Morgan Advanced Materials

Close up of solar panel cells

Energy

As public concern grows, more customers are asking about our Greenhouse Gas (GHG) emissions as part of the manufacturing process. The increasing demand for low-carbon products and processes, and the need to consider the effects of climate change in general, have had an impact on our long-term strategy.

Our progress

Scope 1 and 2 CO2e emissions reduced by 8.2% in 2022 (compared with 2021). This was driven by improvements in:

  • Green energy procurement: transition to renewable and other carbon free energy sources.
  • Efficiency and process optimisation actions: changes to processes (e.g., kiln firing profiles) and equipment operating protocols (e.g., equipment shutdowns and idling machines).
  • Capital projects: replacement of inefficient assets, transition from gas to electric fuel types, and improvement in control systems

We have a broad-based improvement programme underway covering energy procurement, process improvements and behavioural changes in our plants.

In 2022, we improved our energy intensity, price adjusted, by around 2% and continued the transition to carbon free energy for a number of our sites. Around half of our electricity now comes from green or carbon free sources.

Energy performance in 2022
  • Total GHG emissions (tCO2e) were 211,104 tonnes; 8% decrease over 2021 levels and 38% decrease over 2015 values.
  • Scope 1 GHG emissions (tCO2e) from stationary fuel combustion were 117,473 tonnes and scope 1 GHG emissions (tCO2e) from process emissions were 4,516 tonnes. For 2022, total scope 1 GHG emissions (tCO2e) accounted was 121,889 tonnes, which is a 1% decrease over 2021 values and 41% decrease over 2015 values.
  • Market-based scope 2 GHG emissions (tCO2e) were 89,115 tonnes, which is a 17% decrease over 2021 values and 35% decrease over 2015 values.
  • Achieved a “B” management score for Climate Change from CDP recognising we are taking coordinated action on climate issues.
Energy procurement

The total energy consumption (fuel and electricity) for Morgan was 1,058 GWh for 2022, which is 1% lower than 2021 (1,067 GWh). In 2022, we reached the milestone of 49% green (renewable and carbon free) electricity. We plan to increase this further in the coming years, with a target of 65% renewable or carbon free electricity by the end of 2025.

CO2e scope 1 and 2 emissions chart from 2018 to 2022, with 2030 goal outlined

Scope 3 emissions

We acknowledge the importance of assessing our value-chain emissions in achieving our long-term sustainability objectives. We plan to collaborate with our key stakeholders and top-tier suppliers to reduce indirect emissions, which is our initial move towards minimising the impact of our product life cycle.

On GHG reporting, we define our organisational boundary on an operational control basis, and we report our scope 1 and 2 emissions on this basis. This implies that we account for 100% of such emissions resulting from operations over which Morgan or one of our subsidiaries has operational control.

Generally, the term scope 3 refers to indirect GHG emissions originating from activities in our value chain, such as upstream emissions linked to raw materials, downstream emissions generated from the products we sell, and emissions from transportation activities upstream and downstream. The scope 3 standard further classifies these emissions into fifteen distinct categories.

In 2022, we utilised the GHG scope 3 evaluator tool to perform a scope 3 screening exercise across all categories. Our scope 3 emissions in 2021 were approximately 700,000 tCO2e. We are currently completing a comprehensive scope 3 inventory exercise and creating data collection schemes with specific targets.

Greenhouse gas emissions

Morgan’s greenhouse gas (GHG) emissions, such as carbon dioxide (CO2), are mostly generated by the combustion of fossil fuels at various stages of our manufacturing processes. We track these using a reporting methodology based on the internationally recognised Greenhouse Gas Protocol. This stipulates the source for the global warming potential (GWP) rates that we use to convert non-carbon dioxide emissions into the standard measure of carbon accounting, i.e. carbon dioxide equivalents (CO2e).