Examples of Supplier Engagement in 2019

Energy Efficiency and CO2 Reduction

For more than eight years, NSG Group has been implementing a globally co-ordinated and supported energy efficiency program across its operations. Procurement together with other central resources from Research and Development, Manufacturing Excellence and local management teams are focused on reducing our energy consumption and costs across the entire Group. In October 2019, in alignment with the Paris Climate Change Agreement, NSG Group committed to Science Based Targets (SBT) to reduce absolute Scope 1 and 2 CO2 emissions from glass manufacture by 21% of CY2018 baseline levels by 2030.

Please refer to the "Science Based Targets".

In addition to Scope 1 and 2, NSG Group is also committed to reducing its Scope 3 CO2 emissions. Scope 3 emissions include other CO2 emissions in NSG's value chain, for example, raw materials, transportation, services, business travel, employee commuting, emission by our JV investments and certain emissions by our customers in the processing of our glass.

Scope 3 CO2 emissions

In 2017, NSG Group started the process to improve the quantification of its Scope 3 emissions. The 2019 Scope 3 emissions can be seen in the table above. We also started an engagement with key suppliers to better understand the CO2 in our supply chain and to identify and share best practices with our partners.

Synergies With Strategic Raw Material Suppliers

Batch raw materials (dolomite, limestone and soda ash) represent 0.8 million tonnes or 33% of total Scope 3 emissions.

We are working with a number of strategic suppliers on projects to reduce CO2 emissions and at the same time reduce enery consumption. In summer 2019 discussions commenced with a strategic soda ash supplier to the Group. Soda ash acts as a fluxing agent during glass manufacture playing a vital role in reducing the furnace temperature necessary to melt silica and therefore reducing the energy required. However, the production of soda ash also releases a significant portion of CO2 into the atmosphere. NSG and the supplier are evaluating potential synergies between our two high energy demanding - and hence high CO2 emitting - companies.

Low carbon raw materials

Manufacture, processing and transport of raw materials (Scope 3) contributes slightly more CO2 emission so reduction of the raw materials CO2 burden is very important to achieving our SBT. R&D, in collaboration with Procurement, have been working to find viable low carbon batch materials that can be used to reduce these emissions and recently conducted trials of a calcined carbonate raw material, which contains no CO2. There are numerous technical issues to overcome but further trials are being planned to fully assess and mitigate risks identified.

The project has recently been expanded to look at alternative low carbon materials which due to their risks, cost and/or availability, have never seriously been considered before by NSG Group. The work will require closer collaboration with our existing suppliers, developing relationships with new types of suppliers and a great deal of research to improve NSG Group’s technical knowledge of the new materials, including how they are produced and their behaviour in our processes.There are significant hurdles to overcome and it may not be possible to implement low carbon materials on all sites and all products but, like increased cullet usage, low carbon materials could, potentially, contribute to achieving around 1/3 of our SBT CO2 reduction.