Making the right decisions today and considering the long-term impact of our actions is key to a better future. At Purmo, we are wholeheartedly on the path to a better future. With our sustainability roadmap in hand, we continue to take significant steps to reduce and ultimately eliminate our environmental footprint and create better solutions, happier employees and stronger communities. Without losing sight of our goal of becoming carbon neutral by 2050, we have reached an important stage in our sustainability journey by recently opting for CO₂ offsetting in the production of our electric radiators.
All roads lead to a sustainable Rome
The road to a sustainable future is not as easy as many of us would like. And there is no one-size-fits-all solution that will lead us there. At Purmo Group, we believe that there are many different paths we can take together to make a difference. We want to make an active contribution to the well-being of current and future generations and therefore focus on the big picture with short- and long-term initiatives.
As a leading provider of sustainable indoor climate solutions and services, we contribute to the heating and cooling of millions of buildings worldwide. This not only ensures the comfort of many people, but also puts us in a unique position to contribute to a better future. Given that 64.9% of energy consumption in EU households is used for space heating and cooling1, there is huge potential to reduce carbon emissions. The right heat source and the corresponding products such as low-temperature radiators, smart controls, valves, etc. are clear key elements for a sustainable future. We combine all this in a complete range of sustainable indoor climate comfort solutions.
It is therefore not surprising that our production and solutions, together with our employees and the community, form three of the four focus areas of our sustainability strategy. We have made clear commitments in every area and are constantly looking for new ways. From sustainable production to volunteering in our local communities, every effort counts and helps us lead our industry in sustainability.
Sustainable procurement
One commitment that is particularly important today is responsible sourcing. By changing the way we source materials such as steel, brass, plastic and packaging material, we ensure a cleaner start to a greener production and delivery process. We are making great progress in steel in particular. For example, since the beginning of 2020, we have been working with steel suppliers to use a stronger but thinner steel for the production of radiators at all our production sites, offering the same thermal performance and compressive strength. In this way, we have managed to reduce the amount of materials and waste and increase energy efficiency in the production process.
In addition, last year we committed to sourcing virtually emission-free steel from 2026. This steel enables a reduction in CO₂ emissions of up to 95% compared to conventional coal-based steel production. The year 2026 will therefore be another important milestone and the beginning of a long-term commitment, as we have reached a binding agreement to purchase 140,000 tonnes of near-zero-emission steel by 2033. This corresponds to more than 10% of our annual steel consumption.
In order to achieve additional, immediate effects, we are now also examining the possibilities of CO₂ compensation wherever possible and are starting to produce carbon-compensated steel radiators. John-Peter Leesi, CEO of Purmo Group, explains: “We have two approaches to sustainability: the first is to do the things we do more responsibly; the second is to find entirely new ways to continue them indefinitely. When it comes to steel procurement, we are using conventionally produced steel more responsibly, but we are also investing in almost carbon-free production methods for the future.”
Carbon offsetting and green steel
The term “green steel” is very popular these days. Unfortunately, it is used fairly freely for any type of steel on the spectrum between low-carbon and near-carbon-free. Even though we pursue the possibilities in all areas of our range, we want to be very clear about what we do today and our commitment to the future.
Our current, short-term focus is on carbon-compensated steel. In April, we started producing electric radiators made of carbon-free steel at our plant in Gateshead (UK). To this end, we are working with Arcelor Mittal, which has launched XCarb®, a global innovation program for steel production, with the aim of producing carbon-neutral steel by 2050. The XCarb® green steel certificates created under this program allow customers such as Purmo Group to invest in a number of initiatives that reduce an equivalent amount of carbon emissions. A good example of such a project is the recovery of hydrogen-rich exhaust gases from steel production and feeding them into the blast furnace to reduce coal consumption.
The CO₂ savings resulting from these initiatives are aggregated, independently verified by the globally active certification company DNV and finally converted into XCarb® Green Steel certificates. These certificates represent a reduction in Scope 3 emissions for buyers, but also have a direct impact on customers, as the CO₂ savings reduce the impact of the products they purchase over their entire life cycle. For example, for a recent purchase of 16 tons of steel, we received a green steel certificate that says we have saved 35 tons of CO₂.
