Key environmental
performance & goals
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Reduce Greenhouse Gas (GHG) Emissions
We are committed to reducing our carbon footprint through the reduction of greenhouse gas emissions.
2020 Highlights:
- Our 2020 greenhouse gas reduction exceeded our 2020 goal. We reduced absolute GHG by 36.1% compared with our 2011 baseline, which exceeds our 15% reduction target.
- Scope 1 GHG (direct) emissions constituted 29% (approximately 54,806 tons) of total GHG emissions in 2020 and declined 22% compared with prior year due to lower production activity and GHG reduction initiatives.
- To achieve our 2025 goal, the Company will continue to focus on improving our carbon footprint through Scope 1 (direct) and Scope 2 (indirect) GHG reductions. Key activities include our continued investment in LED lighting, skylights and renewable energy sources, and through improved energy efficiency in our manufacturing processes.
- Electrical energy accounted for 48.6% of our energy footprint in 2020, and we generated 24,740 Gj of electricity on site, which is approximately 1.2% of our total energy use. While we leverage solar and are further investing in this power source, the electricity generation was primarily from our wind turbine.
GHG data reflects the use of energy including electricity, natural gas, coal, fuel oil and LPG and represents data from all Lincoln Electric manufacturing facilities worldwide, including acquisitions after their first year with the organization. The data reflects use of the IEA Emission Factors 2018 Edition, the IPCC AR5 Edition and the GHG Protocol 2001 in its calculation values and was audited by a third party in 2018.
The data includes Scope 1 and 2 Emissions. Scope 1 emissions are produced from the burning of fossil fuels on Lincoln Electric property (e.g. heating buildings by burning oil or natural gas, organic gases); Scope 2 emissions are associated with electricity purchased by Lincoln Electric facilities from third parties. The Company does not have a logistics fleet and does not currently track Scope 3 emissions, however it is our goal to analyze Scope 3 emissions to better understand the impact.
Success Stories
Energy Recovery in Engine Driven Welder Testing
The engine welder R&D team in France has implemented an electronic load system to recover energy previously released as heat during product testing. As a result, 93% of heat energy produced during product tests is now recovered at the faciilty and transferred back into the electric grid.
Reducing Greenhouse Gas Emissions Through Energy Recovery
Air compressors are known to use a significant amount of energy and emit heat. Lincoln Electric Poland utilized an energy recovery module with their new air compressor system to capture the compressor’s heat emissions to warm water. The water is then used to help heat office space and support manufacturing processes. This reduced the use of a gas boiler, which resulted in a reduction of 210 Megawatt-hours of energy, or 170 tonnes of carbon dioxide emissions.
Reducing Greenhouse Gas Emissions
To increase energy from renewable sources and reduce energy consumption overall, Lincoln Electric India, transitioned to a plant-based diesel substitute for generator fuel, installed a 100 kilowatt rooftop solar array and replaced metal halide lighting systems with all LED lighting in the shop floor and outdoor areas.
Reusing Equipment Heat for Building Use
An auxiliary building at one of our Italian facilities used heat to prevent snow from accumulating on the canvas roof. The heat had been generated using a diesel oil boiler, which can be costly and produce excessive emissions. The facility eliminated the boiler by capturing heat emissions from a nearby compressor, and blowing the heat into the building. This process eliminated the need for the boiler and reduced diesel energy usage by 1000 liters, and reduced carbon dioxide emissions by 2,650 kilograms.
Reduce Energy Intensity
Improving the energy efficiency of our operations helps reduce greenhouse gas (GHG) emissions. A key metric is energy intensity, which is the amount of energy consumed for every hour worked.
Reducing energy use is a key focus as energy represents the second largest input cost in our operation. We target reducing our energy intensity by 16% in 2025 (or 2.5% per year) as compared with our 2018 performance. To achieve our 2025 goal, we will continue implementing facility efficiency projects such as efficient light sources; replacing inefficient equipment systems; and modifying manufacturing processes to reduce energy usage.
