Relevant GRI Indicators

NF11 EU taxonomy

The EU taxonomy recognizes activities, in selected sectors, that make a substantial contribution to at least one of the EU’s climate and environmental objectives, while at the same time doing no significant harm to any of the other objectives and meeting minimum social safeguards (taxonomy aligned).

Sandvik has reviewed operations to determine applicable eligible activities, based on the descriptions in the EU delegated acts and supporting NACE code information. The precautionary principle has been applied and activities that are not clearly defined in the EU taxonomy have been left out. The mining sector is excluded from the EU taxonomy meaning that Sandvik’s business related to mining equipment is not included in the reporting. Nor is the manufacturing of our business area Sandvik Machining Solutions eligible under the EU taxonomy. As a consequence, few activities are eligible for Sandvik. Parts of the business area Sandvik Rock Processing are included as Manufacture of steel, an eligible activity that has decreased compared to last year due to the separation of Sandvik Materials Technology from Sandvik in August 2022. The majority of the Group’s eligible activities are related to owned and leased facilities (real estate). Energy efficiency and solar panels are separate activities related to real estate.

Activities deemed eligible are related to climate mitigation. Limitations in the preparation refer to owned facilities and energy efficiency activities which could not be fully reviewed due to the European reporting standards not being applied worldwide. In these cases the activities are deemed eligible but not aligned.

The assessment of aligned activities and its related turnover, capex and opex has been determined by reviewing the EU criteria for substantial contribution and validated through relevant documentation such as certificates, product specifications and other relevant supporting documentation. Applicable Do No Significant Harm (DNSH) criteria has been reviewed per eligible activity that meets the substantial contribution criteria. And according to EUs requirements and has been validated through relevant documentation such as Climate scenario analysis, Life Cycle Analysis and environmental documentation.

Sandvik has used the Platform on sustainable Finance’s Final report on Minimum Safeguards to assess compliance with the minimum safeguards laid down in Article 18 in Regulation (EU) 2020/852. There are processes in place to secure minimum safeguards relating to anti-corruption, fair competition and taxation as well as following the OECD’s 6 steps for due diligence of human rights. For more information see Materiality assessment, NF3 Code of Conduct, NF4 Whistleblowing (Speak Up), NF5 Compliance and NF10 Community Involvement. There have been no court convictions in any of these areas.

Reporting principles

Total turnover included in the denominator includes external reported revenue in the income statement (line revenues). The allocation of the eligible activities has been prepared using product accounts. The aligned activities refer to production within manufacture of steel.

Total capex included in the denominator includes investments and additions through acquisitions in property, plant and equipment (G14), intangible assets, excluding goodwill (G13) and Right-of-use assets (G15). The allocation of the eligible activities has been prepared by using cost types. The aligned activities refer to buildings.

Total opex included in the denominator are R&D, short-term leases, maintenance and repairs and other direct expenditure. The allocation of the eligible activities has been prepared using cost types. The aligned activities refer to maintenance of buildings and equipment.

Proportion of Taxonomy-aligned economic activities

Proportion of turnover from products or services associated with Taxonomy-aligned economic activities

(XLSX:) Download

 

 

 

 

Substantial contribution criteria

DNSH criteria
(Do No Significant Harm)

 

 

 

 

 

Economic activities

Code(s)

Absolute turn­over

Propor­tion of turnover

Climate change miti­gation

Climate change adap­tation

Water and marine resources

Circular economy

Pollution

Bio­diver­sity and eco­systems

Climate change miti­gation

Climate change adap­tation

Water and marine resources

Circular economy

Pollution

Bio­diver­sity and eco­systems

Mini­mum safe­guards

Taxonomy-aligned pro­portion of turn­over, year N

Taxonomy-aligned proportion of turnover, year N–1

Category (enabling activity)

Category (transitional activity)

 

 

MSEK

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A. Taxonomy-eligible activities

 

 

 

 

A.1. Environmentally sustainable activities (Taxonomy-aligned)

 

 

 

 

Manufacture of iron and steel

3.9

380

0.3

100

0

–

–

–

–

Y

Y

Y

–

Y

Y

Y

0.3

–

–

T

Turnover of environ­mentally sustainable activities (Taxonomy-aligned) (A.1)

 

380

0.3

100

0

–

–

–

–

–

–

–

–

–

–

–

0.3

 

 

 

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

 

 

 

 

Acquisition and ownership of buildings

7.7

1

0.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover of Taxonomy-eligible but not environ­mentally sustainable activities (not Taxonomy-aligned activities) (A.2)

 

1

0.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (A.1 + A.2)

 

381

0.3

 

 

