17% 76% 7% Asia Europe The Americas 18% 74% 8% Asia Europe The Americas 20% 71% 9% Asia Europe The Americas 30% 70% Not local Local 22% 13% 51% Plastics Aluminium Stainless steel 2% Zinc Steel Brass 3% 9% 22% 13% 51% Plastics Aluminium Stainless steel 2% Zinc Steel Brass 3% 9% 20% 72 % 8% Asia Europe The Americas 22% 78% Not local Local 22% 78% Not local Local 29% 71% Not local Local 19% 11% 56% Plastics Aluminium Stainless steel 2% Zinc Steel Brass 3% 9% 19% 11% 56% Plastics Aluminium Stainless steel 2% Zinc Steel Brass 3% 9% 2020 2021 GRI 301-1: Distribution of the purchasing volume by materials 2. Festo footprint 2. Festo footprint 2.1 Regional distribution of purchasing volume Industrial production has largely detached itself from the effects of the pandemic situation and is increasing in all regions. This is also reflected in Festo’s direct and indirect purchasing volume (production materials and non-production materials), which increased to 1,550 million euros in 2021. Non-production materials refer to all production plants (Festo Global Production Centres – GPCs), local sales companies and production materials. GRI 204-1 Festo is constantly expanding its global supplier network, consisting of local and non-local suppliers. By ‘local’ we mean procurement within the country of the respective national Festo company. Compared to the previous year 2020, the number of local suppliers has remained constant in 2021. The ‘local for local’ strategy will continue to be pursued in 2021 to enable a reduction in delivery times throughout the supply chain as well as a reduction in transport routes. The aim continues to be to increasingly procure goods in those countries where production takes place. 2018 EUR 1,619 million 2019 EUR 1,388 million 2020 EUR 1,246 million 2021 EUR 1,550 million 2021 EUR 1,550 million 2018 EUR 1,619 million 2019 EUR 1,388 million 2020 EUR 1,246 million GRI 204-1: Regional distribution of the direct and indirect purchasing volume of the Festo Group 2.2 Sustainable procurement Festo’s purchasing structure is characterised by the procurement of semi-finished products, components and finished parts. Aluminium, steel, or stainless steel, and plastic are among the most important materials. The products purchased by Festo have an ecological effect on several levels. In addition to the finite nature of resources, the consequences of raw material extraction and the resulting CO2 emissions must be taken into account. For the year 2021, we have succeeded for the first time in estimating the latter quantitatively. Due to increased incoming orders, the quantities purchased have risen compared to last year. The quantities of materials purchased in 2021 in tonnage have been visualised in the diagram below. GRI 301-1 More than half of the raw materials purchased to manufacture our products are primary and secondary aluminium components (cf. chapter 6). Around 20 per cent relate to steel or stainless steel, 19 per cent are plastic granules or parts and 4 per cent are other metals. Furthermore, prefabricated electrical components and electromagnets are used. In addition to production materials, non-production materials such as vehicles, IT infrastructure and operating materials as well as services must be taken into account. The aluminium supply chain begins with the mining of bauxite. The raw material for aluminium production has adverse effects on the environment depending on the mining region. The great economic importance and the supply risk of bauxite led to bauxite being declared a critical raw material by the European Union in 2020. By sourcing secondary aluminium, we save up to 90 per cent of emissions and conserve bauxite stocks. GRI 102-9 The CO2 emissions during the production of individual materials differ considerably. Besides aluminium, purchased electronic components, stainless steel and new plants and buildings have the greatest impact. Preliminary calculations show a total amount in 2021 of 359,717 tonnes of CO2 equivalents, which were generated during the production of purchased materials and the use of services. The quality of the data is improved continuously. 18 19 Festo SE & Co. KG Sustainability Report 2021 Festo SE & Co. KG Sustainability Report 2021
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