Environmental matters

Key environmental concerns for DEUTZ are environmental management systems, resource efficiency, air quality and climate. These are explained below.

DEUTZ AG’s integrated management system, which covers environmental protection, energy and quality, meets the requirements in the current versions of the DIN EN ISO 14001, 50001 and 9001:2015 standards. During the reporting period, this conformity was reviewed and recertified by the independent auditors from TÜV Rheinland Cert GmbH. No nonconformities with the standards were identified.

DEUTZ AG routinely sets its own targets under the integrated management system. The departments and the highest management level of our Company are jointly responsible for determining whether these voluntary targets have been achieved. Every year, they decide on appropriate measures to facilitate the attainment of the targets and make the necessary adjustments to processes.

Providing legal certainty

In order to ensure that legal requirements and its own rules are satisfied, DEUTZ AG has assembled a team of auditors who examine all relevant areas of the business. Noncomformities and areas with potential for improvement are recorded and communicated and are actioned with the support of the Energy Management and Environmental Management departments. The individuals responsible for resolving the nonconformities and the deadlines by which this must be done are always clearly defined.

An approval procedure is in place to ensure that substances that can harm our employees, our customers or the environment are used as little as possible. As a downstream user of products, DEUTZ AG rigorously assesses its suppliers to check that they are compliant with the REACH and RoHS directives.

Energy management

In 2018, the external auditors carried out a monitoring audit and recertified DEUTZ AG’s energy management system under ISO 50001. As in previous years, there were no nonconformities. The system, with its monitoring instruments, is being continually improved in order to enhance transparency and enable energy flows to be recorded and allocated to the relevant stages of the production process. This makes us better able to plan and implement measures aimed at raising efficiency.

The gradual replacement of old light sources with smart LEDs is an example of the type of project whose economic impact can be estimated using this method. The approximately 75 per cent reduction in the amount of power used by lighting in the relevant areas of the business is resulting in a direct and substantial improvement in energy-related performance.

Energy consumption in our plants rose year on year due to the higher volume of units manufactured in 2018. This is particularly down to increased electricity consumption in production and assembly. The difference in the amount of heating (natural gas, heating oil and district heating) used is the result of the restructuring of our sites, where the various heating systems in use resulted in a shift in the proportion of energy sources. In total, the amount of heating required rose due to the higher number of shifts.

The ramp-up of alternative drive system production (see the ‘Product responsibility’ section) is leading to higher consumption of LPG as the fuel for these engines. This increase is more than offset by lower diesel consumption.

Through our energy management, we optimised the higher overall energy consumption caused by increased manufacturing output in such a way that fuel consumption per engine, which we report as CO2 emissions per engine, was further reduced in 2018, exceeding the targets we set ourselves.

DEUTZ Group: Energy consumption in our plants 1)

MWh    
  2018 2017 5)
Electricity 94,999 84,605
Natural gas 38,271 35,277
District heating 12,349 12,223
Heating oil 2) 3,359 3,653
Diesel fuel 3) 18,165 19,218
LPG 4) 633 421
Total 167,777 155,397
1) Plants in the DEUTZ Group, excluding joint ventures.
2) At 10.5 kWh/litre (mean).
3) At 9.85 kWh/litre (mean).
4) At 12.8 kWh/kg (mean).
5) Prior-year figures are only partially comparable because no data was included for the subsidiary Torqeedo.

Targets for emissions reduction set

For 2018, the DEUTZ Group again set itself the target of reducing CO2 emissions per manufactured engine by at least 2 per cent per annum. And for the first time, we also set DEUTZ AG targets for dust and nitrogen oxide emissions. Both were to be reduced by 1 per cent per manufactured engine compared with 2017. Diesel engines do not generally emit benzene, and where they do so it is below the official measurements’ threshold for detection. For this reason, benzene emissions are not reported on for 2018.

Factoring in sustainability at an early stage

The optimisation of our network of sites, which was completed last year, is having a major effect on resource efficiency. The closure of the Cologne-Deutz site and the opening of the shaft centre in Cologne-Porz have greatly improved our energy efficiency. When designing its workspaces, DEUTZ AG takes sustainability aspects into account as soon as planning starts. At the Porz plant, the supply of coolant has been centralised and the new shaft centre’s flow of materials optimised from an economic and ecological perspective.

The amount of fluids consumed in mechanical fabrication at the Porz plant was down by 6.4 per cent (2017: 0.47 litres per shaft; 2018: 0.44 litres per shaft). In the period under review, we further reduced the throughput times 1) of camshafts by around 18 per cent and of crankshafts by more than 63 per cent. This is attributable to the modernisation of machinery and the ongoing optimisation of work processes.

