Kroonpress Sustainability Report 2014

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Contents A Message from the CEO Environmental policy Achievements in 2013 Kindergartens happy for our paper LEDs installed in old warehouse CNG-powered transport 100% renewable electricity Carbon footprint Rainwater consumption Greenline Print – a successful first year Goals for 2014 Heat waste utilisation EU Ecolabel Production markers Print efficiency Print material consumption and waste Energy consumption Transport

4 5 6 6 6 7 7 8 9 10 12 12 12 13 13 13 14 14

Emissions into water Emissions into air Brief summary

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A Message from the CEO Dear reader, You might have heard this one: Two planets meet. The first one asks: «How are you?»

«Not so well» the second answers, «I’ve got the Homo Sapiens.»

«Don’t worry» the other replies, «I had the same. It won’t last long.»

Indeed, our lives are short and so is the history of man compared to that of the Earth. But every day, year after year, our actions add up and contribute to a common future. The question is – is our contribution net positive or net negative?

Last year, we revved up our sustainability agenda and we’re on our way to a „net positive“ future – with green energy, carbon labelling and energy saving measures, Kroonpress has taken steps to mitigate its negative impact on the environment and will continue to do so.

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Similarly to last year, we distributed hundreds of reels of paper to kindergartens, but we also began a new tradition of cycling to our company summer days.

Wearing Greenline Print logos and colours, our trip was both a promotional and teambuilding exercise. It certainly felt great due to endorphines and a cleaner carbon conscience.

It’s what we also try to offer our customers – helping achieve your goals as a sustainable and responsible partner.

So, let’s hope the future won’t regard Homo Sapiens as a disease.

Happy reading!

Andres Kull, CEO and Board Manager

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Environmental policy Our environmental policy is to increase stakeholder value by being more resource-efficient, generating as little harmful waste as possible and endorsing a life cycle perspective in printing to increase transparency about other parts of the value chain.

Our primary environmental responsibility is to monitor and minimize the impact of our own operations. We do this by following strict EU and national regulations on waste generation.

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We now also have the „100% Roheline Energia“ („100% Green Energy“) label issued by our energy provider Eesti Energia, which states that 100% of the base electricity we receive is produced from hydro and wind energy. And we are proud to have our own transparent and innovative graded carbon footprint label – the Greenline Print label – that is also available to all our clients.

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Our secondary responsibility is voluntary obligation to various stricter limitations and norms. We currently hold the ISO 14001 environmental management certifi-

cate, ISO 9001 quality management certificate, Forest Stewardship Council (FSC) and Programme for the Endorsement of Forest Certification (PEFC) chain of custody certificates and the Nordic Ecolabelling license.

541

787 Printing company

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Achievements in 2013

Kindergartens Happy For Our Paper 75 kindergartens, 430 reels of paper We continued our popular Christmas-time paper giveaway, and this year, requests for paper truly overwhelmed us – in total, we donated 430 discarded

reels of high quality newspaper to 75 kindergartens around the country, with free delivery to 29 kindergartens in our hometown Tartu.

100% renewable electricity 7650 tonnes less indirect CO2 Our new energy contract with energy provider Eesti Energia enabled our base electricity consumption to go 100% fossil free and become based on wind and hydro. However, due to fluctuating electricity demands on our side, e.g. simultaneous machine startups and other peak demand, base consumption covered 86. 5%

of the annual electricity consumption. This means that despite decreasing our indirect carbon emissions by 7650 tonnes of CO2 , we were still responsible for up to 1200 tonnes of greenhouse gas emissions from peak energy bought from the open electricity market produced from undetermined fuel sources.

LEDs installed in old warehouse 83% energy reduction Both of our paper storages are now fully fitted with Philips GentleLight LEDs, following the installation of 16 LED high-bay

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lights in 2012. Our old warehouse previously featured 19 metal halide high bay lights with a total power of 7600W, whereas the

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new 9 LEDs managed to produce more lumens by using just 1305W which is almost 6 times less! Naturally, the LEDs in this space were

also accompanied by motion and ambient light detectors to decrease electricity consumption even more.

CNG-powered transport 9% less CO2 and 24% less fine particles The pilot project for retrofitting one of our diesel trucks with a compressed natural gas co-firing device decreased the diesel consumption of said truck from an annual average of 29.75 litres per 100 km to 22.7 litres per 100 km, or roughly 24%. However, because CNG is also a fossil fuel, albeit a much cleaner one, total CO2 emissions were estimated to have dropped by about 9% and fine

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particle emissions by 24%, which amounts to considerable savings regarding the truck’s annual covered distance of 135 000 km.

However, due to teething issues and negligible net cost savings, the gasification of our entire fleet is currently not on the immediate agenda. We hope to see some technological improvements made in this field in the coming years.

