Industry Focus

CBAM has entered the pilot phase this October.
The affected business owners are required to preparecarbon emission data for Q4 calculating from
October 1 onwards. This transition period doesn’t
require the owners to pay for the amount of carbon
emission exceeding the quota. The first year of the pilot
phase allows the owners to use in their submitted data
the default value or verification regulations applicable tothe manufacturing countries. CBAM comes into force
starting 2026, and from then on, products exceeding
EU’s carbon emission threshold and entering the EU
market will be subject to a carbon tax.
According to the Commission, EU importers ofaffected products must submit data on the greenhousegases generated from the entire manufacturing process.
The first report will have to be submitted by January
31 next year on a quarterly submission basis. From
October 1, an online registration platform which EU
sets up for the transition period goes live, throughwhich the importers can make calculations and write
emission reports. The Commission will provide detailed
guidelines, instructions, and online training resources.
Taiwan exports up to 75% of its fastener production and in
2022 it translated to NTD 200 billion export value, of which
25% was exported to Europe. Taiwan Ministry of Economic
Affairs (MOEA) estimates as many as 3,500 manufacturers
and traders in Taiwan to take the impact of CBAM, and oneof the potentially affected groups is the fastener industry
having a total of about 1,860 fastener companies. Fastenerowners prioritizing their export target to Europe will bear
the brunt. The American and European fastener owners
along with a few in Japan have gone ahead collecting
data and implementing measures for cardon reduction.
So how much have they deducted from their carbon
emission? What measures did they take that have beenverified to be of reference to us? What are their carbon
reduction targets? Referencing their experience, thisarticle aims to help readers get into the basics of carbon
emission data and encourage business owners to thinkup ways to reduce carbon.
● This article will narrow down to two topics—
carbon emission statistics and carbon reduction
measures.
For the former topic, I will select American, European,
Japanese and Indian listed companies with weight in thefastener industry, and extract carbon emission data fromtheir ESG reports into separate tables to help readers
understand their respective carbon emission volume andtarget setting. These tables include Scope 1 (direct emission
from a company’s own manufacturing process, facilities
and use of transportation vehicles), Scope 2 (indirectemission from a company's purchased energy sources),

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Fastener World no.203/2023 惠達雜誌

Fastener World Exclusive!

Global Fastener
Leaders,
Their Carbon
Reduction
Volume and Progress
Scope 3 (all indirect emission from a company throughout the external
supply chain, including the emission from business trips and within productlifecycles), as well as the sum of carbon emission.
For the latter topic, I will lay out their respective carbon reduction
measures. The common ones include producing green power, planting trees,
installing solar panels, and I will repeat those here. Rather, ways that are
unique to their characteristics will be picked out for readers to brainstorm
and encourage discussion for more creative solutions.

USA＼ Ground-breaking ！ ／■ Fastener Distribution Provider
The Fastenal Way：
Fastenal Emission
Unit:
Metric Ton
2021
CO2e
Scope 1 132,030
Scope 2
51,117
Sum
183,147

2022

Change(%)

Target137,41050,182
187,592

+4.0
-1.8
+2.4

Scope 2 carbon
intensity down 5%
by 2025. Net zero
emission by 2050.

• Using geographic information systems (GIS) to map out the mostefficient truck routes. Analyzing departure and arrival schedules
to minimize delays caused by traffic in metro areas.
• Optimizing load configuration to minimize non-utilized capacity.
• Back-hauling freight from suppliers and also customers through thirdparty logistics service to minimize one-way or “deadhead” loads.
• Using telematics to monitor speed and, in turn, improve fuelefficiency as well as safety.
• Operating a RAM half-ton pickup that was fully converted from aninternal combustion engine to electric power. Continuing to test andconvert vehicles.
• High-density automated storage and retrieval systems (ASRS)
equipped with conveyors and robotic cranes to increase throughput
while optimizing space in distribution centers.
• Rolling out “sharing space”. Using available space within thecustomer’s facilities to provide dedicated staff and inventory
for their operations. Consuming minimal additional energy andproducing fewer additional emissions.
• Discontinuing the use of plastic shopping bags in public branches.
Offering reusable tote bags or paper bags as alternatives.

