Gabriel_Annual_Report_2024-25 - Flipbook - Page 45
CONTENTS // SUSTAINABILITY STATEMENT // ENVIRONMENT – CLIMATE AND ENERGY
Accounting policies
Consolidation
The organisational boundaries follow those of the financial consolidation.
Resources
Gabriel allocates both financial and human resources to
its climate action each year. Towards 2029/30, 5-10% of
the capital expenditure (CapEx) budget is dedicated to
investments in climate and energy-related projects, which
are ranked on their reduction potential and economy.
The Group’s CapEx totals DKK 17.3 million for the 2024/25
financial year (see notes 9, 11 and 12). The investments
are distributed across property, plant and equipment
and intangible assets in both the continuing operations
and discontinuing operations.
Energy consumption
Gabriel distinguishes between fossil and renewable
energy sources. Fossil sources comprise coal, oil, natural
gas, LPG, diesel, kerosene and purchased electricity,
heat, cooling and steam from non-renewable sources.
Renewable energy sources comprise wood, biogas,
wind, solar, hydro, biomass and purchased electricity,
heat, cooling and steam from renewable sources documented by certificates or origin including guarantees
of origin (GoO) or renewable energy certificates (RECs).
Energy consumption data are obtained from meter
readings and invoices. For locations where no energy
consumption data are obtainable (e.g. showrooms and
small/shared offices), the consumption is estimated
based on the location’s size and activities. Energy data
based on estimates amount to 1% in 2024/25.
For purchased electricity and heat, the distribution of
energy from fossil, nuclear and renewable sources is
based on data from IEA and updated at least annually.
Data are validated through internal controls, benchmarks
and external assurance providers and the energy consumption and associated emissions are reconciled with
the financial reporting for consistency. Where primary
data are not available, industry-generic factors and
reasonable estimates are used, and critical estimates
are documented.
The company focuses on improving data and data
sources and will work towards more accurate energy distribution data, if possible directly from energy suppliers.
Greenhouse Gass Emissions (GHG), data and targets
Gabriel maps GHG emissions for scopes 1, 2 and 3.
Scope 1 comprises all direct GHG emissions from our own
and operationally controlled sources, including combustion of fossil fuels. Emissions are calculated based on activity data such as fuel consumption and multiplied by
relevant emission factors from UK DEFRA, IEA, Sphera or
supplier-specific data. Direct biogenic GHG emissions
are reported separately if relevant.
Scope 2 covers indirect GHG emissions from purchased
electricity, heat, cooling and steam. National emission
factors from Sphera are applied to calculate location-based emissions, while contractual instruments
like GoOs and RECs are applied, if available, to calculate
market-based emissions. Both are multiplied by activity data for consumption of purchased electricity, heat,
cooling and steam.
Scope 3 comprises indirect GHG emissions from the value
chain. Gabriel screens all 15 scope 3 categories in accordance with the GHG Protocol. The main categories
are purchased goods and services, end-of-life treatment of the products and upstream and downstream
transportation and distribution of goods, which together account for 93% of Gabriel’s total scope 3 emissions.
through internal controls, benchmarks and external assurance providers.
In general, the method hierarchy defined in the GHG
Protocol is used to calculate scope 3 emissions, but the
method chosen for the individual categories depends
on the available data.
Gabriel uses the Science Based Targets initiative’s (SBTi)
general cross-sector pathway for science-based targetsetting since no sector-specific decarbonisation pathway
exists for the textile and furniture industry. The targets are
gross targets and do not include GHG removals, carbon
credits or avoided emissions. The targets cover all material greenhouse gases (CO2, CH4, N2O). Gabriel based
the targets on SBTi’s standard method and the climate
goals of the Paris Agreement. The target for scopes 1 and
2 is a reduction in line with the 1.5°C scenario, while the
target for scope 3 is to keep the temperature rise well
below 2°C (near term targets).
The average data method is primarily applied to purchased goods and services. Activity data are principally
the number of kilograms purchased per materials group
and emissions are calculated by multiplying by an emission factor in kg CO2e/kg material.
The average data method is applied to end-of-life treatment of products. Activity data are the number of kilograms of products/materials flowing from Gabriel to customers and consumers and waste handling scenarios.
Emissions are calculated by multiplying by an emission
factor in kg CO2e/kg waste material treated.
For transportation and distribution of goods, the distancebased method is applied. Activity data are the number
of kilograms x kilometres the goods travelled by road,
sea and air between Gabriel and customer/supplier.
Emissions are calculated by multiplying by an emission
factor in kg CO2e/kg x km travelled.
Where primary data are not available, industry-generic
factors and reasonable estimates are used, and critical
estimates are documented, particularly for scope 3 category 11 on the use of sold products. Data are collected
from the company’s systems. Gabriel applies internationally recognised emission factors from IEA, UK DEFRA,
IPCC 6th Assessment Report, AIB, Sphera, Ecoinvent and
others. Supplier-specific factors are applied if available
and documented. Data and calculations are validated
Energy and GHG intensity
Intensity is calculated as the total energy consumption
(MWh) or GHG emissions (CO2e) divided by the Gabriel
Group’s net revenue. Since Gabriel is operating within
production, all of its activities are assumed to be in a high
climate impact sector. Net revenue is the total net revenue
for the Gabriel Group in the financial year.
Any amendments
From 2024/25, energy data and emissions data are published annually in the sustainability statement. Any future
amendments to methods or the underlying data will be
documented and explained. Amendments to methods
and/or underlying data resulting in a significant change
(>5%) in emissions calculated for the base year will result
in recalculation of the base year.
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