Responsible resource consumption

RESPONSIBLE PRODUCTION

Responsible resource consumption
– a strategic priority

The production of emulsifiers and stabilisers is highly resource-intensive in terms of energy, water and raw materials. That's why we have a strategic focus on reducing our energy consumption and our CO2-emissions, and why we offer our full product range of palm-based food emulsifiers, polymer additives and personal care ingredients as RSPO SG or MB-certified.

To minimise our environmental impact, we have continuously implemented activities across all of our sites since 2005. See examples of this in the gallery below.

We will also expand our CO2-reporting to include Scope 3 in 2024. See more below.

Coming 2025

Solar panel park in Denmark

We're in the planning phase for a 52-hectare solar panel park with an annual capacity of 45 GWh in Denmark, more than enough to cover the current needs and the planned expansion of our factory in Denmark. We hope to break ground on the park in 2024 and expect it to be operational by mid-2025.

Coming 2025

New energy-efficient emulsifier plant

In Denmark, we're in the early stages of constructing a new emulsifier plant which will be our most energy-efficient plant to date. The plant is planned to run on electricity.

2023

Waste products become animal feed

By optimising the handling of our waste products from our factory in Denmark, we have been able to repurpose a large portion of the waste products for use in animal feed. Previously they were used for biogas. We increased this by 32.5% from 2022 - 2023.

2022

Sizable reductions

Since 2016 we have achieved a 13% decrease in our global energy consumption and a 20% decrease in our global water consumption per kg. finished product.

2021

Plant-based water-treatment facility in Mexico

When building the new facility, Palsgaard Mexico opted for a circular solution to help reduce the water shortage. Our wastewater is cleansed in a wetlands area making it clean enough for irrigation use.

2021

New facility in Mexico

Palsgaard constructs new facilities, including new application centres, a factory area, warehouse and office facilities. 89% of the facility's energy consumption is covered by solar panels on the factory roof.

2021

Ground-breaking for Palsgaard Bio Energy A/S

Together with local wastewater treatment plant, Hedensted Spildevand, Palsgaard starts construction of its own biogas plant to make circular use of the wastewater from Palsgaard's production in Denmark.

2021

Solar power in Brazil

Solar panels installed at the factory roof of Palsgaard's facilities now cover 10% (2023) of the factory's electricity consumption.

2020

Use of nature's own resources

Palsgaard Netherlands and Palsgaard Denmark are now using rainwater as technical water for cooling.

2019

Reduced water consumption in Malaysia

A reduction of 50% in water consumption (2018 - 2019) was obtained through optimisation of cleaning procedures and production planning.

2018

Solar panels in the Netherlands

800 solar panels are installed at our Dutch factory, covering 10% (2023) of its total energy consumption. The factory also uses wind power.

2014

Process insulation

We ran a highly specialised project to insulate our processing plants, reducing the amount of gas required for production process heating.

2013

More energy-efficient lighting

Adopting more energy-efficient lighting options, including sensors and LED technology.

2012

Solar power in Mexico

Solar panels provide 95% of the energy needed for our Mexico factory.

2011

Certified wind energy

In 2011, we began purchasing certified wind energy
– this is readily available in Denmark.

2010

More efficient factories

Installing regenerative heat exchangers boosts heat recovery efficiency by over 30% in Denmark.

2009

Boiler conversions

Conversion of all boilers at the Denmark factory from heavy fuel to natural gas.

2005

Homegrown comfort heating

Since 2005 burning straw from Palsgaard’s own fields has provided 100% of the comfort heating needed for our buildings and offices in Denmark.

Palsgaard expands CO2-reporting

At Palsgaard, we are committed to reducing the CO2-footprint of our business, which is why we are now upgrading our reporting on emissions.

Starting in 2024, reporting on CO2 emissions will include our whole value chain, i.e. scope 1, 2 and 3 emissions. Scope 3 emissions are currently only available for Palsgaard’s operations in Denmark, but in 2024, we will be taking steps to map and quantify Scope 3 emissions across all our production sites.

We have made this decision to give a more accurate and comprehensive overview of Palsgaard’s environmental impact, and to prepare for CSRD-reporting in 2025.

Not only will this improve transparency for our stakeholders, but it will also make it easier for us to prioritise and develop our reduction efforts.

As a consequence of this new reporting practice, we will no longer claim that our products are "Produced in CO2-neutral factories".

This claim was based on a combination of efficient energy optimisations and green energy sources, supported by offsets governed by the United Nations Framework Convention on Climate Change and was verified by Deloitte in our annual CSR reports.

“Produced in CO2-neutral factories” included scope 1 and 2, and so did not include emissions from our value chain. This approach does not reflect Palsgaard’s new level of ambition on the climate agenda.

We will continue to analyse our activities and value chain and work closely with suppliers, customers, and other stakeholders to identify specific reduction potential in our CO2-emissions.

We will continue to invest in and support projects that reduce carbon emissions, promote renewable energy and contribute to a more sustainable future.

What is Scope 1, 2 and 3?

The most widely used method for calculating CO2-emissions is called the Greenhouse Gas (GHG) Protocol. The GHG Protocol divides emissions into 3 so-called scopes.

Scope 1 includes all the emissions generated on the production site. For instance, if a production process includes burning natural gas for heating or drying purposes, these emissions will be included in scope 1. Scope 1 also includes emissions from all company vehicles.

Scope 2 includes emissions from purchased energy, primarily electricity and district heating. These are emissions generated at a power station or somewhere else off-site.

Scope 3 includes emissions from the value chain, and scope 3 is again divided into upstream and downstream. Upstream refers to the material inputs needed for production. This includes for example emissions from all purchased goods and services, business travel, waste from operations and employee commuting. Downstream refers to what happens at the other end, i.e. when products are distributed and used. Downstream emissions include emissions from transportation and distribution, the use-phase of products, and any end-of-life treatment if this is relevant. Downstream Scope 3 emissions also include investments, franchises and leased assets.

Scope 3 emissions are a big challenge for many businesses. In some cases, it is difficult to get accurate data on emissions from suppliers and other partners. And when it comes to reductions, most businesses only have limited opportunities to influence the operations of suppliers and partners.

At Palsgaard, we are committed to working with all the stakeholders in our value chain to ensure that Scope 3 emissions are accurately calculated and that measures are taken to implement reductions.