Patria's environmental responsibility is guided by the Group's environmental policy and the international principles for environmental responsibility to which the company is committed.
According to the stakeholder survey, the key aspects of Patria's environmental responsibility are compliance with chemicals and environmental legislation, waste recycling and energy efficiency.
Patria is committed to the Science Based Target initiative, read more at SBTi and to promote sustainable development in its operations by means of concrete measures.
Efforts are made to make energy and water consumption more efficient and to have a positive impact on the recycling and responsible disposal of waste. The responsibility for Patria's environmental responsibility development relies on the environmental work group tasked with furthering collaboration and the sharing of information between various business units, and with developing and reporting on the group's environmental responsibility.
Patria Group has conducted its carbon footprint calculation according to the standards and guidance described in the GHG protocol since 2018 (version 2004, amendment 2013). For scope 3 emissions, a separate scope 3 emission calculation standard (2011) and a technical guide (2013) that supplement the GHG Protocol were also applied. Patria Group has calculated its direct and energy indirect emissions (scopes 1 and 2) 2018 onwards, whereas emissions from the value chain (scope 3) were calculated in 2021 for the first time. Emissions from the value chain were calculated for the year 2018, so 2018 can be used as a base year for tracking the emissions. In the future, all emissions (scopes 1–3) will be calculated yearly, but for now only scope 1 and 2 emissions are reported with the environmental reporting.
According to GHG Protocol, the GHG accounting and reporting can be based on the equity share and the control approaches. These organizational boundaries define which emissions belong to scopes 1 and 2 and which to scope 3. Patria Group has set the organizational boundaries under the control approach, and therefore accounts for 100 percent of the GHG emissions from operations over which it has control. In addition, the operations of Millog and ISP Estonia are included in the carbon footprint calculation. The calculation concerns operations in Finland, Sweden, Estonia, Belgium, and Spain.
Patria Group has set the operational boundaries to include scope 1 and scope 2 in the calculation but to exclude scope 3 from the Group’s environmental reporting for the time being. Scope 1 consists of direct GHG emissions that occur from sources that are owned or controlled by the company, such as company owned vehicles, self-produced energy, or refrigerant leaks. Scope 2 accounts for GHG emissions from the generation of purchased electricity and heat consumed by the company. Currently, only the GHG emission calculations of 2020 and 2021 cover all Patria Group’s locations and operations (ISP units included).
For scope 2, two different emission values were calculated according to the GHG-protocol: market and location-based emissions. The marketbased emissions are calculated using emission factors provided by the electricity and heat suppliers. This enables consideration of the impacts specifically from the company’s selected method of energy generation as opposed to location-based emission factors which are national averages and as such represent the state of the electricity and heat network on the national level. The national state is considered because fossil-based energy is usually required to ensure electrical security even if a company purchases green energy. Location-based emissions also offer a national benchmark for the environmental friendliness of the energy the company has bought.
Only market-based emissions are taken into Patria Group’s carbon footprint and the location-based emissions are reported separately. If Patria Group chose to change the energy it uses to renewable, emission free energy, its market-based emissions would decrease to zero. However, location-based emissions would not change as the emission factor used in the calculation represent the national average emissions and it would be required many companies to switch to less emission intensive energy production methods for the emission factor to change.
Patria Group’s carbon footprint for all the locations in 2021 was 21,755 tonnes of carbon dioxide equivalent (t CO2e). Compared to previous year’s carbon footprint (19,648 t CO2e), Patria Group generated 2,107 tonnes more greenhouse gas emissions. This is partly due to corrections made for Belgium’s electricity use which was reported to be incorrectly high in 2020. The adjustment decreased Patria Group’s emissions from 2020 slightly.
Scope 1 emissions originate from the fuel consumption in cars and machines, and heat production in Sweden. In Belgium, self-produced energy is accounted as a scope 1 emission source, but as the electricity is produced with solar panels, the production does not create any greenhouse gas emission. There were no refrigerant leaks detected in 2021. Altogether, scope 1 emissions accounted for about 13% of all Patria Group’s emissions and were 2,865 t CO2e. Most of the emissions (87%), 18,890 t CO2e, originated from purchased energy (scope 2), especially heat consumption.
Read more about Patria's environmental responsibility in Annual report.