Energy

Energy
GRI 103-1,2,3; GRI 302-1,4

In 2021, energy consumption in our organization, excluding sites acquired in 2021, increased by 2.5% (419 GWh) compared to the 2019 baseline year (409 GWh). This increase was primarily due the addition of newly opened sites in 2021 and a new production line at a site in Shanghai, China. Natural gas consumption also saw an increase in 2021 due to a change in the method of how we are accounting for the energy input and output of the combined heat power plants at a large site in Germany. Including the ten relevant acquired sites, our total energy consumption in 2021 was 433 GWh.

Total operational sites consolidated in 2021 for energy are 157 (out of 160), excluding acquisitions. The difference is due to an in-house site at a customer location and two office sites, whose energy consumption are negligible.

In our 2020 Sustainability Report, we communicated our target of implementing energy management systems (EnMS) at all Oerlikon sites. This target considered the installation of EnMS at relevant sites (i.e. large operational and office sites), as it is neither economically nor sustainably prudent to have such systems implemented for small offices. The target included both ISO-50001-certified and Oerlikon defined EnMS.

The Oerlikon defined EnMS is a stringent but lighter version of the standards that closely mirror ISO 50001. The definitions of this system are documented in an internal guideline endorsed by management to regulate non-ISO sites. The local entities have the option to decide if they would implement the ISO 50001 or the Oerlikon defined EnMS. 

In 2021, 12 sites implemented EnMS, bringing the total number of Oerlikon sites with EnMS to 30, or 19% of our total relevant sites and 54% of Oerlikon’s total energy consumption. In the first quarter of 2022, another two Oerlikon sites have implemented EnMS. We have classified 23 of our sites as heavy energy consumers, and together, they represent around 50% of our total global energy consumption. All 23 sites were identified as priority sites and to date, they all have EnMS in place. 

An EnMS allows us to address our energy impact, conserve resources and improve cost through efficient energy management. It is designed as a practical way for our sites to track, monitor and analyze their energy consumption, and then to identify and implement improvement measures.

An EnMS provides a framework of requirements for each site to:

•    Develop a policy for more efficient use of energy;
•    Fix targets and objectives to meet the policy;
•    Use data to better understand and make decisions about energy use;
•    Measure the results;
•    Review how well the policy works and
•    Continually improve energy management.

We engage in ongoing analysis to identify further successful practices that can be implemented across the Group, and obstacles to reducing energy consumption that we need to manage more effectively. Our system for monitoring energy consumption at sites across the Group includes data collection on electricity usage on a monthly basis and other energies on a quarterly basis.

Oerlikon’s energy-consumption tracking system not only analyzes energy use, but also provides a breakdown of the proportion of electricity derived from renewable sources. A number of our sites, for example a site in Balzers, Liechtenstein, and one in Neumuenster, Germany, have already fully converted to solely using energy from renewable sources. In 2021, 22.2% of our electricity consumed was from renewable sources, excluding acquisitions. Including acquired sites, it was 21.7%. This is the first time we have collated the data for electrical energy derived from renewable sources, and thus, we will be using the 2021 data, excluding acquisitions, as the baseline.

We are committed to implementing conservation and efficiency initiatives that promote short- and long-term reductions in energy consumption. Moreover, we will continue to actively seek renewable energy solutions as we progress toward a soft energy path.

We are on track with our goals and remain committed to achieving our 2030 targets to have 100% of our relevant sites with EnMS implemented and to derive electrical energy only from renewable sources.