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Greenhouse Gas Accounting Principles

General approach

Coloplast has adopted the Greenhouse Gas Protocol as the basis for our greenhouse gas (GHG) accounting principles and we voluntarily disclose our full known greenhouse gas inventory, within our reporting boundaries, to the CDP and in our annual Corporate Responsibility Report.

In the following, we define our GHG reporting boundaries and accounting principles within the Greenhouse Gas Protocol, Scope 1,2 and 3.

Furthermore, we have adopted the materiality criteria defined by the Greenhouse Gas Protocol, stating that emissions stemming from minimum 80% of the economic spend within a single reporting category should be accounted for. In cases where we do not cover the full spend (Scope 3), we have extrapolated our data to cover 100%.

 

GHG Protocol Scope 1 and 2:
Direct emissions, direct and indirect energy consumption

GHG emissions from direct and indirect energy consumption and direct VOC emissions

Direct and indirect energy consumption is a major source of GHG emissions in Coloplast, whereas VOC emissions are very low due to our efficient air cleaning systems.

Coverage: All Scope 1 and 2 emissions from all Coloplast production facilities (Denmark, Hungary, France, US and China), headquarters (Denmark and US) and global distribution centres (Germany, Hungary and US). New sites are included in the reporting on the date of takeover from the developer (owned sites) or by the first day of occupancy (leased/rented sites).

Not included: GHG emissions from leased and rented sales offices and small local warehouses (reported as Scope 3 emissions)

Data sources: Data on energy consumption is obtained from invoiced data from our utility providers and is crossed checked with metered data. Data on VOCs is measured consumption handled in air cleaning systems.  

Validity of results [1]

Data: High: Based on exact invoiced energy consumption and use of VOCs 

Model: High (Natural Gas, VOC and HFC): Based on IPCC conversion factors.
Medium (Electricity): Based on DEFRA/IEA country specific GHG emission factors, not including production and transmission losses. CO2 factors for electricity for 2015/16 based on 2014/15 values as newer values have not been published.

 

GHG Protocol Scope 3 emissions:
Other indirect GHG emissions

We have limited our Scope 3 reporting boundaries to include seven categories relevant to our operations.  

1. Transportation of goods

Coverage: All distribution internally in Coloplast (“inbound distribution”), specifically transportation between production sites, global distribution centres, local/regional warehouses, external sterilization partners and from suppliers, where Coloplast covers the transportation costs. Also included is distribution of finished goods from warehouses to customers in Emerging Markets. This covers all Coloplast’s long distance global transportation and the majority of regional transports. 

Not included: Distribution of finished goods from local warehouses to customers in established markets (“outbound distribution”), i.e. short-range local transportation, and courier transports globally.

Data sources: GHG emission estimates are based on quarterly emission reports based on the European Standard EN 16258 (weight, no of pallets, tonkm and CO2 emissions on each lane), from all Coloplast’s shipping partners. Data are crosschecked against internal shipping orders.

Validity of results:

Data: High. Emission reports includes exact weights and distances for each transport.

Model: Medium. Emission reports are based on standard data for GHG emissions pr. tonkm for the different transport modes rather than on actual fuel consumption.

 

2. Business air travels

Data sources: GHG emissions from business air travels are based on yearly CO2 emission reporting from our global travel agent (TPE).  As TPE does not cover all Coloplast’s global activities, emissions from TPE are extrapolated by dividing with the share of air travels that TPE cover based on costs. 

The CO2 emissions reported is multiplied by 2.7 to account for the total global warming potential caused by air traffic [2]. 

Emissions from car rental are included based on a quarterly reporting from our main car rental supplier.

Validity of results:

Data: High. Emission reports is based on exact mileages for each travel segment.

Model: Medium. Conversion from mileages to CO2 emissions are based on DEFRA standard emission factors for short, medium and long hauls air travels.

 

3. Leased company cars

Coverage: All leased company cars in Europe, North America and some other major markets (+90% of our fleet). 

Not included: Sales activities in private cars, where Coloplast pays mileage allowance or provide fuel cards, as we do not track this activity on a global scale.

Data sources: Number of cars and mileages are collected from all markets. GHG emissions data are based on yearly CO2 reports from our leasing providers. Data are crosschecked against internal overview of leased cars.

Validity of results:

Data: High. All emission reports are based on actual fuel consumption.

Model: High. Based on specific IPCC emissions factors for petrol and diesel fuel

 

4. Raw materials

Coverage: All ingoing raw materials registered in Coloplast’s production data management system.

