Our environmental impact reduction journey began with a focus on climate and energy. As a company dedicated to science, we recognize the connection climate scientists have identified between human and business activities, and emissions are already having adverse impacts on our climate.
Fossil fuel-based energy is one of the leading drivers of climate-damaging greenhouse gas (GHG) emissions, and the operation of commercial buildings and transportation are two of the leading users of fossil fuel energy. In addition, the usage of certain chemicals common to industry, such as refrigerants, contributes significantly to GHG emissions.
We have a responsibility to increase energy efficiency and reduce the GHG emissions across our operations. We imagine a future in which businesses can eliminate energy waste and produce all of their valuable outputs from clean, renewable, non-fossil fuel energy.
As part of our overall operations goal, we are committed to reducing our GHG emissions from our operations by 10% by 2015, compared to our 2006 baseline. Our efforts contribute to and support the climate protection goal of our parent company, Merck KGaA, who strives for a 20% reduction in its GHG emissions by 2020, below its 2006 baseline emissions.
As we grow the business, we will continue to explore and implement additional energy management and emissions reduction measures to further increase our operational efficiency. We believe this will help to strengthen our business performance, while benefiting our customers and communities in which we operate.
To achieve our energy and emissions reduction goal, we focus on several key areas: efficiency, clean energy, green power, green buildings, process emissions, and fleet and logistics.
To guide our efforts and monitor progress, we implemented an annual company-wide GHG inventory based on the Greenhouse Gas Protocol corporate GHG accounting and reporting standard. We publically report our actions and results via the international gold-standard CDP (formerly Carbon Disclosure Project) process and in the Merck KGaA biannual Corporate Responsibility Report.
We work to reduce greenhouse gas emissions from our own energy use, as well as to enhance the energy efficiency of research and production processes.
Process emissions are associated with our product development, manufacturing and testing, and some emissions pose a particular challenge for us due to their greater global warming potential. We are focused on lowering process-related emissions through measures such as improvements to quality control processes. Since the program’s inception, we have witnessed a greater than 20% reduction in process-related emissions normalized for production volumes. Our vision is to continue to reduce our process emissions while all together eliminating their existence in the future.
We account for mobile GHG emissions through our fleet of company vehicles, primarily used by our sales and service teams. Through an ongoing vehicle replacement program, our fleet is in the process of transitioning to more fuel efficient vehicles, such as hybrids, where appropriate. Across Europe, our fleet is powered by fuel-efficient, smaller-output diesel engines. We also have a growing number of vehicles that use biodiesel and compressed natural gas.
We are also focused on reducing emissions from shipping thousands of products to customers globally. In the U.S., we are an EPA SmartWay® Shipper. As a SmartWay Shipper, we are committed to benchmarking operations, tracking fuel consumption and implementing supply chain efficiencies in order to improve our performance annually with respect to how we ship our products.
To further achieve emissions reductions, we have undertaken a mode shift project to identify select products on certain shipping routes that can be sent more efficiently by sea freight instead of being shipped by air. As we continue to evaluate our logistics for further climate-saving measures, we believe this will not only help to reduce our own greenhouse gas emissions, but also will support our customer needs as they seek more products and services with reduced carbon footprints.