Environment and climate

The world is facing significant climate challenges. Science has shown that we need to limit the global temperature increase to 1.5 °C to protect life on Earth. If we fail, it is likely to have lasting consequences for the environment and people. To keep the global temperature increase below 1.5 °C, we need to halve global CO2 emissions by 2030 and reduce them to zero by 2050. This is explained in the IPCC Special Report on the impacts of global warming of 1.5 °C report.

Sustainable energy is our key focus area. It is at the heart of Verdo and therefore a natural part of our activities. We create solutions with a focus on energy efficiency and lower utility prices, CO2 and NO x reductions as well as ensuring a clean and abundant water supply.

SDG 6 Clean water and sanitation In Denmark, we all have access to clean drinking water – a resource most people take for granted. However, like in the rest of the world, our drinking water is under threat from pollution. Verdo is therefore continuously stepping up its efforts to protect our groundwater and ensure clean drinking water for consumers in the local community. In 2020, 48 water samples were taken at waterworks and at consumers connected to the supply network under the statutory analysis programme. All water samples complied with the water quality requirements. In addition to the samples required by law, we take water samples every two weeks for own testing using BactiQuant analysis, which provides a comprehensive quantification of total bacterial presence in one water sample.

SDG 7 Affordable and clean energy SDG 7 is about ensuring access to affordable, reliable and sustainable energy. Our approach is to increase the use of certified biomass in the form of wood chips and keep coal consumption to an absolute minimum. This way, we gradually reduce our CO2 and NO x emissions from year to year.

Every year, we replace an increasing number of street lights with LED technology to reduce energy consumption and CO2 emissions caused by lighting. In addition, we are working intensively to offer customers relevant infrastructure that promotes the green transformation.

SDG 13 Climate action SDG 13 is about taking urgent action to combat climate change by, among other things, reducing the impact of greenhouse gases. That is why Verdo has a long-standing commitment to using surplus heat from the industry. In Randers, we are working with the retailer Bilka, the crematorium and the regional hospital to recover their waste heat from production instead of releasing it into the atmosphere. The 2018 energy agreement states that, in the future, the use of surplus heat from businesses must be improved for the benefit of citizens and for the environment. Better use of surplus heat reduces consumer heating costs and fuel consumption in heat production. In 2020, Verdo’s initiatives in this area corresponded to the annual heat consumption of some 89 households. In 2021, we will explore further opportunities for utilising surplus heat in Randers and Herning.

The growing wood consumption – both in the energy sector and in the construction sector – increases the need for sustainable forestry. This creates a natural focus on certification and documentation, where international certification programmes have an important role to play. The certifications reflect our joint commitment to responsible forestry. Therefore, Verdo enters into partnerships with our suppliers and industry associations to push the market and the forest industry in a more responsible direction.

Sustainable biomass All wood-based biomass sourced by Verdo must be certified by reputable and independent organisations. This helps to maintain forest ecosystems, ensure responsible and lawful work processes and give forestry-intensive countries economic incentives to develop sustainable production methods.

To make sure that our fuels come from sustainable sources, we are FSC® CoC and SBP CoC-certified. Verdo is also one of the first major biomass suppliers in Denmark to obtain NEPCon Generic CoC certification. PEFCTM Chain of Custody Certification is one of the world’s leading forest certification systems which certify the forest area and the products it supplies. PEFCTM-certification verifies that the wood comes from forests where biodiversity, the environment, workers’ rights and local populations are protected. The wood can be traced from the forest to the sawmill and from there on to the shop or incinerator. The certifications provide assurance that we ensure that we source sustainably and responsibly, and that the biomass is produced safely from an economic, social and environmental perspective.

We have also been involved in the drafting of Danish energy companies’ industry agreement on sustainable biomass. According to the agreement, 90% of all fuel used in the industry must be certified and come from sustainable sources. Verdo sees sustainable biomass as a green step towards a fossil-free future. By using biomass, we can reduce CO2 emissions by more than 90% compared to using coal as fuel. Coal thus emits more CO2 than wood, and while plants absorb CO2 over decades, for coal it takes millions of years.

