KMG Chemicals is committed to excellence in environmental, health and safety performance. We take pride in being a welcome corporate citizen and making a positive difference in the communities in which we operate. We are guided by an unwavering focus on the safety of our employees and customers, an adherence to environmental stewardship and a respect for the communities in which we operate.
Our Sustainability-related efforts encompass three main focus areas: Safety, Energy Efficiency and Environmental Footprint. In each of these areas, we analyze and measure our performance annually against a baseline (our fiscal 2014 year) and have set a target goal for performance (our fiscal 2018 year). These are the results based on our five year goals.
Since developing our baseline goals in 2011 KMG Chemicals has divested in some areas and expanded in other areas. The large acquisition of the OM Group’s Ultra Pure Chemicals business in 2013 caused us to reset our baseline year from 2011 to 2014 to account for the large difference in metrics.
As we continue to grow there are still many changes within our company but have kept fiscal 2014 as our baseline. In fiscal 2015, KMG closed its Fremont, California site and consolidated its operations into other sites. In fiscal 2016 and 2017, KMG Chemicals acquired additional sites in the United States and Canada. Both the divestitures and acquisitions had an impact on KMG Chemicals’ environmental, health, safety, and sustainability performance. Our journey the last five years has given insight into where we need to focus our efforts for the future.
We measure our safety performance using protocols developed by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA). In the chart below, we summarize our safety performance in terms of recordable injuries and illnesses per 200,000 employee work hours. In fiscal 2018, we recorded 1.19 injuries/illnesses per 200,000 employee work hours reflecting ten recordable events.
As KMG Chemicals develops a larger global presence, all our sites are constantly striving to improve their safety performance to become a world-class leader in safety.
We focus on materials and energy conservation through the careful management of the environment and of our natural resources. Each year, we set specific objectives to lower our power usage per pound of product produced and to reduce our waste generation versus an established baseline.
By fiscal 2018, our aim was to achieve a 5% increase in product produced per unit of energy (including electricity and natural gas) consumed. For electricity consumption, this means producing 5% more kilograms of product per kilowatt hour consumed. For natural gas consumption, this means producing 5% more kilograms per cubic meter of natural gas consumed.
Energy Efficiency — Electricity
Electricity energy efficiency increased in fiscal 2018, as we produced 4.95 kg of material per kWh of electricity used compared to 4.04 kg of material produced per kWh of electricity used in fiscal 2017. We have exceeded our goal by 34%. This means we are producing 41% more kilograms of product per kilowatt hour consumed compared to our 2014 baseline. KMG facilities continue to research and invest in energy efficient projects to improve our energy efficiency.
Energy Efficiency —Natural Gas
Our natural gas efficiency increased in fiscal 2018, producing 57.42 kg of material per cubic meter of natural gas vs. our target of 53.76 kg. This means we exceeded our goal by 7% and produced 6.22 more kg of material per cubic meter of natural gas than in our baseline year. This is a metric that is greatly influenced by temperature at many of our sites with gas being used for heating of the occupied spaces and to prevent freezing of pipes.
Our Environmental Footprint initiatives encompass three main focus areas: 1) greenhouse gas emissions; 2) water consumption; and 3) waste reduction through recycling and reuse. We are also engaged in the implementation of Environmental, Health, Quality, Safety and Security policies at all our locations.
Greenhouse Gas Emissions
Our greenhouse gas (GHG) emissions increased in fiscal 2018 compared to our baseline level in 2014. Specifically, KMG generated 20,490 tons of carbon dioxide (CO2) equivalent in fiscal 2018, up from 16,413 tons of CO2 equivalent in fiscal 2014. The increase in GHG emissions in fiscal 2018 is due to ramping up production at several of our site, especially overseas. We continue to strive for reduction as we expand our operations and add production facilities.
We measure our water utilization in terms of kg of material produced per cubic meter of water consumed.
In fiscal 2018, our water utilization efficiency increased by 28% vs. our base year fiscal 2014, as we produced 544.1 kg of material/cubic meter of water vs. 426.74 kg of material/cubic meter of water in fiscal 2014. While our manufacturing operations are not strongly influenced by water usage we have been able to increase the efficiency of what we do use.
As a result of our recycling and reuse efforts, our operations produce little waste. In fact, KMG generated 0.0218 kg of waste per kg of material produced in fiscal 2018. This is a decrease from our 2014 generation of 0.0239 kg of waste per kg of material produced and our sites continue to search for outlets to recycle and reuse. We met and exceeded this goal by reducing it 9% from our 2014 baseline.