Sustainability Report 2023

Carbon neutrality

As a constantly growing company with a wide range of business areas, energy is continuously required within the Zeppelin Group. Zeppelin has defined strategic and operational objectives in the course of the efficiency concept in order to minimize the environmental impact of the energy consumption of our business operations and to improve energy and environmental performance.

Progress in carbon neutrality

Progress on objectives 1 and 2
  • Carbon neutral in ongoing business operations by 2030 (Scope 1 & 2 market-based)
  • Reduce CO2 emissions by 46% by 2027 (base year 2022, Scope 1 & 2 market-based)1

The Zeppelin Group has set itself the target of being a net-zero carbon company in its ongoing business operations by 2030 at the latest. Greenwashing is rejected and compensation measures are the last option for offsetting CO2 emissions. CO2 emissions are therefore reported once in accordance with the Green House Gas Protocol, a globally recognized standard, including emissions from Scope 1 and 2. Since 2021, CO2 emissions have been calculated using the market-based and location-based method. The market-based method refers to the emissions of the electricity supplier or an individual electricity product, whereas the location-based approach refers to the average emission factors of the country where electricity consumption takes place. If there are specific emission factors of the respective energy supplier, these were used for the calculation of CO2 emissions (market-based).

Compared with the previous year, CO2 emissions (market-based) were reduced by 5.9%. The main reasons for this are various energy-saving measures, building renovations, the expansion of renewable energies and the switch to green electricity.

Change in CO2 emissions (metric tons CO2 equivalents)
Change in CO<sub>2</sub> emissions (metric tons CO<sub>2</sub> equivalents)

The implementation of carbon neutrality by itself means investing heavily, for example, for energy-efficient renovation or construction of new sites, the installation of photovoltaic systems or the gradual conversion to more energy-efficient plant and equipment. To achieve the goal of carbon neutrality, targets and measures were defined at SBU and national company level in 2021 to reduce CO2 emissions as part of the Group Strategy Call. This includes the desired switch to 100% green electricity within the German companies, which, for example, was successfully implemented at our largest supplier Stadtwerk am See by the end of 2023. All other measures will now be implemented step by step by 2030. A detailed description can be found in the Measures area.

CO2 emissions – Scope 1 & 2
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Change in CO2 emissions (Scope 1 & 2) Unit 2021 2022 2023
Scope 1 to CO2e 38,537 36,843 35,709
Scope 2 (location-based) to CO2e 16,951 15,199 14,762
Scope 2 (market-based) to CO2e 7,706 6,916 5,463
CO2 emissions – Scope 1 & 2 (location-based) to CO2e 55,488 52,041 50,471
CO2 emissions – Scope 1 & 2 (market-based) to CO2e 46,243 43,759 41,172
CO2 emissions (Scope 1 & 2) per SBU
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SBU Unit 2021 2022 2023
location based market based location based market based location based market based
Construction Equipment Central Europe SBU to CO2e 19,788 16,871 18,383 15,653 17,734 15,044
Construction Equipment Nordics SBU to CO2e 4,131 3,648 4,933 3,628 5,006 3,305
Construction Equipment Eurasia SBU to CO2e 10,583 10,094 8,613 8,591 5,965 5,965
Rental SBU to CO2e 10,595 9,212 10,400 9,141 12,026 10,591
Power Systems SBU to CO2e 3,271 2,531 3,109 2,381 3,171 2,359
Plant Engineering SBU to CO2e 5,865 3,427 5,540 3,865 5,506 3,615
Zeppelin GmbH (holding company) to CO2e 1,255 460 1,063 500 1,063 293
Zeppelin Group to CO2e 55,488 46,243 52,041 43,759 50,471 41,172

As explained in section 4.8, Zeppelin will also set targets for Scope 3 emissions in the future and determine these annually.

Progress on objectives 3 and 4
  • Reduce energy consumption by 1% annually between 2021 and 2025 (electricity, heat)
  • Reduce energy consumption (excluding mobility) per EUR million in sales by 9.5% by 2027 (base year 2022)1

The total energy consumption results from the individual consumption per Group company and is stated in megawatt hours (MWh).2 In the 2023 reporting year, an absolute reduction in energy consumption of 5,459 MWh (-2.9%) was recorded. The largest share of this is due to reduced electricity and heat consumption (-3,464 MWh). The main reasons are the successful implementation of energy saving measures taken at several sites as part of the modernization strategy. Added to this is the fact that Germany had a comparatively mild year in 2023, which is associated with low heating demand. Therefore, progress has been made towards objective 3.

