NF8 Environmental footprint

Greenhouse gas emissions and energy

Sandvik is working to ensure that every individual site in the company has an action plan to increase energy efficiency and reduce greenhouse gas (GHG) emissions. Sandvik had more than 200 Environmental Improvement Projects (EIPs) underway in 2022, many related to reducing green house gas emissions and increasing circularity. The EIPs cover the topics considered most material for each business area/division/site. For instance, the Svedala site in Sweden increased its heating recovery to reuse excess heat from production processes. Improved insulation in buildings, LED lighting and solar rooftop panels are other examples of initiatives.

One of our 2030 sustainability goals is to halve our Scope 1 and Scope 2 GHG emissions compared to our baseline. In 2022, GHG emissions increased by 4 percent to 142 ktons CO₂e, mainly due to increased activity levels. We are still well in line with what is required to fulfill the 2030 goal.

In 2022, we did a Scope 3 greenhouse gas inventory, related to our application to the Science Based Targets initiative, in line with the GHG protocol. 2019 was selected the base year since it was considered to be the most recent representative year prior to the COVID–19 pandemic. Our main categories for emission are ‘Purchased goods and services’ and ‘Use of sold products’. Purchased goods and services is mainly driven by procurement of steel and cemented carbide. Use of sold products, such as mining and rock processing equipment, was calculated based on the life expectancy of the products. The emissions are related to fuel consumption, such as diesel, and electricity usage was included for battery-electric vehicles. Electricity usage was calculated based on emission factors per country.

Energy by energy source

The difference between local-based and market-based Scope 2 GHG emissions is mainly due to purchase of low GHG emission or renewable energy via Renewable Energy Certificates and/or Guarantees of Origin.

GHG emissions by business area (Scope 1 and 2)

Water

Water use is closely monitored and measures are taken to minimize consumption, including circulation of process and 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 limits.

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. All water withdrawn is released back to recipients after relevant treatment, (either in our own treatment facilities, or in third-party treatment operations) or is recirculated and reused. Water withdrawal and discharges are conducted in a carefully controlled manner and subject to relevant permits.

Water and effluents

Waste

Use, reuse, recondition and recycle

Circularity is a material topic for Sandvik and we reuse and recycle to offset the use of raw materials and reduce waste. Our most significant waste input is various forms of metal raw materials as our products are refined products based on metal handling. A metal raw material can be melted down and used many times, without compromising quality, which creates favorable conditions for circular material handling. We strive to increase recycled material in our products.

We collect and sort waste metal from our production in order to reuse/recycle the material. We run buyback programs with our customers to collect and reuse the material in our production. We cooperate with external partners and waste service companies to find new ways to recycle our waste. Each location has the responsibility to ensure that third-party waste companies manage the waste in line with contractual and legislative obligations. All employees and contractors are responsible for correctly sorting and disposing waste.

Total waste increased by 60 percent to 422 ktons. The increase is mainly attributable to increased activity levels, improved waste reporting and decreased backfilling of tailings. With small exceptions, waste is treated off site.

In 2022, Sandvik implemented a new target for waste circularity, new definitions of waste and waste treatment and more detailed measurement and improvement plans. Reuse and recycling are defined as circular waste. When reporting our circularity rate, we exclude mainly tailings, digestion sludge and slag to disposal since it is believed that it’s not viable in the near term to take further measures to avoid sending these fractions to landfill. The waste circularity rate was 74 percent, compared to the 70 percent target for 2022. Our long-term target is to increase our waste circularity to 90 percent by 2030.

Total waste by business area