 

 

 

 

 

 

 

 

 

 

 

0.3

 

 

 

B. Taxonomy-non-eligible activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Turnover of Taxonomy-non-eligible activities (B)

 

111,951

99.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (A + B)

 

112,332

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities

(XLSX:) Download

 

 

 

 

Substantial contribution criteria

DNSH criteria
(Do No Significant Harm)

 

 

 

 

 

Economic activities

Code(s)

Absolute CapEx

Propor­tion of CapEx

Climate change miti­gation

Climate change adap­tation

Water and marine resources

Circular economy

Pollution

Bio­diver­sity and eco­systems

Climate change miti­gation

Climate change adap­tation

Water and marine resources

Circular economy

Pollution

Bio­diver­sity and eco­systems

Mini­mum safe­guards

Taxonomy-aligned propor­tion of turnover, year N

Taxonomy-aligned propor­tion of turnover, year N–1

Category (enabling activity)

Category (transitional activity)

 

 

SEK

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A. Taxonomy-eligible activities

 

 

 

 

A.1. Environmentally sustainable activities (Taxonomy-aligned)

 

 

 

 

Manufacture of iron and steel

3.9

5

0.0

100

0

–

–

–

–

Y

Y

Y

–

Y

Y

Y

0.0

–

–

T

Installation, maintenance and repair of energy efficiency equipment

7.3

16

0.1

100

0

–

–

–

–

Y

–

–

–

Y

–

Y

0.1

–

E

–

Installation, maintenance and repair of charging stations for electric vehicles in buildings

7.4

1

0.0

100

0

–

–

–

–

Y

–

–

–

–

–

Y

0.0

–

E

–

Installation, maintenance and repair of renewable energy technologies

7.6

10

0.1

100

0

–

–

–

–

Y

–

–

–

–

–

Y

0.1

–

E

–

CapEx of eligible Taxonomy-aligned activities (A.1)

 

32

0.3

100

0

–

–

–

–

–

–

–

–

–

–

Y

0.3

 

 

 

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

 

 

 

 

Installation, maintenance and repair of energy efficiency equipment

7.3

1

0.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Installation, maintenance and repair of renewable energy technologies

7.6

5

0.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition and ownership of buildings

7.7

1,643

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CapEx of Taxonomy-eligible but not environ­mentally sustainable activities (not Taxonomy-aligned activities) (A.2)

 

1,649

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (A.1 + A.2)

 

1,681

13.3

 

 

 

 

 

 

 

 

 

 

 

 

 

0.3

 

 

 

B. Taxonomy-non-eligible activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CapEx of non-eligible activities (B)

 

10,992

86.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (A + B)

 

12,673

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities

(XLSX:) Download

 

 

 

 

Substantial contribution criteria

DNSH criteria
(Do No Significant Harm)

 

 

 

 

 

Economic activities

Code(s)

Absolute OpEx

Propor­tion of OpEx

Climate change miti­gation

Climate change adap­tation

Water and marine resources

Circular economy

Pollution

Bio­diver­sity and eco­systems

Climate change miti­gation

Climate change adap­tation

Water and marine resources

Circular economy

Pollution

Bio­diver­sity and eco­systems

Mini­mum safe­guards

Taxonomy-aligned propor­tion of turnover, year N

Taxonomy-aligned propor­tion of turnover, year N–1

Category (enabling activity)

Category (transitional activity)

 

 

SEK

%

%

%

%

%

%

%

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

%

%

E

T

A. Taxonomy-eligible activities

 

 

 

 

A.1. Environmentally sustainable activities (Taxonomy-aligned)

 

 

 

 

Manufacture of iron and steel

3.9

188

2.1

100

0

–

–

–

–

Y

Y

Y

Y

Y

Y

Y

2.1

–

–

T

Acquisition and ownership of buildings

7.7

129

1.5

100

0

–

–

–

–

–

–

–

–

–

–

–

1.5

–

–

–

OpEx of eligible Taxonomy-aligned activities (A.1)

 

317

3.6

100

0

–

–

–

–

–

–

–

–

–

–

–

3.6

–

–

–

A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)

 

 

 

 

Acquisition and ownership of buildings

7.7

341

3.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OpEx of Taxonomy-eligible but not environ­mentally sustainable activities (not Taxonomy-aligned activities) (A.2)

 

341

3.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (A.1 + A.2)

 

658

7.4

 

 

 

 

 

 

 

 

 

 

 

 

 

3.6

 

 

 

B. Taxonomy-non-eligible activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OpEx of non-eligible activities (B)

 

8,219

92.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total (A + B)

 

8,877

100