Riding the jet stream to green energy procurement

Xaar plc is a £72.8m manufacturing business and a world leader in the development of inkjet technology. Its technology is used in a wide range of manufacturing applications, including (we quote ceramics, glass, coding and marking, direct to shape, 3D, Advanced Manufacturing, packaging, textiles, wide format graphics and labels) graphics, labelling, direct-to-shape, packaging, product decoration, ceramic tile and glass decoration, décor, and outer case coding – as well as printing with specialist functional fluids for advanced manufacturing techniques.

Neil Ross, Group Sustainability Manager at Xaar, explains Xaar’s SGs.

Globally, the printing industry consumes thousands of tonnes of ink, paper and water – water in ink and paper-making – and is a high consumer of energy and transportation miles, while not being classed as “energy-intensive” like petrochemicals.

Leading inkjet process manufacturer Xaar aims to be net zero by 2030. To achieve its ambitions, the company launched its Sustainability Roadmap in 2021 , covering four pillars: Environment, People, Innovation, and Community – see PDF – and is already advanced, focusing heavily on green energy procurement.

Xaar’s biggest single action to cut carbon has been the wholesale switch to renewable energy contracts that has resulted in carbon reductions of 87% since 2020. Xaar is aiming to reduce its power use by up to 40% by making changes in its Huntingdon facility layout and upgrading lighting, the project was completed in Q1’23 and we are in the process of optimising the assets to reach our target.

“To date we’re close to 99% green electrical power provision in the UK,” says Neil Ross, who is responsible for delivery of Xaar’s Sustainability Roadmap. “Xaar will complete its transition to green electricity by December 2023. Its facility in China will then be the only site running on “brown” power.”

The move to all-green electricity has had a profound effect on Xaar’s carbon emissions. Data shows that the company has achieved a reduction from c. 6,000 T CO2 e in 2014 to about 200 T CO2 e in 2021.

Trident Utilities is Xaar’s energy partner in this switch, and Neil is keen to give them credit for efficient procurement and sound advice.

Turning to energy efficiency, one of the most significant projects Xaar has undertaken is the refurbishment and reconfiguration of its Huntingdon factory, which is about 20 years old. The project has taken two and a half months to date (April 2023) and has reduced climate control energy usage and has eliminated the need for humidity controls in other areas. Almost all of the site’s inefficient tungsten strip lighting have been replaced with LEDs, reducing the lighting power usage by up to 80%.

Right now, the company is scoping the use of solar panels with its landlord and DNO. “We estimate that solar power will reduce our grid sourced electricity usage by 8%-10%,” says Neil. “As well as cutting costs, with our green energy procurement plan it brings an energy security benefit, mitigating the effects of geopolitics on future energy prices.”

Further carbon and environment focused actions on Xaar’s Sustainability Roadmap this year include:

Scope 3: implementing a Supplier Sustainability Policy
Product: A full Sustainability review of all products. Each product across the Xaar Group will produce a sustainability scorecard.
Transport: A complete review of product and sub-component transportation (under Scope 3)

Looking to the future, there are more big commitments by 2024, including zero waste to landfill for all group sites, and reducing Xaar’s mains water usage, by minimising waste, driving reuse, recycling, repair and eliminating water leakage. Xaar will continue to examine the sustainable features of new and established products, seeking continual improvements.

Leadership in innovation is also key at the Roadmap. As such, Xaar aims to generate an industry de facto standard for sustainable inkjet printing products, also by 2024.

Biodiversity is also an area of focus. Under The Environment Act 2021, any site development that needs planning permission, must include evidence that the development makes a net biodiversity gain, actually increasing biodiversity on site. Xaar has installed two honeybee hives at its Huntingdon site, and is looking for more ways to increase biodiversity.

People and Community

The Sustainability Plan includes three non-environment pillars. As part of this, Xaar is doing a myriad of activities to make it an employer of choice for people with strong green values, including staff surveys asking employees what kind of changes they want to see. In 2022, it formed an ESG governance structure and a sustainability team, led by Neil, to drive these surveys and have accountability.

This year, Xaar is working hard to invest in skills-building and personal development for its employees. For example, it is establishing new apprentice, graduate recruitment and work experience schemes. Sustainability will be a pillar of their training. And with mental health issues more widespread and understood now, Xaar has established a local mental heath first aiders at all group sites.

Attracting and retaining the best talent in future years is a major element of the People pillar of the Roadmap. As such, the company has decided to aim for 'Employer of Choice' certification across Xaar Group - this process started in 2023. In addition, discussions have led Xaar’s HR team to join the 'Great Place to Work' Programme with workshops planned in 2023 to determine the key workplace activities and improvements for each of its sites.