Total Group energy consumption (megawatt hours)
Total Group energy consumption (megawatt hours)
Total energy consumption per strategic business unit (SBU)
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SBU Unit 2021 2022 2023
Construction Equipment Central Europe SBU MWh 71,510 67,635 65,333
Construction Equipment Nordics SBU MWh 18,290 20,372 20,892
Construction Equipment Eurasia SBU MWh 36,046 30,829 21,303
Rental SBU MWh 37,020 37,134 42,924
Power Systems SBU MWh 11,830 11,186 11,411
Plant Engineering SBU MWh 19,602 19,052 18,789
Zeppelin GmbH (holding company) MWh 3,469 2,999 2,999
Zeppelin Group3 MWh 197,767 189,207 183,651
3 Total energy consumption excluding HVO, ethanol and CNG.
Overview of energy consumption per energy type4
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Type of energy Unit 2021 2022 2023
Consumption of natural/liquid/propane gas MWh 43,541 36,276 32,244
District/local heating consumption MWh 9,405 10,189 10,165
Heating oil consumption MWh 2,382 2,795 2,574
Diesel consumption (heating) MWh 0 5 136
Total heat consumption MWh 55,328 49,265 47,119
Electricity consumption MWh 32,154 30,765 28,845
Electricity consumption (fleet) MWh N/A N/A 602
Total power consumption MWh 32,154 30,765 29,447
Diesel consumption (fleet) MWh 98,732 98,065 96,645
Diesel consumption (other) MWh 1,105 616 1,258
Gasoline consumption MWh 9,665 9,613 7,694
Consumption of HVO (hydrogenated vegetable oil) MWh 0 0 9
Ethanol consumption MWh 0 0 59
CNG MWh 0 0 31
Total fuel consumption MWh 109,502 108,294 105,696
Consumption of renewable energies MWh 783 883 1,486
Total energy consumption MWh 197,767 189,207 183,748
         
Energy consumption excluding mobility MWh - 81,529 77,314
Energy consumption (excluding mobility) per EUR million in sales MWh/€ million in sales - 21.2 19.7
4 No steam energy is consumed. Cooling energy is included in the power consumption, e.g. when air conditioning units are operated. No external energy is sold to third parties. Energy consumption is instead attributable to internal demand.

The majority of energy consumption was due to the use of fuels: Around 58% of the total worldwide energy consumption in 2023 was caused by diesel and gasoline consumption. This includes the consumption of service vehicles for travel to the customer’s premises, to the construction site or to the plant, as well as the fuel consumption of company vehicles for employees entitled to use one.

The development of the performance indicators shows both decreasing CO2 emissions and decreasing energy consumption each year. The total energy consumption and the CO2 emissions (Scope 1 & 2 – market-based) in relation to the number of employees (FTE) and the revenue generated were used for the calculation. The performance indicator for objective 4 is based on total energy consumption excluding mobility. Total energy consumption excluding mobility decreased by 7.5% in relation to sales compared with the base year 2022. As a result, the new intermediate target was achieved.

Performance indicators4 CO2 intensity and energy consumption
Performance indicators<sup>4</sup> CO<sub>2</sub> intensity and energy consumption

4 The performance indicators per employee in 2021 and 2022 have changed slightly due to a changed data base.

Measures in 2023

Modernization strategy for the sites

The Zeppelin Group has set itself the target of being a net-zero carbon company by 2030 at the latest. For the real estate sector, this means that no more CO2 emissions may be released from the operation of the buildings used by Zeppelin. The CSR strategy adopted for this purpose is based on five key measures: insulating the building envelope, modernizing the building technology, using photovoltaic systems and (if possible) geothermal energy as well as electric mobility. Measures are also being implemented to reduce fresh water consumption. All upcoming new construction projects also follow the specifications of climate neutrality in their planning and implementation. As part of the CSR activities, the Smartmeter project was also launched to digitally record and evaluate all consumption data (electricity, water, gas) at the sites. This also further optimizes the various types of consumption.

Modernization of the Ludwig-Dürr Hall in Friedrichshafen began in 2023
Modernization of the Ludwig-Dürr Hall in Friedrichshafen began in 2023
229,000 kWh of green electricity: Generated by the PV system at the Zeppelin Armenia site, newly installed in 2023
229,000 kWh of green electricity: Generated by the PV system at the Zeppelin Armenia site, newly installed in 2023

New construction at the Eschweiler site

At the end of 2023, the new building was commissioned at our approximately 24,000 square meter site in Eschweiler. The building, which is used by two Zeppelin companies, is equipped with a modern air source heat pump that ensures efficient heating of the office and workshop areas. The electricity required for this comes from 100% renewable energy sources. In addition to the high energy standards, the washing hall has also been equipped with resource-saving technology (see 8.3 Reduce water consumption).

The new building at the Eschweiler site is equipped with modern, climate-friendly technologies
The new building at the Eschweiler site is equipped with modern, climate-friendly technologies

E-mobility at Zeppelin

On January 1, 2021, the Zeppelin Group added electric and hybrid vehicles to its fleet used by German companies. Vehicles with an electric or hybrid drive are significantly lower in emissions than those with conventional combustion engines. Zeppelin can therefore significantly reduce its CO2 emissions, which are largely caused by the fleet. Compared with the previous year, the proportion of electric and hybrid vehicles in Group-wide company vehicles (passenger cars) increased from 8 to 14%. Electric-powered company vehicles saw the greatest increase with 95 new vehicles (+194%). A pilot project to convert service vehicles to electric drive was also initiated. The electric vehicles can be charged via the charging network at Zeppelin, which is currently being built. In 2023, Zeppelin had 283 electric charging stations at its Group-wide sites. As part of the modernization strategy, additional sites will be gradually equipped with charging stations in the coming years.

1 Target adjustment compared with previous year: New intermediate target added
2 The total energy consumption shown includes a small percentage of forecast consumption (less than 5%).

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