From the Sector

The world’s largest fashion brands and retailers must increase transparency to tackle the climate crisis and social inequality, according to the latest Fashion Transparency Index.

The seventh edition of the Fashion Transparency Index ranks 250 of the world’s largest fashion brands and retailers based on their public disclosure of human rights and environmental policies, practices, and impacts, across their operations and supply chains.

• Brands achieved an average score of just 24%, with nearly a third of brands scoring less than 10%
• The majority of brands (85%) do not disclose their annual production volumes despite mounting evidence of clothing waste around the world
• Most major brands and retailers (96%) do not publish the number of workers in their supply chain paid a living wage

The Index reveals insights into the most pressing issues facing the fashion industry, like:

• As new and proposed legislation focuses on greenwashing claims, almost half of major brands (45%) publish targets on sustainable materials yet only 37% provide information on what constitutes a sustainable material.
• Only 24% of major brands disclose how they minimise the impacts of microfibres despite textiles being the largest source of microplastics in the ocean.
• The vast majority of major brands and retailers (94%) do not disclose the number of workers in their supply chains who are paying recruitment fees. This paints an unclear picture of the risks of forced labour as workers may be getting into crippling debt to accept jobs paying poverty wages.
• While many brands use their channels to talk about social justice, they need to go beyond lip service. Just 8% of brands publish their actions on racial and ethnic equality in their supply chains.

Despite these results, Fashion Revolution is encouraged by increasing supply chain transparency among many major brands, primarily with first-tier manufacturers where the final stage of production occurs, e.g. cutting, sewing, finishing and packing. Nine brands have disclosed their first-tier manufacturers for the first time this year. It is encouraging to see significant progress across market segments including luxury, sportswear, footwear and accessories and across different geographies.

Fashion Revolution’s co-founder and Global Operations Director Carry Somers says: “In 2016, only 5 out of 40 major brands (12.5%) disclosed their suppliers. Seven years later, 121 out of 250 major brands (48%) disclose their suppliers. This clearly demonstrates how the Index incentivises transparency but it also shows that brands really are listening to the millions of people around the world who keep asking them #WhoMadeMyClothes? Our power is in our persistence.”

More key findings from the Fashion Transparency Index 2022:

Progress on transparency in the global fashion industry is still too slow among 250 of the world’s largest fashion brands and retailers, with brands achieving an overall average score of just 24%, up 1% from last year
For another year, the initiative has seen major brands and retailers publicly disclose the most information about their policies, commitments and processes on human rights and environmental topics and significantly less about the results, outcomes and impacts of their efforts.

Most (85%) major brands still do not disclose their annual production volumes despite mounting evidence of overproduction and clothing waste
Thousands of tonnes of clothing waste are found globally. However, brands have disclosed more information about the circular solutions they are developing (28%) than on the actual volumes of pre- (10%) and post-production waste they produce (8%). Brands have sat by as waste importing countries foot the bill, resulting in serious human rights and environmental implications.

Just 11% of brands publish a responsible purchasing code of conduct indicating that most are still reluctant to disclose how their purchasing practices could be affecting suppliers and workers
Greater transparency on how brands interact with their suppliers ought to be a first step towards eliminating harmful practices and promoting fair purchasing practices. The poor performance on transparency in this vital area is a missed opportunity for brands to demonstrate they are serious about addressing the root causes of harmful working conditions, including the instances where they themselves are the key driver.

Despite the urgency of the climate crisis, less than a third of major brands disclose a decarbonisation target covering their entire supply chain which is verified by the Science-Based Targets Initiative
Many brands and retailers rely heavily on garment producing countries that are vulnerable to the impacts of the climate crisis, yet our research shows that only 29% of major brands and retailers publish a decarbonisation target covering their operations and supply chain which is verified by the Science Based Targets Initiative.

