Environmental responsibility
Throughout the value chain, Marel encourages and promotes the most efficient use of resources to minimize environmental impact and prioritize environmental protection in food processing. Innovation is at the core of this strategy.
We’re passionate about creating new methods to improve yields and decrease waste in food production. We reduce the use of scarce resources such as energy and water, while promoting animal welfare, food safety, and traceability.
As the leading global supplier of high-tech food processing solutions, our advances can scale up to ensure tremendous gains in sustainability for food processors.
Commitment to a net zero future
Marel has committed to the Science Based Targets initiative to meet the goals of the Paris Agreement. During 2021, Marel upgraded its climate commitments from aiming for carbon neutrality well before 2050 to becoming net zero by 2040. Setting ambitious, science-based emissions reduction targets provides companies like Marel with a clearly defined path for leading the way to a zero-carbon economy, boosting innovation and driving sustainable growth.
Main 2021 carbon reduction projects
Sustainable purposeful travel
During 2021, Marel introduced a new Global Travel Policy with the emphasis on well-planned and purposeful travel. Employee wellbeing and reducing our carbon footprint are Marel priorities and therefore the basis for how we see travel in the future. At Marel, we put a successful outcome, sustainability, travelers’ wellbeing, and health as our first priorities for any trip. Trips for service and installation work are always considered essential business travel.
Sustainable housing strategy
We integrate sustainability into renovation and greenfield projects for Marel manufacturing, demo centers, offices, warehouses, and combined sites. We are working on designing a distribution center, which will be energy neutral, using solar power. Moreover, it will be BREEAM certified (a certification method for a sustainable built environment) in line with WELL ambition (concerning the health and wellbeing of users) and TAPA compliant (concerning security standards for the supply chain). Office renovation projects aim to reduce carbon emissions and energy usage where possible, focusing on environmentally friendly materials and choosing locations that can support low emission transport modes and energy utilization.
Green electricity procurement
This involves implementation of a global policy on the preferred sourcing of green energy for electricity, supporting manufacturing locations in switching to green electricity.
Glocalization
The glocalization structure is a foundation enabling a Marel region to act locally while being supported by strong industries and strategic business units within Marel. The main focus is to deliver an improved customer experience and to remain close to customers as their preferred partner.
Supplier sustainability program
In 2021, we have further implemented our supplier sustainability program involving EcoVadis, an external sustainability rating provider. This forms an important step on our sustainability journey to drive continuous improvement and gain more transparency in our supply base. In line with Marel’s sustainability ambitions we renewed our code of conduct for suppliers.
Sustainable supply chain and procurement
Marel has a responsible supply chain program focusing on energy, waste management, transportation, health and safety, and social conduct in Marel’s manufacturing locations as well as in our partnerships with suppliers globally.
Mapping our scope three carbon emissions
We have started monitoring carbon dioxide emissions from product-related purchased goods. We have also assessed the emission impact of different transportation modes, thereby supporting Marel on its journey toward reducing emissions related to goods purchased.
Waste management program
In several manufacturing locations, Marel is conducting waste scans with the support of external parties, setting up continuous improvement plans. This has significantly improved Marel’s waste management system.
Sustainable digital design—extended reality
Digital technology plays a central role in the development of our customer offerings, as well as achieving excellence in our own operations. Using extended reality simulation for designing, prototype testing and customer training, we can implement our solutions faster. This allows for the virtual testing, and usage of digital twins, removing the need for steel, plastics, and products going to waste during initial design and testing.
Sustainability innovation scorecard
Since 2017, Marel has employed a process framework when evaluating new products, which ensures that efforts are spent on progressing valuable, feasible, and usable technologies. The sustainability scorecard seeks to address and improve material product impact while promoting critical environmental and social criteria as well as animal wellbeing.
Life Cycle Analysis
Since 2018, Marel has carried out lifecycle analysis on core cross-industry products to better understand the full carbon footprint associated with our solutions, from design through production until end-of-life. In 2021, we finalized our seventh core cross-industry solutions lifecycle analysis and its environmental impact.
Energy management system program
Analysis has been done with the aim of reducing energy loss, particularly in compressors, ventilation, and cooling systems. This is an area we believe can support Marel’s net-zero journey as well as our customers’ decarbonization strategy. Previous measures included switching to LED lighting where feasible, and installing car-charging points for employees and visitors.
ESG incentive scheme for management
During 2021, we incorporated ESG targets including carbon emission reduction targets into the short-term incentive plans for management remuneration.
First sustainability program
Marel has launched a five-year sustainability program aimed at steering both Marel and the industry onto a more sustainable path through ambitious environmental, social, and governance targets.
Commitment to climate-related disclosure
Marel has committed to integrating the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) into its 2021 climate-risk reporting. 2021 was the first full year Marel could internalize and implement the recommendations by the TCFD. For further details, please see our climate-related disclosure in the appendix section.
Science-based targets
Marel has committed to the Science Based Targets initiative, with the intention of setting a science-based target in 2022. Setting ambitious, science-based emissions reduction targets provides companies with a clearly defined path leading the way to a zero-carbon economy, boosting innovation and driving sustainable growth.
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Being local and connected
Wherever you are in the world, the Marel team is here for you. Through on-the-ground local support in more than 30 countries, seven global demo center networks, 245 online demonstrations in 2021, and the use of cutting-edge digital technologies, we work even more closely and efficiently to support our customers, partners, and the broader food processing industry in the region. This operating model has proved very resilient throughout the COVID-19 pandemic, while maintaining high customer satisfaction.