Industry Focus＼ Creative R&D capability ！ ／■ World’s 3rd Largest Aluminum Manufacturer
The Alcoa Way:
Alcoa Emission
Unit: Metric Ton
CO2e

2018

Scope 1

17,500,000

17,700,000 18,500,000 17,400,000 16,800,000-3.4

Scope 26,700,000

6,600,000

4,000,000-9.0

24,200,000 24,300,000 23,900,000 21,800,000 20,800,000

-4.5

Sum

2019

2020

2021

5,400,000

2022

4,400,000• Rolling out ELYSIS™ to eliminate GHGs generated in the
traditional smelting process and emit pure oxygen. Available from2024 with commercial metal available approximately two years later.
• Rolling out EcoLum™ aluminum, including wire rods, non-alloy highpurity aluminum and P1020 aluminum. Three times lower carbon
intensity than the industry average.
• Rolling out the world’s one and only EcoSource™ Aluminum oxidewith carbon intensity below the global industry average.

2022/2021
Change (%)

TargetNet zero by 2050. Scope 1 and2 emission down 30% by 2025.
Down 50% by 2030 (compared to2015).

• Rolling out EcoDura™ aluminum containing 50% recycledmaterials.
• Currently, there is no technology available to process postconsumer scrap into a quality comparable with primary aluminum.
To address this gap, Alcoa is developing ASTRAEA™ to extract
aluminum from non-ferrous metal alloys and turn millions of tonsof scrap waste into high purity aluminum, which can be applied to
the EV, aerospace and defense industries.

■ Precision Engineering Product (Fasteners and Parts) Manufacturer
The TriMas Way:
TriMas Emission
Unit: Metric
Ton CO2e

2019

2020

2021

2022

2022/2021
Change (%)

TargetScope1+ 2

86,49385,29383,02382,096-1.1

Scope 2 emission estimated todecrease 92.7 tons CO2e by 2023.

• Natural gas is the preferred fuel source and is used wherever practical.
• Low-NOx combustion technology is considered when acquiring new
equipment. TriMas Aerospace facilities use regenerative thermaloxidation technology to reduce VOC emissions from its surface
coating operations by more than 95%.
• Replacing existing lighting with LED lighting.
• Converting TriMas Packaging injection molding machines to a “zerowaste” process, in which the excess plastic from the mold runner isreturned to the material feed system.

• Using 3-D printing to produce applicable tooling components
rather than the conventional machining method, eliminating
the waste removed from the feedstock.
• Converting to reusable containers for transporting products
to customers rather than single-use cardboard boxes.
• Reducing energy consumption by establishing machine
idling and leak tracking programs and processes. Lowering
temperatures of certain processes.
• Training employees on energy-saving behaviors and sharing
best practices across the organization.

■ Industrial Product (Fasteners Included) Distributor
The MSC Way:MSC Industrial Supply
Emission
Unit: Metric Ton
CO2e

2021

Scope 1 + 2

14,468• In the past six years, MSC saved 700,000 hours of machine hours, equivalent to more than 100
million kilowatt hours.
• Helping customers reduce consumption by approximately 1.8 million product units and reduced
packaging waste by more than 300 million cubic inches of waste, equivalent of filling nine
blimps.
• Recycling 3,320 pounds of corrugated cardboard, paper, plastic, glass, e-waste, scrap, metal andpallets, as well as more than 76,000 pounds of computers, printers, fax machines and phones.
• Rolling out vending recycling program. Refurbishing and shipping 587 vending units.

