalable efficiencies At a Group level, we review our business to ensure we are operating efficiently and cost-effectively. Supply chain logistics Rail to road supply In 2021, we are converting a portion of the fleet to B20, a high Imports by sea In Ontario, Canada we have four biodiesel blend, to further reduce terminals, including three rail-to- We aim to use more efficient ships our emissions. road facilities. By creating new to benefit from economies of scale supply facilities closer to the end- We have also developed Oil and reduce bottlenecks at our customer and changing the way Planner, a new integrated order terminals. Ships are vetted based that fuel is supplied to the market management and scheduling on a number of factors, including we are reducing lengthy truck system which has enabled us to their GHG emissions ratings and journeys from distant refineries or optimise our deliveries resulting safety record. We use a leading terminals. in overall cost and energy savings. risk assessment and due diligence Following this, we have also firm to compare the relative upgraded our in-cab computing efficiency of vessels. By road systems, allowing us to increase In 2020, we entered into time- In the UK, we have our own delivery efficiency. charter agreements for bunkering in-house haulage operation – In December 2020, Flexigrid vessels based in the English Greenergy Flexigrid – delivering also commenced participation in Channel and Irish Sea. These fuel for Greenergy and for third the Fuel Fleet Tyre Trial run by vessels allow us to optimise our parties across the UK. Southampton University. deliveries and maintain end-to-end control of the supply chain. By in-housing this operation, we By identifying the optimal tyre are able to optimise our haulage pressure, we will be able to patterns across the fleet. improve overall fuel efficiency of To further improve the efficiency the vehicle which will lower our of our fleet, we operate a fleet carbon footprint and reduce costs, replacement programme and in whilst ensuring safety. The tyre 2019 and 2020 replaced over a trial features four different tyre third of our fleet with more fuel manufacturers and will operate efficient models. Combined with until May 2021 out of our Thames reduced traffic congestion owing Navigator terminal. to COVID-19 lockdowns, our miles per gallon (MPG) improved to 9.19 (FY19: 8.9) and is well above the industry average of 7.9MPG. Operational KPis Fuel efficiency ShipShip sizessizes KPI in-house Miles haulage per gallon fleetKPI (MPG) 25 10 Average ship size cbm (000) 8.93 9.19 8 8.82 20 6 20,027 MPG 19,109 4 17,102 15 2 10 0 2018 2019 2020 2018 2019 2020
Greenergy > Sustainability Report 2020 31 Waste and waste water As a company which collects and transforms wastes, we are acutely aware of the extent and impact of waste disposal and the need for the circular economy. Operating principles Waste Waste water All of our plants apply the Best We follow the waste hierarchy UK Available Techniques (BAT)1. and try to avoid waste whenever Our plants operate under the possible. Our Immingham and Teesside Environmental Permitting plants have a combined ISO 14001 Digitisation has helped reduce (England and Wales) Regulations accreditation – an international printing across the Group, and in 2016 that set out the limits on the standard that specifies our haulage business where we emission to water. Wastewater requirements for an effective have adopted in-cab technology leaves the sites as a waste under environmental management and paperless deliveries. the Waste (England and Wales) system (EMS). Regulations 2011 where it goes We contract with expert third to licensed sites for treatment In the UK, our waste and party recycling experts in each and disposal following the waste wastewater processes are audited region to manage our office hierarchy. and follow a monthly maintenance recycling and minimise disposal schedule. We report data annually to landfill. In 2020, we saw a to the Environmental Agency. significant reduction in our office Netherlands waste and recycling because In Amsterdam, our plant meets all of the closure of offices due to Dutch and European regulations.² COVID-19 and increased working from home. We are required to log all waste that is disposed or recovered from our plants, and we comply with all regulations. 2Surface Water – Rijkswaterstaat – Water permit. 1As defined in the EU Large Volume Organic Discharge to Sewer – Waternet RWZI permit. Chemical BAT Reference Documents Common Waste – Het Landelijk Afvalbeheerplan 2017-2029 Waste Water and Waste Gas BREF. (National Waste Management Plan 2017–2029)
32 Our environment > Energy consumption / Carbon emission targets Energy consumption Energy consumption increased across the Group in 2020 as our third plant in Amsterdam commenced commercial production and we expanded our retail presence in Canada. Biodiesel plants Retail We will have 100% We believe regular maintenance Across our company-owned retail schedules and continued estate in Ireland and Canada, we investment in our plants keeps are undertaking feasibility studies them in optimal condition, to understand what investments of electricity purchased allowing us to operate them can be made to reduce their as efficiently as possible and carbon footprint. coming from renewable increase output. sources by 2025 or sooner. We are committed to ensuring In late 2020, we completed our retail operations operate the transition of our UK-based as efficiently as possible, and biodiesel plants to run off recognise the role these sites will In 2021 we will introduce renewable electricity. have in supporting end customers additional targets across As part of recent upgrades at our through the energy transition. the Group. Amsterdam plant, we have piloted the use of solar panels and energy saving measures. Following the success of this programme, we plan to replicate this at both of our UK biodiesel facilities. Energy consumption (MWh by type) 2020 2019 Non-renewable fuel 73,961 95,385 Renewable fuel 4,472 4,559 Non-renewable electricity 59,322 46,928 Renewable electricity 5,865 0 Heat 255,684 238,644 Total non-renewable energy 388,967 380,957 Total renewable energy 10,337 4,559 Total energy consumption 399,304 385,516
Greenergy > Sustainability Report 2020 33 Carbon emissions We remain committed to reducing our emissions from our operations, and the products we supply. We do this by continually We are commited to improving our processes to operate more efficiently and our continued leadership in waste-based Net zero operational renewables. To further drive our commitment to providing lower carbon fuels, emissions by 2035 this year we have created an against 2020 baseline. ESG Committee and identified ESG Champions across the business to develop our framework for the future. We have also introduced Through using our products, help our customers to carbon targets across the Group. We support the recommendations of the Task Force on Climate-related avoid 8mt CO₂e Financial Disclosures, and are working to align with it before it emissions by 2030 becomes a mandatory requirement in the UK, including reporting on and 12mt CO₂e emissions by 2035 with our products. total Scope 3 emissions in 2021. Scope 3 emissions Support our customers to reach net zero by 2050.
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