Environmental

We are certified in accordance with ISO 45001 for an integrated management system at all production sites. Environmental protection and resource conservation are central values.

Employees standing on the roof in the middle of a solar system

As a manufacturer of products that facilitate technological solutions for the energy transition and climate protection, we actively contribute to this at our production sites in order to protect the environment and nature, to use resources carefully, to generate energy from renewable sources ourselves, and to achieve the greatest possible energy efficiency. The aim is to minimize our greenhouse gas emissions in order to limit global warming. The environmental footprint of our products is central to this, because the materials used, transport, and waste prevention are relevant factors.

Protection of environment and climate

Environmental and climate protection have been practiced at Phoenix Contact for a long time. Certification in accordance with ISO 14001 and ISO 50001 attests to a comprehensive environmental and energy management system. Using rainwater as process water, geothermal energy and waste heat for heating, self-generation of electricity with photovoltaics on the roofs of production buildings, more than 90% waste separation, and transforming open spaces into flowering meadows are just a few examples. As a member of the “Klimaschutz-Unternehmen” association of climate protection companies and the KlimaWirtschaft Foundation, we work in collaboration with partners and ministries.

Energy and direct emissions

Phoenix Contact has already successfully reduced the carbon emissions generated directly and indirectly in Scope 1 and 2. By switching to green electricity in 2022, more than 101,000 mt (scope 2021) were avoided. Since 2022, Phoenix Contact has therefore been carbon-neutral with respect to the power supply of all major locations. Further measures to reduce emissions include maximum energy efficiency, self-generation of renewable energies, and the offsetting of unavoidable emissions (see graphic).

Wind turbine generator in the countryside

Solar antenna at Phoenix Contact’s AES Park

Solar systems and wind turbine generators

Increasing energy efficiency

Energy in the form of electricity, cooling, or heat is used for production and administration buildings. Since 2013, Phoenix Contact has been operating an active energy management system in accordance with ISO 50001 for its three largest locations in Germany. Energy management enables the efficient operation of systems and buildings. The defined goal is to achieve a three percent reduction in total energy consumption compared to 2018 by the end of 2025. The degree of target achievement at the end of 2022 was 42%, which is within the target range.

Purchase of green electricity

The electricity purchased has been completely switched to green electricity. Purchasing is based on high quality labels such as OK Power, EcoEnergy, and Green-e. Since 2022, more than 90% of the electricity required at almost all major locations has been generated from renewable energy sources: hydropower, wind power, and solar power. Expansion of this is ongoing.

Supply with renewable energies

Self-generated electricity is the third way to reduce emissions. The aim is to cover at least 30% of the energy required through self-generation using photovoltaics. The rooftops of the buildings at the headquarters have a square surface area of 93,000 m². In the future, solar power will be produced on all roofs – not only in Blomberg, but also at other locations in Germany and around the world.

Photovoltaic systems with a capacity of around 2,900 kWp were installed in Germany, China, India, Switzerland, and the USA in 2021 and 2022.

Compensating carbon emissions

Unavoidable carbon emissions are offset by financing environmental projects. When it comes to selecting projects, Phoenix Contact is guided by internationally recognized and independent certifications such as the Gold Standard and promotes projects that serve the expansion of renewable energy systems. The plan is to continuously reduce the percentage of compensation measures to around ten percent. Transformation concepts are being prepared worldwide to ensure this. The main goal here is to reduce fossil energy consumption, e.g., with heat generation using electrical energy.

Materials, transport, and disposal

Sustainability is an essential criterion when it comes to the development and design of products. The selection of materials is particularly important here, because the materials and semi-finished products used have an impact on the energy balance of each product. As a result, the preference is for base materials that require little energy in production and thus cause fewer carbon emissions. Reducing the material variety, maintaining grade purity, and minimizing non-recyclable materials also ensure a higher recycling rate.

Phoenix Contact conducted a global analysis of its materials and services, calculating the impact of the materials and transport routes on the environment and their potential social risks. The wide range of parts and components also uses direct raw materials. These are processed and refined into components and parts and thus remain in the end product.

Hand reaching into a bag full of black granules

Employee packing a cardboard box with AirWave cushioning material

Sustainable procurement

Phoenix Contact’s goal is to make the entire value chain (Scope 1 to 3) carbon-neutral by 2030. With this in mind, the carbon footprints for materials and commodity groups were identified in 2021 on the basis of comparable database values and the corresponding fields of action in the supply chain were identified via hot-spot analysis.

Since 2020, Phoenix Contact has been maintaining its own company-wide Code of Conduct. It defines the legal and moral guidelines for the actions of all employees. A Supplier Code of Conduct was drawn up for suppliers in 2022, which translates the company’s requirements into the supply chain. Starting in 2023, suppliers must also comply with the Code of Conduct in their purchasing contracts. Social responsibility is a principle that is firmly embedded in the process of preselecting suppliers, and also in their qualification, and in supply contracts.

In 2022, Phoenix Contact appointed EcoVadis to conduct in-depth analyses of its supply chain. EcoVadis is one of the world’s leading providers of corporate sustainability rankings. Phoenix Contact uses the results of these analyses to derive measures for risk avoidance in the supply chain.