Local teams are supported by strong industries and strategic business units within Marel. As we innovate, digital technology plays a central role in the development of our customer offerings, as well as achieving excellence in our own operations. The use of extended reality simulation, remote support, and predictive maintenance are ways for us to lower the need for non-essential business air travel.
We have shown this successfully during the pandemic. We lowered our carbon footprint by 41% in 2020. While 2021 has seen car and business air travel getting slowly back to normal, we are emphasizing well-planned and purposeful travel, making travelers' wellbeing and health a priority, while at the same time reducing our carbon footprint. Marel’s local presence has helped us reduce carbon emissions by 3% year-on-year while revenues grew by 10% in 2021.
Our carbon footprint
Continued focus on responsible supply chain management, procurement, and purposeful travel enabled us to lock in the carbon emission reductions achieved in 2020 for 2021, while revenues grew by 10%.
Total market-based carbon emissions decreased by 3% in 2021 compared to 2020. Without the inclusion of TREIF, integrated into our carbon accounting for 2021, the decrease in carbon emissions would have been 7%.
Key carbon reduction projects throughout 2021 helped us further improve our emissions results while average FTE grew by 10.5% to 7,140.
GHG emissions
| In tCO2e | 2021 | 2020 | Change year-on-year |
|---|---|---|---|
| Scope 1: direct GHG emissions | 7,563 | 6,041 | +25% |
| Scope 2: indirect (market-based) | 7,328 | 9,371 | -22% |
| Scope 2: indirect (location-based) | 8,755 | 8,887 | -1% |
| Scope 3: other indirect emissions | 3,738 | 3,717 | +1% |
| Total tCO2e | 18,629 | 19,129 | -3% |
Carbon emission intensity
| 2021 | 2020 | Change year-on-year |
|
|---|---|---|---|
| Kg CO2e average FTE | 2,636 | 3,007 | -12% |
| Kg CO2e per EUR 1,000 of revenues | 13.8 | 15.7 | -12% |
Note: Please see the ESG Explanatory Note on 2021 restatements and Nasdaq ESG metrics for further details.
Scope 1
Includes all direct greenhouse gas (GHG) emissions occurring from sources directly controlled by the company. Scope 1 sets out emissions from the combustion of natural gas in controlled boilers as well as emissions from fuel combustion in vehicles operated by Marel, such as company cars. Leased vehicles are operational leases and are reported under scope 1 based on their tank-to-wheel emissions.
Scope 2
Includes all indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Scope 2 sets out emissions resulting from the generation of electricity purchased or used by Marel in offices and manufacturing facilities. Additionally, emissions resulting from generating district heating are included in scope 2.
Scope 3
Includes all indirect emissions (not included in scope 2) occurring in the value chain of the reporting company, including both upstream and downstream emissions. Marel currently reports on business travel by air (downstream) and waste generated in operations (downstream) carried out in its manufacturing facilities. Please see the ESG Explanatory Note for further details.
Energy consumption
In 2021, Marel implemented a Green Electricity Procurement Policy, adopted in 2020, on the preferred sourcing of green energy for electricity. As part of our sustainability program, we aim to power at least 85% of our manufacturing facilities by renewable electricity by 2026. In 2021, we made considerable progress, increasing our renewable electricity share to 61% (2020: 45%).
Being a growth company and including environmental data from acquired companies has resulted in higher energy usage 73.2 GWh (2020: 69.1 GWh), while energy intensity per FTE improved to 10.4 MWh per FTE (2020: 10.9 MWh per FTE).
All Marel locations
Share of renewable electricity in 2021
Manufacturing facilities only
Share of renewable electricity in 2021
Resource efficiency
Maximizing yield is key to decreasing waste in food production, which is why we are constantly improving the accuracy, efficiency, safety, and traceability of food processing.
Eliminating waste and increasing yield is a core part of what we have built our success on. With our automated and digital solutions, we support our customers in delivering value to consumers all over the world.
We help raise yields with less waste
Reducing our waste footprint
Being conscientious about the operational and environmental impact of waste management, we collect data for full-scale analyses of our waste streams and for gaining a comprehensive overview of our waste footprint. All our major manufacturing locations report on standard waste management metrics. This enables us to make progress in the digitalization and efficiency of our waste management operations, such as monitoring and increasing how much of our total global waste volume we recycle or reuse.
Sustainable use of water during food processing
Food processing requires a lot of water, both for the process itself and for cleaning equipment and the rest of the factory. Inevitably, this also results in a lot of wastewater, which needs to be dealt with safely and efficiently. Our team of water treatment experts works with processors worldwide to determine the most sustainable system for their individual needs.
Sustainable housing
We build efficient buildings and state-of-the-art distribution centers for the future.
Transportation
As part of our engagement with suppliers, we have started monitoring carbon dioxide emissions from product-related purchased goods. We have also assessed the emission impact of different transportation modes, supporting Marel´s journey in reducing emissions related to goods purchased.
Animal wellbeing is our priority
Marel’s strong commitment to social responsibility extends beyond its employees and customers. Because we are in the food processing business, animal wellbeing is high on our agenda, particularly in research and development.
Animal wellbeing is a feature in the sustainability scorecard. By highlighting animal wellbeing in the sustainability scorecard, we are ensuring environmental and economic responsibility in the most crucial stages of the product lifecycle.
By instituting good animal wellbeing practices in general, we can increase the quality of products and production, while using Marel solutions to reduce the carbon footprint of food processors.
We are determined to lead the way in developing solutions that promote the highest standards of animal wellbeing. Over the years, we’ve introduced a number of innovative solutions that pay careful attention to animal wellbeing, including: