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