Sustainability
Phoenix Mecano publishes a sustainability report based on the Global Reporting Initiative (GRI) and aims to halve CO2 emissions from its own operations by 2030.
Alongside the success of its business activities, Phoenix Mecano has always attached great importance to looking after its employees, caring for the environment and making a positive contribution to society. These principles are all part of its commitment to operating sustainably, in economic, environmental and social terms.
Sustainability is becoming increasingly important for investors, customers, employees and lawmakers. In order to meet these growing demands for transparency and to make its own commitment more visible, Phoenix Mecano published a sustainability report for the first time last year. Data collected in line with the Global Reporting Initiative (GRI) Standards forms the basis for the targeted management of activities in this area.
The Group is initially focusing its efforts on reducing CO2 emissions. As it works towards carbon neutrality by 2050 at the latest, Phoenix Mecano intends to halve CO2 emissions from its own operations by 2030. Key to this will be boosting operational efficiency and investing in its own solar energy systems.
CO2 targets and strategy
Phoenix Mecano aims to massively reduce its own CO2 emissions, generating a positive EBIT effect and the greatest possible environmental benefit. Its own operations (Scope 1+2) are to be made carbon neutral by 2050 at the latest, with this goal achieved as far as possible by cutting CO2 emissions. In a first stage, Phoenix Mecano intends to halve CO2 emissions from its own operations, per unit of sales, by 2030 compared with 2021. To this end, a number of measures have been defined that are being implemented on an ongoing basis.
The most important levers include efficiency measures, aimed at reducing the Group’s carbon footprint while also improving productivity. Another key element are photovoltaic systems generating green electricity for in-house use. Systems with an annual energy output of 4 400 MWh are planned or already under construction, including at major production sites in Kecskemét (Hungary) and Pune (India). Replacing machinery with more economical models and upgrading the energy performance of buildings as part of replacement investments will also help to reduce energy consumption and so lower CO2 emissions.
Sustainability levels
For the sustainability report, the areas to be evaluated were defined, weighted and divided into three levels based on the GRI criteria. The topics covered are split between the economic, social and environmental levels.
Economic level
Phoenix Mecano pursues a long-term growth strategy based on growth drivers aligned with megatrends. Phoenix Mecano sees sustainable growth and profitability as essential for strengthening competitiveness, generating value and creating new jobs. Its decentralised corporate structure helps it stay close to customers, fosters continuous improvements in operational excellence, and enables it to maintain a lean cost base.
Creation of value added
| in 1 000 EUR | Note | 2022 | 2021* |
|---|---|---|---|
| Net sales | 784 442 | 809 473 | |
| Own work capitalised and other income | 12 968 | 17 007 | |
| Cost of materials | − 392 125 | − 450 936 | |
| Other operating expenses | A | − 94 748 | − 86 867 |
| Depreciation / amortisation | − 24 328 | − 22 289 | |
| Other non-operating result | B | 3 983 | 952 |
| Value added | 290 192 | 267 340 |
* Restatement (see note 4 under key figures)
Distribution of value added
| in % | Note | 2022 | 2021 |
|---|---|---|---|
| Employees | C | 79.5 | 82.2 |
| Government (taxes) | D | 6.3 | 5.4 |
| Shareholders | E | 4.8 | 2.6 |
| Lenders (net interest expense) | 0.8 | 1.0 | |
| Companies (retained earnings) | F | 8.6 | 8.7 |
| Value added | 100.0 | 100.0 |
A Excluding capital taxes and other non-profit-related taxes
B Financial result excluding net interest expense plus share of result from associated companies
C Personnel expenses
D Current income tax, capital taxes and other non-profit-related taxes
E Dividends paid in the financial year and share repurchases under the share buy-back programme
F Result of the period less dividends already paid in the financial year and share repurchases under the share buy-back programme
Social level
At the social level, Phoenix Mecano’s commitment to sustainability can be seen in its behaviour towards its stakeholders. The company offers its employees a fair, safe work environment and a culture that recognises and harnesses individual potential. Likewise, when choosing its suppliers, Phoenix Mecano ensures that they treat their workers in a fair and lawful way.
Environmental level
To protect the environment and mitigate climate change, Phoenix Mecano strives to reduce its energy consumption and increase the proportion of renewable energy it uses for electricity, heating and mobility. In production activities, natural resources are used carefully to minimise the impact on the environment.