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Fastener World no.203/2023 惠達雜誌Industry Focus
Further Reading: Dive into MSC’s ESG Council Formed in 2021
• The council is led by Steering Sponsors, Executive Vice President & Chief Financial
Officer, and General Counsel & Corporate Secretary.
• The council is composed of six overseeing multiple project teams, additional businessexecutives and a variety of subject matter experts.
• Each captain is a leader with functional expertise and influence within the organization
who has been selected to lead ESG actors within their designated workstreams.
• This guiding body is deliberately cross-functional to avoid sibs and ensure enterprisewide collaboration and alignment.

■ MRO Product (Including Fasteners) Provider
The Grainger Way:
Grainger Emission
Unit: Metric
Ton CO2e

2020

2021

2022

2022/2021
Change (%)

Target-7.0

Scope 1 and 2 emission down
30% by 2030 (compared to2018). 26% reduction alreadyachieved since 2018 with atarget completion rate of 87%.

Scope 1 + 2 103,000 99,000 92,000

Rolling out KeepStock® inventorymanagement solutions to help customers
use inventory analysis and SKU and cost
reduction to minimize excess inventory,
number of orders and transportation needed
while optimizing space usage, reducing
environmental footprint.

■ Building Material, Anchor and Fastener Manufacturer
The Simpson Manufacturing Way:
Simpson Manufacturing Emission
Unit:
Metric Ton
CO2e

2021

2022

2022/2021
Change (%)

Scope 1

4,150

6,971

+67.9

Scope 2

15,36011,422-25.6

Sum19,51018,393-5.7

Rolling out solutions that help improve the resilience of homes and buildings
to disasters. Products include structural connectors, anchors and fasteners to keep
structures safe and strong, ensuring structures remain intact and usable after certain
disasters and mitigating economic, environmental and community impact.
The H1A Hurricane Tie provides a connection between the rafter and the wall thathelps the structure resist wind and seismic forces.

＼ Visionary ！ ／■ Steel Product and Fastener Manufacturer
The Nucor Way:
Nucor Emission• Investing in a start-up company – NuScale
Power – which is working to develop the next
generation of nuclear power – small modular
nuclear reactors.

Unit: Metric
Ton CO2e

2021

2022

Change (%)

Scope 1

7,100,000

6,500,000-8.4• Investing in Electra to develop a process to
produce carbon-free iron.

Scope 25,700,000

5,000,000-12.2

Scope 37,300,000

8,800,000+20.5

20,100,000 20,300,000

+0.9

Sum

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Fastener World no.203/2023 惠達雜誌

TargetScope 1 and 2 emission
down 35% by 2030
(compared to 2015).

Industry Focus

Europe■ Fastener, Logistics, Assembly Service Provider
The Bossard Way:❗
• Increasing the recycled content of cardboard to
Bossard Emission

Unit: Metric Ton
CO2e

2021

Scope 1

2,421

Scope 2

3,458

Sum

5,879

at least 86 percent across all sizes and the content ofregranulated raw materials to almost 100 percent for the
new flat bags, more than 1.1 tons of CO2 can be saved
per year. This switch was even cost-neutral.

TargetDevelop new materials forfastening products.

• Considering changes in stretch films and filling paper
to be able to reduce even more carbon emission.

＼ Innovative with R&D Capability ！ ／■ Fastener and Parts Trader
The Würth Way:• Developing 3D printing filaments made of recyclable carbon fibers
or plastic to transform the recycled material obtained as waste fromthe customer into functional 3D printing filaments ready for market.
Developing a successful circular economy model in the field ofadditive manufacturing.
• Implementing “material passport” to ensure that product data
management remains transparent. This passport contains important
information about the material with regard to social and technicalcompliance, such as the material composition or compliance withenvironmental regulations. To create a material passport, it isnecessary to disclose the product components and their material
properties up and down the supply chain. The material properties canbe verified using indicators such as origin, toxicity of constituents,and share of recycled materials.

