THE SHYFT GROUP'S 2022 SUSTAINABILITY REPORT IS NOW AVAILABLE ONLINELearn More
Environmental Stewardship is a fundamental value adopted by the Shyft Group, along with the core values of Sustainability, Health, and Safety. We strive to promote a safe, sustainable, healthy, and secure environment to protect our most important asset – our people.
To achieve our goals, we will:
When considering the impact of our Environmental Stewardship, we take a global approach to our operational footprint and the impact of our practices at each operating location and the combined impact across our operations in the U.S and Mexico. Each of the locations uses electricity, natural gas, and water and each produces non-hazardous waste. Certain locations generate hazardous waste in accordance with applicable regulations. Locations that emit volatile organic compounds (VOCs) from coating operations are permitted in accordance with local regulatory requirements.
In alignment with our approach to Environmental Stewardship and the principles of the 2˚ C initiative, The Shyft Group tracks electricity, natural gas and water use, waste generation and GHG emissions.
When reviewing our operations, we consider activities based on their actual or potential impact on the environment, specifically land, air, water, or a combination thereof. We assess the risk of each factor on a scale of 1–5, in three areas: severity; frequency of occurrence probability; and detectability. Specific actions are developed to minimize our risks to the environment.
Risk Priority Number (RPN) Ranking Reference
|5||Violation of regulation or permit, and severe damage to environment|
|4||Violation of regulation or permit and minimal harm to environment|
|3||Excessive release or excessive depletion of resources|
|2||Potential for containable release or restricted to indoors|
|1||Minimal or no environmental impact|
|5||Continuously, constant, or at least once a day|
|4||At least once a week|
|3||At least once a month|
|2||At least yearly but less than monthly|
|1||Less than yearly or unlikely to ever occur|
|5||Not noticeable or requires special instruments|
|4||Unlikely to be detected/detected through monthly tracking|
|3||Likely to be detected throughout day or shift|
|2||Able to be detected rapidly|
With the implementation of our sustainability program, our initial focus has been our operations in Bristol, Indiana and Charlotte, Michigan, which combined represent more than 50% of our environmental footprint based on square footage and more than 66% of our commercial activity by revenue. Baseline data was collected in 2020 and 2021 at these locations as we began tracking key performance indicators (KPIs) to monitor progress and improvement goals. Our remaining locations are collecting baseline data, with the goal of including this information in our KPI tracking in 2022.
For the in-scope business operations during 2020 and 2021 we used or generated the following data:
|KPI||2020 ACTUAL USAGE||2021 ACTUAL USAGE||2021 SALES ADJUSTED USAGE|
|Natural Gas (ccf)||494,691||512,389||333,391|
|GHG (MT – Scope 2)||6,459||7,483||4,869|
|Haz Waste (t)||40||66||43|
|Universal Waste (t)||11||6||13|
There were no major or minor environmental controversies, spills, or remediation actions required during 2021.
Upon establishing our baseline measures and KPIs, The Shyft Group has set the following goals toward the broader 2˚ C initiative. The Shyft Group, Inc. has set the following average minimum improvement targets, assessed on a rolling three-year basis, normalized for the production sales level at each location:
Performance against the targets will be tracked and reviewed on a rolling three-year average to assess the impact of environmentally focused process improvements and investment.
Comparing year over year performance for 2021 as compared to 2020, the first two of three years of our baseline measurement average, indicates a decrease, on a sales adjusted basis, in the use of electricity, natural gas, and water and in the generation of GHG. Our continued focus on process improvements and targeted investments drove this performance. We saw nominal increases, on a sales adjusted basis, in generated waste and an increase in VOCs, in each case with the opportunity for efficiency investments to influence future reductions.
As of year-end 2021, 193 countries, including the United States, have adopted the Paris Climate Agreement and 2˚ scenario. Consistent with our commitment to creating a more sustainable future, we continuously assess relevant climate related risks and opportunities, such as:
|Legal||Investment will be needed to meet new sustainability initiatives.||1–5 yrs.||New programs and policy changes will result from regulatory compliance changes. Investment in low carbon and carbon neutral alternatives to replace current carbon intensive processes.|
|Technology||Low carbon technology will need to be investigated as well as energy reduction initiatives accelerated.||1–5 yrs.||Advances in market-ready technology needs to be investigated for rapid deployment.|
|Impact to supplier chassis costs.||1–5 yrs.||Continue growing and developing our market EV product lines.|
|Market||Customers may be obligated to move to low carbon to carbon neutral products.||1–5 yrs.||Continue to support our customers’ needs for EV transition.|
|Reputation||Providing an EV alternative for customers and having readily available method to meet new regulatory guidelines can help achieve a market advantage over competitors.||Available now||Potential market growth.|
In 2021, The Shyft Group continued its investment in sustainability by investing $8.5 million in capital on sustainability initiatives, including the following improvements:
In addition, The Shyft Group invested $6.5 million in 2021 toward the development of our proprietary, purpose-built Class 3 EV chassis in support of our customers’ carbon neutral goals and our commitment to environmental stewardship.
The Shyft Group will ensure that our environmental policy remains appropriate to the nature, scale, and environmental impacts of our activities, products, and services, including commitments to pollution prevention. We are committed to continuously seeking to improve the operation of our facilities through the efficient use energy, the sustainable use of renewable resources, and a commitment to waste reduction, recycling, reducing water usage and carbon emissions, and implementing responsible waste disposal practices.