Only 11% of brands publish their supplier wastewater test results, despite the textile industry being a leading contributor to water pollution
The fashion industry is a major contributor to water pollution and one of the most water intensive industries on the planet. Only 11% of major brands publish their wastewater test result, and only 25% of brands disclose the process of conducting water-related risk assessments in their supply chain. Transparency on wastewater test results is key to ensuring that brands are held accountable for their potentially devastating impacts on local biodiversity, garment workers and their communities.

Most major brands and retailers (96%) do not publish the number of workers in their supply chain paid a living wage nor do they disclose if they isolate labour costs
Insufficient progress is being made by most brands towards ensuring that the workers in their supply chain are paid enough to cover their basic needs and put aside some discretionary income. Just 27% of brands disclose their approach to achieving living wages for supply chain workers and 96% do not publish the number of workers in their supply chain paid a living wage. In response, we have joined forces with allies across civil society to launch Good Clothes, Fair Pay. The campaign demands groundbreaking living wage legislation across the garment, textile and footwear sector.

• Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
• Markets representing more than 85% of the business grow 14% overall
• Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
• Operating profit reaches € 392 million
• Net income from continuing operations amounts to € 360 million
• FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”

Currency-neutral revenues increase 4% despite macroeconomic constraints
In the second quarter, currency-neutral revenues increased 4% as adidas continued to see strong momentum in Western markets. This growth was achieved despite continued challenges on both supply and demand. Supply chain constraints as a result of last year’s lockdowns in Vietnam reduced top-line growth by around € 200 million in Q2 2022. In addition, the company’s decision to suspend its operations in Russia reduced revenues by more than € 100 million during the quarter. Continued covid-19-related lockdowns in Greater China also weighed on the top-line development in Q2. From a channel perspective, the top-line increase was to a similar extent driven by the company’s own direct-to-consumer (DTC) activities as well as increases in wholesale. Within DTC, e-commerce, which now represents more than 20% of the company’s total business, showed double-digit growth reflecting strong product sell-through. From a category perspective, revenue development was strongest in the company’s strategic growth categories Football, Running and Outdoor, which all grew at strong double-digit rates. In euro terms, revenues grew 10% to € 5.596 billion in the second quarter (2021: € 5.077 billion).

Strong demand in Western markets
Revenue growth in the second quarter was driven by Western markets despite last year’s lockdowns in Vietnam still reducing sales, particularly in EMEA and North America, by
€ 200 million in total. In addition, the top-line development in EMEA was also impacted by the loss of revenue in Russia/CIS of more than € 100 million. Nevertheless, currency-neutral sales grew 7% in the region. Revenues in North America increased 21% during the quarter driven by growth of more than 20% in both DTC and wholesale. Revenues in Latin America increased 37%, while Asia-Pacific returned to growth. Currency-neutral revenues increased 3% in this market despite still being impacted by limited tourism activity in the region. In contrast, the company continued to face a challenging market environment in Greater China, mainly related to the continued broad-based covid-19-related restrictions. As a result, currency-neutral revenues in the market declined 35% during the three-months period, in line with previous expectations. Excluding Greater China, currency-neutral revenues in the company’s other markets combined grew 14% in Q2.

Operating profit of € 392 million reflects operating margin of 7.0%
The company’s gross margin declined 1.5 percentage points to 50.3% (2021: 51.8%). Significantly higher supply chain costs and a less favorable market mix due to the significant sales decline in Greater China weighed on the gross margin development. This could only be partly offset by a higher share of full price sales, first price increases and the benefits from currency fluctuations. Other operating expenses were up 19% to € 2.501 billion (2021: € 2.107 billion). As a percentage of sales, other operating expenses increased 3.2 percentage points to 44.7% (2021: 41.5%). Marketing and point-of-sale expenses grew 8% to € 663 million (2021: € 616 million). The company continued to prioritize investments into the launch of new products such as adidas’ new Sportswear collection, the next iteration of its successful Supernova running franchise and first drops related to the Gucci collaboration as well as campaigns around major events like ‘Run for the Oceans.’ As a percentage of sales, marketing and point-of-sale expenses were down 0.3 percentage points to 11.8% (2021: 12.1%). Operating overhead expenses increased by 23% to a level of € 1.838 billion (2021:
€ 1.492 billion). This increase was driven by adidas’ continuous investments into DTC, its digital capabilities and the company’s logistics infrastructure as well as by unfavorable currency fluctuations. As a percentage of sales, operating overhead expenses increased 3.5 percentage points to 32.8% (2021: 29.4%). The company’s operating profit reached a level of € 392 million (2021: € 543 million), resulting in an operating margin of 7.0% (2021: 10.7%).