Working with schools For many years, the company has run a STEM club with its local primary school and is looking to expand this into other primary and secondary schools in the Huntingdon area. “We plan to expand this scheme to show students across the full age range how to engage with engineering and our business, as they select subjects and careers,” says Neil.

In 2022 the company published a charity policy for all its business divisions, and l appointed departmental “Charity Champions” to drive activities. The company has set clear targets for its fundraising – and will match funds raised by employees. In addition, a formal process is now in place for Xaar to donate all legacy electronic equipment that cannot be reused in the company.

In product development, under the pillar “Innovation”, Xaar is working with customers to offer a lower power inkjet product whenever its possible and suitable. For example, customers are now offered a capability to jet more viscous ink, reducing the drying required in post-jet printing, cutting the energy and carbon impact of the finished print.

Green taxes and business and government support

Until recently Xaar has been exempt from certain grants due to its size. But the (2023 Budget changes) means it is investigating whether super deductions are available for tax (capital allowances) on some of the capex upgrades it made Q1 2023.

Given high inflation and the burden on companies when the government stops the Energy Bill Support Scheme this month, should green taxes be reined back? “The government is caught between a rock and a hard place here,” says Neil. “Paying this tax really focuses your efforts on reducing the amount of power you use. We are not as energy-intensive as, say, chemicals or brick manufacture, so green taxes have not hit us as much as others. We have tapped certain schemes that let you reduce those taxes.”

The company has applied for Climate Change Levy (CCL) reductions. By reducing the carbon component in their power supply, Xaar was eligible for a CCL reduction.

In addition, as we await a moved to a single, renewable energy contract, Xaar was also be eligible for Energy Bill Support at one if its UK sites.

Scope 3: Can Xaar hit its Net Zero targets?

Neil says Xaar is confident it can control and drive its Scope 1 and 2 emissions and can push for change under travel related Scope 3, such as encouraging employees to reduce their transport carbon. Electric vehicle (EV) chargers have been fitted on-site and the use of EVs for work travel is promoted. The elephant in the room is Scope 3 supplier engagement, Neil says.

“It’s a huge challenge and is for all companies. We are working with external consultants CO2A to thoroughly analyse our supplier spend and calculate the carbon impact of Xaar’s ordering and receiving parts to build our print heads. Our estimates for 2022 are c. 21,000 T carbon in the supply chain.

“We declared 212 T carbon from our operations under Scope 1 and 2 in 2021, so you can see the size of the task to reduce the Scope 3 carbon equivalent,” Neil adds.

“Scope 3: Our estimates for 2022 are c. 21,000 tonnes carbon in the supply chain. It is a huge task.”

“There is a huge amount of work to educate and partner with our suppliers to alter the way we order, and how they operate and transport material to us, to reduce Scope 3 as much as possible. It is a very big task. No company will hit their Net Zero target, if they are ambitious, unless they can reduce their supply chain Scope 3 emissions.”

Validating requirements under Scope 3 is straightforward for some suppliers, but difficult for others. In China and the Far East, Xaar is having to teach some suppliers what Scope 1, 2 and 3 actually mean.

Suppliers: helping Xaar to select best green solutions

Neil attributes much of Xaar’s Sustainability Roadmap progress on the expert help of key suppliers.

If you can get partners and suppliers that really understand their industry and how to get results, it makes a massive different in accelerating a sustainability plan.

Green energy procurement: Trident - https://tridentutilities.co.uk/

CO2A - https://co2analysis.com/index.html

Reed & Mackay - https://www.reedmackay.com/

Giving back

Xaar has chosen Break as its UK charity partner for the next three years, pledging to match fundraising between the 1st April 22 to 31st March 23 to the tune of £18,610 (with that match funding a donated total of £37,220).

Huge shout out and kudos to the group of Charity Champions at each site, who have been instrumental in us reaching such a fantastic total for a fantastic cause, as has the support of our staff, suppliers, customers and friends and families.

John Mills, CEO of Xaar, said; “I am delighted that our Charity Champions have selected Break as our UK charity partner for the next three years. Together we have a clear vision, sharing the joint values of encouraging and nurturing skills, and we are now focused on building a partnership that will take our support beyond fundraising.”

Dan Crouch, Director of Income Generation at Break, said; “We are thrilled to be working with Xaar as their official charity for at least the next three years!

“The money Xaar raises as part of the partnership is vital as we grow our regional presence and will make life better for children and young people on the edge of care, in care and leaving care, giving the support and stability they need for a bright and successful future.”

For more information on Break visit - https://www.break-charity.org/charity/ or to donate visit - https://www.justgiving.com/campaign/XaarsupportingBreak