11. Usage of Natural Resources

The company discloses the extent to which natural resources are used for the company’s business activities. Possible options here are materials, the input and output of water, soil, waste, energy, land and biodiversity as well as emissions for the life cycles of products and services.

The analysis of the natural resource consumption is part of the Environmental Management System certified according to ISO 14001. In the reporting period 2019, INPACS' environmental performance indicator system has been revised and a greenhouse gas report following the GHG Protocol Corporate Accounting and Reporting Standard has been created for the first time (cf. criterion 13 Climate-Relevant Emissions).

As the INPACS head office is representing the service and coordination centre of the global distribution network, it is operating a pure office space of 414 m2 used by 20 in-house employees as well as additionally infrequently used by five field employees. Therefore, the direct consumption of natural resources is relatively low. The natural resources INPACS primarily uses rank according to their relevance as follows:
  1. The consumption of Fuel (Diesel and Petrol) for field sales activities and employee mobility constitutes the biggest lot of used resources within the INPACS head office organisation. In this course, also the number of trips by aircraft and train are monitored and represent indicators for fuel as well as energy consumption. However, these are included in the GHG Protocol calculations by the quantity of trips (cf. KPI GRI SRS-302-1 and KPI GRI SRS-302-4).
  2. The usage of Electricity and Heat for the execution of business activities (IT processes) and building use (lighting, air conditioning, kitchenware) corresponds to modern energy-efficient office buildings (cf. KPI GRI SRS-302-1 and KPI GRI SRS-302-4).
  3. We use only small amounts of recycled office Paper due to the fact that mainly electronic mediums (email, Intranet and PDF) are used for correspondence and invoicing (cf. KPI GRI SRS-301-1).
  4. The office Water consumption corresponds to the operation of staff bathroom and kitchen facilities (cf. KPI GRI SRS-303-3).
  5. There is a negligible amount of exclusively non-hazardous Waste generated by the office operation (cf. KPI GRI SRS-306-2).
As value creation centre for its stakeholders, INPACS' most material impact regarding the usage of natural resources consists of demanding environmental standards as well as of continuously promoting best practices with regard to resource-efficient processes and technologies within the global network. Additionally, by the pursuit of SDG 12 "Create Sustainable Value Chains" as well as SDG 13 "Significantly Reduce Greenhouse Gas Emissions", the newly adopted group-wide sustainability strategy calls on all members to strategically prioritize the efficient use of natural resources.

In 2019, EcoVadis has attested INPACS again an advanced environmental performance, performing an improvement by 10 points compared to 2017.
lassified as a non-material environmental aspect at INPACS head office and is included in the landlords’ waste management.

12. Resource Management

The company discloses what qualitative and quantitative goals it has set itself with regard to its resource efficiency, in particular its use of renewables, the increase in raw material productivity and the reduction in the usage of ecosystem services, which measures and strategies it is pursuing to this end, how these are or will be achieved, and where it sees there to be risks.

As the general basis, the Company Policy requires ecological responsibility expressing INPACS' commitment "to minimising its environmental footprint". 

On INPACS head office level, this reduction target is managed according to the ISO 14001 standard  requirements and controlled following the GHG Protocol Corporate Accounting and Reporting Standard. The here considered resources can be impacted directly by INPACS, but at the same time have a relatively insignificant leverage power regarding the increase in resource efficiency, due to the small office operation.

Therefore, INPACS has set a strategic focus on a rather indirect, but much more impactful leverage point: its market role. To effectively use its global sphere of influence to develop and promote resource-saving business models, the following goals have been set (cf. criterion 3 and 7): In order to save resources and emissions, we aim to make a contribution to the reduction of waste generation – and our greatest area of impact is our customer. Therefore, we extended our view on the customers’ value chain to the crucial stage of waste disposal.

