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Chemical products and, in particular, their manufacturing process do not seem to have much in common with environmental protection. However, FFiL Śnieżka wants to change this and is implementing a plan to reduce emissions and actions for sustainable development. The company’s strategy also aims to protect water and soil, as well as appropriate management of hazardous and non-hazardous waste.
Fabryka Farb i Lakierów Śnieżka SA is a company that has been operating for over 35 years and is one of the largest manufacturers in the paint industry in Poland. The company is one of 70 manufacturers of paints and varnishes in the country but ranks among the top four in terms of sales. Over 80% of total sales belong to these four companies. Moreover, FFiL Śnieżka is the only company in the industry that is listed on the Warsaw Stock Exchange. The company has been investing in development for years and the Śnieżka Capital Group is the result of domestic and foreign acquisitions. In 2020, FFiL Śnieżka had 798 employees who constituted almost 60% of the entire Śnieżka Capital Group team, and the company’s sales amounted to 71% of the total sales of the group. Since 2020, the capital group has changed its operating model and approach to management, with FFiL Śnieżka SA becoming the centre responsible for research, development, production, and supply chain management.
Numerous entities which are part of the Śnieżka Group have their production plants in Hungary, Ukraine, and Belarus. However, the group still records the highest sales in Poland, where in 2020 it amounted to a 63.8% share of the Polish market. In Hungary, the sales share reached 19.7%, in Ukraine – 9.3%, and in Belarus – 2.8%. Additionally, Poli-Farbe, which is a subsidiary of the Śnieżka Group, is still active in Romania and Slovakia, but in the case of the latter, the process of liquidation of Poli-Farbe SK is underway.
Measures reducing environmental impact
According to the non-financial report 2020, prepared by the management of the Śnieżka Group, the production of chemical products harms the environment. The companies which contribute most, among others, to CO2 emissions are those which have production plants, that is FFiL Śnieżka and Poli-Farbe. Initially, measures to reduce the emitted pollution will be implemented in FFiL Snieżka, and then in the subsidiaries. The company will adjust to environmental requirements and in addition to emission reduction, it also plans to ensure water and ground protection. The aim of the company is also to educate employees in appropriate attitudes, such as proper management of both hazardous and non-hazardous waste.
For the measures implemented to date, the company has received the “Ecolabel” certificate, which marks Śnieżka’s products that reduce negative impacts on human health and the environment. The company will continue its work in such areas as the emission of volatile organic compounds or dust, and also emission from burning natural gas.
Last year, FFiL Śnieżka was responsible for producing as much as 899.25 tonnes of CO2e, resulting in a 4.9% increase compared to 2019. The emissions include both scope 1, i.e. direct, and scope 2, indirect, which relates to the emissions generated in the production of purchased electricity. Increased on-site production contributed to the rise in emissions.
According to the company, in 2020, 1.54 tonnes of CO2e were generated per £1m of revenue, which turned out to be lower than in 2019, when emissions reached 1.58 tonnes. However, in the case of PLN 1m EBITDA, it was in 2019 that the company recorded a better result, with emissions reaching 13.55kg CO2e. In 2020, the result reached 16.99kg CO2e. CO2e emissions per employee also increased in 2020 and reached 1.13 tonnes, compared to 2019 when it amounted to 1.08 tonnes. Gas consumption also saw an increase of up to 4.15m3 in 2020. In 2019, the figure was 1.05m3.
The company is intensively looking for solutions to reduce CO2 emissions and is investing in the modernisation of the production line and a new logistics centre. The company has also installed a filter unit to purify the air from dust released during its technological processes, thanks to which it can monitor emission levels on an ongoing basis. An air purification installation is also planned to enable the recirculation of air into the factory halls. The company also draws attention to the modernisation of its car fleet, where each vehicle can be used for 3-5 years before it is replaced by a lower emission car.