3.1 Building a low-carbon future
3. Environment
NRC Group delivers long-term, low-carbon infrastructure solutions that create value now and for future generations.
NRC Group is highly aware of our customer and stakeholder expectations on climate impacts, and of the likelihood of climate-related regulation. That is why, as a provider of services to build sustainable transport solutions, NRC Group is positioning itself to be the sustainable infrastructure partner of choice. Shifting our business to a low-carbon operation is a key priority.
The Paris Agreement (2015) and climate commitments of the Nordic countries in which we operate have sent a clear signal to private companies. Investor and stakeholder expectations around emission reductions are becoming urgent and unified. A general agreement on the need for net zero greenhouse gas (GHG) emissions by 2050 is being established, in an effort to limit global warming to less than two degrees Celsius.
30% reduction by 2025
We have set a 30% reduction target for our GHG emissions by 2025, using 2021 as a baseline. We are committed to align our reduction efforts with the Paris agreement and have set the long-term goal of being net zero by 2050. We are continuing to investigate the setting of a science-based target (SBTi), including identifying and reporting a useful intensity factor which measures the carbon intensity of our operations on a relevant basis. As a part of this effort, and in line with the Finnish government’s ambition of carbon neutrality by 2035, our Finnish operations prepared a carbon roadmap during 2023. This carbon neutrality is based on the assumption that the carbon sink is -21 Mt CO2e in 2035. Our Swedish operations are also committed to the 2045 net zero target of the Swedish climate policy framework.
Our GHG emissions increased in 2023
Our total GHG emissions (scope 1+2+3) in 2023 amounted to 13,771 tonnes (2022: 13,051 tonnes) of carbon dioxide equivalents (t CO2e). This represents an absolute increase in our scope 1, 2 and measured scope 3 GHG emissions of 5.5%. A full and detailed breakdown of our GHG emissions by country, scope and source is provided in the appendix.
The majority of the emissions measured in 2023 (scope 1 and 2), result from the use of diesel fuels in our equipment. A much smaller proportion of our emissions originate from electricity use at our offices and on some project sites.
Overall, group level emissions increased in 2023, which puts NRC Group in an unfavourable position with regards to achieving the 30% emission reduction target. However, at country-level the situation varies a lot. Emissions in Norway increased significantly from last year, which was mainly due to the availability of data from sources not known before. This means that the actual emissions did not increase over the year even though the measured emissions did.
Due to this change in measurement, we will revise our targets and presentation of historical data in the coming year to provide a more accurate overview of our emissions reductions. We reduced our emissions in both Sweden and Finland during 2023, with Sweden looking likely to achieve a 30% reduction target.
We are working towards the publication of accurate scope 3 emission figures. Based on current available data, we see that emissions related to business travel have increased significantly in 2023. The increase from between 200 and 300 tonnes in 2022, to 1,369 tonnes in 2023 is mainly due to covid-restrictions on travelling being lifted.
We reduced our emissions in both Sweden and Finland during 2023.
Total emissions
0.0
tCO2e
Scope 1
12.2
tCO2e
Scope 2
0
tCO2e
Disclosing climate-related financial risks using TCFD
In 2023, we have reviewed and updated our disclosures on climate-related risks and opportunities, which include governance, strategy and risk management perspectives, including the metrics and targets we use. The review and update included how climate-related physical, transition and market risks may impact our business. A summary of our TCFD disclosures is included in the Appendix.
Energy consumption
NRC Group delivers long-term, low-carbon infrastructure solutions that create value now but also for future generations.
NRC Group is highly aware of customer and stakeholder expectations on climate impacts, and of the likelihood of climate-related regulation. That is why, as a provider of services to build sustainable transport solutions, NRC Group is positioning itself to be the sustainable infrastructure partner of choice. Shifting our business to a low-carbon operation is a key priority.
Efficiency, biogas and electrification
We are investing in initiatives to reduce our GHG emissions and improve efficiency, aiming for economic and productivity benefits associated with these investments. Our focus on the efficient operation of equipment is complemented by a transition to renewable biogas fuels and investments in electrification of suitable equipment.
We are reducing emissions by converting diesel machines to hybrids and are currently operating 50 (out of 78) trucks on renewable biogas. Over 70% of Gunnar Knutsen’s (a wholly-owned NRC company) truck fleet is using the biogas and the company’s mid-term ambition is to fuel their entire fleet on renewable biogas. This investment plays an important role in reducing energy use and contributing to NRC Group’s target of reducing emissions by 30% by 2025. Being able to provide a low-carbon heavy transport fleet has strengthened our sustainability credentials and converted them into a contract-winning competitive advantage.
As the market and availability of electric-powered machinery develops, we will continue to consider replacing existing machinery and equipment with electrical options, where it is fit for purpose.
Reducing emissions by converting diesel machines to hybrids
How we execute our projects matters to us, and we are committed to operating safely while protecting the environment. To reduce emissions we aim to replace machinery with renewable fuel sources.
Earlier this year, NRC Kept, a subsidiary of NRC Group rebuilt and modernized two large demolition machines, Caterpillar 352 and 340. The machines are originally diesel powered but are now being modified to become hybrid machines that can also run on electricity. One of them was ready for use during late 2023.
NRC Kept invests in electrical machines to reduce greenhouse gas emissions and noise from machinery. By replasing machines that operate soley on fossil fuels, we are contributing to a healthier, more environmentally friendly and safer workplace.
