NF8 Environmental footprint

Greenhouse gas 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 greenhouse gas (GHG) emissions. Sandvik had more than 200 Environmental Improvement Projects (EIPs) underway in 2022, many related to reducing green house gas emissions and increasing circularity. The EIPs cover the topics considered most material for each business area/division/site. For instance, the Svedala site in Sweden increased its heating recovery to reuse excess heat from production processes. 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 Scope 1 and Scope 2 GHG emissions compared to our baseline. In 2022, GHG emissions increased by 4 percent to 142 ktons CO2e, mainly due to increased activity levels. We are still well in line with what is required to fulfill the 2030 goal.

In 2022, we did a Scope 3 greenhouse gas inventory, related to our application to the Science Based Targets initiative, in line with the GHG protocol. 2019 was selected the base year since it was considered to be the most recent representative year prior to the COVID–19 pandemic. Our main categories for emission are ‘Purchased goods and services’ and ‘Use of sold products’. Purchased goods and services is mainly driven by procurement of steel and cemented carbide. Use of sold products, such as mining and rock processing equipment, was calculated based on the life expectancy of the products. The emissions are related to fuel consumption, such as diesel, and electricity usage was included for battery-electric vehicles. Electricity usage was calculated based on emission factors per country.

Energy by energy source

Energy by energy source. Top three are: Electricity 61%, Natural gas 20% and Diesel 8%. (pie chart)

Scope 3 inventory, 2019 (baseline year)

kton CO2e

Category 1: Purchased goods and services

1,770

Category 2: Capital goods

62

Category 3: Fuel and energy related actions

52

Category 4: Upstream transportation and distribution

321

Category 5: Waste generated in operation

26

Category 6: Business travel

79

Category 7: Employee commuting

57

Category 8: Upstream leased assets

9

Category 9: Downstream transportation and distribution

11

Category 10: Processing of sold goods

6

Category 11: Use of sold products

5,710

Category 12: End-of-life treatment of sold products

7

Category 13: Downstream leased assets

0

Category 14: Franchises

0

Category 15: Investments

0.1

Total Scope 3 emissions

8,110

Energy consumption

Energy consumption (TJ)

2021

2022

Non-renewable fuels

1,381

1,302

Gasoline

131

128

Diesel

291

311

Liquefied petroleum gas

39

37

Natural gas

876

767

Fuel oil

44

57

 

 

 

Renewable fuels

6

17

Ethanol

2

2

HVO

1

5

Bio gas

3

11

Total energy from fuels

1,387

1,319

 

 

 

Grid electricity

2,204

2,311

Own renewable electricity

13

18

Purchased heat and steam

176

174

Sold heat

–34

–35

Total electricity heat and steam

2,358

2,468

Total energy consumption

3,745

3,787

Energy intensity

Total energy use in relation to revenues

2021

2022

GJ/MSEK

44

34

GHG emissions 2018–2022, tons

The decrease of CO2 emissions 2018–2022 in tons (bar chart)

Energy consumption by business area

The split of energy consumption between the business areas. (pie chart)
GHG emissions

GHG emissions (kton CO2e)

2021

2022

Scope 1

80

80

Scope 1 (biogenic)

2

3

Scope 2 (location based)

166

185

Initiatives to source low-emission electricity

–109

–124

Scope 2 (market based)

57

61

Gross total (location based)

246

266

Net total (market based)

137

142

The difference between local-based and market-based Scope 2 GHG emissions is mainly due to purchase of low GHG emission or renewable energy via Renewable Energy Certificates and/or Guarantees of Origin.

GHG emissions by business area (Scope 1 and 2)

The split of CO2 emissions between the business areas (pie chart)
Emission intensity (Scope 1 and Scope 2)

Total CO2e in relation to revenues

2021

2022

ton/MSEK

1.6

1.3

Water

Water use is closely monitored and measures are taken to minimize consumption, including circulation of process and 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 limits.

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. All water withdrawn is released back to recipients after relevant treatment, (either in our own treatment facilities, or in third-party treatment operations) or is recirculated and reused. Water withdrawal and discharges are conducted in a carefully controlled manner and subject to relevant permits.

