Sustainability and ESG


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2020 2021 2022 % Change 2021–2022
Total Scope 1 direct emissions 2,690.33 3,534.07 4,054.87 14.7%
Total Scope 2 indirect emissions 5,028.26 5,428.45 5,050.42 -7.0%
Total GHG impact 7,718.59 8,962.52 9,105.29 1.6%
  1. The IEA emission factors used in Scope 2 emission calculations were: (a) 2020 - re-stated and re-calculated using IEA emission factors (2077, 2018) (b) 2021

    - stated with IEA emission factors (2019); and (c) 2022 - stated with IEA emission factors (2020).

  2. According to the IEA's reported CO2, emission factors, the countries in which Westport operates are reducing their emission factors yearly, which in turn results in lower indirect greenhouse gas emissions (Scope 2). Due to an increase in 2022 direct energy consumption (Scope 1) and a decrease in annual revenues, GHG intensity has increased. However, compared to 2019, the last year before the COVID-19 pandemic, a decrease in both direct and indirect energy consumption should be noted.

  3. Westport's annual revenue between 2022 and 2021 decreased by 9%, energy consumption increased by 3.3%, and GHG emissicns by 1.6%.

  4. Our emission calculation methodology comprises were: (a) utilizing the tools provided by the GHG Protocol to calculate emissions from mobile combustion (Transport_Tool_v2_6) and stationary combustion (Stationary_combustion_tool_(Version4-1)) for our Scope1 emissions and (b) country-specific emission factors published by the International Energy Agency (IEA) for our Scope 2 emissions.

Between 2021 and 2022, our annual revenue decreased by 9.1%, but our total energy consumption increased by 3.3%, which explains why our energy intensity and CHG emissions intensity have increased.

Thus, there was a decrease in gross margin and gross margin percentage primarily due to lower production volumes and higher production costs incurred for materials, transportation, and energy caused by the global supply chain shortage, inflation, and labor costs. This was partially offset by a positive mix impact due to higher sales in the European market.

Energy Intensity

(thousand GJs energy consumed/$M revenue)

GHG Emission Intensity

(tons of CO2 emitted
consumed/$M revenue)

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Location Total amount of waste [tons] Recycled [tons] % Recycled
Argentina 235.72 - 0.0%
Netherlands 34.43 24.14 70.1%
Italy 1,250.11 298.43 23.9%
Poland 26,887.75 24,997.31 92.9%
Sweden 1.24 0.27 21.8%
Total 28,409.25 25,300.15 89.1%


Westport products sold in 2022 reduced CO2 emissions of 1,498,438 Tons of CO2, which is equivalent to:

REMOVING 459,067

gasoline-powered passenger vehicles from service

PREVENTING 638,343,732

liters of gasoline from being consumed


We recognize sustainability is a process, and we strive for continuous improvement. In 2022, we accomplished the following:

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Scops 3 emissions measurement Continuing the collaboration with S&P Global. After identifying Scope 1 and Scope 2 emissions, we started a project to measure our Scope 3 emissions (to be completed in 2Q 2023). Within the project with S&P Global, we will also calculate emission reductions targets using a sector relevant methodology set forth by the Science-Based Targets Initiative (SBTI). This is another advancement in building the core elements of the TCFD-recommended climate-related disclosures.
Gap analysis Within the goal of advancing our environmental management system, we began verifying categories of information for which we have reliable and complete data while performing a gap analysis outlining missing data. We have identified a range of small projects that once completed will result in the availability of data and the ability to count impacts across the value chain. In Italy and in cooperation with an external provider, a project was started to gather ESG data from the suppliers.
Global Health, Safety, and Environment Committee Our Global Safety Committee has become more mature in its operations and impactful throughout the organization. By sharing examples of good practices, along with information on incidents at our factories, we are raising awareness and building a stronger safety culture within our organization. Based on success seen in 2022, we have decided to widen the scope of responsibilities under this group to include environmental reporting in 2023.
EcoVadis We participated in the EcoVadis assessment and were awarded a bronze-medal status for our sustainability commitment and results in 2022. This performance was better than or equal to the score of 50 percent of all rated companies.
Photovoltaic plant expansion in Poland We have set mature investment plans for a photovoltaic plant expansion in Poland. We are now evaluating the costs and possibilities of expanding our solar panel system in Slupsk, Poland. The target is to cover the demand of approximately 30% of energy needs for the entire facility.


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Energy management initiatives planned for 2023

Activate 'stand by' modes on all CNC machines in Brescia. Remove the eternit roof and install an insulation board, as well as the replacement of the glazing with honeycomb polycarbonate to increase thermal efficiency in the production buildings at the Cherasco plant.

Conduct a feasibility study on energy recovery from engine testing processes at the Cherasco production facility.

Reduce the bath temperature on tunnel washers to reduce thermal energy consumption at the production facility in Poland.

Investment plans for a photovoltaic plant expansion in Italy We intend to conduct analyses at the Brescia production site for a photovoltaic plant in Italy. Analyses and discussions are currently underway with outside companies about the possibility of expanding the installation so that up to 10% of the total demand can be covered. Furthermore, a Feasibility Study has been prepared for the construction of a photovoltaic plant with the creation of a covered parking lot in Cherasco.
Decarbonization workshops In 2Q of 2023, we plan to hold decarbonization workshops with external experts at the Brescia, Cherasco, and Słupsk production facilities to build action plans to reduce the carbon footprint in Scope 1 and Scope 2. Based on these plans, CO2 reduction targets will be calculated and officially announced.