Materiality assessment
The 2022 Corporate Sustainability Reporting Directive (CSRD) requires companies to report their impact on various aspects of sustainability as well as the financial consequence of their impact. Sandvik initiated a double materiality assessment to determine material topics. The impact materiality assessment was done to be compliant with the GRI (Global Reporting Initiative) materiality assessment. We will continue to develop the process and aim to include a complete double materiality assessment in the 2024 Annual Report.
Sandvik based its materiality assessment on the topics included in the CSRD. The topics were evaluated from a severity and likelihood perspective, based on a stakeholder engagement process and external input. The stakeholders identified were ESG (Environment, Social, Governance) experts in our organization, suppliers, shareholders/investors, customers and NGOs. The stakeholder process included workshops and interviews.
The assessment was also based on external reports, legislation and frameworks. These included the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, the OECD Due Diligence Guidance for Responsible Mineral Supply Chains and supplier risk screening through EcoVadis. Based on the gathered input, a threshold value for the topics was defined, above which the topics were deemed material and as such a basis for our GRI reporting.
Sandvik has a diversity of interactions across the value chain: suppliers, customers, our own operations and interactions related to the end-of-life process. Our supply chain and geographical footprint are examples of factors that affect the value chain and our impacts, risks and opportunities. Sandvik can have a positive or negative impact on the value chain. Our electric and autonomous mining equipment as well as our digital solutions that improve productivity and reduce energy usage and waste, are examples of a positive impact. Diesel-driven mining equipment generating greenhouse gas emissions (GHG) is an example of a negative impact. Raw materials for the manufacturing of products represent the main negative impacts, both potential and actual, in our supply chain.
The process of extracting and refining raw materials is linked to a number of potential impacts and risks: child labor, pollution of land, soil, water and air, perilous working conditions, hazardous workplaces, exposure to hazardous chemicals, conflict and disputes in local communities and GHG emissions. Some of these are related to specific raw materials, such as conflict minerals and cobalt.
Material topics
- Anti-bribery and anti-corruption
- Business ethics governance
- Climate related opportunities (downstream)
- Diversity, equity and inclusion
- Employment and labor relations
- Employee health and safety
- Energy consumption
- Equal opportunities
- Human rights
- Materials sourcing
- Opportunities within resource use and circular economy
- Reduction of GHG emissions
- Scope 3 emissions
- Waste management
A topic is material if the company has an actual or potential significant impact on people or the environment connected to the topic. A topic is also material if it triggers financial effects on the company that are likely to influence its future cash flow. Changes in material topics from last year includes addition of Materials sourcing.
Minimizing
negative impacts
Strengthening
positive impacts
Raw materials
Industry innovation. We aim to have a fully electric underground offering by 2030 and a 90 percent electric mobile crushing offering by 2025. Already today we provide fully electrified stationary crushing equipment and trucks. Powder-based net-shape technologies like additive manufacturing make it possible to merge several components into one – reducing assembly steps and thereby energy consumption. Additive manufacturing also reduces waste and often minimizes the use of cutting lubricants and cleaning fluids.
Industry innovation, Responsible consumption and production. Sandvik has developed a process to separate tungsten inserts from the steel body of drill bits and we buy back the used drills for separation and recycling. The need for virgin material, transports and GHG emissions are reduced, as well as the supply chain risk. The separation process can be made locally, creating job opportunities.
Logistics
Suppliers
Good health and well-being. Our battery-electric underground offering reduces heat and emissions underground, improving the working conditions while helping mining customers reach their sustainability targets and reduce ventilation costs. Health and well-being programs are in place at Sandvik locations.
Decent work. One of our long-term sustainability goals is zero harm to people. Our mining automation solutions increase the possibility to work remotely, leading to a safer and healthier workplace.
Climate action. Sandvik submitted targets for validation to the Science Based Targets initiative in 2022, committing to net zero emissions by 2050 at the latest. We encourage our suppliers to set targets in line with the Paris Agreement through our Supplier Code of Conduct.
Decent work. The Sandvik Apprenticeship program has invested in the development of technical skills for trackless mining in the Southern Africa region for the past 22 years. Through the Sandvik Southern Africa Academy in South Africa, more than 1,000 apprentices are being trained towards a mining equipment trade in Zambia, Botswana, Zimbabwe, Tanzania and South Africa. In 2022, 29 percent of the participants in the apprenticeship program and 50 percent of the internship program were women, respectively.
Own operations
Good health and well-being. Our battery-electric underground offering reduces heat and emissions underground, improving the working conditions while helping mining customers reach their sustainability targets and reduce ventilation costs. Health and well-being programs are in place at Sandvik locations.
Clean energy. We have signed agreements to purchase fossil-free energy in a number of markets and we purchase clean energy for all our European sites. Renewable energy production on our own sites keeps on increasing and we run a large number of Environmental Improvement Projects.
Decent work. One of our long-term sustainability goals is zero harm to people. Our mining automation solutions increase the possibility to work remotely, leading to a safer and healthier workplace.