Water and effluents

Water withdrawal (1,000 m3)

 

All areas

 

 

 

Fresh water by source of withdrawal

2021

2022

Surface

2,434

2,784

Ground

570

462

Third-party

1,025

1,144

Rain

11

27

Total withdrawal

4,040

4,417

Water intensity

Water withdrawal in relation to revenues

2021

2022

m3/MSEK

47

39

Waste

Use, reuse, recondition and recycle

Circularity is a material topic 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 as 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.

We collect and sort waste metal from our production in order to reuse/recycle the material. We run buyback programs with our customers to collect and reuse the material in our production. We cooperate with external partners and waste service companies to find new ways to recycle our waste. Each location has the responsibility to ensure that third-party waste companies manage the waste in line with contractual and legislative obligations. All employees and contractors are responsible for correctly sorting and disposing waste.

Total waste increased by 60 percent to 422 ktons. The increase is mainly attributable to increased activity levels, improved waste reporting and decreased backfilling of tailings. With small exceptions, waste is treated off site.

In 2022, Sandvik implemented a new target for waste circularity, new definitions of waste and waste treatment and more detailed measurement and improvement plans. Reuse and recycling are defined as circular waste. When reporting our circularity rate, we exclude mainly tailings, digestion sludge and slag to disposal since it is believed that it’s not viable in the near term to take further measures to avoid sending these fractions to landfill. The waste circularity rate was 74 percent, compared to the 70 percent target for 2022. Our long-term target is to increase our waste circularity to 90 percent by 2030.

Waste by type and disposal method

(ton)

2021

2022

Hazardous waste

18,168

19,146

to reuse

127

141

to recycling

7,073

6,874

circular waste

7,199

7,015

to energy recovery

1,077

581

to incineration

905

749

to landfill

8,637

9,372

whereof digestion sludge

6,836

6,005

disposal method unknown

350

1,428

non-circular waste

10,969

12,130

 

 

 

Non-hazardous waste

246,282

402,609

to reuse

7,623

8,490

to recycling

19,537

29,832

circular waste

27,159

38,322

to energy recovery

2,676

2,904

to incineration

359

254

to landfill

214,491

360,321

whereof slag

2,325

3,589

whereof mining tailings

208,044

351,072

disposal method unknown

1,596

809

non-circular waste

219,122

364,288

Total waste

264,450

421,755

Waste excluding landfilled slag, mining tailings and digestion sludge

47,246

61,089

Total waste by business area

The split of waste between the business areas. (pie chart)
Waste intensity

Total waste in relation to revenues

2021

2022

ton/MSEK

3,086

3,755

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 require that historical figures need to be adjusted. All EHS data refers to continuing operations and it has been adjusted to reflect the distribution of Sandvik Materials Technology/Alleima. Acquisitions are included in the data once they are merged with Sandvik and start reporting EHS data.

When calculating our Scope 1–3 GHG emissions, the GHG Protocol, using an operational control consolidation approach, was followed. The following GHGs were included in Scope 1 and 3 calculations: CO2, CH4, N2O, HFCs, PFCs, SF6 and NF3. Scope 2 calculations were limited to CO2 emissions as this is all that energy utilities are required to report on, and thus the emission factors used are also limited to CO2. This exclusion is estimated to account for approximately less than 1 percent. GHG emissions from bio-energy use is limited to fuel, such as ethanol and bio-based fractions of gasoline and diesel. Energy and GHG emission, Scope 1–2, are calculated based on reported consumption data.

For the Scope 3 calculations for 2019, a hybrid approach was applied using both a screening and inventory-based methodology. Emission factors from DEFRA, Ecoinvent, IEA, US EPA’s Power Profiler, Canada National Inventory Report and Exiobase have been used, as well as supplier-specific data. For the market-based emissions, the consumption data uses specific emission factors, if available, and otherwise the same factors as for location-based emissions.

For waste, the reportable waste disposal methods are defined based on the disposal codes from the EU Regulation (EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments of waste. These definitions are 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 companies.