Würth Emission
Unit:
MetricTon CO2e

2020

Sum

313,477

2021

2022

322,002 320,282

2022/2021
Change (%)-0.5■ Industrial Fastener Manufacturer and Distributor
The Trifast Way:
Trifast Emission
Unit: Metric
Ton CO2e

2022

2023

Change (%)

Scope 1

1,723.20

1,963.65+13.9

Scope 24,251.46

3,942.73-7.2

Scope 3324.61

256.91-20.8

Sum6,299.27

6,163.29-2.1

TargetScope 1 and 2 emission down 67.2% by2035 (compared to 2019). Currently down
4.2% annually. 26.79% reduction alreadyachieved since 2019.

• Working with leading automotive manufacturers in developing new products that are lighter, critically safe, and environmentally friendly.
• Using Footprint Manager, a software by Carbon Trust.
• Prioritizing the use of manufacturing processes creating low waste, which include cold forming. Recovering, filtering andreusing lubricants extensively within the manufacturing processes. Where possible, reusing bins, spools and packaging.
• Supplying fastenings in reusable plastic totes to many customers to reduce waste generation.
• Introducing the supplier sustainable sourcing & procurement charter and further developing the quality and sustainability
agreement. Requesting that all potential key suppliers complete a supplier sustainability questionnaire to ensure that their ESG
practices meet the expected standards.

306

Fastener World no.203/2023 惠達雜誌Industry Focus■ Mechanical Fasteners and Precision Parts Manufacturer
The SFS Way:SFS Group Emission
Unit:
Metric Ton
CO2e

2020

2021

2022

2022/2021
Change (%)

Scope 1

19,742

29,68027,166-8.4

Scope 285,08087,201

67,834-22.2

Scope 3

192,071

411,417 620,185+50.7

296,893 528,298 715,185

+35.3

Sum

TargetScope 1 and 2 emission
down 90% by 2030. Scope
3 down 90% or less by
2040. 48.4% reduction
already achieved since 2021
(compared to 2020).

Tool handles made of renewable raw materials:
SFS worked with material suppliers and plastic
injection molders to find ways of replacing the
ABS plastic in tool handles with biopolymers.

■ Mechanical Connector Manufacturer
The Norma Way:
Norma Emission
Unit:
Metric Ton
CO2e

2021

2022

Change (%)

Scope 1

5,678

4,645

-18.1

Scope 2

37,771

234

-99.3

Sum

43,449

4,879

-88.7

Developing new products such as quick connectors
and thermal management systems to tackle thechallenges faced by clients such as weight reduction andlack of space, contributing to e-mobility.

TargetScope 1 and 2 emission
down 19.5% by 2024
(compared to 2017).

■ Rail Fastening Component Manufacturer
The Vossloh Way:• Vossloh Fastening Systems operates with 25 percent greater
energy efficiency than before by modernizing the washingplant for rail clamps with smaller and lower-temperature baths.

Vossloh Emission• Providing financial support for employees to purchase ane-bike for their commute to work.
• Offering Cellentic components and rail fastening systems
with a high plastic content that dampen structure-borne
noise.

Unit: Metric
Ton CO2e

2021

2022

Change (%)

Scope 1

19,655.1

27,829.4+41.5

Scope 2

15,935.6

28,937.9+81.5

35,590.70 56,767.30

+59.5

Sum

TargetCarbonneutral by
2030.

India
■ Automotive Part and Fastener Manufacturer
The Sundram Fasteners Way：
• Conversion of LPG fired sintering and continuous annealing
furnaces to electrical heated furnaces.

Sundram Fasteners Emission
Unit:
Metric Ton 2021
CO2e

2022

2023

2023/2022
Change (%)

16,492

Scope 1

16,006

12,874-21.9

Scope 275,749 115,248 129,453

+12.3

Sum

91,755 131,740 142,327+8.0

Target• Installing programmable temperature controllers in pit
annealing furnaces.

Carbon neutral
by 2045. Emission
down 25% by 2030.

• Increasing waste heat recovery and utilization rate in
furnaces.