Here, the relevant strategic measures are:

1. Create a Sustainable Program for our Customers: We develop a Sustainability Analysis along the customers’ value chain. The sustainability program is scheduling an implementation of version 1.0 by 2020, whereby the first pilot already enables the customer consultancy regarding the
  • customers' product consumption/ procurement portfolio on the basis of sustainability attributes,
  • usage of electronic ordering and invoicing,
  • CO2 emissions per delivery as well as
  • Waste amount per waste category (cf. criterion 10). 
2. Develop a Sustainable Range: In order to better influence sustainable consumption and production, we enhance our sustainable range with appropriate concepts and service. The following milestones have been reached in the reporting period 2019 as a basic requirement for further effective measures: 
  • Cooperation initiation with waste management company in order to raise awareness for circularity within network, conduct reality-testing of biodegradable products and develop disposal concepts for our customers
  • Development of an INPACS Packaging Guideline as well as a catalogue of relevant product criteria to enable a harmonized and targeted sustainable procurement as well as customer consultation
3. Initiate a Sustainability School: To take the journey together with our members, employees, customers and suppliers, internal and external knowledge building is a basic requirement and shall be facilitated through a web-based interactive Sustainability Knowledge Platform. An associated pilot project is planned for 2020.

The core of this new approach is the cooperative connection of all stakeholders and creation of transparency on all levels along global wholesale value chains – minimizing the material risks of high resource intensity and high transport CO2 emissions on account of our globally traded product range.
  • customers' product consumption/ procurement portfolio on the basis of sustainability attributes,
  • usage of electronic ordering and invoicing,
  • CO2 emissions per delivery as well as
  • Waste amount per waste category

Key Performance Indicators to criteria 11 to 12

Key Performance Indicator GRI SRS-301-1: Materials used
The reporting organization shall report the following information:

a. Total weight or volume of materials that are used to produce and package the organization’s primary products and services during the reporting period, by:
i. non-renewable materials used;
ii. renewable materials used.

In the reporting period 2019, 15.000 sheets of paper (DIN A4, 100% recycled) have been used, 10.000 sheets less than in 2017.

Due to the mere office operation of the INPACS head office, no considerable amount of cardboard or office material has been used.

Key Performance Indicator GRI SRS-302-1: Energy consumption
The reporting organization shall report the following information:

a. Total fuel consumption within the organization from non-renewable sources, in joules or multiples, and including fuel types used.

b. Total fuel consumption within the organization from renewable sources, in joules or multiples, and including fuel types used.

c. In joules, watt-hours or multiples, the total:
i. electricity consumption
ii. heating consumption
iii. cooling consumption
iv. steam consumption

d. In joules, watt-hours or multiples, the total:
i. electricity sold
ii. heating sold
iii. cooling sold
iv. steam sold

e. Total energy consumption within the organization, in joules or multiples.

f. Standards, methodologies, assumptions, and/or calculation tools used.

g. Source of the conversion factors used.

Total energy consumption: 
2019: 136.225 kWh (-32%)
2017: 200.648 kWh

Total fuel consumption from non-renewable sources:

2019: 90.765 kWh = 9.113 liters (+3%)
2017: 87.887 kWh = 8.824 liters

(thermal value of 9.96 kWh/liter according to the German Federal Office of Economics and Export Control)

Energy consumption for electricity (German electricity mix): 
2019: 11.754 kWh (-69%)
2017: 37.940 kWh

Energy consumption for heating: 
2019: 33.706 kWh (-55%)
2017: 74.822 kWh

The presented data is based on the regular account statements submitted by the respective service provider and was gathered within the creation of the greenhouse gas report.

The slight increase in fuel consumption is connected with the expansion of the international sales activities and the recruitment of two new key account managers. 

Key Performance Indicator GRI SRS-302-4: Reduction of energy consumption
The reporting organization shall report the following information:

a. Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples.

b. Types of energy included in the reductions; whether fuel, electricity, heating, cooling, steam, or all.

c. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.

d. Standards, methodologies, assumptions, and/or calculation tools used.

Resource Development in Relation to Previous Reporting Period 2017
Electricity - 69,01 %
Heating - 54,95 %

The drastic reduction of the electricity and heating consumption by more than a half is mainly due to the move to a new office building, which was constructed in a particularly energy-efficient manner.
 
is mainly due to the move to a new building.

