HERMÈS - 2018 Registration document

Corporate social responsibility

planet: environment

At Cuneo, electricity production from 296 photovoltaic panels installed on the roof of the tannery provided 54 MWh of electricity, representing 6.5% of the site’s total electricity consumption in 2018. The produc- tion, down slightly compared with 2017, is used entirely for tanning pro- cesses during the week and injected into the electric grid on weekends. Gas cogeneration, also installed at the Cuneo site and used to simul- taneously produce hot water and electricity, unfortunately did not work throughout the year, due to a system failure.

Tanneries The Tanneries are continuously working to improve the energy efficiency of existing facilities and during renovations or the introduction of new premises. By way of example, the following points are receiving special attention: supervision of equipment by GTC 1 , thermal insulation of buil- dings, insulation of pipes, and the replacement of conventional lamps by LED lights. The division’s power consumption remained stable between 2017 and 2018 (-1.20%). This led to a decline in the average energy consumption to activity ratios within the scope of the calf leather and exotic leather tanneries.

2

2014

2015

2016 1

2017

2018 2

Electricity in megawatt hours Gas in megawatt hours Fuel oil in megawatt hours

6,143

6,572

10,627 30,085

11,031 29,731

11,269 30,010

11,788

15,019

35

52

48

59

42

The reporting scope has included the Annonay tannery since 2013 (acquired in December 2012). (1) The reporting scope includes Les Tanneries du Puy, acquired in November 2015. (2) The reference period is the 12-month period from 1 November 2017 to 31 October 2018. Note: The United States and Australia operations are excluded from the reporting scope.

At the ITH site in Bourgoin Jallieu, the replacement of old-generation roof- top equipment (single air-conditioning unit placed on the roof) is ongoing. This replacement by modern air-conditioning equipment with optimised settings to offer both comfort and energy-efficiency provides a better output and substantial electricity consumption savings: 6% reduction in KWH consumption. Electricity production via the photovoltaic panels also enables the site to generate energy savings with an annual output of about 16MWH. Lastly, since October 2017, rounds are made through the site every evening to check that all lights have been switched off and to adjust the air-conditioning equipment if necessary. SIEGL is continuing its efforts to limit its consumption to the strict mini- mum. Accordingly, the heating of facilities in the winter is optimised to save gas, and programmable electric heating facilities have been posi- tioned in workshops with few or no occupants for energy efficiency while managing frost protection. At Ateliers AS, seven air-conditioning units were equipped with speed drives (production lines 7 and 8). The air-conditioning units inject “new” air to be heated or cooled depending on the season; accordingly, their operation requires significant energy consumption. The positioning of the speed drives makes it possible to adjust the supply and return air flow, and therefore tomaintain an overpressure in the workshops depen- ding on their occupancy. At ATBC, changes were alsomade to control gas and electricity consump- tion. For example, this was the case with the guidelines on air-condi- tioning, which was limited during the summer to prevent excessive consumption. Roof insulation and cladding replacements also made it possible to lower energy losses over the year.

Silk Energy consumption (gas and electricity) can be attributed mainly to equipment, which requires high-temperature steam, heating and lighting (workshops and offices). As such, each site has continued the efforts already started in previous years to optimise consumption time and move towards more energy-efficient equipment. The entire division is continuing its conversion to “all-LED” energy-effi- cient lighting: the ITH site in Bourgoin Jallieu is taking advantage of works in specific areas to replace the former systems, as are the new offices of Créations Métaphores and the workshops of the Gandit graphic desi- gners; at SIEGL, the tables workshop was converted, at Ateliers AS the quality department, at Établissements HTH the offices section, and at ATBC the entire site. In early 2018, the AEI site set up a local dashboard to monitor the ratio of gas and electricity consumption with respect to the amount of silk produced. This new indicator demonstrates a consistently downward trend over the last three years and is used to produce targeted commu- nications for the teams. The purchase of a new boiler equipped with an exchanger and high-output burner aims to achieve significant energy savings. The boiler was commissioned at end-2018 and represents an investment of €350 thousands. It will enable the use of only one boiler instead of the two currently in operation and will use more energy-effi- cient equipment. The new boiler has an exchanger positioned in front of the chimney flue, making it possible to heat the boiler feedwater. In addition, it has an O 2 sensor (also placed in the flue) to better regulate the gas/air mixture and thus increase the output of the burner, while optimising the amount of gas used. More generally, the arrival of this new boiler will enable an overhaul of the entire heating plant: asbestos removal, change of the feedwater tank to improve insulation, thereby limiting heat loss in the facility.

(1) Centralised Technical Management

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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