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Carbon footprint 68% decrease in direct+indirect carbon footprint Company cars 62 tCO2

Company trucks 565 tCO2

Electricity 1200 tCO2

District heating 123 tCO2

Scope 1 (direct emissions) Scope 2 (indirect emissions) Natural gas 1683 tCO2

By reaping the lowest hanging fruits we managed to decrease our direct and indirect carbon footprint by a whopping 68% from 11 260 tonnes in 2012 to 3628 tonnes of CO2 in 2013! This was mainly thanks to the switch from fossil-fueled electricity to electricity produced from wind and hydro.

Truck emissions dropped thanks to newer, more efficient vehicles and our CNG-truck. District heating and natural gas emissions

were lower thanks to a milder winter but the district heat provider used 5% more biomass in energy production, now reaching 72%.

Our emissions did grow in one aspect, though, and that was from company owned cars. Clearly, this aspect has previously been overlooked due to its relative insignificance, but it will now come under closer scrutiny.

Scope 1+2 carbon footprint 2013 • C O 2 p er emp l oy ee: • C O 2 p er r e v enue: • C O 2 p er energy u sed:

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13.8 t onne s 100 t onne s/ ml n € 5 8 t onne s/ TJ

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Rainwater consumption 15% less groundwater consumed We collect and filter rainwater from a surface of approximately 10 000 m2 into two 25 m3 tanks.

During the last three quarters of 2013 we managed to cover an average of 15% of our total water

requirements with rainwater, or 856 m3. So far, we have only been bugged by the rapid clogging of filters but nonetheless, the project has justified itself and we hope for many rainy days to come!

Correlation between recorded rainfall and our rainwater collection for last 9 months of 2013

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Greenline Print – a successful first year Over 30 million issues labelled as low carbon A full year of calculating, grading and labelling carbon footprints has passed. Calculations involving forestry operations, fibre separation, paper manufacture, ink and printing plate production, along with raw material extraction, transportation and printing generated footprints ranging from below 500 to nearly 2000 kgCO2 per tonne of

prints. Print runs with even larger footprints were not deemed labelworthy by our clients, which is why we only saw top-of-the-line label grades.

There was a rapid increase in labelled prints in the first few months of last year with the largest Estonian daily newspaper

number of monthly labeled prints

number of labe 10M

2M

8M

6M

Number of issues

Newspapers Magazines

Jan

Feb

M ar

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A pr

M ay

June

July

A ug

Sept

Oct

Nov

Dec

Number of issues

1M 4M

2M

Q1

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Q2

jumping on board in April and many local newspapers joining in December. Swedish and Estonian readers received the most labelled prints while Lithuania came a close third and Norwegian orders launched in the fourth quarter of 2013.

Overall, 367 unique labels were issued of which the vast majority proved to be A-class prints and 10% of all labelled prints contained recycled paper. It should be reminded that A-class prints trap as much or more CO2 inside the paper ďŹ bre as is emitteded from the raw materials phase to delivery.

Effectively, these are carbon neu-

tral products!

As all Greenline Print labelled prints are entitled to 100% renewable electricity during production (of which a separate electricity consumption register is held), the average carbon footprint for electricity consumption at Kroonpress printing plant was zero. Our district heating provider distributed heat that was 2/3 carbon-neutral and our natural gas consumption per issue dropped by 10%, so the share of printing emissions in the footprints is getting even smaller.

Low carbon printing - it’s here!

r of labelled prints by destination

Number of unique labels by LABEL class

Lithuania Norway Sweden

8

28 Estonia

78 253 A+ A B+ B

Q2

Q3

Q4

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Goals for 2014 Heat waste utilisation Over 80% of district heat can be replaced with excess heat from production In cooperation with printing systems producer Goss International, local energy company Fortum Tartu and engineering company Innopolis, a project to capture heat from flue gases emitted by our gas-fired dryers is underway, promising to significantly increase our energy independence, lower heating costs and save heat emissions.

Additionally, if our domestic demand is low (during the warmer seasons) the heat will be fed to the grid to be used elsewhere. Our calculations show that we will still need to accept additional heat from the grid during the coldest winter months but overall, we expect to cut our heating bills by about 80%.

EU Ecolabel a product-specific label, unlike the Nordic Ecolabel There is an increasing demand for environmentally labelled products and the recently published EU Ecolabel criteria for print products opened a new opportunity for printing companies to supply the market with environmentally sound products bearing the well-established pan-European label. We expect to deliver the first EU Ecolabelled products in late 2014 or early 2015.

Unlike the Nordic Ecolabel, which has

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been used for benchmarking sustainable producers, the EU Ecolabel is not a company-specific label but pertains to the product category (books, magazines, brochures, etc). There are certain limitations as to what and how can be printed, e.g. only EU Ecolabelled paper can be used, which means that a printing company can produce both EU Ecolabelled and non-ecolabelled products. Check with our sales team to see if your print product is eligible!