Net income from continuing operations reaches € 360 million
The company’s net income from continuing operations slightly declined to € 360 million (2021: € 387 million). This result was supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision. Consequently, basic EPS from continuing operations reached € 1.88 (2021: € 1.93) during the quarter.

Currency-neutral revenues on prior year level in the first half of 2022
In the first half of 2022, currency-neutral revenues were flat versus the prior year period. In euro terms, revenues grew 5% to € 10.897 billion in the first six months of 2022 (2021:
€ 10.345 billion). The company’s gross margin declined 1.7 percentage points to 50.1% (2021: 51.8%) during the first half of the year. While price increases as well as positive exchange rate effects benefited the gross margin, these developments were more than offset by the less favorable market mix and significantly higher supply chain costs. Other operating expenses increased to € 4.759 billion (2021: € 4.154 billion) in the first half of the year and were up 3.5 percentage points to 43.7% (2021: 40.2%) as a percentage of sales. adidas generated an operating profit of € 828 million (2021: € 1.248 billion) during the first six months of the year, resulting in an operating margin of 7.6% (2021: 12.1%). Net income from continuing operations reached € 671 million, reflecting a decline of € 219 million compared to the prior year level (2021: € 890 million). Accordingly, basic earnings per share from continuing operations declined to € 3.47 (2021: € 4.52).

Average operating working capital as a percentage of sales slightly decreases
Inventories increased 35% to € 5.483 billion (2021: € 4.054 billion) at June 30, 2022 in anticipation of strong revenue growth during the second half of the year. Longer lead times as well as the challenging market environment in Greater China also contributed to the increase. On a currency-neutral basis, inventories were up 28%. Operating working capital increased 23% to € 5.191 billion (2021: € 4.213 billion). On a currency-neutral basis, operating working capital was up 14%. Average operating working capital as a percentage of sales decreased 0.4 percentage points to 21.0% (2021: 21.4%), reflecting an overproportional increase in accounts payable due to higher sourcing volumes and product costs.

Adjusted net borrowings at € 5.301 billion
Adjusted net borrowings amounted to € 5.301 billion at June 30, 2022, representing a year-over-year increase of € 2.155 billion (June 30, 2021: € 3.146 billion). This development was mainly due to the significant decrease in cash and cash equivalents.

FY 2022 outlook reflects double-digit growth during the second half of the year
On July 26, adidas adjusted its guidance for FY 2022 due to the slower-than-expected recovery in Greater China since the start of the third quarter resulting from continued widespread covid-19-related restrictions. adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% to 13% range), reflecting a double-digit decline in Greater China (previously: significant decline). While so far the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any market other than Greater China, the adjusted guidance also accounts for a potential slowdown of consumer spending in those markets during the second half of the year as a result of the more challenging macroeconomic conditions. Therefore, growth in EMEA is now expected to be in the low teens (previously: mid-teens growth), while revenues in Asia-Pacific are projected to grow at a high-single-digit rate (previously: mid-teens growth). Despite the more conservative view on the development of consumer spending in the second half of the year, adidas has increased its forecasts for North America and Latin America reflecting the strong momentum the brand is enjoying in these markets. In North America, currency-neutral revenues are now expected to increase in the high teens. Sales in Latin America are projected to grow between 30% and 40% (both previously: mid- to high-teens growth).   

