Supply chains must be key drivers of a company’s sustainability strategy. That’s because supply chain emissions are on average 11.4 times higher than operational emissions. To achieve significant progress in reducing harmful greenhouse gas emissions, companies in every sector must make concerted efforts to sustainably transform their supply chains and their own operations. This is especially critical in construction materials and products, which represents almost half of all raw materials extracted globally.

Most companies are part of other companies’ scope 3 emissions. At Kingspan we are implementing sustainable practices to cut carbon and reduce our environmental impact, and our customer scope 3 emissions. Increasing the use of renewable energy, reducing carbon emissions, engaging with suppliers to offer lower embodied carbon products and providing upcycling solutions for plastic waste are just some of the ways we are reducing our own scope 1, 2 and 3 emissions.

Reducing operational carbon emissions

We are decreasing our reliance on non-renewable energy by increasing our direct use of clean energy sources including wind, solar and renewable natural gas. Coupled with engaging with our suppliers and purchasing lower embodied carbon materials, this reduces the emissions we produce through manufacturing and ultimately the embodied carbon of our products.

Our most recent Planet Passionate report shows we are making strides in meeting a target of 60% direct renewable energy by 2030. In fact, we increased our direct use of renewable energy from 19.5% to 33.4% compared to the 2020 base year. Currently, over one third of our wholly owned facilities use solar PV to generate energy.

Kingspan is producing panels that have lower in embodied carbon than other traditional wall assemblies and provide high performing thermal efficiency that reduces energy consumption and greenhouse gas emissions. Kingspan has also been experimenting with ways to repurpose its PIR (polyisocyanurate) insulated panel waste. Recently, we partnered with Belter Tech – a manufacturer of sustainable building materials made from reclaimed waste products and recycled feedstocks. For the past two years, Belter Tech has been repurposing Kingspan’s PIR insulated panel waste from our DeLand facility, using it as a filler for its cementitious mixes. Belter Tech also manufactures the insulation waste into fire-retardant panel board products that are used by the film industry.

At Kingspan we are reducing our product’s embodied carbon and our emissions without sacrificing operational efficiency or high performance.

Engaging with suppliers to reduce scope 3 emissions

We are also actively working to improve the sustainability practices of our suppliers to help reach our scope 3 emissions reduction targets. In 2022, we adopted and published our Supplier Policy which clearly communicates our sustainability requirements. To create an open dialogue and strong continuous engagement with our suppliers, we also host an annual Supplier Forum.

Additionally, our partnership with H2 Green Steel is expected to reduce the embodied carbon in our insulated metal panel products by 45% which in turn is expected to reduce our scope 3 emissions by up to 35%. By collaborating with suppliers in this way, we aim to reach our Science Based Target of achieving an absolute reduction in scope 3 GHG emissions by 42%.

Providing upcycling solutions for plastic waste

To implement sustainable practices throughout our supply chain and reduce the amount of raw material used in manufacturing, we are upcycling PET (polyethylene terephthalate) plastic bottles into insulation core. At our Modesto, California facility we are using a proprietary formulation that uses recycled PET bottles as part of its raw materials in the production of Kingspan Quadcore™ insulation to help prevent these bottles from ending up in a landfill or in the ocean and reduce the input of raw materials. 

In 2022 alone, Kingspan recycled the equivalent of 803 million waste plastic bottles into our production processes. We are well on our way to meeting the target of upcycling one billion bottles by 2025 by converting these bottles into raw feedstock for the Quadcore insulation.

These are just some of the ways we are cutting carbon in our supply chain to help fight climate change. By focusing on decarbonizing our supply chain, we are making progress toward our target of a 50% reduction in product CO2 emission intensity from our primary supply partners, reducing absolute scope 3 GHG emissions in line with a 1.5C future.