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Production markers Print efficiency

Waste Prints

Print production grew 3% In 2013, we saw growth in the heatset offset department where 3.8% more issues were printed than in the previous year, reaching a total of 497 million issues. Sheetfed coldset printing witnessed an impressive 11. 9% growth, totalling 27 million issues annually, while coldset newspaper printing followed a global negative trend, dropping a mild 1. 4% with 108 million issues printed.

However, there was an overall increase in efďŹ ciency with share of waste produce dropping in all print departments compared to 2012. All paper waste was sent for recycling.

Print material consumption and waste Ink consumption decreased 4% The three main material resources for printing are paper, ink and aluminium printing plates. Due to increased production, our paper consumption went up 6. 5% to over 29 000 tonnes, aluminium printing plate consumption rose 11% to 107 tonnes and ink consumption, surprisingly, decreased by 4% to 639 tonnes.

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Our total paper waste amounted to 5570 tonnes (incl. waste produce, cuttings, dust, empty reels,

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packaging paper), which was all diverted to recycling by our waste handler. All 107 tonnes of printing plates were collected for recycling and potentially hazardous materi-

als (incl. activator/developer solutions, ink waste, batteries, fluorescent lights etc) made up 66 tonnes of carefully handled waste.

Energy consumption Gross energy consumption decreased by 5% A 2. 5% rise in electricity consumption due to increased production was offset by lower natural gas and district heating consumption, generating a 5% decrease in net energy consumption. Most of the decrease can be attributed to a milder-than-average winter, which required less usage of gaspowered heaters and grid heat.

Electricity 8 GWh

District heating 0.9 GWh

Natural gas 8.3 GWh

Transport CO2 emissions dropped 4% despite 3% increase in mileage Despite a 3% increase in annual mileage (we have now passed the 1 million km/year mark) we still man-

Distance covered (km) Average fuel consumption (l/100 km) Total emitted CO2 (kg)

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2012 976 265 22.77

2013 1 002 810 20.21

589

565

aged to emit 4% less CO2 than in 2012, which was mainly thanks to a set of new and more fuel-efficient vehicles and also our CNG (compressed natural gas) project that harvested reductions from our largest and most fuel-consuming truck. The average fuel consumption for our delivery vehicles went down from 22.77 l/100km to 20.21 l/100km within a year – that’s more than 10%!

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Emissions into water Because our liquid waste is handled as hazardous waste, all of it is collected separately and passed on to waste handlers. What goes down the sewers is just regular domestic wastewater, which is why we don’t burden the sewage system any more than an average apartment building. Biological oxygen demand (BOD7) is well below permit levels, as are total dissolved solids, phosphorus and nitrogen.

1600 1400 1200 1000 800 600 400 200 0 mg/l

100,00 80,00 60,00

Permit Average

BOD7

Total dissolved solids

Permit Average

40,00 20,00 0,00 mg/l

Emissions into air We have maintained a below-required level of CO and N2O emissions but regretfully, volatile organic compound emissions have increased due to a signiďŹ cant hike in sheet-fed production which increased the consumption of the solvent isopropyl alcohol and other washing agents containing VOCs. Because VOCs are a health issue, we are hoping to tackle this problem by installing a higher ventilation outlet which will decrease VOC concentration at ground level.

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25 20

Phosphorus

Nitrogen

Permit Actual

15 10 5 0 tonnes

N2O

CO

VOC

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Brief summary - 2013 Achievements: • 75 kindergartens across the country were donated 430 reels of paper.

• LEDs installed in the old warehouse decreased electricity consumption there by more than 80%.

• Our CNG-pilot project yielded 9% less CO2 and 24% less fine particles for the given truck.

• 100% of our base electricity consumption is now sourced from hydro and wind.

• The carbon footprint of Kroonpress decreased in four out of five emission categories year-on-year.

• Thanks to rainwater collection, our grid water consumption dropped by 15%.

• Over 30 million prints were labelled with a low-carbon Greenline Print label.

Production markers: • 3% total increase in production output.

• 4% decrease in ink consumption.

• 5% less total energy consumed.

Emissions: • • • •

Transport emissions dropped by 4%, despite 3% increase in mileage.

Emissions into air and water were well within permit limits.

N2O and CO emissions were within permit limits.

VOC emissions exceeded permit limits due to increased sheet-fed offset production.

Goals set: • EU Ecolabel certification should be achieved in 2014.

• Heat waste utilisation project should be completed late 2014/early 2015.

• Bring VOC emissions within permit levels.

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Kroonpress Sustainability Report 2014 Paper: Amber Graphic 140 Press: Heidelberg SM 102-9P5+LX Layout: Triinu Laansalu Photos: Katrin Kelpman, Taevakaamera OĂœ 73 g CO2

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ID c089

info: sander.jahilo@kroonpress.eu

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