Carbon Footprint Analysis 2011 H2

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1 YEAR 2, NR FEBRUARI 2012 REF.NR.: 12.A0214 Carbon Footprint Analysis 2011 H2 Contents Management statement Organization Reporting organization Responsible person Organizational boundaries ISO statement Verification statement Carbon Footprint Analysis Basis of analysis Measurement results and explanation Reported period Scope 1: Direct CO2 -emissions Statement of CO2 sources and sinks omitted CO2 emissions from burning biomass Scope 2: Indirect CO2-emissions Indirect CO2 emissions from purchased energy Influence measurement inaccuracies and uncertainties Scope 3: Other indirect CO2-emissions CO2 compensation Progress against reference year Historical base year Adjustments to historical base year Normalization measurements Calculation Models Quantification Methods Explanation for changes in the quantification methods Reduction targets Annex 1 CO2-emissions 2011 H2 scope 1 and 2

2 Page 2 Carbon Footprint Management statement In the last years it has become clear that energy resources are not inexhaustible and that the usage affects our environment. We see it as our duty to deal with our environment in a sustainable way. In addition to creating good and sustainable products, we also take into account our environment and our employees, while a motivated organization is the key to sustainable success. Paul Ummels Managing Director Pipelife Nederland B.V. We are convinced that we find the right balance between People, Planet and Profit with a good CSR policy. Therefore we are working for many years according to this policy. For example, we have established our Carbon Footprint and we are busy to realize our reduction targets in the area of energy consumption and CO 2 emissions. We are also very active in recycling and reducing the material consumption in our products. Also by an active Health, Safety, Environmental and Energy policy we are improving our work environment. Sustainability is a joint effort of our employees, customers, business partners, suppliers and other stakeholders. Together with these partners, we are convinced that we can shape our policy in the future and continuing to play a leading role within our industry. Paul Ummels Managing Director Pipelife Nederland B.V.

3 Page 3 Carbon Footprint ISO statement With this, Pipelife Nederland B.V. states that this report for the CO 2 -bewust certificate is prepared in accordance with the guidelines of NEN-ISO 14064, version March Verification statement With this, Pipelife Nederland B.V. states that this report has been not yet verified been by verified <instell.> by KEMA and that Emission <date> Verification has come Services to the B.V. opinion and that that on <date> during has the verification come to the work opinion no that evidence during was the found verification that: work no evidence was found that: the inventory had not been designed the inventory according had not to been the needs designed and according requirements to the from needs the and ISO , requirements the from the ISO , the GHG Protocol, the CO 2 GHG Protocol, the CO prestatieladder Manual 2 - prestatieladder Manual said CO 2 inventory has material misstatements, 2 inventory has ma- said CO derogatorterial misstatements, derogatory to to the the materiality materiality requirement requirement of of 5%. 5%. Organization Reporting organization Pipelife Nederland B.V. is located in Enkhuizen. Pipelife Nederland B.V. is part of Pipelife International GmbH, an international manufacturer of plastic piping systems and fittings and one of the market leaders in Europe. Pipelife was established in 1947, today one of the oldest plastic pipe producers worldwide. Products include sewage, inhouse: electro, water, gas, drainage, cable pipes and eco systems. Pipelife Nederland has approximately 200 employees spread over eight locations: headquarters and production site in Enkhuizen and three local sales branches and two in-store warehouses with cooperating suppliers. Part of Pipelife Nederland B.V. Is Twebotube B.V., located in Enschede. Pipelife International GmbH is a joint venture of the Solvay Group (Chemistry) and Wienerberger (ceramic industry) and is located in 27 countries, with headquarters in Vienna, Austria. 2,350 employees worldwide are working on 26 production sites. Summary of the activities: Development, production and sale of plastic piping systems and fittings; Wholesale trade services of synthetic materials and chemical products. Responsible person The person statutorily responsible for the reporting organization is mr. P.L.B. Ummels, MD Pipelife Nederland B.V. Organizational boundaries The organizational boundaries of Pipelife Nederland B.V. are determined in the context of CO 2 (carbon dioxide)-consciousness in accordance with the principle of the operational sphere of influence of the certifying company. Within the GHG protocol, this is described as the 'operational boundary'. In practice, this means that when activities are executed under the auspices of Pipelife Nederland B.V., the accountability for the CO 2 -production is taken: the own organization has control of this. Based on the lateral purchase analysis of the CO 2 -performance ladder, it is determined that Pipelife Deutschland GmbH & CO. KG is added within the organizational boundary of Pipelife Nederland B.V. The organizational boundaries for this inventory includes: Pipelife Nederland B.V.; Twebotube B.V.; Pipelife Deutschland GmbH & CO. KG,. The rationale for this boundary is listed in the boundary report (doc. nr 11.A0138b).

