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The environmental impacts of Wärtsilä's operations largely relate to manufacturing. The main environmental aspects of manufacturing relate to the use of energy and natural resources and thus also to the emissions that are produced by the manufacturing processes. Product development also requires the testing of products and individual components which, alongside manufacturing, loads the environment. However, the positive impacts of product improvements on the environment far outweigh the negative impacts of testing when taking the product's entire lifecycle into account.

Materials
Materials used by weight or volume (GRI 301-1)
The main materials used in Wärtsilä products are various metals: cast iron, alloy and structural steel, aluminium alloys, and bronze. In 2018, the total material usage was 103,332 tons (73,738). The major material groups were various metals 83%, sand 13%, and various chemicals 1%.
Materials 2018 2017 2016 2015 2014
Total material usage (t) 103 332 73 738 84 913 100 767 88 736
Metals (t) 85 820 55 416 59 898 73 285 65 363
Sand (t) 13 055 13 493 18 399 20 915 16 445
Chemicals (t) 1 422 1 575 1 831* 5 025 5 447
Others (t) 3 035 3 255 3 601 1 542 1 481
* A substantial error in reporting classifications was corrected in 2016, meaning that the figure is not directly comparable to earlier years.
Recycled input materials used (GRI 301-2)
The main materials used in Wärtsilä products are various metals: cast iron, alloy and structural steel, aluminium alloys and bronze. Recycled material content of these metals vary depending on the material and supplier in question. Recycled material, such as end-of-life coins and bronze propellers, is used for example in the casting of new propellers.
Energy
Energy consumption within the organisation (GRI 302-1)
The total energy consumption (in terajoules, TJ) includes the electricity, heat, and fuels used in Wärtsilä companies in recent years. The fuels are used mainly in engine testing, but also in heating, production, and transportation. In 2018, the fuels were from non-renewable sources.

Wärtsilä uses electricity in its manufacturing operations - for example in machining components - and in service workshops and offices. Both the electrical and the heat energy generated during engine test runs can be utilised. Wärtsilä's aim is to use the electrical energy for its own purposes while also selling part of this electrical energy to local power companies. Due to the nature of engine test runs, the production of electricity and the company's electricity demand are not equivalent; this allows the surplus energy to be sold to local power companies.

Heating for factories and offices accounts for most of Wärtsilä's consumption of heat energy. In several factories, the heat generated in engine test runs is used for heating. Some factories and offices are connected to a local district heating network, some have their own heating plant, and some use electricity for heating.
Energy 2018 2017 2016 2015 2014
Total energy consumption (TJ) 1 538 1 477 1 471 1 539 1 475
Electricity consumption (MWh) 132 572 131 960 139 363 142 819 140 713
Purchased electricity (MWh) 128 878 128 176 132 771 131 501 131 896
Generated electricity (MWh) 3 694 3 784 6 592 11 318 8 817
Sold electricity (MWh) 32 019 28 066 23 620 21 834 25 548
Heat consumption (MWh) 32 937 36 890 33 542 30 161 25 073
Light fuel oil (t) 6 223 4 327 3 918 4 801 4 461
Heavy fuel oils (t) 3 381 3 798 3 647 3 675 3 579
Natural gas (t) 9 783 8 393 8 614 9 750 8 721
Other fuels (t) 1 238 2 811 3 209 2 834 3 348
Energy intensity (GRI 302-3)
Energy 2018 2017 2016 2015 2014
Total energy consumption (TJ/ Net sales) 0.300 0.308 0.313 0.334 0.319
Reduction of energy consumption (GRI 302-4)
From the start of 2017, Wärtsilä set an energy saving target to reduce energy consumption by at least 7% in terms of absolute consumption (GWh) by 2025, compared to the energy consumption in 2015. By the second year to the target, permanent energy savings of 2.9 GWh have been reached, mainly by reducing electricity or heat consumption. Wärtsilä's previous energy saving target period was launched in 2008 and ended in 2016, resulting in permanent energy savings of 43.3 GWh.
Energy savings 2018 2017 2016 2015 2014
Annual energy savings (GWh) 2.0 0.9 1.3 4.6 1.9
Cumulative energy savings (GWh) 2.9 0.9 43.3 42.0 37.5
Water
Water withdrawal by source (GRI 303-1)
Wärtsilä's water consumption can be divided into two categories: domestic use and cooling use. Domestic water is used mainly for sanitary purposes and by industrial equipment, such as machine tools and washing machines. Some factories also use domestic water to produce moulds or to fill in their closed-loop cooling system needs. Wärtsilä uses seawater for its engine and process cooling needs.

