Environmental responsibility

The company's business activities are bound to and influenced by the environment and at the same time the company itself influences it. Aware of this interdependence, environmental sustainability and protection is one of the main pillars of MEGA's environmental strategy. Key environmental themes include decarbonisation, water and soil purification and circular economy.

The company's approach to the environment is declared by its environmental policy based on the efficient use of resources and energy, as well as the development of innovative environmentally friendly technologies that result in resource savings.

MEGA's environmental strategy in all company processes is based on business activities that support the environmental goals of our customers. Our strategy focuses on three key areas.

MEGA aims to be a leader among suppliers of applications based on ion-exchange membranes that enable the implementation of a circular economy. The company strives to be a reliable partner in reclamation and remediation projects utilizing efficient modern methods and a provider of services contributing to environmental protection. To achieve this goal, MEGA systematically and demonstrably reduces environmental impacts across the entire life cycle of its products and services. Compliance with environmental regulations, standards, and voluntary commitments is a fundamental prerequisite for the company’s operations.

MEGA aims to achieve maximum carbon footprint reduction by 2050. The company's decarbonization efforts focus on building photovoltaic power plants, reducing waste generation, implementing recycling of industrial water back into processes. MEGA invests in the development of innovative applications to improve raw material efficiency and reduce energy consumption. In collaboration with customers, the company seeks optimal solutions to conserve water, material, and energy resources.

To meet its long-term goals, MEGA must identify, anticipate, and effectively manage environmental risks and opportunities arising from climate change. The company needs to be prepared for climate-induced risks that could affect its operations, such as shortages of energy, gas, and water. In its medium- and long-term goals, MEGA focuses on reducing energy consumption, increasing the use of renewable resources, and building retention tanks. The company is committed to investing in research and development to find effective solutions for recycling water and other raw materials.

MEGA is committed to contributing to the fulfillment of the Paris Agreement, which aims to limit the increase in global average temperature to no more than 1.5°C. The company focuses on decarbonization across the entire value chain, increasing the consumption of energy from renewable sources, and reducing the volume of waste sent to landfills.

Decarbonization has been identified as one of the most critical topics in the dialogue with stakeholders, as outlined in the Sustainability Strategy.

Commitments

1. By 2028, MEGA will reduce its carbon footprint by 82 t CO₂ eq. in Scope 2.
2. Reduce the volume of landfill waste by 3 tons/year and hazardous waste by 28 tons/year.
3. Install heat recovery systems in production facilities (Scope 1), reducing natural gas consumption by 1.78% and greenhouse gas emissions by 19.8 t CO₂ eq./year, with operations beginning in September 2028.
4. By 2030, construct two photovoltaic power plants on new buildings with a capacity of 25 kWp, resulting in a Scope 2 carbon footprint reduction of 15 t CO₂ eq./year.

MEGA is committed to minimizing emissions generated by both its production and business activities. Therefore, residual emissions that cannot be reduced or avoided can be offset by purchasing carbon credits from high-quality projects.

Activities

1. MEGA initiated decarbonization in the fall of 2023 by replacing lighting with LED in all production areas and beginning construction of the first photovoltaic power plant (PV) on a production facility. Both projects will significantly contribute to the decarbonization of DMP products.
2. In 2023, the company started the legislative process for building a PV system with a capacity of 99.9 kWp. Commissioning is scheduled for September 30, 2024, with total production to be consumed by production operations at facility 974.
3. By conducting an energy audit in accordance with Act No. 406/2000 Coll., we will gain an assessment of overall energy efficiency and an overview of potential savings.
4. Logistics staff, in collaboration with carriers, are optimizing the transportation of products to customers using "carbon" calculators.

MEGA has approved funding for research and development aimed at reducing CO₂ levels in air and water. The company supports the international conference Euromembrane 2024, which will discuss opportunities for efficient resource utilization, innovative water treatment methods, and recycling.

Significance of decarbonization measures

	AVOID	Effective and sustainable prevention of CO2 emissions, e.g., through energy efficiency.
	REDUCE	Transition to renewable energy sources across all stages of the value chain.
	COMPENSATE	Offsetting residual emissions, e.g., by investing in forest protection and reforestation.

Energy Consumption

Although electricity and gas consumption accounts for approximately 2% of the company’s expenses, it is an area where MEGA can make a significant impact. This is why the company is focused on sustainable energy management.

		2023
	Total energy consumption (MWh)	1810,96
	Total consumption from non-renewable sources (MWh)	1756,91
	Electricity from non-renewable sources (MWh)	935,96
	Gas from non-renewable sources (MWh)	820,95
	Total consumption from renewable sources (MWh)	54,05
	Electricity from renewable sources (MWh)	54,05
	Gas from renewable sources (MWh)	0
	Share of renewable sources in total energy consumption	2,98 %

Monitoring electricity consumption

At the Stráž pod Ralskem site, the share of clean electricity in the purchased volume is 5.46%, which will increase in 2025 with the addition of in-house production from photovoltaic systems (PVs).

Monitoring natural gas consumption

Natural gas is used for heating all buildings.

MEGA through its own processes and in compliance with legislative requirements, strictly monitors the impacts of its business activities. The company, in collaboration with business partners, annually remediates and revitalizes numerous sites, creating new green zones that also contribute to biodiversity.

MEGA places significant emphasis on the safe handling of substances that, in the event of a spill, could threaten soil or groundwater and surface water. Whenever technologically feasible, substances with lower environmental and health impacts are chosen.

Environmental impacts are regularly evaluated by MEGA within the framework of its established environmental management system certified under ČSN EN ISO 14001. Chemical substances are primarily assessed with a focus on preventing major accidents through the occupational health and safety management system in accordance with ČSN ISO 45001.