4 YEAR 2, NR. 2 Page 4 Carbon Footprint Analysis Basis of analysis CO 2 -emissions and absorptions by activities of the organization have been identified based on the established operational limits. At the identification of emissions a distinction has been made between three sources of emission (known as scopes) into two categories: direct emissions and indirect emissions. This is in line with the Greenhouse Gas (GHG) Protocol. Scope 1 covers direct emissions under control, and controlled by, the organization. Examples include the combustion of fuels in machinery, business transport with vehicles owned by the reporting organization and emissions of refrigeration and air conditioning systems; Scope 2 includes indirect emissions from purchased electricity, steam or heat; Scope 3 includes other indirect emissions from sources such as commuter travel, production of purchased materials and outsourced activities such as freight. This carbon footprint analysis includes the CO 2 -emissions (one of the six greenhouse gases) of Pipelife Nederland BV, in scope 1 and 2 of the second half of The CO 2 emission is analyzed in accordance with the CO 2 prestatieladder, manual 2.0 june Measurement results and explanation Reported period Pipelife Nederland B.V. has synchronized its carbon footprint reporting period with its fiscal year. The fiscal year for Pipelife Nederland B.V. runs from January 1 to December 31. The reported period is the second half of 2011.

5 YEAR 2, NR. 2 Page 5 Scope 1: Direct CO 2 -emissions THE DIRECT CO 2 EMISSION IS MEASURED AND CALCULATED AS 1.228,5 TONNES CO 2 Stationairy combustion equipment 389,4 tonnes CO 2 ( m 3, 32% of the total direct emission) is the result of consumption of natural gas. The natural gas is used for heating of the locations m 3 is used in stationary combustion equipment, 74% of the consumption is in Enkhuizen. Gasses In the second half of ,6 tonnes of CO 2 emission is caused by the usage of the gasses CO 2 gasses, Acetylene, Propane, Butane and Sagox 18 for the production processes in the Netherlands and Germany. Leakage of cooling gasses In the second half of ,3 tonnes of CO 2 emission is caused by the consumption of cooling gasses in the production processes in Germany and cooling and freezing systems. These systems for storage and transportable air conditioning-units are regarded as a closed system. Therefore only CO 2 -causing emissions of consumption are calculated. Fuel use own car fleet (business car travel) In the second half of %, 389,2 tonnes of the CO 2 emissions is assigned to the fuel consumption of the fleet with 58 leased cars. In 2011 H2 the leasing company has reported an usage of litres diesel, litres of petrol and litres LPG and fleet kilometres. Direct CO 2 emission 450,0 400,0 389,4 427,3 389,2 350,0 300,0 Ton CO 2 250,0 200,0 150,0 100,0 50,0 - Stationary combustion equipment 22,6 Gasses Airco refrigerants Own car fleet Scope 1 sources Statement of CO 2 sources and sinks omitted All identified sources and sinks of CO 2 are included in the report. Storage of CO 2 does not occur; there are no sinks. CO 2 -emissions from burning biomass The combustion of biomass did not occur at Pipelife Nederland B.V.

6 YEAR 2, NR. 2 Page 6 Scope 2: Indirect CO 2 -emissions INDIRECT CO 2 -EMISSIONS MEASURED AND CALCULATED ARE 6.445,1 TONNES CO 2 Electricity purchased 97,5 % of the indirect CO 2 emission is caused by consumption of the repurchased electricity. In the reported period, the electricity consumption was kwh, this is 6.286,0 ton CO 2 emission. Under the terms of the CO 2 prestatieladder, the electricity is registered and calculated with a grey label performance. 2,0% 0,0% 3,1% 24,4% 1,1% 1,0% 3,7% 9,5% Type of consumption - electricity Based on the latest information of the energy management system of Pipelife Nederland the extrusion processes caused 54,1% of the consumption of electricity, second Injection Molding caused 24,4% of the usage. Lighting caused 3,7% of the consumption. Heat Delivery Twebotube in Enschede reported in the second half of 2011 an usage of 38 GJ for heating (0,4 ton CO 2 ). Personal cars for business travel In the second half of 2011 several employees used their private car for business purposes and declared the mileage. The total mileage declarations by private car were km in the reported period. This leaded to 4,2 ton CO 2, 0,1% of the indirectly CO 2 emissions. Business air travel In the second half of 2011 employees in the Netherlands and Germany made flights for business purposes. 19% of the flights concerned flight distances between km, 40% of the flights concerned flight distances between km and 41% of the flights concerned flight distances more than 2500 km. The air travel caused 154,4 ton CO 2, 2,4% of the indirectly CO 2 emissions. 0,4% 0,3% 0,5% Indirect CO 2 emission 54,1% Extrusion Injection Molding Forming Crushing Other production ICT Lighting Climate control Kitchen Other Stanfriesweg Zoutketen 7.000, , , ,0 Ton CO , , , ,0-0,4 4,2 154,5 Purchased electricity Heat delivery Personal cars for business travel Business air travel Scope 2 sources