Not included: Contract manufactured goods, production equipment and other capital goods, processing aids and other supporting materials. Pallets and packaging used for raw material delivery.

Data sources: All raw materials registered in Coloplast’s production management system is registered with exact weight and is grouped into one of ~50 major categories, together with similar raw materials. The GHG emission of each major category of raw materials is calculated based on standard model data from the EcoInvent database using LCA modelling in the SimaPro LCA tool. Included in the LCA analysis is GHG emissions related to extraction, transportation and processing of virgin materials (e.g. crude oil), refinement and upgrade to raw feedstock raw materials (e.g. plastic polymers), processing into semi-finished or finished goods, transportation as well as incineration of the product at its end of life.

Validity of results:

Data: High. Based on exact weight of each ingoing raw material delivery

Model: Medium. The EcoInvent data is average industry wide data, and not emissions data specifically related to Coloplast’s production and products.

 

5. Energy consumption in sales offices, subsidiaries and local/regional warehouses

Coloplast’s sales organization is located in more than 100 subsidiaries and sales offices, all located in leased or rented offices.

Coverage: All sales offices, subsidiaries and regional warehouses.

Not included: Sales representatives working from home as well as global distribution centres (reported in Scope 1 and 2).

Data sources: The number of full time employees (FTE’s) for each office and warehouse is multiplied by a standard emission factor for CO2 emission (g CO2 / employee), based on the Danish Energy Management Scheme.

Validity of results:

Data: High. Based on an exact overview of number of FTE’s.  

Model:  Low. CO2 emissions calculations are based on standard model data (g CO2 / employee).

 

6. Fluorinated hydrocarbons (CFC, HCFC, HFC etc) in products

Coloplast faced out the use of fluorinated hydrocarbons in products in 2014, but to ensure consistency in our external reporting we maintain this topic.

Coverage: All products in our product portfolio that contains HFC gases.

Not included: -

Data sources: The use of fluorinated hydrocarbons in products (spray cans) is reported based on the yearly output.

Validity of results:

Data: High. Based on exact HFC content in our products

Model: High. Based on IPCC conversion factors (GWP20, AR 4)

 

7. Custom manufacturing[3]

GHG emissions from outsourced custom manufacturing production (OEM manufacturing), i.e. finished goods produced by external suppliers under the Coloplast brand, is included in our reporting to ensure that reduction in Coloplast’s reported emissions is not caused by transferring production to custom manufacturers.

Coverage: All custom manufactured products

Not included: Other brands sold by Coloplast’s sales subsidiaries.   

Data sources: We track the total number and total weight of all products produced by Coloplast’s custom manufacturers. Estimates of CO2 emissions from energy consumption during production and from raw materials is based on the assumption that an average custom manufactured product has the same average CO2 emissions from energy and material use as an average product produced by Coloplast.

Validity of results:

Data: Medium. Based on average weight a total number of all outsourced products

Model: Low. Based on the assumption than energy consumption and resource use for an average custom manufactured product is equal to that of an average product produced by Coloplast.

 

Greenhouse Gas Protocol Scope 3 categories not included within Coloplast’s Scope 3 boundaries:

  • Employee business travel by rental/private cars, trains, taxies or ferries
  • Indirect procurement of substances and products not used in production
  • Employee commuting by public and private transportation modes
  • Sterilisation of our products at external suppliers
  • Franchises as we do not have any 
  • Investments as we do not investment outside our core area 
  • Capital goods

[1] The data validity score is our own subjective evaluation.
Data: High: Exact data. Medium: Known data with some uncertainties. Low: Estimate

Model: High: Conversion to CO2e based exact conversion factors. Medium: Conversion to CO2e based on internationally accepted average model data (e.g. EcoInvent, DEFRA, GHG protocol). Low: Conversion to CO2e based on own model data.

 

[2] The complete global warming potential from all gasses and particles emitted from jet engines (CO2, ozone, methane, water vapor, contrails, sulfate sooth, etc.) are on average 2.7 times the global warming potential of the CO2 emitted. Reference: IPCC special report. Aviation and the global atmosphere. Summary for Policymakers. http://www.ipcc.ch/ipccreports/sres/aviation/index.htm

[3] In this category, we only include custom manufacturing that realistically can be in- and outsourced into Coloplast’s own production – i.e. processes that are within Coloplast’s own core competencies. 

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