Note 43. Environmental footprint

We provide customers with products and services that boost their environmental performance and efficiency. Within our operations we work continuously to minimize our own environmental impact.

43.1 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 about 110 environmental action plans underway in 2019, consisting of more than 300 individual actions. Heat exchange systems, improved insulation in buildings, LED lighting, and solar rooftop panels are some examples of initiatives.

For 2019, 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 amounted to annual energy usage reductions of 1.4 percent and 2.6 percent carbon emission reductions.

Our main production sites in Europe have been buying energy from renewable energy sources since 2013, resulting in a reduction of annual emissions by approximately 113,000 tons.

Energy consumption 2019

CO₂ emissions 2015–2019, tons

Energy data is calculated based on reported consumption data. The calculations are programmed within our reporting tool where also the factors for conversion to energy equivalents are stored. The conversion factors are established in our EHS definitions that are held within the management system documentation. These factors origin from the Swedish Energy Agency (EPA).

Energy by business area in TJ

Emissions

The emission factors for Scope 1 emissions are sourced from the Swedish EPA. The calculation of scope 2 ‘location based’ use the conversions built in to the GHG Protocol calculation tool, version 4.4. The market-based emission factors and information on respective electricity supplier are provided by the Sandvik reporting entities annually. If these factors can’t be obtained, the same emission factor as for location-based emissions, i.e. grid averages, are applied.

Any difference between location-based and market-based factors (positive or negative) is reported in the table as ‘initiatives to source low-emission electricity’. The main effect comes from the purchase of emission-free electricity for our European operations. In 2019, Sandvik used 1,081 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

43.2 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, 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.

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. Thus, 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. In 2019, there was one occasion where the ground water withdrawal exceeded the allowed limit. A case was raised, but later deemed insignificant and closed by the authorities. The incident occurred in the operations in Sandviken, Sweden. No other significant water incidents were reported.

43.3 Use, reuse, recondition and recycle

Circularity is a key aspect for Sandvik and we are reusing and recycling to offset the use of raw materials and reduce waste. Our target is to increase the share of recovered waste to 20 percent and we are currently at 19 percent. Total waste decreased by 1 percent. In 2019, 29 Sandvik locations reported a 100 percent waste recovery rate. Sandvik recycles both steel and cemented carbide. Our metallic input materials amounted to 306 thousand tons in 2019 (320), with a recovery rate of 79 percent (80).

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 2019