7 YEAR 2, NR. 2 Page 7 Influence of measurement inaccuracies and uncertainties in scope 1 and 2 The foregoing information shows that the vast majority of CO 2 emission is caused by use of fuel in the stationary equipments (389,2 ton of CO 2 ) and the electricity consumption (6.286,0 ton of CO 2 ). Therefore, it is important to accurately capture these emissions. SCOPE 1: The fuel data of stationary combustion equipment for heating is provided by the energy suppliers of the locations and controlled with the internal measurements. For the location Flevolaan Pipelife has a joint heating installation with the neighbour company Renolit. Renolit has specified the information for natural gas on the location Flevolaan. The data of gasses are provided by the suppliers. These information is best practice and deemed as sufficiently reliable. The fleet management data is provided by the fuel suppliers of the leasing companies who manage the fuel passes linked to the vehicles and by declarations of the fuel in fleet cars by employees. Because the mileage registration is less accurate, since not every employee carefully keeps track of the mileage by registering the mileage at the gas station, the CO 2 emission is based on the fuel data if present. SCOPE 2: The consumption data of the electricity is registered from billing information received from the energy suppliers of the different locations. Renolit has specified the information for electricity on the location Flevolaan. This information is considered as sufficiently reliable. It should be noted that most of the energy is used in the production processes. The emission data of travel by private cars for business purpose is collected by employee declarations. The fuel type and engine classification of the applicable private cars are not registered. De flight data for business purpose is collected by information from the travel organisation. Scope 3: Other indirect CO 2 -emissions A complete emission inventory for scope 3 is currently outside the CO 2 inventory. This report does therefore not include such an inventory. CO 2 -compensation There is no compensation for CO 2 emissions. Available resources are used to make improvements within the production processes in the framework of the CO 2 -emission.

8 YEAR 2, NR. 2 Page 8 Progress against reference year Historical base year The initial measurements in the context of the ISO standard have been done by Pipelife Nederland B.V. for the calendar year This year therefore serves as base year against which an increase or decrease in CO 2 emissions is established. Adjustments to historical year For the second half of 2011 there are no adjustments to the base year. Normalization measurements The size of the CO 2 emissions has a clear correlation with the scale of the activities carried out by the organization. For the comparison of the emissions in the reference year and future reported periods, standards are determined to normalize measurement results. For Pipelife, Kg product produced is the standard to scale the business activities. Based on the kg product produced the reported measurement results will be normalized. 140,0 120,0 100,0 80,0 60,0 40,0 20,0 0, H H totaal In scope 1 the CO 2 emissions par kg product produced are higher in the second half of 2011 than in the previous period of 2011 and significant lower to the base year In the second half of 2011 this is due to an increase in usage of airco refrigerants in this period in Germany. On annual average 2011 shows a significant reduction of almost 18% CO 2 emissions par kg product produced. This result is due to a significant lower usage of fuel for stationairy combustion equipment (partly as a result of the mild winter period in 2011) and a significant reduction of the usage of cooling gasses. The litres of fuel for the own car fleet increased with 7,0%, due to enlargement of the own car fleet. The CO 2 emissions for scope 2 in the second half of 2011 decreased with 7,4% than in the previous period of The CO 2 emissions par kg product produced in the second half of 2011 were also lower than in the base year 2010 and showed an reduction of 3,3%. In scope 2 in absolute figures the CO 2 emissions for scope 2 in 2011 increased with 7,2%. On annual average the increase caused by the electricity consumption in 2011is 6,8% higher than in the base year Also air travel has increased because the number of passenger by long haul flights increased with more than 60% in relation to the long haul flights in 2010, while short distance flights are reducing. The CO 2 emissions par kg product produced in scope 2 are reduced with 4,3%.

9 YEAR 2, NR. 2 Page 9 Calculation models Quantification methods The quantification of raw materials to CO 2 emissions is always calculated by registered volume units of the fuels used if present. The conversion of volume to emission values is straightforward and provides the most reliable comparison. In those situations where no volume units of fuel were available, the most reliable information available was used. Electricity consumption is either taken based on calibrated meters and/or based on the invoices of the energy company. By applicable law, this is the most reliable source of information that is available. Explanation for changes in the quantification methods The measurement in 2011 H2 is the second measurement in the framework of the ISO standard. No adjustments in the quantitative methods are made against to the historical year.