Due to the less favorable market mix and the impacts from initiatives to clear excess inventories in Greater China until the end of the year, gross margin is now expected to reach a level of around 49.0% (previously: around 50.7%) in 2022. Consequently, the company’s operating margin is now forecast to be around 7.0% (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion to € 1.9 billion range).

Natural fibres offer mechanical strength, low weight, and resilience, as well as renewability and biodegradability, making them ideal partners to high-tech, modern, and sustainable textile applications. The DNFI Innovation in Natural Fibres Award offers recognition for outstanding design and innovation in this important textile sector.

The DNFI award has proven to be successful in raising awareness of the outstanding work being done by specialists in this field and previous winners speak of their appreciation for the subsequent media coverage and interest in their work.

• Applicants are invited to submit their proposals by email to: Secretariat@dnfi.org.
• Application templates are available on the DNFI web site: https://www.dnfi.org/dnfi-award
• Closing Date for award applications is 9. September 2022.
• A maximum of two extra pages (for a total of three pages) of information and three photographs/graphs/tables may be included with this submission.

Lower volumes due to geopolitical developments and the sharp rise in inflation impacted the result in the first half of 2022. In a slightly declining market, Autoneum increased revenue in local currencies by 0.5%. At CHF 888.7 million, revenue in Swiss francs reached the previous year's level. Despite the challenging environment, Autoneum achieved a positive operating result of CHF 6.4 million (EBIT margin: 0.7%). The net result decreased to CHF –12.8 million. On the other hand, Autoneum was able to generate a solid free cash flow of CHF 45.2 million. A high demand for sustainable products for electric vehicles confirms that Autoneum is well positioned for this growing market of the future.

Current geopolitical developments substantially affected business performance in the first half of 2022. They are accompanied by accelerating inflation and significant price increases in the commodities markets, which the war in Ukraine has further exacerbated. These developments are also delaying market recovery in the automotive industry. Autoneum does everything it can to minimize the impact on the Group. Despite the present challenges, we will continue to implement our strategy, focusing on innovative and sustainable technologies for growing markets of the future.

• Revenue development influenced by the war in Ukraine and supply chain bottlenecks*
• Low production volumes and high inflation impact profitability*
• Solid free cash flow enables further reduction in net debt*
• Business Groups*
• Well positioned for e-mobility and sustainability*
• Expanding the product portfolio for electric vehicles*
• Autoneum joins the Science Based Targets initiative*

Outlook
According to global market forecasts¹, automobile production will pick up again in the second half of the year with growth of 8.8% compared with the first half-year 2022. For full-year 2022, global automobile production is projected to reach 80.8 million vehicles, which is equivalent to a 4.7% increase on 2021. Based on the market forecasts, Autoneum expects to improve the operating result for the second half of the year. This will be supported by ongoing customer negotiations with a view to fair sharing of costs, the accompanying contribution of vehicle manufacturers to shouldering the sharp increases in material, energy and transport costs and the foreseeable normalization of production after the easing of lockdown measures in China. On this basis, Autoneum expects substantially enhanced results for full-year 2022, as well as an improvement in the EBIT margin to 2.0% to 3.0%. Free cash flow is expected to be in the mid to high double-digit million range for the full year 2022.

*For more information see attached document

¹Source: IHS “Light Vehicle Production Forecasts” – July 15, 2022

Genomatica (Geno) alongside longtime collaborator Aquafil [ECNL:IM] successfully completed the first demonstration scale production runs for plant-based nylon-6. The material is intended to reshape the $22B nylon industry, enabling brands to meet demand from consumers for sustainable everyday materials from apparel to automotive parts to carpets. Geno and Aquafil have produced the first several tons of plant-based nylon-6 building block caprolactam, have converted it to nylon-6 polymer, and are now in the process of transforming it for evaluation in nylon applications such as yarns for textile and carpet and engineering plastics as part of pre-commercial quantities from demonstration production taking place in Europe.

