In the VELUX Group, 98% of our carbon footprint relates to scope 3 emissions and comes from outside our own operations; the majority is from the materials used in our products. To achieve our emission reduction goals, we must work closely with our partners and suppliers.
Understanding our emissions is the first step to reducing them
To improve how we measure and report emissions, we are asking suppliers to report emission data to us. Reporting through CDP is one acceptable way to disclose data. This is a global disclosure system that enables organisations to manage their environmental impacts. Supplier-specific data provides a more accurate overview of our scope 3 emissions and helps us determine if our decarbonisation initiatives have the required effect.
At the close of 2023, 126 suppliers reported their environmental data through the CDP model. For our suppliers of direct materials, this represents at least 72% of our scope 3 emissions from the purchase of direct materials. We also engaged with our top suppliers and encouraged them to set their own carbon reduction targets in line with science. At the close of 2023, 33 of our suppliers, representing around 3% of scope 3 emissions, have set targets under the Science Based Target initiative. We will continue our efforts to expand the share of emissions covered by science-based targets and have included this as an expectation towards all suppliers in our Supplier Decarbonisation Policy.
Supplier partnerships to remove carbon
During the last few years, we have established several co-operations with suppliers across our value chain to source materials with low carbon footprints to help us reduce our scope 3 emissions by 50% by 2030. These partnerships also support our suppliers in their efforts to decarbonise their own operations.
Hydro
In 2022, we established a partnership with Hydro, a Norwegian aluminium supplier. By using the low-carbon products Hydro REDUXA® and Hydro CIRCAL®, the carbon emissions per kilo of aluminium used in the manufacturing of VELUX roof windows, flat-roof windows, and accessories (shutters and blinds) will be reduced.
Through this partnership, we plan to reach a level of below 2.0 kilogrammes of carbon per kilogramme of aluminium by 2030. This is less than one-fifth of the current European average.
ArcelorMittal
In 2023, we entered a co-operation with steel producer ArcelorMittal to lower the carbon footprint of the steel used in VELUX products. The quality of steel is particularly crucial for ensuring optimal performance of the hinges used to operate VELUX roof windows and the brackets used to install them. ArcelorMittal provides VELUX with low-carbon emission steel that is produced using a minimum of 75% scrap steel and 100% renewable electricity. This XCarb® steel is currently being tested in larger volumes in our factory in Gniezno, Poland.
Novelis
In 2022, we started working with Novelis, the world’s largest aluminium recycler, to provide high-recycled content aluminium for use in our products. Recycling aluminium only requires 5% of the energy and results in up to 95% fewer carbon emissions than manufacturing primary aluminium.
The aim is to reach below four kilograms of carbon emitted per kilogramme of supplied flat-rolled aluminium by the end of 2024. This is well below half of the average carbon footprint of primary aluminium used in Europe.
Renewable power in Europe - BayWa r.e.
We are working with BayWa r.e. to develop two new solar photovoltaic (PV) plants in Spain that can supply renewable electricity equivalent to the power used by all of our European operations. The two plants are located in southern Spain - one in Gerena near Seville (60 MWp) and one in Alhendín (56 MWp) in nearby Granada. The Alhendín plant is already completed and waiting to be connected to the grid in 2024. This includes BayWa’s first installation of innovative Agri-PV technology in Spain, which will allow for crops to grow in between the solar panels. The Gerena plant is awaiting regulatory approval locally and is scheduled to be completed in 2025. When both are fully operational, they will generate 167 GWh of renewable electricity every year. This is equivalent to the electricity consumption of approximately 45,000 European homes.
80% of the total electricity generated by the plants is covered by the Power Purchase Agreements with VELUX. This will reduce the yearly carbon footprint of VELUX by approximately 35,000 tonnes of CO2 from our European operations and activities (scope 2, location-based CO2 emissions).
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Photo: Jonas Lysholdt Ejderskov / WWF DenmarkWorking with WWF
We finance forest projects that reduce and remove CO2 equivalent to our historical CO2 emissions. The projects are designed and delivered by the World Wide Fund for Nature (WWF). Our twenty-year partnership will deliver a portfolio of forest projects in tropical forest landscapes with high biodiversity value that will create positive change for people, nature and climate.
The partnership aims to contribute the verified carbon reductions and removals generated by the forest projects to the host countries’ climate commitments. This means that the verified carbon reductions and removals will not be traded nor used for offsetting by the VELUX Group.