Trees can play a vital role in solving global climate challenges and have a naturally excellent ability to suck CO2 from the air. For example, a large beech tree with a diameter of 50 cm and a height of 26 metres can bind carbon equivalent to 4.30 tonnes of CO2 during its lifetime. Photosynthesis is the forests’ natural way of helping the environment.

We are already planting trees and protecting forest areas – in 2016, we helped to plant the Oust Mølle Folkeskov forest, and in 2019 we acquired the 39-hectare Randers Sønderskov forest. However, in 2020, these efforts were hampered by the COVID-19 pandemic. We hope to plant more trees in 2021.

Efforts and results Thanks to our talented employees at the Randers Kraftvarmeværk CHP plant, the efficiency of the plant was very high in 2020, resulting in reduced fuel consumption and CO2 emissions. The high efficiency of the plant is the result of intense operating and optimisation efforts. Since 2002, Randers Kraftvarmeværk has reduced CO2 emissions by 99.2%. The conversion of Randers Kraftvarmeværk has been key to reducing the carbon footprint of our district heating production and thus mitigating the negative climate impact. In 2020, our consumption of biomass at the CHP plant totalled 180,898 tonnes, while coal accounted for only 444 tonnes or 0.24% of our total fuel consumption. Overall, we reduced our CO2 emissions by 13% from 2,994 tonnes in 2019 to 2,606 tonnes in 2020, mainly by optimising our production planning and operational reliability.

In 2020, our coal consumption increased slightly compared to last year. We only use coal as backup fuel in case of problems and to start up the boilers after a stop.

Verdo focuses on reducing NOx emissions, among other things by carefully analysing and optimising the composition of the biomass. In 2020, we successfully reduced NOx emissions by 31,793 kg by reducing fuel consumption and using biomass with a lower nitrogen content. This represents a reduction of just over 16% from 2019 to 2020. In the same period, we reduced CO2 emissions by 13% or 388 tonnes, corresponding to the annual CO2 consumption of 23 Danes. According to data from CONCITO, each Dane emits an average of 17 tonnes of CO2 to the atmosphere each year. The data is based on figures from The Global Resource Footprint of Nations report, which examines the consumption of individual nations. If Denmark is to meet its goal of reaching climate-neutrality by 2050, the CO2 emissions of each Dane must be reduced to less than 2 tonnes annually.

Certification of forest area and forest products

Since 2015, Verdo has supported independent certification programmes that ensure sustainable forestry and safe production of wood-based fuels. We do this because we believe that fuel production must be sustainable and that sustainability must be documentable. Today, we hold several Chain of Custody certifications (CoC) – FSC® CoC, PEFCTM CoC, SBP CoC and Biomass Producer certification and NEPCon Generic Chain of Custody certification.

FSC® (Forest Stewardship Council®)

SBP (Sustainable Biomass Programme)

PEFC TM (Programme for the Endorsement of Forest Certification)

NEPCon (Generic Chain of Custody certification) Certification of forest area and forest products • Social and environmental responsibility • Promotes compliance with the EU Timber Regulation (EUTR) • Ensures sourcing of sustainable wood-based biomass and adherence to the industry agreement

Certification of producer and their products • Ensures that biomass is produced and transported responsibly • Ensures detailed documentation and CO2 accounts • Ensures sourcing of sustainable wood-based biomass and adherence to the industry agreement

Certification of forest area and forest products • Social and environmental responsibility • Promotes compliance with the EU Timber Regulation (EUTR) • Recognises other existing national certification systems • Ensures sourcing of sustainable wood-based biomass and adherence to the industry agreement

Certification of the chain of custody documentation system, where our FSC, PEFC or SBP procedures are not relevant • We use it to document the chain of custody when sourcing biomass from Danish forests – biomass that meets the requirements for alternative documentation for adherence to the industry agreement