Key Performance Indicator GRI SRS-303-3: Water withdrawal
The reporting organization shall report the following information:

a. Total water withdrawal from all areas in megaliters, and a breakdown of this total by the following sources, if applicable:
i. Surface water;
ii. Groundwater;
iii. Seawater;
iv. Produced water;
v. Third-party water.

b. Total water withdrawal from all areas with water stress in megaliters, and a breakdown of this total by the following sources, if applicable:
i. Surface water;
ii. Groundwater;
iii. Seawater;
iv. Produced water;
v. Third-party water, and a breakdown of this total by the withdrawal sources listed in i-iv.

c. A breakdown of total water withdrawal from each of the sources listed in Disclosures 303-3-a and 303-3-b in megaliters by the following categories:
i. Freshwater (≤1,000 mg/L Total Dissolved Solids);
ii. Other water (>1,000 mg/L Total Dissolved Solids).

d. Any contextual information necessary to understand how the data have been compiled, such as any standards, methodologies, and assumptions used.

Water consumption: 
2019: 100m3 (-16%)
2017: 119m3

With 0.33 m3 per employee, water consumption is not considered a significant environmental impact factor as it corresponds to the operation of staff bathroom and kitchen facilities.
All water is provided by regional water utilities.
The reduction of the water consumption is due to the move to a new office building with a more precise data calculation.

Key Performance Indicator GRI SRS-306-2: Waste
The reporting organization shall report the following information:

a. Total weight of hazardous waste, with a breakdown by the following disposal methods where applicable:
i. Reuse
ii. Recycling
iii. Composting
iv. Recovery, including energy recovery
v. Incineration (mass burn)
vi. Deep well injection
vii. Landfill
viii. On-site storage
ix. Other (to be specified by the organization)

b. Total weight of non-hazardous waste, with a breakdown by the following disposal methods where applicable:
i. Reuse
ii. Recycling
iii. Composting
iv. Recovery, including energy recovery
v. Incineration (mass burn)
vi. Deep well injection
vii. Landfill
iii. On-site storage
ix. Other (to be specified by the organization)

c. How the waste disposal method has been determined:
i. Disposed of directly by the organization, or otherwise directly confirmed
ii. Information provided by the waste disposal contractor
iii. Organizational defaults of the waste disposal contractor

INPACS' exclusively non-hazardous waste is mainly divided into small amounts of office paper and kitchen waste, rarely does it contain electronic scrap, all collected in separate containers.
Waste is classified as a non-material environmental aspect at INPACS head office and is included in the landlords’ waste management. No separate monitoring at INPACS head office.

13. Climate-Relevant Emissions

The company discloses the GHG emissions in accordance with the Greenhouse Gas (GHG) Protocol or standards based on it and states the goals it has set itself to reduce emissions, as well as its results thus far.

In the reporting period 2019, INPACS' environmental performance indicator system has been revised and a greenhouse gas (GHG) report following the GHG Protocol Corporate Accounting and Reporting Standard has been created for the first time. 

In this course, the INPACS head office can report a total of 176 tons of CO2 caused. The GHG emissions caused directly (Scope 1 + 2) are accounted for only 12%, mainly influenced by the fuel consumption (5,5%) and also by heating energy (3,5 %) and the consumption of electricity (3%).

With the preparation of the GHG balance, INPACS has been able for the first time to also report on the indirectly caused emissions (Scope 3). Scope 3 currently accounts for as much as 88% of the total balance, almost entirely due to the position of business trips (86%). The data contained is not complete yet, information regarding e.g. the travel routes of the employees was not available in 2019.


Distribution of Emissions by Scopes according to GHG Report

Since the travel activities of the international key account managers are essential for realizing INPACS' business model, a substantial reduction of the related absolute emissions will not be feasible. But it is constantly promoted to use digital communication channels where appropriate and to pool regional meetings in an efficient way - the rather minor increase of the number of flights from 447 in 2017 to 476 in 2019 and the concurrent increase of train trips from 81 in 2018 to 117 in 2019 are currently confirming the validity of this approach.

INPACS has decided against the concept of financial CO2-compensation and against the usage of the claim "climate neutral company". Instead, independently of our absolute emissions, we are planning to support a non-governmental organisation, which is dedicated to international reforestation. By this, we are setting the focus on the reduction of our greenhouse gas emissions as well as our related performance and create the transparency needed (cf. criterion 18).

