NF8 Environmental footprint

Management systems

Each non-administrative Sandvik facility with more than 25 individuals is required to attain external ISO 14001 certification. At the end of 2024, about 80 percent of the established sites had this certification (recently commenced and acquired sites excluded).

Greenhouse gas emissions and energy

Sandvik is actively working to ensure that each individual site in the company has an action plan in place to enhance energy efficiency and reduce greenhouse gas (GHG) emissions.

In 2024, there were over 100 Environmental Improvement Projects (EIPs) in progress, with many focused on reducing GHG emissions and promoting circularity. These projects target the most material topics for each business area, division, or site. Initiatives such as improved insulation in buildings, implementation of LED lighting, switching to electric forklifts, and the installation of solar rooftop panels exemplify the ongoing efforts.

Our transition plan to net zero

Since 2023, our GHG reduction targets have been approved by the Science Based Targets initiative (SBTi), confirming their alignment with the latest climate science and adherence to the objectives of the Paris Climate Agreement. The baseline for our GHG emissions reduction targets is set at 2019, and our 2030 objectives include a 50 percent reduction in absolute Scope 1 and 2 (own operations respective heating and electricity) GHG emissions, along with a 30 percent reduction in absolute Scope 3 GHG emissions (customers, suppliers and transport).

We have a number of activities, so-called decarbonization levers, that support us in our transition plan towards net zero. In Scope 1, fuel switching and electrification of transportation and production processes are essential in order to reach our targets. For instance, diesel forklifts were replaced by electric forklifts at several sites during 2024, for example in Khanbogd (Mongolia), Balikpapan (Indonesia) and Suhjun (South Korea). Sites in Lahti (Finland) and Svedala (Sweden) continued to replace natural gas with biogas.

To reduce emissions in Scope 2, we build upon activities such as energy efficiency measures, roof-top solar panels and sourcing of fossil-free electricity. In 2024, our own renewable electricity production (roof-top solar panels) increased by 35 percent, compared to 2023.

Reductions in Scope 3 are enabled by our development of more sustainable solutions across all our industries, including electric mining equipment, energy-efficient rock processing solutions and productivity-enhancing manufacturing and machining solutions for optimized energy and resource efficiency.

During the year, we launched our new Sandvik LFP battery technology specially developed for underground mining environments. The battery was designed with sustainability in mind, reducing customers dependency on fossil fuels while improving efficiency.

Sourcing of low-carbon materials and circularity/ecodesign initiatives are other integral parts of our transition. In 2024, we launched the industry’s first dump box for mining trucks manufactured using SSAB Zero™ steel. We create circular business models to keep valuable materials in circulation, for instance by running buyback/recycling programs for our used tools and carbide drill bits. Our Bergla® tungsten carbide powder is made entirely of recycled material. We run reconditioning programs for our solid round tools and refurbishment programs to prolong the life of our mining and rock processing equipment.

For a more detailed transition plan to net zero, visit our website home.sandvik/sustainability.

2024 developments

In 2024, GHG emissions within Scope 1 and 2 increased by 2 percent, compared to the preceding year (actual data). This increase can be attributed primarily to growth. Compared to our 2019 baseline, we have decreased our Scope 1 and 2 emissions by 20 percent. We are on track to meet the ambitious 2030 goal for Scope 1 and 2 emissions. Within Scope 2, we monitor both location-based and market-based greenhouse gas emissions, where the difference is due to the purchase of renewable or fossil-free energy via renewable energy certificates and/or guarantees of origin.

On the next page lie our Scope 3 inventories for the baseline year (2019) and 2024. The primary Scope 3 categories are “Purchased goods and services” and “Use of sold products”. The “Purchased goods and services” category is primarily influenced by the procurement of steel and cemented carbide.

The “Use of sold products” category relates to fuel consumption, including diesel, and electricity in our sold mining and rock processing equipment. The data is based on sales volumes and the anticipated lifespan of these products. Collaborating closely with quality assurance, services, and repair teams allows us to extend the operational lifespan of our products. These activities will, however, increase the category 11 emissions as the emissions account for the entire life expectancy of the product. For electric equipment, the GHG emissions are closely linked to the electric grid mix of the country the product is sold to. Sales of electric equipment to countries with cleaner electric grids result in lower GHG emissions.

Despite the uncertainties associated with these data points, it is essential to calculate and report Scope 3 GHG emissions. This practice not only identifies emission hotspots but also guides which initiatives to focus on to achieve our net-zero goals.

Other emissions to air

Emissions to air of nitrogen oxides (NO_x) and sulfur oxides (SO_x) from usage of fossil fuels are material for Sandvik. Emissions of NO_x and SO_x are managed via our GHG reduction commitments and as we reduce carbon emissions from our own operations, the emissions of NO_x and SO_x decrease.

Water

Water usage is carefully monitored, and steps are taken to minimize withdrawal, including the circulation of process and cooling water to reduce the reliance on fresh water.

In manufacturing operations, particularly in hot environments, a certain amount of water will naturally transpire and evaporate. However, the volumes evaporated are negligible in comparison to overall consumption and water quantities. All wastewater from production processes is either released following appropriate treatment (either in our own facilities or through third-party treatment operations) or is recirculated and reused. Water withdrawal and discharges are executed with control and adhere to applicable permits.

Sandvik employs the WWF tool, the Water Scarcity Risk Map, to identify sites situated in water stress areas. We have mapped sites representing 95 percent of our water consumption, with 10 facilities located in areas experiencing high to very high water stress risk. These specific sites account for approximately 6 percent of our total water consumption.

Waste

Circularity is a material topic for Sandvik and we reuse and recycle to minimize the use of virgin 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 systematically collect and categorize waste generated from our production processes to facilitate the reuse or recycling of the materials. Through buyback programs with our tooling customers, we retrieve and reintegrate the collected material back into our production cycles. Our commitment to sustainable waste management includes partnerships with external entities, including waste service companies, with whom we collaborate to explore innovative recycling methods for our waste streams. Each of our locations bears the responsibility of ensuring that third-party waste companies handle the waste in strict accordance with contractual and legislative obligations. Furthermore, all employees and contractors are responsible for accurate waste sorting and disposal.

Total actual waste increased by 12 percent to 371 ktons in 2024, primarily driven by an increased amount of tailings, digestion sludge and slag. With a few exceptions, waste is treated off-site.

Our overarching objective is to achieve a waste circularity of 90 percent by 2030. The current waste circularity rate stands at 74 percent (73). Circular waste is defined as reuse and recycling. In circularity rate reporting, we exclude tailings, digestion sludge, foundry sand and slag because we assess that it is not feasible in the foreseeable future to take further actions to avoid sending these fractions to landfill.

Disclosure related to sustainability-linked loan

In 2022, Sandvik signed a SEK 11 billion revolving credit facility with a group of 14 banks. The new credit facility has a clear link to our sustainability targets for 2030 with regards to the ambitions to reduce carbon emissions by 50 percent and increase waste circularity to 90 percent. The annual KPIs are aligned with those goals and the interest margin on the facility is affected positively or negatively depending on whether the KPI levels are met. The targets are based on comparable data, which means we adjust the data for a more accurate reflection of the outcome. Acquisitions are included once their historical baseline data has been recalculated. At the end of 2024, we reached a 47 percent reduction in Scope 1 and 2 GHG emissions, compared to the 2019 baseline (using the comparable dataset). Waste circularity reached 74 percent (using the comparable dataset).