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

Energy by energy source (pie chart)
Energy consumption

Energy consumption (TJ)

2019

2020

Non-renewable fuels

2,811

2,365

Gasoline

223

136

Diesel

355

293

Liquefied petroleum gas

698

474

Natural gas

1,442

1,417

Fuel oil

93

45

 

 

 

Renewable fuels

15

27

Ethanol

2

2

HVO

13

24

Total energy from fuels

2,825

2,392

 

 

 

GRID electricity

4,865

4,307

Own renewable electricity

8

10

Purchased heat and steam

294

267

Sold heat

–35

–38

Total electricity heat and steam

5,132

4,547

Total energy consumption

7,958

6,939

Energy intensity

Total energy use in relation to revenues

2019

2020

GJ/MSEK

77

80

Reduction of energy consumption

 

TJ

%

Total energy use 2019

7,958

 

Environmental improvement actions

–17

–0.2

Other impacts

–1,002

–12.6

Total energy use 2020

6,939

–12.8

CO2 emissions 2016–2020, tons

CO2 emissions 2016–2010, tons (bar chart)

Energy by business area

Energy by Business Area (pie chart)
Emissions

GHG emissions (kton CO2)

2019

2020

Scope 1

177

146

Scope 2 (location based)

279

239

Initiatives to source low-emission electricity

–120

–112

Scope 2 (market based)

159

128

Gross total (location based)

455

385

Net total (market based)

335

274

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

CO2 emissions by business area (pie chart)
Emission intensity

Net total CO2 emissions in relation to revenues

2019

2020

ton/MSEK

3.2

3.2

Reduction of net total GHG emissions

 

kton

%

CO2 emissions 2019

335

 

Environmental improvement actions

–1

–0.3

Other impacts

–61

–18.1

CO2 emissions 2020

274

–18.4

Other air emissions

Other air emissions (ton)

2019

2020

NOX

203

166

SOX

5

2

Volatile organic compounds (NMVOC)

46

29

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 NOx and 31 tons of SOx 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

Water withdrawal (1,000 m3)

 

2019

2020

 

 

 

 

 

Fresh water by source of withdrawal

All Areas

Water-
stressed Areas

All Areas

Water-
stressed Areas

Surface

4,332

0

4,014

0

Ground

1,048

87

1,090

103

Third-party

2,194

42

2,110

20

Rain

23

14

18

9

Total withdrawal

7,597

143

7,232

131

Water discharge (1,000 m3)

 

2019

2020

 

 

 

 

 

Water discharge by destination

All Areas

Water Stressed Areas

All Areas

Water Stressed Areas

Surface

1,495

0

1,377

0

Fresh water

907

0

809

0

Other water

588

0

569

0

 

 

 

 

 

Ground

492

0

452

0

Fresh water

4

0

3

0

Other water

488

0

448

0

 

 

 

 

 

Third-party

5,610

143

5,403

131

Fresh water

5,415

143

5,224

131

Other water

195

0

179

0

Total

7,597

143

7,232

131

Water intensity

Water withdrawal in relation to revenues

2019

2020

m3/MSEK

74

84

Reduction of total water

 

1,000 m3

%

Water 2019

7,597

 

Environmental improvement actions

0

0

Other impacts

–365

–4.8

Water 2020

7,232

–4.8

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

Waste by type and disposal method

Waste by type and disposal method (kton)

2019

2020

Hazardous waste

34

33

to recovery operations

14

15

to other disposal

20

17

 

 

 

Non-hazardous waste

299

294

to recovery operations

48

36

to other disposal

251

258

Total waste

332

327

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

Total Waste by Business Area (pie chart)
Waste intensity

Total waste in relation to revenues

2019

2020

ton/MSEK

3.2

3.8

Reduction of total waste

 

kton

%

Waste 2019

332

 

Environmental improvement actions

0

0

Other impacts

–5

–1.6

Waste 2020

327

–1.6

Reporting principles

Environmental data is derived from our EHS reporting system in which reporting is conducted on a quarterly basis for environmental indicators. The key figures compiled are based on information available at the date of the most recent year-end accounts, which may entail that historical figures have been adjusted. Energy and GHG emission data is calculated based on reported consumption data. The conversion factors are established in our EHS definitions that are held within the management system documentation. These factors originate from the Swedish EPA for scope 1. For scope 2, location-based emission from the use of electricity is derived from reported consumption and converted using emission factors as listed in the GHG-protocol calculation tool version 4.8, except for US-based companies, where the US EPA’s Power Profiler tool was used to better accommodate for the difference in carbon footprint within the country’s various electricity grids. For the market-based emissions, the consumption data uses specific emission factors, if available, and otherwise the same factors as for location-based emissions.

In the tables showing the reductions of energy, GHG emissions, water and waste, ‘Environmental improvement actions’ were derived from what was registered from sites that had committed to implement such actions and reported completion at year-end. The remaining difference between 2019 and 2020, whether positive or negative, is reported as ‘Other impacts’. Other impacts refer to factors such as those related to weather or production, as well as other items that have an impact but lie outside the control of the activities directly aiming to reduce the environmental impact.

In the data presented for Water discharged, the split of data per GRI Standard 303-4 has been performed by applying allocation keys, where such could be obtained from the locations. The allocation specifies how the water withdrawal was discharged after use. An allocation key was requested from major production sites at the end of 2019 and was applied on data for both 2019 and 2020. These sites have returned an estimated split of their water discharge. Where no such split could be specified, the reported water withdrawal was included as fresh water to a third party. For inclusion in the water-stress category, the major production sites were asked to verify in accordance with the definition as outlined in the GRI Standard 303 if they fulfill the criteria of a water stressed location. All water is deemed as freshwater when drawn in to our production processes.