CO₂e Calculation Method

For Scope 1, we calculate direct emissions that arise within the company from burning natural gas, oil, petroleum-based fuels, and liquefied petroleum gas, or from our own generation of electricity. This also includes fuel consumption by the company’s own vehicles. The emissions caused by refrigerant leakage were also included in the balance for the first time in 2023. Emissions are calculated based on the VDA¹ emission factors that were current in 2023.

For Scope 2, we calculate emissions from purchased energy in the form of electricity, district heating, district steam, and district refrigeration and cooling. Since 2021, we have reported both market-based and location-based emissions. To calculate location-based CO₂e emissions, we use the VDA¹ and IEA² country-specific emission factors that were current in 2023.

For the market-based balancing approach, we use the specific CO₂e emissions factors of the electricity providers or we recognize the emissions factor as 0 kg of CO₂e/kWh if renewable energies are used. If the data for the electricity providers is not available, we use the European Residual Mix of the Association of Issuing Bodies (AIB). The average country-specific emissions factors of the IEA² (see “Location-Based Approach”) are used if neither the data of the suppliers nor the residual mix is available.

The emissions from purchased goods and services are calculated based on monetary purchase data, i.e., a spend-based approach looking at expenses on material and services. The emission factors incorporated into this come from an external data model. The model used combines methods from input–output modeling (EEIO, environmental extended input/output methodology) as well as life cycle assessment with trade data and other external datasets. The calculated emissions span the entire upstream value chain, from the production of raw materials to the tier one supplier (“cradle to gate”).

This category includes upstream greenhouse gas emissions for energy generation prior to combustion that are not calculated under Scope 1 or Scope 2. The emissions from green electricity are taken into account (market-based approach). We use the emission factors published in 2023 by the IEA² and BEIS/DEFRA (UK Government GHG Conversion Factors for Company Reporting), including the methodology underlying them, for the calculation.

This category covers transportation-related emissions from incoming, internal, and outgoing (paid by Knorr‑Bremse) transportation of goods (Scope 3.4) as well as for outgoing transportation of goods paid by the customer and carried out by external carriers (Scope 3.9). The calculation was performed for the Commercial Vehicle Systems and Rail Vehicle Systems divisions using different calculation methods.

For the Commercial Vehicle Systems division, a large part of the footprint is based on primary emission data provided by suppliers. The other parts were calculated using a distance-based approach and a spend-based approach. The Rail Vehicle Systems footprint was calculated using solely a distance-based approach with the help of standard emission factors (well-to-wheel) from the Smart Freight Centre’s GLEC Framework. The approximate spend-based figures are based on emission factors from the Quantis Scope 3 Evaluator. The emissions of external warehouses are calculated based on the sizes in square meters and the greenhouse gas values supplied by CRREM Global Pathways for industrial distribution warehouses per year per square meter. These emission figures are added onto the transportation-related emissions.

Calculation of CO₂e emissions from business trips is carried out by our four most relevant travel agencies on the basis of flight distances. The calculation of emissions from flights is based on the different calculation methods depending on the travel agency. The travel agency for Europe and parts of the APAC³ region calculates emissions in accordance with the Greenhouse Gas Protocol. The agencies for North and South America and China use emissions factors for short-, medium-, and long-haul flights. In 2023, Thrust Carbon was used for the first time for some of the countries, thereby including other emission-relevant factors in addition to flight distance and travel class.

Emissions arising from the commutes of our employees are calculated using average commute distance data from Germany as well as the EMEA⁴, Americas, and APAC³ regions. The modes of transportation included are cars, public transportation, bicycles, and walking. The number of working days and employees are also used for the calculation. Work from home was additionally accounted for using a factor of 16%. The emission factors for Scope 3.7 come from the BEIS/DEFRA emission factors published in 2023.

Knorr‑Bremse’s footprint in Scope 3.11 comprises the direct emissions from the use phase of products with direct energy and fuel consumption in rail and truck vehicles. They are calculated based on the estimated energy consumption across the lifetime of the products that were supplied to our customers during the reporting period. These emissions are very relevant for Knorr‑Bremse as the products are characterized by their long lifetime and, accordingly, the emissions accounted for are from a long use phase.

For the Rail Vehicle Systems calculation, 19 relevant product categories were identified. A typical use phase profile across the product lifetime was defined for each product category and took into account different rail vehicle types (e.g., diesel multiple units [DMUs], electric multiple units [EMUs], locomotives). Most products are overhauled at set maintenance intervals during a 30-year lifetime. The products’ assumed energy consumption during the use phase remains the same after maintenance. The energy consumption is multiplied by the current, region-specific emission factors according to the IEA and BEIS/DEFRA. The calculation is based on a variety of assumptions regarding the proportions of the powertrains in rail vehicles, with the data coming from global market studies and being updated constantly. Indirect emissions from the use phase caused by the transportation of our products are not included, and neither are emissions from maintenance work, as they are deemed insignificant.

For the Commercial Vehicle Systems division, one relevant product category was identified and an estimate of further product categories with direct energy consumption was calculated. The estimate indicated that they altogether represent roughly 2% of the Commercial Vehicle Systems division’s Scope 3.11 emissions, for which reason they are deemed not relevant and added on as a lump sum. The current global emission factors according to the IEA and BEIS/DEFRA were used for the emission calculation in the Commercial Vehicle Systems division.

Our Scope 3.11 emissions are to a large degree dependent on our sales figures and the respective customer preferences, so they may vary significantly from reporting period to reporting period.