Sustainable operations

Achieving truly sustainable operations requires both ambition and accountability. At Vestergaard Company, we have set a bold objective: reducing our direct CO₂ emissions by 70% by 2025 compared with our 2019 baseline. Although we have already achieved a 30% reduction, we acknowledge that this is still far from our target. However, the context is important — during the same period, our production output has grown by more than 70%, inevitably increasing energy demand and resource use. Even so, the progress made demonstrates that our initiatives are moving us in the right direction, and we remain fully committed to closing the gap.

Focus on reducing diesel consumption

One of our primary operational emission sources is diesel used during the equipment test phase. Over the past years, we have systematically optimized these procedures to reduce consumption without compromising product quality or safety.

To further accelerate reductions, we are now implementing more detailed monitoring and data registration. This will provide a clearer understanding of where diesel is being used and how we can target new improvements.

A key next step is the planned transition to HVO-diesel, which will substantially cut emissions from our test operations. This shift is expected to contribute significantly to meeting our 2025 reduction objectives.

Increasing our share of renewable energy

Energy efficiency and renewable power remain essential pillars of our sustainability efforts. We have already installed a solar power plant that covered 16% of our electricity consumption last financial year.

Looking ahead, we aim to expand the facility so that 25–30% of our total electricity use can be covered by solar production. This investment will not only lower our emissions but also increase energy resilience and reduce long-term operational costs.

In 2023/24, Vestergaard Company for the first time conducted a full assessment of its carbon footprint across the entire value chain. Scope 3 emissions represent more than 99% of our total climate impact, making them a critical focus area. While there are still uncertainties and estimations involved — as is common in early-stage Scope 3 accounting — we are continuously improving the quality, granularity, and reliability of our data.

Identifying the largest emission sources

The mapping highlights two major contributors:

1. Product use at customer sites
   This remains the single largest source of emissions and primarily stems from diesel and electricity consumed during equipment operation. Although we cannot directly control how customers use their equipment, we influence emissions through product design, operator training, and technology choices.
   Our ongoing shift toward electrification and improved energy efficiency has already reduced diesel consumption in many product categories, and emissions will continue to decline as more electric variants replace traditional diesel-powered units.
2. Procurement of materials, especially steel
   Material production represents the second-largest category. To address this, we are collaborating closely with our suppliers, reducing scrap, improving material utilization, and exploring lower-carbon material alternatives where feasible.

Acting on reduction opportunities

Our Scope 3 mapping has also identified several smaller categories where meaningful reductions are possible. These insights form the basis for new goals and initiatives that will be implemented in the coming years.