ESG: We are on track to achieve our 2025 targets

The release of our 2023 ESG report shows that we are well on our way to achieving the targets of our “Engage to sustain” strategy. Over the last two years, we have achieved a 38% reduction in Scope 1+2 emissions per million DKK.

At Svanehøj, we proudly say that we have the expertise, the solutions, and the potential to bring forward the green energy transition in the hard-to-abate sectors. But while we help our customers reduce emissions, we, as a company, must also lessen our impact on the environment and become an inspiration for others to follow.

Our first ESG report, published last year, represented a massive milestone. But our journey is just getting started. In this year's ESG report, we continue the journey, reporting on our progress in 2023.

Towards a 50% Scope 1+2 reduction by 2025

In 2021, we set a target to reduce our Scope 1+2 GHG emissions by 50% by 2025 per revenue compared to 2021. In 2023, we made further significant progress toward this target, cutting our Scope 1+2 emissions per million DKK by 21% relative to 2022. Since our baseline year of 2021, we have achieved a 38% reduction in Scope 1+2 emissions per million DKK. In absolute numbers, we have achieved a reduction in our market-based Scope 1+2 emissions of 138.27 tCO2e from 2022 to 2023, corresponding to the total annual emissions of 18.4 Danish citizens according to Statistics Denmark.

The primary driver behind the reduction in Scope 1+2 emissions is the increased productivity achieved through investments in lean and automation. Consistent with our lean strategy, we have invested significantly in optimizing the production of pipes and shafts while outsourcing non-strategic activities.

Svanehøj is a part of the solution

In 2023, we started calculating our Scope 3 GHG emissions with 2022 as our baseline year. Given that Svanehøj provides energy-consuming marine pumps with lifespans exceeding 25 years, most of our emissions are indirect and linked to the use phase of sold products. By analyzing our full value-chain we have concluded that Scope 3 constituted 99.93% of our total CO₂ emissions in 2022, with 93.5% originating from the use of sold products.

The analysis highlights the transportation sector as a major source of carbon emissions, yet it also emphasizes Svanehøj's role in addressing this challenge. Our products and solutions already significantly contribute to decarbonization in the maritime sector. By conducting a Product Impact Assessment, we have concluded that LNG and LPG fueled vessels ordered in 2023 with Svanehøj DW Fuel Pumps are expected to achieve an overall lifetime (25 years) saving of 33.96M tons of CO₂ compared to similar vessels with HFO propulsion. It corresponds to approximately 45% of Denmark's annual consumption-based CO₂ emissions.

With our fuel pump technology, we help lead the transition of shipping from fuel oil to cleaner energy types. Given that our DW fuel pumps are fully compatible with e-fuels such as green ammonia and methanol, they will have an even greater impact on CO₂ reduction as the development and supply of e-fuels progress in the future. In fact, all Svanehøj pumps operating in 2050 will have zero Scope 3 emissions if the International Maritime Organization (IMO) achieves its net zero emissions target. This underlines the fact that transition towards greener fuels in shipping is a key enabler in reducing carbon emissions.

Want to know more? 

Read all about commitment to sustainability and find our ESG Report 2023 at svanehoj.com/esg