Hexagon Annual Report 2019

60 2019 AT A GLANCE FROM THE BOARD ROOM FINANCIAL STATEMENTS Sustainability Report HEXAGON’S PRODUCTS PRODUCT SAFETY Hexagon’s products are used to transport and store highly flammable, pressurized gases making product safety a fundamental requirement. This is essential for our license to operate and is a key concern for Hexagon’s stakeholders. As a global leader within composite manufacturing, quality and operational excellence have always been at the forefront of how Hexagon works. Hexagon’s cylinders offer a better and safer alternative to steel cylinders. Hexagon’s LPG cylinders for example are resistant to Boiling Liquid Expanding Vapor Explosion (BLEVE) when engulfed in fire and are also fatigue and corrosion resistant. All of Hexagon’s products are tested and approved in accordance with established safety standards. To ensure continuous focus on quality Hexagon’s global production sites have well established quality management systems. Hexagon is also certified to a variety of industry specific standards. Hexagon expends significant manpower to ensure that safety standards are at their highest. Status and targets • 80% of Hexagon’s manufacturing facilities are ISO 9001 certified. • In 2020, Hexagon targets to have all its manufacturing facilities ISO 9001 certified. • Hexagon aims to report on relevant product safety statistics going forward. PRODUCT LIFETIME & END OF LIFE Hexagon strives for continued improvement of the performance and impact of its cylinders. Hexagon Ragasco conducted a life cycle assessment (LCA) of its LPG lightweight composite cylinders in 2014 together with the Norwegian University of Technology and Science (NTNU) and the Norwegian research institute SINTEF. This study has helped Hexagon better understand how its cylinders impact the environment from raw materials to disposal. In addition, the analysis has provided a comparative under- standing of conventional steel cylinders. The data was generated from Hexagon’s fully automated manufacturing facility in Raufoss, Norway, where approxi- mately 2 million cylinders are manufactured per year. The LCA looked at three phases related to the lifetime of the LPG cylinders: production, use and end of life. Production The results from the LCA analysis showed that the produc- tion phase has the largest impact on the environment, independent of the cylinder material (composite or steel). This is due to the consumption of raw materials that themselves have impacts. The LCA analysis showed that Hexagon Ragasco’s composite cylinders have a 30-50% lower global warming potential (GHG footprint) compared with steel. Use In the use phase the LCA also provided advantageous insights. Relative to steel cylinders, the composite cylinders are lighter and less costly to transport. Hexagon’s LPG cylinders have an average weight of 50% less than conven- tional steel LPG cylinders. Hexagon’s composite cylinders have, unlike steel cylinders, high corrosion resistance and do not have the same refurbishment needs over their 20-year lifetime. End of life The final stage of the LCA concluded that the end of life has a more negative environmental impact than steel. This is due to today’s limited recycling options. Based on these findings several ongoing strategic actions and research projects have been put in motion in order to find sustain- able technologies for end of life treatment. Please see section below about recycling.