Activities

At the same time, we regularly invest in the development and innovative applications for remediation work and water purification. In 2023, we allocated more than 3% of the company’s total revenue from our own resources to science and research. We apply the same approach within our supply chain in collaboration with our customers as we do in our own processes. Together, we address energy savings in paint shops, replace traditional VOC incineration with biofilters, and design efficient water management systems. Environmental goals for 2023 included replacing binders containing SVHC substances and transitioning from solvent-based topcoats to a new generation with a lower environmental impact.

MEGA has implemented an Emergency Plan, operational rules, and other internal guidelines to minimize the impacts of extraordinary events.

In 2023, MEGA completed the restoration of 4,500 m² of green areas, planted 156 trees (113 fruit trees and 39 deciduous trees), and installed technologies that enabled the utilization of 66,000 m³ of raw materials and returned 1.6 million m³ of water back into the process.

Data - water consumption

direction	type	unit	2023
abstracted	drinking water	m3 / year	6579
discharged	sewage water*	m3 / year	2642
	industrial water**	m3 / year	3937

*Sewage water is discharged to the treatment plant of a contractual partner in the industrial zone. **Industrial water, after treatment at the neutralization station, is discharged into the Ploučnice watercourse in compliance with the Wastewater Discharge Permit.

Environmental commitments

MEGA is committed to reducing not only water and energy consumption but also the use of chemicals and the production of manufacturing waste destined for landfills. The goal is to reduce landfill waste by 12 tons by 2028 compared to 2023. MEGA will maintain reclamation and remediation efforts at 100% of the volume achieved during the 2019–2023 period through 2028.

By 2029, MEGA will plant 600 trees and restore 15,000 m² of green areas.

MEGA views the circular economy as a path to reducing environmental impacts and managing resources responsibly. A sustainable approach to resource and material utilization is embedded in MEGA’s Mission. The goal of nearly all activities is environmental protection through the application of the circular economy. This sustainable approach is further reflected in the Strategy 24+.

Scale of waste levels

1. Waste prevention
2. Reuse
3. Recycling
4. Energy recovery
5. Landfilling

Activities

MEGA consistently checks the handling of waste generated by its own activities. MEGA strives to prevent waste and maximise the use of raw material resources. If waste is generated, material and energy recovery always takes precedence over landfilling.

An example is the project for the reuse of selected IBCs (intermediate bulk containers), which MEGA will hand over to the facility operator, who will clean them and prepare them for reuse. Once produced, IBCs can then be reused for their original purpose. Another example is packaging-free deliveries, where the original deliveries in IBCs are replaced by tanker deliveries.

MEGA aims to use raw materials efficiently, use recycled materials and increase the share of renewable resources. The company improves efficiency in energy management and prepares production processes for the use of alternative resources and the use of internal circulation. The company's business focus helps to reduce the consumption of natural resources and input materials not only in its supply chain.

The environmental policies and processes at MEGA and MemBrain are repeatedly certified by TÜV SÜD CZECH, based on monitoring and implementing legislative requirements. Another key document reflecting the company's environmental commitment is the Decarbonization Plan 24+.

Environmental commitments

By 2028, MEGA will introduce customer applications that will enable the return of up to 6.4 million m³ of raw materials back into processes. The company has also set a goal to gradually reduce water consumption from the SČVK supply system by up to 50% by 2033.

MEGA

Projects to promote energy-saving

• Replacement of lighting in production halls: Reduction of installed power consumption by 62.83%, equivalent to 74,950 kWh/year or 32.23 t CO₂/year.
• Energy audit: The company's goal is to reduce the energy consumption of buildings and products. To achieve this, an energy audit was commissioned in accordance with Act No. 406/2000 Coll.
• Commissioning of a PV system with an installed capacity of 99.9 kWp: In line with Strategy 24+ and the Decarbonization Plan, MEGA has begun constructing a photovoltaic system on the roof of its production hall in Stráž pod Ralskem. The electricity generated will be fully utilized by production operations, increasing the share of clean energy to 15%.
• Replacement of office lighting: Reduction of installed power consumption by 58.14%, equivalent to 29,667 kWh/year or 12.76 t CO₂/year. MEGA first installed energy-saving LED lights for outdoor lighting in the production facility and later in the production halls in Stráž pod Ralskem as early as 2023.
• DKV Card Climate Project: We partially offset fuel emissions amounting to 9.64 t CO₂ through the DKV Card Climate project, monitored by the nonprofit organization myclimate Deutschland GmbH.

The company is engaged in improving its processes in the field of energy within the framework of the established environmental management system according to ČSN EN ISO 14001.

Greenhouse Gas Emissions

Scope 1, 2, 3 emissions and total greenhouse gas emissions

According to the GHG Protocol (Greenhouse Gas Protocol – Corporate Accounting and Reporting Standard), greenhouse gas emissions are reported in three main categories as the total carbon footprint for the year.

Certification related to the carbon footprint is issued by the certification authority CI2. The environmental management system is regularly certified by TÜV SÜD Czech.

The baseline for calculations is data collected in the environmental data management system. This sustainability report includes emissions for MEGA, MEGA-TEC, and MemBrain. The carbon footprint is measured in tons of CO₂ equivalent (CO₂ eq.). This means the reported values also account for other greenhouse gas emissions, such as methane (CH₄), nitrous oxide (NO₂), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF₆).

Scope 3 covers other indirect greenhouse gas emissions resulting from MEGA's activities. The company reports CO2 emissions in six of the total fifteen Scope 3 categories. Scope 3 accounts for 90% of all emissions.

Based on these calculations, approximately 76% of all Scope 3 emissions fall under the "purchased goods and services" category, waste disposal accounts for nearly 11%, and 3% is included in the "use phase" emissions category (using the "well-to-wheel" methodology).