Making a difference with the Purmo Group
“We know that offsetting CO₂ emissions is only a small step on the way to more sustainable procurement, but it is an important step in the right direction. We are aware that this is another milestone on a long road to the future, but we believe that every step counts to create a better future for us, future generations and our planet,” says Sam Hodlin, Purmo Group’s Sustainability Officer.
“While some in the industry tend to limit their efforts to offsetting emissions, this is no substitute for us to do everything in our power to directly reduce and ultimately eliminate our emissions. Purmo Group has a clear sustainability roadmap that takes us from awareness and understanding to strategy and action, as well as a long-term vision that includes a greener future for everyone, from industry to end users. Sustainability has become part of our corporate DNA and everyone in the Purmo Group has an obligation to make their contribution to achieving carbon neutrality.”
Julian Stocks, Product Manager for Radiators, Purmo Group, adds: “In addition, we are seeing an increasing interest in environmental, social and governance (ESG) issues among our customers. They want to work with market leaders in sustainability and attach great importance to the availability of environmental evidence such as EPDs and EcoVadis that prove the sustainability of our products or our operations. Behind the scenes, we are working this issue. For example, we are planning new EcoVadis audits and have identified software that will help us calculate the environmental impact of our products and create EPDs in an efficient and rational way.” We are confident that these EPDs will be appreciated in all our markets.
Long-term goals
Unfortunately, a particularly large amount of carbon is produced during steel production. Due to the nature of our business, we cannot do without its use, but we are committed to doing so in a carbon-neutral way by 2050. We look forward to producing true green steel products with H2 Green Steel’s near-carbon-free steel from 2026.
“The Purmo Group is a pioneer in another important customer segment of the steel industry. It is an excellent example of a company that truly lets its business decisions be guided by its commitment to sustainability and the implementation of the Paris Agreement. At H2 Green Steel, we welcome such pioneers from various industries. They can really make a difference,” says Henrik Henriksson, CEO of H2 Green Steel.
Responsible sourcing will remain an important commitment for us, but we also face challenges of other kinds on our way to a more sustainable future. We are also proud of the great results we have achieved in recent years on many different levels – from the energy efficiency of our facilities to the diversity of our employees to volunteering and sharing our expertise in local training.
As one of the few companies in our industry, we have also set targets to reduce greenhouse gas emissions that have been approved by the Science Based Targets Initiative (SBTI). In addition, we actively pursue other commitments, for example in relation to our packaging solutions and our business activities. We look forward to sharing the results with you in the coming months and years.
Together we can do even more
We are determined to make an important contribution, but global challenges such as climate change affect us all and can only be tackled through joint efforts. Industry, HVAC professionals, and end users need to work together if we are to achieve great success in improving indoor environments. Together, we have more influence and can ensure that new buildings, but also the 75% of buildings in the EU that are not energy efficient today2, become our heaven on earth, where we enjoy optimal comfort without straining the world’s resources.
“That’s why it’s so important for us to support both HVAC professionals and end users in their decisions. For example, when we attend a trade fair, we present both installers and consumers with a complete package of product solutions, but also information about government subsidy programs, etc., so that they go home with clear recommendations for their project. So far, this has met with great interest, because there is still a lot of uncertainty when it comes to future-proof heating and cooling systems,” says René Fink, Vice President Sales Central Europe at the Purmo Group.
“There is still a certain reluctance when it comes to the use of heat pumps, for example, because a lot of misinformation is widespread,” adds Niclas Schubert, Vice President of the Northern Sales Cluster at the Purmo Group. “Many people still believe that heat pumps are more expensive than gas condensing boilers and air conditioners, but studies now show that this is no longer the case in most cases3. As a leading provider of sustainable indoor climate solutions, it is very important to us that all stakeholders have access to the right information and solutions. Only then can we walk the path to a better future together.”
Source: Purmo