Industry innovation. We aim to have a fully electric underground offering by 2030 and a 90 percent electric mobile crushing offering by 2025. Already today we provide fully electrified stationary crushing equipment and trucks. Powder-based net-shape technologies like additive manufacturing make it possible to merge several components into one – reducing assembly steps and thereby energy consumption. Additive manufacturing also reduces waste and often minimizes the use of cutting lubricants and cleaning fluids.
Industry innovation, Responsible consumption and production. Sandvik has developed a process to separate tungsten inserts from the steel body of drill bits and we buy back the used drills for separation and recycling. The need for virgin material, transports and GHG emissions are reduced, as well as the supply chain risk. The separation process can be made locally, creating job opportunities.
Industry innovation, Responsible consumption and production. Sandvik has developed a process to separate tungsten inserts from the steel body of drill bits and we buy back the used drills for separation and recycling. The need for virgin material, transports and GHG emissions are reduced, as well as the supply chain risk. The separation process can be made locally, creating job opportunities.
Responsible consumption and production. Waste circularity is a focus area within our 2030 targets. We continuously work to improve recycling and reuse at our sites. We have connected the heat recovery system in our manufacturing facility in Svedala to the site’s ventilation system and installed a process heating system to reuse excessive heat from production processes. In 2022, Walter started converting its product packaging to recycled plastic, so called PCR (Post Consumer Recycled), resulting in 95 percent secondary material in its packaging and reduced GHG emissions.
Climate action. Sandvik submitted targets for validation to the Science Based Targets initiative in 2022, committing to net zero emissions by 2050 at the latest. We encourage our suppliers to set targets in line with the Paris Agreement through our Supplier Code of Conduct.
Gender equality. We have set a goal that one third of our managers should be female by 2030. We partner with Female Leader Engineers and in 2022 we entered a strategic partnership with the International Women in Mining organization. In India, we encourage diversity and make it safer for women to work night shifts by, among other things, providing transportation to and from work. We offer daycare for employees’ children in India and Brazil.
Decent work. The Sandvik Apprenticeship program has invested in the development of technical skills for trackless mining in the Southern Africa region for the past 22 years. Through the Sandvik Southern Africa Academy in South Africa, more than 1,000 apprentices are being trained towards a mining equipment trade in Zambia, Botswana, Zimbabwe, Tanzania and South Africa. In 2022, 29 percent of the participants in the apprenticeship program and 50 percent of the internship program were women, respectively.
Use of sold products
Good health and well-being. Our battery-electric underground offering reduces heat and emissions underground, improving the working conditions while helping mining customers reach their sustainability targets and reduce ventilation costs. Health and well-being programs are in place at Sandvik locations.
Decent work. One of our long-term sustainability goals is zero harm to people. Our mining automation solutions increase the possibility to work remotely, leading to a safer and healthier workplace.
Industry innovation. We aim to have a fully electric underground offering by 2030 and a 90 percent electric mobile crushing offering by 2025. Already today we provide fully electrified stationary crushing equipment and trucks. Powder-based net-shape technologies like additive manufacturing make it possible to merge several components into one – reducing assembly steps and thereby energy consumption. Additive manufacturing also reduces waste and often minimizes the use of cutting lubricants and cleaning fluids.
Industry innovation, Responsible consumption and production. Sandvik has developed a process to separate tungsten inserts from the steel body of drill bits and we buy back the used drills for separation and recycling. The need for virgin material, transports and GHG emissions are reduced, as well as the supply chain risk. The separation process can be made locally, creating job opportunities.
Decent work. The Sandvik Apprenticeship program has invested in the development of technical skills for trackless mining in the Southern Africa region for the past 22 years. Through the Sandvik Southern Africa Academy in South Africa, more than 1,000 apprentices are being trained towards a mining equipment trade in Zambia, Botswana, Zimbabwe, Tanzania and South Africa. In 2022, 29 percent of the participants in the apprenticeship program and 50 percent of the internship program were women, respectively.
End of life / disposal
Industry innovation, Responsible consumption and production. Sandvik has developed a process to separate tungsten inserts from the steel body of drill bits and we buy back the used drills for separation and recycling. The need for virgin material, transports and GHG emissions are reduced, as well as the supply chain risk. The separation process can be made locally, creating job opportunities.
Responsible consumption and production. Waste circularity is a focus area within our 2030 targets. We continuously work to improve recycling and reuse at our sites. We have connected the heat recovery system in our manufacturing facility in Svedala to the site’s ventilation system and installed a process heating system to reuse excessive heat from production processes. In 2022, Walter started converting its product packaging to recycled plastic, so called PCR (Post Consumer Recycled), resulting in 95 percent secondary material in its packaging and reduced GHG emissions.
Climate action. Sandvik submitted targets for validation to the Science Based Targets initiative in 2022, committing to net zero emissions by 2050 at the latest. We encourage our suppliers to set targets in line with the Paris Agreement through our Supplier Code of Conduct.