We are also increasingly sourcing energy from renewable sources such as wind, hydroelectric, geothermal and solar. In 2020, 49.5% of our electrical energy was sourced from renewable and clean energy sources.
2020 Highlights:
- In 2020, energy intensity declined 25% as compared with the 2011 baseline which did not meet our 2020 goal. The 2020 performance was adversely affected by a reduction in working hours related to the COVID-19 pandemic.
- 2020 absolute energy use declined by 21.2%.
- In 2019, we had achieved a 32% reduction in energy intensity, which exceeded our 30% reduction goal.
Energy data reflects electricity, natural gas, coal, fuel oil and LPG consumed across all Lincoln Electric manufacturing facilities, including acquisitions after their first year with the organization. Energy intensity is measured as gigajoules used per hour worked.
Success Stories
Roof Coatings to Reduce Facility Energy Intensity
India’s excessive heat and humidity during summer months increases the risk of heat stress and the dependence on climate control systems. To mitigate rising indoor facility temperatures at Lincoln Electric India, the facility roof was covered with a specially designed acrylic thermal resistivity roof coating. The coating reduced the roof temperature by 7-10 degrees Celsius during direct sunlight hours and reduced the facility temperature – lowering energy requirements from the climate control system.
Increasing Equipment Efficiency to Reduce Energy Consumption
To reduce energy consumption, our Mexico City facility initiated a project to replace low (85%) efficiency motors with premium (92.4%) efficiency motors. The motor changeover resulted in an energy savings of over 70,000 kilowatt-hours per year.
Reducing Energy Consumption by Targeted Diagnostics
Compressed air is one of the largest consumers of energy at Lincoln Electric and is being targeted across our platform. Lincoln Electric locations have begun to use ultrasonic leak detectors to identify maintenance repairs necessary in their pneumatic lines. Additionally, facilities have begun replacing inefficient piston-type air compressors with quieter and highly efficient screw-type air compressors. These moves have resulted in notable reductions in energy use.
Reclaiming Heat to Reduce Energy Consumption
Monitoring devices have been implemented at our Bielawa, Chennai, and Mason sites to track energy consumption of individual machines and processes in an effort to improve energy efficieny and reduce GHG emissions. These systems allow the sites to identify abnormal energy consumption in manufacturing processes and office environments. Flagged areas are reviewed for irregularities, improper settings, and equipment issues. To date, these sites have experienced a notable decline in energy demand and improvement in site efficiency as a result of the energy monitoring systems.
Reduce Waste through Increased Recycling and Re-Use
Our waste management program prioritizes a “reduce, re-use, and recycle” approach to divert waste from landfills and leverage waste as a resource.
We aspire to achieve zero waste and focus on initiatives that increase recycling in our operations, that divert waste from landfills and we work with regulators to increase recycling and the beneficial re-use of materials currently not accepted in the recycling stream. This includes expanding the use of our waste as a feedstock by third parties and increasing the capture and re-use of our chemicals in our manufacturing processes with new collection and chemical handling systems. Additionally, our product stewardship initiatives focus on increasing recycled content into our products.
We measure the percent of all waste that we are able to re-use or recycle, the percent of permissible waste that can diverted from landfills, as well as the percent of hazardous waste.
2020 Highlights:
- We achieved a 75.8% recycling rate of total waste, which exceeded our 75% goal and we diverted 95.1% of eligible waste from landfills.
Hazardous Waste Materials
In 2020, 7.95% of all waste materials, or 4,731 metric tons, was hazardous waste, as compared with 5,571 metric tons in 2018.
The Company is actively working to eliminate hazardous waste by implementing alternative technologies.
Success Stories
Reducing Production Waste Through New Packaging
Lincoln Electric Mexico consumed over 16,000 tubes of sealant caulk per year, a classified hazardous waste. As part of a facility-wide program to reduce waste levels, the facilitiy identified and implemented a new sealant application system using a pneumatic caulk gun and minimally packaged aluminum sealant casings. This format change resulted in a 94% reduction in the silicon caulk packaging waste from 60 drums to four drums per year.
