Sustainability shift
In 2023 we updated our sustainability strategy, which provides the base for our ambitious sustainability agenda. The new strategy broadens the scope of our focus areas and sets a future sustainable vision for each industry that we work with. It takes a holistic approach that includes customers, suppliers, and our own operations.
Sustainable solutions
Our biggest contribution is to help our customers make a sustainable transition through the solutions that we provide. Our mission is to build sustainability into everything we do, from research and development to product innovation and sustainable sourcing in our supply chain.
We launched numerous solutions in 2023, including electric mining and rock processing equipment and software systems for component manufacturing, which reduce energy use and improve efficiency and productivity. Many of these solutions are referred to in more detail in the following pages.
Net zero
In 2023, our targets to reduce greenhouse gas (GHG) emissions were validated by the Science Based Targets initiative (SBTi). This means that we are committed to reaching net zero GHG emissions by 2050 at the latest, reducing absolute emissions from our own operations, heating and power (scope 1 and 2) by 50 percent by 2030 and by 90 percent by 2040. We will also reduce absolute emissions from customers, suppliers and transports (scope 3) by 30 percent by 2030. All targets have 2019 as their base year.
We are in line with our 2030 climate targets for GHG emissions (scope 1 and 2) even though they increased by 1 percent in 2023. Compared with the base year 2019, they have been reduced by 23 percent.
Circularity
Sandvik aims to be over 90 percent circular by 2030 for packaging, products and waste, and we expect the same of our key suppliers. We are building circularity and resource efficiency into our business in a number of different ways. In our own operations, we are working to increase waste circularity. In countries without strong waste management infrastructure, we work with procurement to identify alternatives to landfill. We continue to identify circular solutions for complex waste streams. Waste circularity decreased from 73 percent in 2022 to 71 percent in 2023. See note NF8 for more information.
We continue to buy back used tools from our customers and recycle them to make new tools. We introduced a customer recycling program for used drill bits and we conducted a pilot to facilitate customer’s recycling of used inserts with good results. We also launched a new website feature to easier facilitate reconditioning of customers solid round tools.
Ecosystems
Sandvik works with partners to prevent or mitigate negative impacts and to protect and restore biodiversity and ecosystems in our value chain. We have initiated a pre-study to understand impacts from our own operations and those of strategic suppliers with greater precision. Based on the results, we will develop a biodiversity action plan in line with the EU Biodiversity strategy that aims for no net loss of biodiversity by 2030, net gain from 2030 and full recovery by 2050.
Responsible business
Sandvik ensures high standards of business conduct and responsibility are built into our operations and throughout our value chain, enabled by transparency and due diligence. We constantly aim higher in ethics and transparency.
Our work in this area is supported by the Sandvik Code of Conduct, our risk-based compliance programs with clear policies and training as well as monitoring and assurance, complemented by our Speak Up and investigations processes and remediation, and discipline (see Code of Conduct and Compliance).
Our commitment to high standards of business conduct has been recognized by sustainability rater EcoVadis, which covers a wide range of Corporate Social Responsibility topics, including environment, labor and human rights, ethics and sustainable procurement.
We also aim to ensure that our own high standards are embedded within our supplier management and procurement practices. Our commitment to responsible sourcing is reflected in our Supplier Code of Conduct and the Sandvik Statement on Responsible Sourcing of Minerals and Metals, in accordance with the OECD Due Diligence Guidance.
People and communities
Sandvik works to consistently encourage the wellbeing of all our employees. Health and safety is rigorously monitored across our operations and we continuously invest in our safety culture and our goal of zero harm. In 2023, we launched injury prevention campaigns for hand injuries, improved safety onboarding programs and carried out workshops to improve site safety management. The Total Recordable Injury Frequency Rate improved to 3.0 (3.1) and the Lost Time Injury Frequency Rate to 1.1 (1.3). Regrettably, a tragic fatality was reported.
We engage in our operations’ local communities for mutual benefit. Our aim is to actively participate through partnerships, education and volunteering to bring our values to life. In 2023 we engaged in about 170 community projects.