Sustainability, customers and employees
Our portfolio helps customers to increase their productivity and safety, and reduce their environmental impact. By shifting to electrification, we are further advancing sustainability. We develop products and solutions that require less energy and offer higher productivity and durability. In 2021 we introduced the Top Hammer XL drilling system, which brings major reductions in fuel consumption and total drilling costs, while increasing productivity (see Innovations creating customer value). We have developed the process for more effective recycling of used drill bits, including separation of carbide and steel closer to the customers.
Ambitious sustainability goals and targets for 2025 are underway within the business area. Our Rock Tools Division is aiming to become carbon neutral and our production units are progressing well to reach this in 2025.
Customer’s first choice
We have developed a variety of flexible customer solutions, such as dynamic pricing models with performance-based contracts. We are increasingly offering our customers bundled deals from across various divisions. This is actively welcomed by many of our customers and we anticipate an increase in the bundling of our products and services moving forward.
We continuously work with our customers to increase their efficiency and productivity. When testing our Autobit™ drill bits across four different Byrnecut Mining sites, the contract mining company was able to increase its drilling penetration rates by 15 percent, reduce total drilling cost by 9 percent and successfully drill full holes without the need for bit changing, among other benefits.
Agile through cycle
Like those in many industries, we were affected by the global supply chain challenges throughout 2021. To alleviate this situation we are revisiting our planning processes from a shipping perspective. A new warehousing facility in Eindhoven, Netherlands, is expected to increase our agility and efficiency.
We are gradually increasing our aftermarket presence, focusing on complementary areas which have greater resilience across the business cycle. Our acquisition of DSI Underground will reduce our vulnerability to market fluctuations. Our robust margins during 2021 are an indication that our resilience to market volatility has already begun. The 2020 cost-cutting programs resulted in annualized run-rate savings of SEK 60 million.
Employer of choice
MEET OUR EMPLOYEES
Brian Huff, VP of Technology, has built his entire career around electrification. And electrification in mining is by far the best business case he has seen so far.
Our employees are offered coaching, mentorship, interdepartmental collaboration and easily accessible learning paths. Results from the quarterly Sandvik Pulse survey show a consistently high employee engagement rate.
Diversity and inclusion is a high focus area. Each division and sales area has formulated its own diversity and inclusion plan: 280 activities are underway across the organization, 20 percent of which are linked to recruitment. A great deal of effort has been put into the recruitment process in order to attract a broad target group with, for example, gender neutral job advertisements and changes to the way in which interviews are conducted in order to reduce bias. We collaborate with schools and universities to increase awareness of Sandvik and offer internships.
A few years ago, Sandvik Mining and Rock Solutions introduced the DIamond Award, presented to an employee or group of employees who have achieved significant, sustainable results through diversity and inclusion initiatives in their organization. In 2021, the prize went to Sales Area Canada for their work with the indigenous community.
We place a strong emphasis on health and well-being and programs are in place across our organization. We are adopting a so-called “hybrid approach” at many of our locations with the easing of pandemic restrictions, with a mix of physical and digital work. This enables employees to continue to benefit from the increased flexibility and use of technology gained during the pandemic, whilst restoring the creativity and energy that undoubtedly comes from regular interaction with colleagues.