NF9 Environmental footprint

Carbon emissions 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 225 environmental improvement plans (EIPs) underway in 2021, many related to CO₂ and waste. The EIPs cover the topics considered most material for each business area/division. The Katowice site in Poland recovers energy from some processes for usage in others and has reduced the energy consumption by 25 percent. In Västberga, Sweden heat pumps have been installed which send waste heat produced in the processes back to the district heating system for use by the city of Stockholm. Improved insulation in buildings, LED lighting, and solar rooftop panels are other examples of initiatives.

One of our 2030 sustainability goals is to halve our CO₂ emissions. In 2021 we reduced CO₂ emissions by 16.4 percent to 234 ktons, which is well in line with what is required to fulfil the 2030 goal. The reduction was mainly attributable to the sourcing of fossil-free energy outside of Europe, which had the largest effect within Sandvik Manufacturing and Machining Solutions. At our European sites we have been buying fossil-free electricity since 2013, resulting in a reduction of annual emissions by approximately 183 ktons based on the 2021 outcome.

Energy consumption by energy source

The main difference between our reported market-based and location-based emissions derives from the purchase of fossil-free electricity. In 2021, Sandvik used 1,101 (974) GWh fossil-free electricity. Fossil-free electricity was sourced by the purchase of Guarantees of Origin for our operations in Europe and through Renewable Energy Certificates (I-Rec) outside of Europe.

CO₂ emissions by business area

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 NO_x and 31 tons of SO_x 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

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.

Waste

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. Our most significant waste input is various forms of metal raw materials. 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 and purchase as much recycled material. We collect and sort waste metal from our production in order to reuse the material. We run buyback programs with our customers to collect and reuse the material in our production. Waste generated outside of our production, such as packaging, is handled by third parties who are responsible for properly sorting of materials. All employees and contractors are responsible for correctly sorting and disposing of waste on site.

Total waste increased by 8 percent to 352 tons. The increase is mainly attributable to major, irregular waste haulages within the steel operations, but also to overall increased activity levels.

Our 2030 waste goal was revised in 2021 and is now formulated as “At least 90 percent circularity for packaging, products and waste.” Waste circularity was defined as reused and recycled waste in relation to total waste. Sandvik has set targets, globally and regionally, to reduce landfill waste and increase recycled waste. We will start reporting on the redefined goal as of 2022. Waste-related data is a part of our environmental reporting and is done on a quarterly basis.

In 2021, 11 (18) of our production-related sites reported a 100 percent waste recovery rate. The reduced number of sites was caused by the implementation of a more detailed waste reporting this year. Energy recovery was defined as waste to recovery in 2020, but as non-circular in the new reporting method. Sandvik recycles both steel and cemented carbide.

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