NF9 Environmental footprint

Carbon and energy

Sandvik is working to ensure that every individual site in the company has an action plan to increase energy efficiency and reduce carbon dioxide emissions (CO₂). Sandvik had 88 environmental action plans underway in 2020, consisting of more than 260 individual actions. Heat exchange systems, improved insulation in buildings, LED lighting, and solar rooftop panels are some examples of initiatives. As a consequence of the economic slowdown and focus on cost control, as well as reduced work hours, many of these projects suffered delays and many were put on hold. Therefore, the reported outcome of these initiatives were close to zero for the year, and our reported reductions of carbon emission and energy use was essentially all attributable to the lower activity levels during the year.

For 2020, Sandvik had set a target to reduce its energy usage and CO₂ emissions, through environmental improvement actions, by 1.3 percent and 1.3 percent, respectively. The completed actions resulted in annual energy reductions of 0.2 percent and carbon emission reductions of 0.3 percent, during a year when many projects were either halted or severely delayed. Nevertheless, we managed to reduce total energy by nearly 13 percent and carbon emissions declined by more than 18 percent compared to the previous year. Since few projects were completed, it’s deemed that most of the reductions were attributed to the lower activity levels caused by the Covid-19 pandemic and, to some lesser extent, from projects completed in previous years.

Our main production sites in Europe have been buying electricity from low emission energy sources since 2013, resulting in a reduction of annual emissions by approximately 112,000 tons based on the 2020 outcome.

Energy by energy source

The main difference between our reported market-based and location-based emissions derives from the purchase of emission-free electricity for our European operations. In 2020, Sandvik used 974 GWh grid electricity in Europe. We sourced, and cancelled, Guarantees of Origin for the full amount of electricity used in our European operations during the year.

CO₂ emissions by business area

Other air emissions were calculated based on reported use of fossil fuel. In addition to the values reported in the table above, the steel mill operations generate an estimated 145 tons of NO_x and 31 tons of SO_x per year.

Water

About 90 percent of our manufacturing activities take place in areas where there is an abundance of water. Nonetheless, water use is closely monitored and many measures are taken to minimize consumption, including circulation of cooling water as a means to reduce the need for fresh water.

Sandvik’s emissions to water consist mainly of nitrogen compounds, oxygen-consuming substances and metals. All wastewater from production processes is treated before being released, to ensure that all discharges are below the acceptable limit.

Water and effluents

Sandvik does not use water in its products. In manufacturing operations, especially in hot environments, some water will inevitably transpire and evaporate. The evaporated volumes are insignificant in relation to production and water volumes. There are no steps in our manufacturing processes that would cause irreversible pollution to the water being used. All water withdrawn is released back to recipients after relevant treatment, either in our own treatment facilities or in third-party treatment operations. For the main manufacturing operations, water withdrawal and discharges are conducted in a carefully controlled manner and subject to relevant permits. No significant water incidents were reported.

Use, reuse, recondition and recycle

Circularity is a key aspect for Sandvik and we reuse and recycle to offset the use of raw materials and reduce waste. Total waste decreased by 2 percent. In 2020, 18 of Sandvik’s production-related sites reported a 100 percent waste recovery rate. Sandvik recycles both steel and cemented carbide.

Waste

The reportable waste disposal methods are defined based on the disposal codes from the EU regulation ‘Regulation (EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments of waste’. These definitions will be applied by our reporting entities. The determination of waste disposal method varies in the company but is mainly based on information from the waste disposal company.

Total waste by business area