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Reduction instead of compensation - our new climate strategy

A contribution from Dr. Alexandra Kohlmann, Managing Director of ROWE

“CO₂-compensated” was yesterday. We at ROWE are now taking a new, better approach! Instead of offsetting emissions with certificates, we are focusing on real reduction. Why a clear commitment to climate protection is so important to me:

A clear commitment to greater responsibility

We have been seeing a global trend for years: companies are emphasizing their climate neutrality, flanked by green labels and certificates. However, the greater the pressure on markets, politics and society, the clearer it becomes: Many of these solutions are not sustainable, not verifiable and often simply not sufficient.

The consequence of this is obvious to me: we can no longer rely on offsetting, but must reduce emissions where they are produced. In our factories, our supply chain, our products.

For me, this decision is more than just a simple strategy update. It is an expression of my clear stance: responsibility cannot be outsourced!

Why offsetting is reaching its limits

At first glance, the idea behind carbon offsetting seems charming. Companies cause emissions and offset them by financing climate protection projects, usually in the form of certificates. However, many of these projects would have been implemented anyway. Others only store CO₂ temporarily, for example through reforestation or natural reservoirs, the effect of which cannot be guaranteed in the long term.

There is a growing awareness in the public debate, in the scientific community and increasingly among our customers that this type of compensation rarely has the desired effect. In my view, this has fatal consequences for our image, as the credibility of companies that hide behind such models is crumbling.

More transparency and reliability are needed

The European Union's new Green Claims Directive and the supplementary EmpCo Directive will prevent these vague statements in future. Terms such as “climate-neutral through offsetting” may no longer be used if there is no scientifically verifiable climate impact that can be checked over the entire product life cycle. And who can do that?

For me, the key to a credible commitment to climate protection therefore clearly lies in transparent, concrete and reliable statements. Away from promises or alibis, towards sustainable changes with a real and comprehensible impact. Emissions must be reduced where they are produced. Measurable, direct and long-term.

CO₂ reduction through concrete measures

We at ROWE have been pursuing a clear path to CO₂ reduction since 2020. We have already reduced our emissions by over 40 percent at our production sites in Worms and Bubenheim. And that's just the beginning! By 2030, we want to reduce our emissions in Scope 1 and 2 by at least 90%. Not through compensation payments, but through our own investments.

We have revised our energy concept. It is more comprehensive. It makes us more independent as a company. It was important to me that we combine technological innovation with the consistent use of renewable energies. We already cover 60% of our energy requirements at the Worms site with our own production. Since this year, we have also been sourcing up to 50% of our purchased electricity via direct power purchase agreements with certified producers. This makes us less dependent on fossil fuels and at the same time strengthens the resilience of our energy supply. In a time of increasingly volatile markets, I see this as a strategic advantage.

Thinking sustainably about product development

But we also have to think outside the box. Today, the majority of emissions are generated along the supply chain. That is why we specifically procure raw materials with a lower carbon footprint, optimize our purchasing decisions, work even more closely with suppliers and thus reduce our Scope 3 emissions. By 2030, we want to reduce the emissions of our purchased materials (Scope 3.1) by at least ten percent.

We are also going into depth with our products: we are developing lubricants with a lower product carbon footprint (PCF). We not only pay attention to composition, but also to origin and production. I believe that we need to think about sustainability from the outset when developing new products.

Why our customers benefit from this

For our customers, this strategy means one thing above all: more credibility. Our measures have a direct impact on our customers' supply chains. A reduced carbon footprint of our products automatically improves the carbon footprint of those who work with them. Companies that rely on ROWE products thus underpin their own emissions targets and at the same time gain more certainty with regard to new regulatory requirements.

What we no longer do and why this is important

We are consciously saying goodbye to the “CO₂-compensated” label. Offsetting via external projects ended on April 30, 2025, but over the next few months we will still be delivering a few products with the previous design that are already in the supply chain.

We are also dispensing with new, non-validated seals. Instead, we are focusing on digital transparency. In future, our measures and progress will be accessible via QR codes on the products. Direct, traceable and verifiable at any time.

Sustainability as a conscious business decision

This decision is no accident. It is part of our long-term development as a responsible, innovative industrial company.

In my view, sustainability also means remaining capable of investing, increasing our innovative strength and enhancing our resilience. Taking real climate protection measures today reduces future risks. Regulatory, social and economic.

Our claim: thought leadership in climate protection

For me, it is crucial that we don't just go along for the ride when it comes to climate protection, but that we take decisive action and show that we want to make a difference. At a time when many companies are retreating to minimum standards, it is very important to me that we set ourselves ambitious goals and tackle the mission of reducing CO₂ with determination and concrete measures. As a family business owner in the industry, I want to make an important contribution with this clear focus and set an example.

For the future, this means: we are taking responsibility. We are becoming measurable. In our products. In our communication. We reduce emissions where they occur. We are making our products more sustainable - along the entire value chain. Our communication must be clear, fact-based and comprehensible.

“Reduction instead of compensation” - this is not a short-term decision, but a long-term commitment. For our employees. For our customers and partners. For climate protection.

5/19/25

Author

Dr. Alexandra Kohlmann

About the person

Dr. Alexandra Kohlmann is Managing Director of the ROWE Group. After successfully completing her studies in technology and management-oriented business administration with a focus on controlling and human resources at the Technical University of Munich, she earned her doctorate on the topic of corporate succession in family businesses. She is also a certified systemic coach and change manager. In 2020, she received the special award "Successful Women in Small and Medium-Sized Businesses" from the state of Rhineland-Palatinate, and in 2022 she was named one of the top 50 female entrepreneurs in Germany and "Entrepreneur of the Year" in Rhineland-Palatinate by Handelsblatt. Alexandra Kohlmann is the daughter of company founder Michael Zehe and his successor as an entrepreneur.

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