From promise to potential

At corporate group level, we have set a 2030 target to reduce scope 3 emissions by 50% from a 2020 baseline. And the aim is to truly decouple these emissions from business growth. As part of this effort, starting in 2023, the company's logistics function began setting a specific annual target for its own contribution. For 2024, its aim is a 4% reduction of scope 3 category 4b (transportation of finished goods and components), which the function is on track to meet.

Achieving this aim has required the logistics function to focus on the significant potential that lies in optimising transport flows between VELUX factories and distribution centres in Europe. That means laser-sharp identification of where we can get the most bang for the buck – which solutions are not only the greenest, but also the most feasible and accessible, and where can we make the most of our investments without reducing overall quality?

The answer, for now at least, lies in focusing on optimising transport flows and leveraging greener transport options such as rail, BioLNG and HVO fuels. As Søren Back Pedersen, Senior Director of Logistics, explains: "By shifting from road to rail transport and using the two fuels, we have made substantial strides in reducing our emissions. This is just the beginning, and we are continuously exploring more sustainable options."

From road to rail 

The first of the three directions, rail transport, is known for its lower greenhouse gas emissions compared with road transport, making it a key choice in achieving sustainability goals. Transitioning from road to rail transport not only reduces carbon emissions but also alleviates road congestion, reduces air pollutants such as nitrogen or sulfur oxides, and lowers traffic noise.

Today, VELUX is using rail transport wherever possible, primarily when moving goods from its factories in Hungary, Slovakia, and Poland to VELUX distribution centers in France, Belgium, and the UK.

BioLNG

Significant strides in reducing the company's transport logistics carbon footprint have also been made via the second leg of the strategy: shifting to biogas in the form of bioLNG (which typically emits 50%-60% less greenhouse gases compared to diesel).

The shift includes specific transport flows from Denmark to Germany, utilising biogas for shipments from a production site in Østbirk, Denmark, to a distribution centre in Sonneborn, Germany, as well as from a distribution centre in Kolding, Denmark, to Sonneborn. This new setup marks a substantial change from zero biogas transport to an expected annual bio-transport equivalent of 930 full truckloads.

HVO

HVO (Hydrotreated Vegetable Oil) fuel is a renewable, diesel-like fuel produced from waste lipids such as vegetable oil, tallow or used cooking oil. A sustainable alternative to traditional diesel, HVO typically offers up to 80% reduction in GHG emissions.

The trucks transporting VELUX goods are directly fuelled by HVO – rather than via a "book & claim" insetting solution. The latter describes the practice of buying (booking) HVO fuel to be used in transportation somewhere else in the world, then being able to claim resulting savings as the booking company.

Exactly how much has been achieved through this new optimisation? Together, the three initiatives have converted 17% of European-based transport between VELUX factories and distribution centres to transport solutions with lower emissions than diesel. And that represents an impressive saving on scope 3 emissions of 2400t CO2e!

"We have an ambitious target for 2024," says Søren Back Pedersen, "We simply decided to get started in a pragmatic way and we are excited to see such a significant change. A lot of intense work was put into this effort, and I'd like to highlight that, in addition to the emissions reductions benefits that surfaced, this is very much a story about working closely with logistics partners, who have similar ambitions, to achieve a bigger aim."

Peter Frost Rasmussen, General Manager at Contino Transport A/S, which contributed to the success, is equally enthusiastic: “We were privileged to join VELUX on this initiative, and really excited by the level of ambition, the can-do, must-do attitude and that the company was willing to invest the resources necessary to make a difference.”

Nadia Møllebjerg, Senior Program Manager for logistics sustainability at VELUX, expands on the future: "In parallel to these here-and-now solutions, we are also driving an agenda around battery electric vehicles. Currently, we are investigating specific flows within our logistics network in US as well as Europe, where we expect it will be possible to use battery electric vehicles within a few years and we will continue to include them as a part of the long-term solution."

For more information, contact Nadia Møllebjerg at nadia.moellebjerg@velux.com