10 YEAR 2, NR. 2 Page 10 Reduction targets Based on this Carbon Footprint and the Energy Management System Pipelife defined measures to reduce its CO 2 emissions for the period for scope 1 and 2. The first target is to reduce the direct emissions per Kg product produced by reducing our locations, replacements of own fleet by cars with a tag A or B and improve the involvement of our employees. Currently we closed four locations, we replaced fleet and made improvements in personal involvement of employees. Next to these reduction targets several investigations in the Netherlands and Germany are in progress to gain knowledge for better understanding of the current energy consumption. Examples of investigations are isolation improvements in production, improvement of heating in the Netherlands and lighting in buildings. The outcome of these investigations is expected in Reduction of the indirect emissions (scope 2) will be carried out by reducing the Electricity usage in the production, replacement of lighting (sensoring) and office equipment and the personal involvement of employees. Because of longterm contracts for electricity Pipelife will first start to use green power for the distribution locations only. Possibilities for usage of green power on other locations are investigated. Currently this will lead to an reduction of 118,3 tonnes of CO 2. Based on the current results and the quantitative information Pipelife wants to reduce its CO 2 - emissions for the period 2010 till 2016 with 4% per Kg product produced. The Kg product produced is the standardization factor to make comparison possible between the reference period and the progress reports. Nr. Reduction target CO 2 CO 2 - Total emission reduction CO 2 -emission 2016 (par Kg product produced) (%) (par Kg product produced) Reduction (Tonnes CO 2 ) 1 Energy usage locations 28,32 4% 27,1 52,6 2 Fuel consumption fleet 16,87 2% 16,6 11,6 Replacement own fleet A/B tag 3 Personal involvement 15,62 1% 15,5 6,7 For example New driving Index CO 2 -emission scope 1 100,0 3% 97,3 71,0 Purchased electricity 285 3% 272,5 408,9 1 Energy usage locations 26,4 2 Usage production proces 191,7 3 Lighting 61,7 4 Office equipment 6,9 5 Personal involvement 1% 122,3 6 Green Power* 1% 118,3 Heat delivery 0,1 0% 0,1 - Personal cars for business travel 0,2 0% 0,2 - Business air travel 4,9 0% 4,9 - Index CO 2 -emission scope 2 Index CO 2 -emission scope 1 and 2 100,0 4% 95,8 527,2 100,0 4% 96,0 598,2 * These reductiontargets are based on reduction on CO 2 -emission.

11 Page 11 Annex 1 CO 2 -emissions 2011 H2 scope 1 and 2 CO 2-emission factor H2 Quantity Unit Quantity Unit CO 2-emission [metric ton] Scope 1: Direct emissions 1.228,5 Fuel 412,0 - Natural gas g CO2 / Nm Nm 3 389,4 - Butane g CO2 / kg 12 kg 0,0 - Propane g CO2 / kg 2 kg 0,0 - CO2 gasses g CO2 / kg kg 22,5 - Acetylene g CO2 / kg - kg - - Sagox g Co2 / m3 9 m3 0,0 Airco refrigerants 427,3 - R-134A gwp 1,2 kg 1,6 - Refrigerant - R404a kg CO2 / kg 108,5 kg 425,3 - Refrigerant - R407c kg CO2 / kg - kg - - Refrigerant - R410a kg CO2 / kg 0,2 kg 0,4 Own car fleet, fuel use 385,3 - Petrol g CO2 / liter liter 27,3 - Diesel g CO2 / liter liter 358,0 - LPG g CO2 / liter liter 1,9 Own car fleet, distance travelled 3,9 - Petrol car, category 1,4-2,0 liter 220 g CO2 / transport km km 3,9 CO 2-emission factor H2 Quantity Unit Quantity Unit CO 2-emission [metric ton] Scope 2: Indirect emissions 6.445,1 Purchased electricity 6.286,0 - Grey electricity: 2010 and later 455 g CO2 / kwh kwh 6.286,0 Heat delivery 0,4 - Heat STEG g CO2 / GJ 38 kwh 0,4 Personal cars for business travel 4,2 - Passenger car, unknown fuel type 210 g CO2 / transport km km 4,2 Business air travel 154,5 - Distance < 700 km 270 g CO2 / transport km travellers km 28,6 - Distance km 200 g CO2 / transport km travellers km 62,6 - Distance > km 135 g CO2 / transport km travellers km 63,2 References 1: Source: CO2-prestatieladder, handboek 2.0 bijlage C Conversiefactoren, geldig m.i.v. 1 juli 2011" 2: Source: BI-conversieberekening 2010 Scope 1 Ton CO 2 % Stationary combustion equipment 389,4 32% Gasses 22,6 2% Airco refrigerants 427,3 35% Own car fleet 389,2 32% Tot 1.228,5 Scope 2 Ton CO 2 % Purchased electricity 6.286,0 98% Heat delivery 0,4 0% Personal cars for business travel 4,2 0% Business air travel 154,5 2% Tot 6.445,1

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