The companies have been collaborating to first produce pilot-scale quantities of plant-based nylon-6 and have now advanced to produce pre-commercial quantities at demonstration scale which will help determine the final design of future commercial plants. The material will go to leading global brands and their value chain partners who are eager to explore and develop renewable products, create showcase goods and test feedback with customers.

Plant-based nylon-6 is Geno’s third major product line on a path to commercialization. The company has executed high impact deals with a range of brands to accelerate the global commercialization of sustainable materials, with the potential to reduce greenhouse gas emissions by 100 million tons in upcoming years. Recent milestones advancing the sustainable materials transition include: a collaboration with lululemon (NASDAQ: LULU) to bring plant-based materials into lululemon’s products, a production milestone with partner Covestro (OTCMKTS: COVTY) for plant-based HMD used in sustainable coatings, and a partnership with Asahi Kasei (OTCMKTS: AHKSY) and a newly formed venture with Unilever (NASDAQ: UL) to commercialize and scale plant-based alternatives to feedstocks like palm oil or fossil fuels, to make key ingredients used in everyday cleaning and personal care products.

Indorama Ventures Public Company Limited (IVL) announced that construction of an integrated PTA-PET plant in Corpus Christi, Texas, will resume in August this year. Corpus Christi Polymers LLC (CCP), a partnership between three companies, is expected to begin production in 2025 and ensure continued cost-competitive production to support the growth of IVL’s global PET operations into the next decade.

CCP was formed in 2018 as a joint venture between Indorama Ventures Corpus Christi Holdings LLC, a subsidiary of Indorama Ventures; DAK Americas LLC, a subsidiary of Alpek S.A.B. de C.V.; and APG Polytech USA Holdings, Inc, a subsidiary of Far Eastern New Century, following the purchase of a partially constructed facility of M&G Resins in Corpus Christi. Each partner will procure its own raw materials and receive one third of the PTA and PET produced at the facility to sell and distribute independently.

Construction of the plant is resuming following a period of pandemic-related disruptions. Through the pandemic, the partners firmly resolved to continue planning amid continued robust demand for PET packaging and the need for shorter supply chains. As the impact of the pandemic eased in 2022, the management team was strengthened in preparation for the resumption in activities.

CCP is expected to be the largest vertically integrated PTA-PET production plant in the Americas, and IVL’s biggest greenfields project in the U.S. since the development of the AlphaPet production facility at Decatur, Alabama in 2009. The new Texas facility is a significant addition to IVL’s leading global footprint, and will expand its coverage to customers across the U.S. The plant’s vertical integration optimizes PTA-PET production and, together with the availability of raw materials Paraxylene and Mono Ethylene Glycol in the U.S., ensures long-term competitive-cost supply for IVL’s locally integrated polyester value chain.

The facility will have nominal annual capacities of 1.1 million metric tons of PET and 1.3 million metric tons of PTA, shared between the partners. It will employ three state-of-the-art technologies: PTA: IntegRex®, PET melt: Invista, and PET solid state: Easy Up (HCIRR – Horizontal Continuous slightly Inclined Rotary Reactor).

CCP is adding to its leadership team to prepare for the new growth opportunities. Mr Russell Wilson will leave his role with IVL as Head of Manufacturing Americas, Combined PET, to take up a new role as Chief Executive Officer of CCP from 18 July. He brings 30 years of Aromatics and PET leadership experience including prior roles with Amoco and BP before joining IVL. Mr Todd Hogue, IVL’s Global Head of EH&S, replaces Mr Wilson as IVL’s representative on CCP’s Board. Mr Michael Day joined CCP as Project Director in June and brings 34 years of construction leadership experience including senior roles with Bilfinger, KBR, and CB&I.  Mr Jeff Shea will assume the role of Chief Operating Officer on 18 July.  Mr Shea has been in the PET industry for the last 22 years and has managed PET sites for the last 17. 

ROICA™, Asahi Kasei's premium stretch fiber manufacturer, strengthens its presence in the high fashion segment thanks to its established network of partners, who will present their latest innovations - activated by ROICA™ - at the upcoming edition of Milano Unica, taking place at Rho Fiera Milano from 12th to 14th July 2022.