• Improving furnace loading rate. An auto loading cell was fixed in the furnace.
The cell automatically opens the door and delivers products to the line. From an
output of 50%, the furnace output was raised above 60%.
• Introduction of battery-operated forklift instead of diesel forklift.

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Fastener World no.203/2023 惠達雜誌

• Replacing GI roof sheets with transparent Polycarbonate
sheets for maximum daylight utilization.
• Upgrading pumps with higher efficiency motors (IE4).
• Using brushless direct current motors which consume low
power due to lower frictional losses.

Industry Focus

Japan＼ Creative in Manufacturing Process Improvement ！ ／■ Screw, Assembly Machine, Inspection Equipment Manufacturer
The Nitto Seiko Way:
• Waste alkali accounts for approximately half of Nitto
Seiko's waste, thereby developing the "Waste alkali
recovery” equipment.

Nitto Seiko Emission
Unit:
MetricTon CO2e

2019

2020

2021

2021/2020
Change (%)

Target• Drying up the electroplating sludge to reduce weight andvolume.

Carbon neutral• Compressing the volume of waste plastics to 1/6 of theby 2050. Emission
original size, and reducing shipment to the RPF (solid
down 12% by 2025.
30,553 26,826 30,036+11.9
fuel recycled from waste plastics) processor from six
Down 30% by
times to once per year.
2030.
• Rolling out new self-clinching stud bolts to replace• Developing a running status detector to minimize idling in thewelded bolts. Introducing lightweight screw locking
threading process, increase productivity, and save energy.
machines to reduce power consumption.
Scope
1+2

■ Plastic Connector Manufacturer
The Nifco Way:
Nifco Emission
Unit: Metric
Ton CO2e

2021

2022

Change (%)

Scope 1

617

629.7

+2.0

Scope 2

17,591

19,160.8

+8.9

Sum

18,20819,790.5+8.6

P r ov i d i n g l i g h t we i g h t m a t e r i a l s a n d h i g h performance plastic products to reduce carbon
emission and tackle air pollution.

We can observe 3 characteristics from the We

Canary in a Coalmine— Asia Clawing
Its Way up to Catch up with the U.S. and Europe
We can observe 3 characteristics from the carbon reduction measures of the 16 iconic companies above. One, companies fallingunder the fastener product category put their focus on optimizing the “manufacturing process” (including threading, forming, heat
treatment, packaging), “logistics/transport”, “inventory”, and “customer service”, while steel, aluminum and wire rod companies
in the upper stream are locked on developing carbon-reducing material technology. Two, upstream material companies like Alcoa
and Nucor emit over 10 million tons of carbon, while fastener companies fall between several thousand tons to several hundred
thousand tons. Three, in my investigation of 43 listed companies from the U.S., Europe, Japan and India, I found that 13 companies(30% from the U.S. and Europe) release ESG reports annually. I could only find one Indian and two Japanese companies releasing
the reports online. It is an indication that those who have scientifically verified the effectiveness of their ESG measures are still
mostly European and American companies. ESG has yet to take the mainstream in Asia.
The EU and U.S. carbon taxes are coming up close and poised as a threat to Asian and Taiwanese fastener companies. Some
American and European companies have already done Category 1 and 2 a few years ago, and some of them are working on
Category 3. The fastener leaders in India and Japan have completed Category 1 and 2. As far as Taiwan is concerned, with its
one-of-a-kind inter-collaborative domestic supply chain, a mutually-beneficial approach could be for Taiwan Industrial Fasteners
Institute (TIFI) and Taiwan Fastener Trading Association (TFTA) to set up a "Shared Platform of Carbon Reduction Intelligence
and Technological R&D". This could be an online sharing platform or a physical forum, where Taiwanese fastener experts gather
to extract the technological essence of the aforementioned 16 iconic companies, brainstorm and refine into carbon reduction
technologies suitable for Taiwan. That is the way to catch up with the big trends around the world.

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Fastener World no.203/2023 惠達雜誌

Copyright owned by Fastener World / Article by Dean Tseng