Total annual water consumption split by the water withdrawal source: Out of cooling water about 99% comes from local surface watercourses where only heat is released along with clean water, and about 1% of cooling water comes from municipal water utilities. Out of Wärtsilä’s total water consumption in 2018, about 95% was seawater for cooling purposes, about 5% was from municipal water supplies, and about 0.5% was directly withdrawn groundwater or rain water.
Water 2018 2017 2016 2015 2014
Total water consumption (1 000 m³) 12 607 12 749 8 444 6 971 7 774
Consumption of domestic water (1 000 m³) 652 631 613 703 683
Consumption of cooling water (1 000 m³) 11 954 12 118 7 831 6 268 7 091
Water sources significantly affected by withdrawal of water (GRI 303-2)
No water source has been found to be significantly affected by any Wärtsilä subsidiary water withdrawal.
Percentage and total volume of Water recycled and reused (GRI 303-3)
Wärtsilä Italia S.p.A. recycled 122,557 m³ of water in 2018 by running it through a water treatment plant and reusing the cleaned water in production processes. The amount corresponds to roughly 35% of Wärtsilä Italia’s annual water consumption and 1% of Wärtsilä’s total water consumption in 2018. No other major water recycling processes are in use in Wärtsilä production facilities globally.
Emissions
Greenhouse gas (GHG) emissions and intensity (GRI 305-1, 305-2, 305-3, 305-4)
In addition to direct CO2 emissions, Wärtsilä’s operations generate indirect CO2 emissions. In 2018, the calculated secondary CO2e emissions (location-based method) were 47,347 tons (56,002) (from purchased electricity and heat) and the CO2e emissions from flights totalled 44,652 tons (43,553). There were no biogenic CO2 emissions in 2018.
GHG emissions (location-based) 2018 2017 2016 2015 2014
Emissions of carbon dioxide (tCO2e) (direct) (SCOPE 1) 59 949 57 998 57 355 63 441 57 477
Emissions of carbon dioxide (tCO2e) (indirect) (SCOPE 2) 47 347 56 002 59 697 60 317 55 989
Emissions of carbon dioxide (tCO2e) (indirect) (SCOPE 3) * 208 330 155 537* 168 571* 39 033 39 619
GHG emissions intensity (all) 61.5 56.1 60.8 35.3 33.1
* Includes indirect emissions from materials, energy, and flights from 2016 onward. Pre-2016 figures only include emissions from flights.
GHG emissions (market-based) 2018
Emissions of carbon dioxide (tCO2e) (direct) (SCOPE 1) 59 949
Emissions of carbon dioxide (tCO2e) (indirect) (SCOPE 2) 63 768
Emissions of carbon dioxide (tCO2e) (indirect) (SCOPE 3) 204 065
GHG emissions intensity (all) 63.9
Reduction of greenhouse gas (GHG) emissions (GRI 305-5)
Wärtsilä has taken several measures to reduce its indirect CO2 emissions. The energy efficiency commitment aims to reduce energy consumption and emissions. In addition, Wärtsilä’s focus lies on reducing travelling by implementing a strict travel policy and by using virtual meeting concepts: Skype instant messaging, which enables live chats between two people or more, Skype meetings allowing multi-person meetings from personal computers, in which presentation material can be shared, and the videoconferencing system. In Wärtsilä, Skype and videoconferences are in everyday use. Approximately 1,700 Skype conferences are arranged daily, and there are 150 video conference rooms in 46 countries. Additionally, several other collaboration tools have been taken into use. Although estimating the reductions from the above mentioned measures is not possible, several local measures have been estimated to have achieved permanent reductions of total 5,524 tons CO2e in 2018.
Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions (GRI 305-7)
Air emissions are mainly caused by test runs and the painting of completed engines or other Wärtsilä products. Test run emissions consist of nitrogen oxides (NOx), sulphur dioxide (SOx), carbon dioxides (CO2) and particles, as well as small amounts of other emission components. The painting of engines and other Wärtsilä products generates VOC emissions (volatile organic compounds). Engine emissions are reduced through research and development, as well as product development and testing. These measures also generate emissions, but their results reduce the future emissions of manufactured engines.
Emissions 2018 2017 2016 2015 2014
Emissions of nitrogen oxides (t) 545 534 500 553 519
Emissions of sulphur oxides (t) 55 62 59 63 76
Emissions of total hydrocarbons (t) 164 131 116 145 87
Particulates (t) 7 8 9 9 9
Emissions of VOC (t) 45 36 30 40 40
The primary sources of manufacturing noise are the engine test runs and the ventilation machinery on factory roofs. This noise is mostly low frequency and is therefore not easily detected by the human ear. Wärtsilä has specifically addressed the issue of noise protection using technical means and has succeeded in lowering noise levels considerably. However, noise abatement is a continuous need and requires regular monitoring.
Effluents and waste
Water discharge by quality and destination (GRI 306-1)
Wärtsilä uses seawater for its engine and process cooling needs, in which case the cooling water system is kept separate so that only heat is released into the natural water system. Wastewater is sewered and piped to the local wastewater treatment plant or treated on site before being discharged. If the effluent is not suitable for discharge, it is taken away for appropriate processing, for example to a special treatment plant for hazardous wastes.