The much more impactful leverage point for reducing climate-relevant emissions lays on group level, which is why the newly adopted group-wide sustainability strategy calls on all members to "Significantly Reduce Greenhouse Gas Emissions on Local, National and International Level". Here, the concrete measures are the following:

Elaboration of GHG Reports: To identify the effective points of leverage, all members shall (first) create transparency on their climate impact by reporting on their GHG emissions in alignment to the GHG protocol corporate standard. INPACS will facilitate appropriate tools to members and monitor the progress.

Define an Ambitious Reduction Action Plan: By analysing their GHG report, INPACS members shall identify the most relevant areas of improvement, set ambitious reduction targets and schedule appropriate actions.

Once a sufficient proportion of our members has implemented these measures, the groundwork for an international climate management with harmonised targets and monitoring processes is done.

Key Performance Indicators to criteria 13

Key Performance Indicator GRI SRS-305-1: Direct (Scope 1) GHG emissions
The reporting organization shall report the following information:

a. Gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent.

b. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3 or all.

c. Biogenic CO2 emissions in metric tons of CO2 equivalent.

d. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

e. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

g. Standards, methodologies, assumptions, and/or calculation tools used.

2019: 15,2 tons of CO2 (fuel)

In the reporting period 2019, INPACS' environmental performance indicator system has been revised and a greenhouse gas (GHG) report following the GHG Protocol Corporate Accounting and Reporting Standard has been created for the first time, which is why the reporting year is representing the base year.
 
The following six greenhouses were included in the calculation according to the Kyoto Protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrogen-containing fluorocarbons (HFC), perfluorinated hydrocarbons (KFW) and sulfur hexafluoride (SF6). Nitrogen trifluoride (NO3) has also been classified as a greenhouse gas since 2015 due to its climate-damaging effects.
 

according to the Kyoto Protocol

Key Performance Indicator GRI SRS-305-2: Energy indirect (Scope 2) GHG emissions
The reporting organization shall report the following information:

a. Gross location-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

b. If applicable, gross market-based energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent.

c. If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

d. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

e. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

f. Consolidation approach for emissions; whether equity share, financial control, or operational control.

g. Standards, methodologies, assumptions, and/or calculation tools used.

2019: 5,9 tons of CO2 (electricity and heating)

(Details see Scope 1 in KPI GRI SRS-305-1)

Key Performance Indicator GRI SRS-305-3: Other indirect (Scope 3) GHG emissions
The reporting organization shall report the following information:

a. Gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent.

b. If available, the gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

c. Biogenic CO2 emissions in metric tons of CO2 equivalent.

d. Other indirect (Scope 3) GHG emissions categories and activities included in the calculation.

e. Base year for the calculation, if applicable, including:
i. the rationale for choosing it;
ii. emissions in the base year;
iii. the context for any significant changes in emissions that triggered recalculations of base year emissions.

f. Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source.

g. Standards, methodologies, assumptions, and/or calculation tools used.

2019: 154,2 tons of CO2
The indirect emissions by third parties amount to 154,2 tons of CO2e in 2019, almost entirely due to the position of business trips. However, the data contained is not complete and must be supplemented with information regarding the upstream supply chain and the travel routes of the employees.
(Details see Scope 1 in KPI GRI SRS-305-1)

Key Performance Indicator GRI SRS-305-5: Reduction of GHG emissions
The reporting organization shall report the following information:

a. GHG emissions reduced as a direct result of reduction initiatives, in metric tons of CO2 equivalent.

b. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

c. Base year or baseline, including the rationale for choosing it.

d. Scopes in which reductions took place; whether direct (Scope 1), energy indirect (Scope 2), and/or other indirect (Scope 3).

e. Standards, methodologies, assumptions, and/or calculation tools used.

Due to the revision of the environmental indicator system in the reporting period 2019 and the changed methodology for the emissions calculation, no reliable statements can be made about the reduction of GHG emissions. A statement in this regard will only be possible in the next reporting year with 2019 as the base year. 

However, the increasing energy efficiency and the growing number of business trips by train instead of by plane already indicate awareness and an adequate development for the reduction of GHG emissions (cf. KPI GRI SRS-301-1 and criterion 13).