In 2020, Phoenix Contact processed 14,000 mt of plastic. In order to conserve resources, the company uses polyamide (10,000 mt). This material can be processed with a high degree of finesse and process reliability. In addition, Phoenix Contact is already using the first plastics based on renewable raw materials. Furthermore, changes were made to polyamides in 2022, which also enabled annual savings of more than 900 mt of CO₂.

Packaging

When selecting environmentally friendly packaging, Phoenix Contact values a high degree of recyclability. Phoenix Contact primarily uses paper-based solutions for item and transport packaging and filling materials: corrugated board, kraft paper, PaperWave, and PadPak. Paper alternatives (such as paper made of grass and hemp) and plastic alternatives (such as recycled plastic and sugar cane) are currently being tested to make the packaging more sustainable and reduce environmental impact. Over the past few years, efforts have been made to continuously reduce the weight of the company’s standard packaging without sacrificing stability. As a result, 300,000 kg of packaging material was saved.

This is why loading bins are used as standard containers for worldwide shipping. Because demand for the containers increased, in-house cleaning facilities were created directly at the logistics site. This eliminates truck journeys between different locations and the cleaning service provider. To make the operation even more environmentally friendly, loading bins made of compound material have been in use since 2021.

Logistics

For transparency in the carbon footprint, Phoenix Contact uses the SkyLab dashboard, which is a system-integrated method designed to illustrate transport carbon emissions. The Best Shipping Instructions (BSI) are used to reduce emissions during transport, which provides a system-integrated method for determining the optimal transport route between the headquarters and subsidiaries outside of Europe. The method compares transport costs with the costs of holding higher inventories (capital commitment costs). It provides as a result a shipping recommendation with the most effective transport route.

In 2020, the entire value chain generated 700,000 mt of carbon emissions with a sales revenue of 2.4 billion euros. Then in 2021, carbon emissions increased to 820,000 mt and sales revenue increased to 2.97 billion euros. In 2021 and 2022, initial measures were implemented to reduce the share of air freight in emissions. This resulted in carbon emissions being reduced by more than 2,500 mt.

Disposal

The headquarters in Blomberg are home to large production units as well as large administration and logistics areas. They generate quite a bit of waste. This waste is collected as separate material by applying a clearly defined disposal concept. The aim is safe disposal in terms of sustainability and economic aspects.

In 2021, the site successfully reduced its share of commercial municipal waste from 4.7% to 4.3%. The percentage of commercial municipal waste has also been consistently reduced at the Schieder and Bad Pyrmont locations in Germany.

With a major increase in purchase orders in 2021, the percentage of metallic production waste such as non-ferrous metals and copper has increased. The materials are fed into a chipping cycle and processed for reuse. In 2021, the volume of reworked chips grew by 150 mt compared to the previous year.

Along with the direct materials for production, auxiliary materials and products are also evaluated and selected in terms of their sustainability.

Product responsibility

The company sets high standards for its products and solutions. In addition to quality, the focus is always on innovation. Phoenix Contact aims to ensure a comprehensive quality management system that covers production processes and business processes right through to aftersales services. All systems and processes are certified. Internal and external audits regularly monitor and verify their implementation and effectiveness.

Research and development (R&D) are highly valued at Phoenix Contact. The R&D expenditure of the Phoenix Contact Group amounted to around to €198 million in 2021, which corresponds to around seven percent of sales revenue. Compared to the level in the previous year, the number of R&D employees increased by 150 full-time equivalents (FTE) to more than 1,650 FTE. In total, more than 100 new patent applications were filed for the first time. Over the long term, Phoenix Contact is above the industry average in this respect. The company’s volume of patents is a testament to its innovative strength.

Short-circuit test in the laboratory for surge protection

Environmental Compliance Standard

With respect to environmental protection in production, Phoenix Contact makes every effort to avoid the use of questionable substances in its innovative product portfolio. The company’s Environmental Compliance Standard is mandatory for all suppliers to ensure that they follow these requirements. Phoenix Contact regularly assesses the trustworthiness of its suppliers and requests information on regulated ingredients in materials. Laboratory analyses are also performed to test materials with respect to questionable substances. New materials undergo a rigorous evaluation process. Compliance with legal requirements, such as RoHS Directive 2011/65/EU and REACH Regulation (EC) No. 1907/2006, is also ensured. Materials containing substances classified as SVHC (substances of very high concern) in accordance with REACH are, by rule, approved on the basis of legal requirements only if no alternative materials are available.

Product safety

As a central component of the Phoenix Contact quality standard, the safety of products is the highest priority and is certified by means of testing. Phoenix Contact complies with all relevant product safety laws and the directives and standards embedded in them. Furthermore, many products are tested and evaluated by independent bodies.

Products feature a variety of safety functions. The Product Security Incident Response Team (PSIRT) tests products extensively for security vulnerabilities and publishes security updates. Phoenix Contact also offers standardized security of products and services for the future-proof operation of machines, systems, and infrastructures. Necessary updates are available for many years, enabling a long service life. Product development is in accordance with certified processes in compliance with IEC 62443-4-1. Security measures are implemented, verified, and documented on the basis of a threat analysis.

Product Environmental Footprint

Since 2021, Phoenix Contact has been evaluating its products from the perspective of environmental impact. The Product Environmental Footprint (PEF) is calculated in accordance with the specifications of EF3.0. The results will be available online in the future. Given the increasing transparency and accuracy of carbon emissions in the value chains, data for the Product Environmental Footprint is becoming increasingly more precise.

More about the Product Environmental Footprint