Sika continues to increase the use of renewable energy sources in its own operations.
Reducing CO2 by prioritizing renewable energy
In 2021, Sika concentrated on optimizing the renewable electricity sourcing, with the aim of reducing significantly scope 2 emissions, and meeting the renewable energy target in a cost-effective manner.
Thus, switching to renewable electricity contracts, Guarantees of Origins (GOs) or Power Purchase Agreements (PPA) represent the preferred options where available (European countries or USA for example). Additionally, the purchase of other Energy Attribute Certificates (EAC) such as RECs (Renewable Energy Certificates), or I-RECs (international Renewable Energy Certificates), has been also carried out by several countries where green contracts availability was limited (i.e., China, Egypt, Romania, Argentina).
Finally, the investment in on-site renewable electricity self-production, through the installation of solar panels on Sika buildings, is also a relevant initiative.
Starting from 2021, an internal carbon pricing has been implemented to favor solar panels investments, and to move towards an increase in self-produced renewable energy.
In 2021, Sika-owned solar panels were installed in Morocco, Agadir and Mexico, Queretaro, and some more are planned for 2022.
Sika's Queretaro plant is the first American facility which completed a solar project, in which the solar system and the associated produced renewable electricity are fully owned and utilized by Sika. It is estimated that the plant will self-produce approximately 24% of the total electricity consumption, with a total yearly reduction of approximately 380 tons of CO2.
The Solar project in Agadir plant, which was completed in January 2021, will supply both Agadir and Bouskoura plants. It will generate 156 MWh of electricity per year, which represents around 40% of the total electricity required by both plants, and providing a total annual reduction in CO2 emissions by approximately 120 tons.