Going more in depth in the offers of ROICA™ partners for this season of Milano Unica, they are:

• Cifra, which presents its innovative garments for men and women, combining fashion and function. Base layers, tops, leggings and jumpsuits are made with natural yarns, or recycled pre- and post-consumer yarns in combination with ROICA™ EF, the sustainable recycled stretch yarn able to complete proposals that offer design, performance and responsibility. The design of the garments, created in Cifra's design office, offers a perfect shape with body mapping technology that creates dedicated ventilation zones, for a feeling of comfort and freshness as well as an innovative aesthetic impact.
• Iluna Group, whose journey into the new dimension of responsibility continues with developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in looks, performance and hands. Brand new for this edition of Première Vision is the inclusion of GOTS-certified organic cotton in GRS-certified galloons and allover lace containing ROICA™ EF, so as to meet market demands for natural comfort in the underwear sphere.
• Maglificio Ripa, which presents the Splash collection for summer 2024, developed in two major themes, united by the same focus on sustainability that results in the use of recycled pre- and post-consumer polyamide and polyester yarns including ROICA™ EF for the sustainable recycled stretch fiber. The first theme encompasses printed, 3D jacquard fabrics, ennobled by innovative processes that move the bottoms for an organic and sometimes irreverent final look. The second theme embodies a cocoon spirit, enveloping like a caress, soft as a hug.
• Penn Textile Solutions/Penn Italia, whose highlights of the new collection are on one side fabrics developed with the use of Neride eco yarns by Nurel with ROICA™ V550, characterized by restraining lace effect, soft touch and breathable, in combination with tulle as a sustainable basic, and on the other side charmeuses with soft hand, raw cut in combination with a band fabric from the dreamshape family with reinforced gripping edge, made again in Neride eco yarns by Nurel with ROICA™ V550
• Piave Maitex, whose orientation is, as always, to present new products with the right  balance between technological innovation and aesthetic look, between fashion and comfort, proposals that include sustainable fabrics made in recycled polyester,  polyamide and the sustainable recycled stretch fiber ROICA™ EF, three-dimensional and optical, perforated, plush effects, made by prioritizing technical functionalities such as waterproofness, breathability, transfer and moisture management, opacity and anti-UV as well as anti-abrasion.
• Sitip, which is one of the premium partners, together with ROICA™, for the creation of the first Scott Racing Team’s responsible biking uniform. This year, the evolution of research and development has also led to the creation of new responsible shorts, made with NATIVE-THUNDERBIKE POWER fabric by Sitip in recycled polyamide and ROICA™ EF yarn by Asahi Kasei. A fabric designed for high-performance sports, particularly suitable for making cycling pants for its maximum coverage and UV protection - thanks to ECLIPSE Sun Protection technology - breathability, comfort and fit. Also the shirt has been produced with Sitip recycled fabrics - NATIVE-BICIMANIA and NATIVE-PIRATA - made with Asahi Kasei's ROICA™ EF sustainable, stretch and certified recycled yarns.

Carbios has signed an agreement with On, Patagonia, PUMA, and Salomon, to develop solutions that will enhance the recyclability and circularity of their products.
 
An important element of the two-year deal will be to speed up the introduction of Carbios’ biorecycling technology, which constitutes a breakthrough for the textile industry. Carbios and the four companies will also research how products can be recycled, develop solutions to take-back worn polyester items, including sorting and dismantling technologies, and gather data on fiber-to-fiber recycling as well as circularity models.
 
The challenge the four brands share, is that their ambitious sustainable development goals can only partially be met by conventional recycling technologies which mostly target bottle-to-fiber recycling. Future regulations will require more circularity in packaging and textile. Yet the market consensus is that there will soon be a shortage of PET bottles, as they will be used for circular production methods in the Food & Beverage Industry.   
 
