Reporting principles

Report scope, boundary and calculation methods

The Group material aspects were decided in a materiality analysis by the Group Executive Management in 2016. The material aspects are reported in accordance with GRI Standards. In addition, Sandvik reports on emissions and energy. No significant changes of material topics or topic boundaries has occurred from previous reporting periods.

The sustainability information in the Annual Report refers to the 2019 fiscal year. See note 14 for a list of entities included in the figures, unless otherwise stated.

Human Resources Data

Employee statistics regarding the number of FTEs (Full Time Equivalents) is derived from the financial reporting system (BPC). We have revised our figures for the total number of employees (FTE) for the years 2014–2017 as we now report on continuous operations to be more aligned with financial reporting. All other employee statistics (age, turnover, new employees, part time/full time, gender, performance dialogues) are derived from the Group’s common HR system (Workday), which covers 98 percent of Sandvik employees. These figures are compiled annually. Sandvik does not have a significant portion of workers who are not employees.

Environment, Health and Safety (EHS) Data

EHS data is derived from our EHS reporting system in which reporting is conducted on a monthly basis for safety-related indicators and on a quarterly basis for the areas relating to environmental key figures. Supplementary data is collected and compiled outside of the EHS database once a year, and that data is thus subject to a higher level of uncertainty. These figures are rounded to a greater degree to manage this higher level of uncertainty. In the event of further limitations in the report, these are indicated in the text. The key figures compiled are based on information available at the date of the most recent year-end accounts, which may entail that historical figures have been adjusted. The Group’s results in relation to its objectives are measured using relevant performance indicators and key figures. The figures presented are the accumulated figures for 2019 for all active reporting units, unless otherwise stated. For the EHS data an operational control approach was used for consolidation. That means that all our locations are included in our numbers to 100 percent, also joint ventures where Sandvik has operational control. We are also present at some customer locations in our service-related business. In these cases we include data when data of our usage can be obtained.

The calculations of CO₂ emissions do not include CO₂ equivalents from other greenhouse gases in the reported fuel data. Calculations show that they constitute less than one percent of the total reported data. The conversion factors are uploaded in our EHS database where the calculation of all carbon emissions is performed. For the majority of the European sites, the emission factor for electricity is zero in the market-based approach, with reference to the purchase of certificates for carbon-free electricity.

Emissions to air is a combination of calculations of fossil fuel use and sample measurements from the steel mill. The emissions based on sample measurements have been constant since 2012. If the samples would indicate a significant change of emissions, the constants would be amended based on the new results. For NO_x, roughly a third of the reported volume comes from the steel production. More than 80 percent of SO₂ derives from the steel mill.

In the data presented for Water Discharged, the split of data per GRI Standard 303-4 has been performed by applying allocation keys, where such could be obtained from the locations. The allocation specified how the water withdrawal was discharged after use. An allocation key was requested from major production sites. Each of these sites have returned an estimated split of their discharge per the required split in the standard. Where no such split could be specified, the reported water withdrawal was all included as “discharged as fresh water to a third party”. For inclusion in the water-stress category, the major production sites were asked to verify in accordance with the definition as outlined in the GRI Standard 303 if they fulfill the criteria of a water stressed location. All water is deemed freshwater when drawn in to our production processes, which is why the category “other water” is not listed in the section for water withdrawal.

In the tables that illustrate reduction of energy, GHG emissions, water and waste, Environmental Improvement Actions was derived from what was registered at the end of the year from the sites that had committed to implement such actions and had stated that they were completed. The remaining difference between 2018 and 2019, whether positive or negative, are grouped and named Other impacts. Other impacts refers to other contributing factors such as those related to weather or production, as well as other items that have an impact but lie outside the control of the activities directly aiming to reduce environmental impact.

Worked hours is defined as exposure hours, which means all hours exposed to risk by employees, contractors and sub-contractors. The exposure hours are collected and entered into the EHS database on a monthly basis.

The reported data for occupational illnesses and frequency rates are part of our monthly reporting process. The term used in GRI called “high-consequence injury/illness” is incorporated in the key figures for Lost Time cases. In the past two years we have had one incident on record meeting the six months absence criteria. Our approach to mitigate these high severity incidents and illnesses is a key part of our management system and is handled within the processes for serious potential incidents, for example in our work with critical control management. The illness data is a more recent addition to the reporting than the injury data and therefore at a less mature stage. As a consequence, the level of uncertainty is deemed higher for the illness data. Illness is defined as an occurrence of physical or mental harm or disease that develops over time in the course of work not as the result of a single instantaneous event. Establishing that an illness is occupational can be a complicated process and could span over a long period of time. An illness must meet the criteria of “under Sandvik control” to be included in our data. The primary criterion for making this decision is: “could and/or should the Sandvik EHS Management System have realistically prevented this incident from occuring?”. Only if this is the case, the incident will be considered under Sandvik control and recorded as such.

The percentage of sites certified according to ISO 14001 and ISO 45001 or equivalent standards is based on the status of our major production-related companies. At year-end, 99 locations were asked to provide their certification status. Smaller locations can also choose to go for certification, but these are not included in the calculation. No previous certifications were abandoned compared to last year.