Several Wärtsilä subsidiaries have environmental permits allowing clean or properly treated water discharge into natural water bodies. Most of this discharge is clean cooling water released back into local surface watercourse, where only heat is released.

In 2018, the total amount of water discharge was 12,665,551 m³.
2018 water discharge Municipal sewer Sea River Ground Re-used by other entity
Amount (m³) 219 844 11 950 057 471 100 23 942 608
% of total water discharge 2 94 4 0 0
Waste by type and disposal method (GRI 306-2)
Manufacturing activities cause various wastes. These are divided into two main categories: hazardous and non-hazardous wastes. Hazardous wastes include cutting fluids, various types of waste oil, paints and solvents, oily wastes, solid wastes, etc. Non-hazardous wastes include scrap metal, metal swarf, waste plastics, waste wood, domestic waste, cardboard, and paper waste. All Wärtsilä companies sort their waste according to local municipal regulations. Generally speaking, the main sorting categories are waste to be incinerated, waste for landfills, and waste for recycling.

Waste management in Wärtsilä has four aims, listed in their order of priority:

• to reduce the amount of waste generated in processes
• to use waste as a material
• to use waste as energy
• to dispose of waste in an environmentally sound way
Waste 2018 2017 2016 2015 2014
Total waste (t) 36 025 32 580 50 020 52 037 46 829
Non-hazardous waste (t) 31 240 28 928 42 663 44 864 39 409
Hazardous waste (t) 4 785 3 651 7 357 7 173 7 420
Waste for landfills (t) 4 051 3 198 9 962 8 593 9 621
Waste for recycling (t) 24 791 23 647 30 695 34 074 27 328
Waste for incineration (t) 2 305 1 990 1 889 2 197 2 460
Waste for composting (t) 92 95
Hazardous waste for landfills (t) 579 548 964 2 586 2 504
Hazardous waste for recycling (t) 3 063 2 113 5 470 3 502 3 792
Hazardous waste for incineration (t) 1 143 990 923 1 084 1 124
Products and services
Extent of impact mitigation of environmental impacts of products and services
Environmental products and services are the most important means for Wärtsilä to mitigate the environmental impacts. Wärtsilä has a key role in providing environmentally sound solutions and services that enable our customers to develop their business in a sustainable way. The value of sustainable innovation is delivered across a wide range of environmentally sound products and solutions, including technologies related to efficiency improvement, reduction of gaseous and liquid emissions, effluent and ballast water treatment, as well as to products and solutions that are flexible, efficient, reliable, safe, cost-efficient to operate, and that have a minimal environmental footprint throughout their lifecycles.
Expenditures
Total environmental protection expenditures and investments
Concerning Wärtsilä’s operations, we have defined expenditures as environmental expenditures if they are related to soil, water and air pollution control, waste management, environmental management, or noise control.

A substantial proportion of the company's investments in product development are targeted at securing environmental compliancy providing short- and long-term benefits for the whole value chain and ultimately for the environment.
Expenditures 2018 2017 2016 2015 2014
R&D costs (MEUR) 165 141 131 132 139
Environmental costs
Environmental capital expenditures (MEUR) 0.6 4.0 0.7 0.5 1.9
Environmental operating expenditures (MEUR) 4.0 3.8 4.0 4.6 4.8

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