Carbios’ innovative process constitutes a technological breakthrough for the recycling of polyester (PET) fibers, which are widely used in apparel, footwear and sportswear, on their own or together with other fibers. PET polyester is the most important fiber for the textile industry with 52 MT produced, even surpassing cotton at 23MT. The biorecycling process uses an enzyme capable of selectively extracting the polyester, recovering it to recreate a virgin fiber. This revolutionary technology makes it possible to recover the PET polyester present in all textile waste that cannot be recycled using traditional technologies.
 
PET plastics and fibers are used to make everyday consumer goods such as bottles, packaging and textiles. Today, most PET is produced from fossil resources, then used and discarded according to a wasteful linear model. By creating a circular economy from used plastics and fibers, Carbios’ biorecycling technology offers a sustainable and more responsible solution.

The electrolyser producer Enapter has set itself the goal of developing its entire production process to run without negative impacts on the environment. As an important step on this journey, it is building the Enapter Campus production facility, which will be powered entirely from renewable energy produced on-site and in the neighbouring Bioenergiepark. The site in in Saerbeck, North Rhine-Westphalia combines electrolyser production, an R&D building, administration and office space, as well as a cantine over 82,000 square metres. Now the company wants to investigate what other measures can be implemented to achieve its “Life Cycle Impact Zero” aspirations – together with researchers from Fraunhofer UMSICHT, the Wuppertal Institute and the Institute of Sustainable Nutrition (iSuN) of FH Münster.

With the Life Cycle Impact Zero project, started on April 15, 2022, the parties want to develop and apply an especially comprehensive and holistic approach to environmental assessment. This includes chemical manufacturing and electrolyser production, as well as matters like the use of energy and water resources, the generation of waste or the human factor in general. This is intended to cover all interactions between business and people. That includes, in particular, Enapter’s employees, but also people in upstream and downstream value chains, users of the technology or residents close to the production site. A concept for sustainable employee catering is also being developed.

The basis for all environmental assessment that will be carried out is ISO 14040. The recognised international standard divides the research into four phases: Aim and scope of the study, inventory analaysis, impact assessment, as well as interpretation. Sensitivity analyses and scenario techniques are also used as further methods.

On the basis of these analyses, the 18-month project should derive concrete measures to avoid negative environmental impacts completely, if possible, for example in production, employee mobility or in energy supply. Furthermore, it will examine whether these measures are transferable to Enapter’s other locations – such as in Italy. Following on from the project, the steps defined should be implemented by Enapter in the next phase. In the subsequent Phase 3, a renewed analysis is planned. This will determine if the technological innovations achieved by then in the production and use of Enapter’s electrolysers can enable additional ecological improvements.

The Life Cycle Impact Zero project is supported by the State of NRW.

Stahl, a proponent of responsible chemistry, is submitting a greenhouse gas (GHG) emissions reduction target that is aligned with the most recent guidance provided by the Science Based Targets initiative (SBTi). The new target marks a key milestone on the company’s journey toward carbon neutrality.

Stahl’s SBTi submission includes a specific commitment regarding the company’s Scope 3 upstream emissions, which Stahl aims to reduce by at least 25% over the next 10 years, compared with the base year (2021). This reduction would primarily be achieved by Stahl replacing its fossil-based raw materials with lower-carbon alternatives. The target is a major step towards the objective of limiting global warming temperature increase to 1.5°C above pre-industrial levels by 2050, as agreed at the 2015 Paris Climate Accords.
 
Stahl’s extended commitment builds on the company’s existing targets to reduce its emission for Scopes 1 and 2, which were set shortly after the Paris Agreement in 2015. Stahl has since reduced its Scope 1 and 2 (direct) GHG emissions by more than 30%, thanks to operational efficiency gains and by decarbonizing its energy supply.

Scope 3 GHG emissions cover all the additional indirect emissions that can occur in the value chain, including those associated with purchased raw materials, packaging, business travel, and transportation. Stahl’s Scope 3 emissions currently represent over 90% of its carbon footprint.