Resource efficiency and environment

We have an important role to play in creating a healthier planet. Climate control systems often account for a large share of energy consumption in many of our customers' operations. With an optimal climate system, we help our customers reduce their energy and water consumption.

We have worked systematically for several years to reduce our consumption through more efficient energy consumption and by raising the share of renewable energy. Our climate footprint comes mainly from the use of electricity and fossil fuels in our production processes and for heating, ventilation, and cooling. The goal is to continuously reduce our energy consumption and make our factories and processes more efficient by, for example, lowering our water consumption, treating the water we use, and reducing our waste.

Net-zero target by 2030

We have set a target to reach net-zero emissions from our operations by 2030. The target will be reached by reducing our direct emissions in our operations and production facilities and by contributing to the development of renewable electricity sources in our markets.

We report our Scope 1, 2 and 3 emissions in accordance with Greenhouse Gas (GHG) Protocol.

Scope 1 and 2 include emissions from factory operations and company vehicles. Numbers exclude emissions from offices and other non-production locations, which Munters will start to measure in 2022.

Scope 3 includes emissions from landfill waste generated in factory operations and from air travel. Work was initiated in 2021 to be able to measure relevant emissions from additional upstream and downstream activities in the next few years.

Scope 1 emission increased in absolute terms as a function of
increased production level and increased number of vehicles
used in Services and Sales, driven by growth.
Scope 2 indirect emissions decreased with increased use of
renewable electricity and improved energy efficiency.
Scope 1 and 2 market based emissions decreased relative to
production value.
Scope 3 emissions increased as a result of higher production
volume generating more waste. However, air travel decreased
even further from the low level in 2020 when COVID drastically reduced business travel.

CO2 emissions in tons	2021	2020
Scope 1 direct emissions	7,526	7,070
Scope 2 indirect emissions - location-based	14,934	15,126
Scope 2 indirect emissions - market-based	13,376	15,332
Scope 3 other indirect emissions	1,983	1,886
Scope 1-2 emissions in relation to production value in kg CO2/production value 000 kr*	0.48%	0.57%
Scope 1-3 per employee**	6.8	6.9
Scope 1-3 per SEK of profit***	25.7	26.8

_{*Scope 1 and 2 emissions in relation to production value are based on market-based Scope 2 emissions. Emissions from non-factory locations such as offices are not yet measured.}

_{**Scope 1 and 3 emissions in relation to average full-time employees in the year and profit are based on market-based Scope 2 emissions. Emissions from non-factory locations such as offices are not yet measured.}

_{***SEK of profit refers to adjusted EBITA.}

Expand our service business

Services, which include maintenance, upgrades, and product replacements, are important to customers not least from a sustainability perspective. Services extend the life of the products and increase the efficiency of our installed products. The goal is to grow our service business to 30% of net sales in the long term.

Innovate for tomorrow

We continue to focus on further investing in our core technologies, solutions and digitization to optimize our product portfolio. In 2021, we launched several new products, such as SyCool and DSS Pro. When we innovate, we look at various sustainability factors early in the process. For example, we take into consideration the choice of materials, recycling possibilities, and energy consumption. When we have evaluated all these aspects, we define the value proposition, technical opportunities, and profitability potential.

Progress 2021

Energy efficiency

Electricity consumption in our production facilities will continually decrease. (MWh/production value SEK 000).

0.90%

Outcome 2020: 0.96%
Outcome 2019: 1.05%

Green electricity

The share of electricity from renewable sources in our production facilities will continually increase.

53%

Outcome 2020: 50%
Outcome 2019: 40%

Recycling rate

In general, we succeeded in significantly increasing the recycling rate in many of our production facilities in 2021. We also conducted several major cleanups of non-recyclable materials during the year, which led to a lower recycling rate.

54%

Outcome 2020: 51%
Outcome 2019: 53%

Environmental fines

Fines were received owing to non-compliance with environmental laws and regulations. The goal is not to receive any fines.

0 TSEK

Outcome 2020: 5 TSEK
Outcome 2019: 50 TSEK

Sustainable Development Goals (SDGs)

The activities that Munters carries out in the area of resource efficiency support the following areas in the UN's 2030 Agenda for Sustainable Development: