Our Performance and Achievements

Johnson Matthey undertakes a comprehensive annual review of group environmental performance which covers all manufacturing and research and development facilities. We report data over a five year period for our total energy use and emissions of greenhouse gases, acid gases, oxides of nitrogen (NOx), sulphur dioxide (SO₂) and volatile organic compounds (VOCs). We also report on the amount of waste we produce, waste to landfill and our water use.

Environmental performance data for 2008/09 is presented for the financial year from 1st April 2008 to 31st March 2009. Data from 2004 to 2007 is presented on a calendar year basis. Where necessary, the data has been restated to reflect changes in the business, for example divestments and site closure. The group sold its Insulators and Alumina businesses on 26th November 2008 and as such, data presented for 2008/09 excludes any contribution from these businesses. The group sold its Ceramics Division on 28th February 2007 and as such, data presented for 2007 excludes any contribution from Ceramics Division.

Energy Consumption

The group’s total energy consumption increased by 7% in absolute terms and by 3% relative to sales excluding precious metals compared with prior year. Energy consumption in 2008/09 was split between 2,509,000 GJ arising from direct sources i.e. various fuels and natural gas combusted by the company and 1,561,000 GJ from consumed electricity generated by a supplier. The global energy bill for the 2008/09 year was £45.4 million, increased from £35.1 million in 2007.

Global Warming Potential

Our total global warming potential (GWP) reduced by 2% and by 7% relative to sales excluding precious metals compared with last year. The absolute reduction in GWP demonstrates early progress towards our goal to become carbon neutral and was achieved through increasing our use of green energy sources and from reducing harmful emissions from our manufacturing processes.

We report greenhouse gas emissions from process and energy use and convert the total group energy use to tonnes of carbon dioxide (CO₂) equivalent using average conversion factors for each emissions source. All of the GWP data has been restated using the latest greenhouse gas conversion data published during 2008 (DEFRA), following recommendations in the assurance statement in our 2007/08 Sustainability Report. The total GWP is split between 160,000 tonnes of Scope 1 CO₂ equivalents arising from sources controlled by the company (e.g. fuel combustion and process emissions) and 211,000 tonnes of Scope 2 CO₂ equivalents from electricity supplied by utilities companies.

This year we have made some changes to our reporting to improve orientation with the Global Reporting Initiative (GRI) sustainability reporting guidelines. As part of this work we have reviewed all calculation methods and have chosen to use an alternative methodology for calculating the group’s global warming potential (GWP). To date, GWP has been calculated by adding together Scope 1 (direct) emissions and Scope 2 (indirect) emissions. The new methodology will only apply to Scope 2 emissions. Scope 1 emissions are unchanged.

Scope 2 emissions are essentially those resulting from third parties’ burning fossil fuels to generate electricity that Johnson Matthey subsequently purchases. The carbon intensity of this electricity varies from country to country, depending on the mix of generating technologies in use. The methodology we have used in prior years to calculate GWP from Scope 2 emissions involves adding together all the electricity purchased in the year, then applying a factor based on the UK’s electricity carbon intensity to derive the number of tonnes CO₂ equivalent emitted. This methodology has been used by the group since it began reporting on its GWP emissions (as shown in the chart and table above).

Using the new methodology we have also applied factors to country specific electricity usages based on the local published carbon intensity of electricity. For example the GWP for all of Johnson Matthey’s operating sites in the USA has been calculated by adding together the electricity purchased by USA sites, then applying the factor representing carbon intensity of purchased electricity in the USA. Using the new methodology our revised Scope 2 GWP was calculated as 220,000 tonnes CO₂ equivalent.

Carrying out this revised calculation gives a more precise result for the group’s GWP which is 2.5% higher than the figure calculated using the previous methodology. The group’s GWP over the last five years has been restated using the new methodology as follows:

In future years, the new methodology will be used to calculate the group’s global warming potential.

Johnson Matthey does not own the ships, trucks or aircraft used to transport its products and so emissions from transportation are not included in the data. While we understand that these transportation emissions are consolidated by the transportation companies we have chosen to collate this data at group level. In 2008/09 the total CO₂ from air freight was 17,685 tonnes. The majority of our products are high value but low volume and so the carbon produced by transportation is low relative to other carbon intensity indicators, for example Scope 2 emissions.

In 2008/09 CO₂ emissions from travel by employees on company business were 4,670 tonnes and emissions from company car travel amounted to 1,460 tonnes of CO₂. As our work on assessing the carbon footprint of our business develops, we will continue to look at ways to expand the level of information we collate on our indirect carbon emissions.

Other Emissions

Emissions from our operations are generated from a number of sources including combustion processes, materials handling and chemical reactions and are typically licensed by local regulations. All sites monitor emissions to ensure compliance with these regulations and set their own absolute targets aimed at reducing significant emissions as part of their environmental improvement plans.

In 2008/09, our total emissions of acid gas (primarily oxides of nitrogen, NOx) reduced by 20% in absolute terms to 334 tonnes SO₂ equivalent and by 23% relative to sales excluding precious metals compared with prior year.

Compared with last year, total NOx emissions have also reduced by 2% to 439 tonnes, a 6% reduction relative to sales excluding precious metals. Total SO₂ emissions are down 19% to 25.8 tonnes (down 22% relative to sales excluding precious metals) as we continue to modify our processes and practices to use cleaner fuels such as natural gas. The group’s emissions of VOCs increased slightly by 2.0 tonnes (1%) in 2008/09 compared with prior year as a result of increased production, but reduced by 3% relative to sales excluding precious metals.

Waste

The total amount of waste generated during the year decreased by 3% across the group and by 7% relative to sales excluding precious metals. Waste to landfill decreased from 20,977 tonnes in 2007 to 5,535 tonnes in 2008/09 which represents solid progress towards our Sustainability 2017 target on waste.

In terms of other waste streams, 2,045 tonnes of waste was sent for incineration, 18,206 tonnes of waste was sent for recovery and 70,501 tonnes of liquid waste was sent for treatment and disposal by third party waste service providers.

Packaging Wastes

For the first time this year Johnson Matthey has collated and quantified the different types of packaging wastes produced by our manufacturing processes as shown in the table below.

Johnson Matthey complies with international agreements, regulations and policies that govern the international shipment of waste. During 2008/09, a total of 2,845 tonnes of waste was moved between countries predominately for the reclamation and reuse of metal from spent catalysts at our Brimsdown, UK refinery (1st January 2008 to 31st March 2008 673 tonnes).

Water Consumption

During the year, water consumption decreased by 5% in absolute terms and by 9% relative to sales excluding precious metals compared with prior year. Of the total water used by the group, 94.7% was supplied by local municipal water authorities, 4.9% was drawn from boreholes and 0.4% was taken from local water courses. A total of 1,267,000 m³ of effluent was produced, of which 95% was discharged to local authority sewers after treatment and in accordance with local discharge consent agreements and 5% was discharged to water courses after treatment and within quality limits set by local water authorities. The method of water treatment used at each site is appropriate to the effluent quality and volume, and the requirements of the receptor.

The chemical oxygen demand (COD) test is commonly used to indirectly measure the amount of organic compounds in water. Most applications of COD determine the amount of organic pollutants found in surface water (e.g. lakes and rivers), making COD a useful measure of water quality. In 2008/09 the Johnson Matthey group discharged a total of 376 tonnes of organic chemicals into water courses, as regulated by local emission limits at each manufacturing facility (1st January 2008 to 31st March 2008 38 tonnes).

Johnson Matthey has a robust and effective management system which requires all sites to report environmental incidents to the group's EHS department. During 2008/09 the group has not reported any significant spillages to the environment of raw materials, intermediates or products.

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