Identifying Use for Flux Cored Wire Waste
Lincoln Electric Poland identified an opportunity to bypass the metal recycling and steel melting process and instead sell their metal scrap directly as a raw material input for another manufacturer. This resulted in reduced energy use in the value chain resulting in 26 tonnes of lower carbon dioxide emissions, or 32 megawatt-hours of energy per year.
Powder Paint Waste Reuse
The powder coating process at one of our Mexico facilities produces several tons of waste per year. The waste is produced after the powder is circulated through the system until it no longer meets quality specifications. The facility identified an alternate user for this material and the sale of its used paint powder has reduced the facility’s total waste stream by 10%.
Reuse of Packaging Material
One of our automation facilities in Germany reuses boxes from incoming suppliers for its outgoing packages. A sticker is applied to outgoing packages that indicate the reuse and promote the Company’s sustainability initiative.
Natural Resource Usage
Water Management
Water is an important natural resource and we acknowledge our responsibility to manage water use carefully. Water is predominately used in our consumable formulations and manufacturing processes.
We monitor and measure absolute water usage and water intensity (cubic meters of water used per hours worked)
2025 Goal: Reduce absolute water usage by 14% from our 2018 baseline
We have focused our water management initiatives on reducing water usage and our reliance on freshwater.
- In 2020, we reduced our total water usage by 36.6% to 948,671 cubic meters annually as compared with our 2011 baseline.
- We achieved this reduction by increasing the re-use and recycling rate of our water through improved wastewater treatment initiatives. We have also invested in manufacturing processes that have lower water requirements and achieved greater water efficiency.
- We currently have two "zero water discharge" facilities and several manufacturing facilities capture rainwater for re-use in manufacturing processes or for fire protection.
Success Stories
Conserving Rainwater
In an effort to conserve water and reduce dependency on municipal water sources, Lincoln Electric Mexico installed a 300,000-liter water retention cistern. The tank collects storm water from the facility’s roof and parking lot, which is then filtered through a vortex separator. The facility’s plumbing was retooled to use the graywater to supply the facility’s new fire protection system, cooling towers, scrubbers and bathroom facilities. This project reduced the facility’s municipal water consumption by 33%.
Stormwater Protection Across Lincoln Electric Facilities
In alignment with local regulations and Lincoln Electric’s directive, all Lincoln facilities worldwide have made progress to eliminate outdoor storage of materials and waste products. This has resulted in designating indoor areas for storage or working with waste vendors to utilize high quality leak-proof containers with retractabe lids to prevent rain water intrusion. Lincoln Electric Brazil has constructed a special containment zone for delivery of silicate product, which provides for the capture and containment of any spillage. These efforts reduce stormwater and environmental risk.
Chemical Replacement Projects
Our Tennessee facility reduced hazardous chemical waste and exposure by transitioning to the use of a non-hazardous, anti-spatter solution that is a vegetable-based CMC coolant (and corresponding skimming process), and an industrial cleaner/degreaser. This resulted in a significant reduction of water use and special-handling waste.
Water Savings through Data Monitoring
As part of a plant-wide implementation of interconnected smart sensors, our India facility upgraded the pump and monitoring system of the site’s cooling water towers. The upgrades enabled the towers to operate at a reduced, but stable flow rate. The system currently operates based on demand by using a variable drive pump. This has reduced water usage and evaporative loss by over 300,000 gallons per year.
Air Emissions
We track emissions released from our facilities and are committed to reducing any hazardous air pollutants (HAPs) and volatile organic compounds (VOCs) that are released during our production processes through the use of alternate chemicals and materials.
We have invested in programs that have replaced worldwide use of solvent-based paints and metal preparation systems with solventless varnish, powder and water-based coatings. Currently, our operations do not emit significant quantities of SOx and NOx and we remain committed to reducing these levels whenever possible.