Nitrogen oxide and dust emissions fall below the approved thresholds

Modern and efficient exhaust aftertreatment systems and modifications to make our engine products more environmentally friendly are substantially lowering the level of air pollutants released in tests carried out in our engine test bays. This is particularly significant given that emissions standards are becoming ever stricter. Routine measurements carried out by experts confirm that we comply with or fall significantly below the approved thresholds.

Cold tests significantly reduce carbon emissions

A number of different measures are in place to achieve the aim of reducing CO2 emissions. At DEUTZ itself, emissions are primarily produced by the engine test bays used in development and production. The optimisation of the duration and technical aspects of the test bay processes, often down to the tiniest details, is steadily reducing fuel consumption in the test bays per manufactured engine (2017: 11.2 litres per manufactured engine, 2018: 8.5 litres per manufactured engine). The implementation of the plan to ‘cold test’ some of the diesel engines is lowering the amount of fuel consumed by the testing of these engines to an absolute minimum. In a cold test, comprehensive diagnostics are run on the engine without it needing to be started, which helps to reduce fuel consumption and emissions. The project to implement the cold tests was completed last year. The phasing in of cold testing for production engines will commence in 2019.

Significant reduction in emissions

The DEUTZ Group’s primary environmental target is to reduce CO2 emissions per engine manufactured by at least 2 per cent every year, and it did significantly better than this in 2018, cutting emissions by around 14 per cent. This is mainly attributable to the optimisation of the number of sites in Germany and the greatly expanded production programme. The overall impact will soon be enhanced by the introduction of cold testing, which reduces some of the test runs that engines have to undergo.

Nitrogen oxide and dust emissions are only reported for DEUTZ AG, as these are mainly generated in the test bays at the Cologne-Porz and Ulm plants. The fall in emissions per engine (NOx: down by 24 per cent, dust down by 19 per cent) is attributable to the 14 per cent reduction in fuel consumption in the engine development test bays at the Cologne-Porz plant.

DEUTZ Group: Annual CO2e emissions in our plants 1)

Tonnes    
  2018 2017 2)
CO2 emissions (Scope 1) 13,530 13,239
CO2 emissions (Scope 2) 42,240 38,012
CO2 emissions (total) 55,770 51,251
Scope 1: CO2 emissions from diesel, natural gas, LPG and heating oil caused by combustion in our own facilities.
Scope 2: CO
2 emissions relating to purchased energy (e.g. electricity, district heating).
1) CO
2 = carbon dioxide equivalents.
CO
2 emissions in plants in the DEUTZ Group, excluding joint ventures. CO2 figures are reported in accordance
with the Greenhouse Gas Protocol and are determined by multiplying the energy consumed by the relevant emissions factor.
Prior-year figures have been adjusted in line with the new calculation method.
2) Prior-year figures are only partially comparable because no data was included for the subsidiary Torqeedo.

DEUTZ Group: CO2 emissions per engine 1)

Emissions per engine    
  2018 2017 2)
CO2 (kg) 257 299
1) CO2 = carbon dioxide equivalents.
CO
2 emissions in plants in the DEUTZ Group, excluding joint ventures. The other data relates only
to German plants.
CO
2 figures are reported in accordance with the Greenhouse Gas Protocol. Prior-year figures have been adjusted in line
with the new calculation method. The ‘emissions per engine’ figure is calculated by dividing total emissions by the number of engines made.
CO
2 reporting includes scopes 1 and 2. Only combustion engines and electric motors are counted as manufactured units. Components such
as batteries, gearwheels and piston rods for third-party engines are not counted.
2) Prior-year figures are only partially comparable because no data was included for the subsidiary Torqeedo.

DEUTZ AG: Emissions per engine in our plants 1)

     
  2018 2017 2)
Nitrogen oxide (kg) 3) 0.19 0.25
Dust (g) 1.80 2.21
1) The ‘emissions per engine’ figure is calculated by dividing total emissions by the number of engines made.
2) In 2018, the scope considered for nitrogen oxide and dust changed compared to the previous year. The figures
for 2017 have been restated accordingly to allow for comparison.
3) Only combustion engines and electric motors are counted as manufactured units. Components such as batteries,
gearwheels and piston rods for third-party engines are not counted. Electric motors do not emit nitrogen oxide or dust.

1) Mean throughput times of camshafts and crankshafts. The calculation method currently used differs from the one used in the prior-year calculation.