1. Purchased goods and services 9. Other types of logistics not paid for by Festo 10. Processing of the products sold 11. Use of the products sold Scope 3 Indirect emissions (upstream activities) Activities along the entire value chain of the company Scope 2 Indirect emissions (Festo) Scope 3 Indirect emissions (downstream activities) 12. Handling of sold products at the end of their life cycle 13. Property, plant and equipment issued as a rental or lease 14. Franchise 15. Investments 2. Capital goods 3. Fuel- and energy-related emissions 4. Supply and distribution logistics, internal logistics 5. Waste 6. Business trips Greenhouse gas emissions in CO2 equivalents Acquired electricity, steam, heating and cooling 7. Employee commute 8. Property, plant and equipment received as a rental or lease Scope 1 Direct emissions (Festo) Company facilities Vehicle fleet 5. Environment, energy and construction 5. Environment, energy and construction 5.1 Environmental management Society and industry face the challenge of conserving resources and counteracting climate change. This is because our energy consumption causes emissions and we need a reliable supply of resources for the production of consumer goods and industrial products. This is also relevant for Festo’s production. We have therefore established environmental management systems at all existing production plants and certified them according to ISO 14001. We continuously increase our energy and resource efficiency and minimise CO2 and pollutant emissions from our production. These measures also help us to reduce production costs, meet the demands of our stakeholders and be prepared for new legal requirements. Recording of emissions according to the Greenhouse Gas Protocol The Greenhouse Gas Protocol (short: GHG Protocol) is considered the most widely used international standard for recording and accounting for greenhouse gas emissions. It breaks down emissions into scope 1 emissions (direct emissions), scope 2 emissions (indirect emissions from final energy purchases such as electricity and district heating) and scope 3 emissions (other indirect emissions along the value chain). Festo on the way to climate neutrality Festo will massively reduce its carbon footprint over the next few years. As a result, by the end of 2023, all our production and logistics sites as well as the German sales locations and the corporate centres in Esslingen will be carbon neutral in terms of scope 1 and 2. Festo will thus make its contribution to compliance with the <2°C target of the Paris Agreement at an early stage. Graphic based on the GHG Protocol 46 47 Festo SE & Co. KG Sustainability Report 2021 Festo SE & Co. KG Sustainability Report 2021