E4 Biodiversity and ecosystems

Negative impacts on biodiversity and ecosystems were identified in our upstream and downstream value chain, mainly related to mining activities and their effect on land use change, pollution, and GHG emissions. Disruptions in ecosystems and decreasing biodiversity affect all living beings, both people and environment negatively. We recognize that people, biodiversity, and ecosystems are linked, and that nature supports human health and wellbeing.

Biodiversity and ecosystems are not considered material topics within our own operations and do not generate direct effects on our strategy and business model. Based on our assessment, we have identified no direct material impact or associated risks related to the topic of biodiversity and ecosystems. Consequently, we have not developed a transition plan for this topic.

E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Sandvik has not assessed any risks in terms of resilience related to our strategy and business model in relation to biodiversity and ecosystems.

ESRS 2 SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and business model

Biodiversity and ecosystems have not been assessed as material topics within our own operations. We have not identified any sites in our own operations that have activities negatively affecting biodiversity-sensitive areas or that affect threatened species. We have not identified material negative impacts with regard to land degradation, desertification or soil sealing.

E4-2 Policies related to biodiversity and ecosystems

We have not developed specific policies for the area of biodiversity and ecosystems. The area is however integrated into our Code of Conduct, Supplier Code of Conduct, Business Partner Code of Conduct, and Sustainability policy. Our community involvement projects are steered by the Community involvement, sponsorship and donations procedure. We recognize that people, biodiversity, and ecosystems are linked, and that nature fundamentally supports human health, wellbeing, and economic prosperity. Biodiversity and ecosystem impact is complex and faces multiple pressures, including direct factors like land use changes and overexploitation of natural resources, as well as indirect factors such as GHG emissions and pollution. The effectiveness of policies addressing biodiversity and ecosystems is measured within the framework of Sandvik Group’s management system.

Remediation is a part of our due diligence process. Suspected breaches or concerns related to regulations or our policies can be reported through our global whistleblowing mechanism Speak Up, including impacts related to biodiversity and ecosystems.

E4-3 Actions and resources related to biodiversity and ecosystems and E4-4 Targets related to biodiversity and ecosystems

We have not developed specific actions, targets and metrics related to biodiversity and ecosystems. We are linked to these impacts through our business relationships in the upstream and downstream value chain. We therefore apply phase-in provisions for the development of entity specific metrics.

Through our community involvement and sponsorship activities, we have the opportunity to contribute to addressing ecosystem-related challenges in the areas where we operate.

When evaluating strategic suppliers, we assess their environmental impact to minimize the impact of the materials we source. Through our approach to develop and offer sustainable solutions for our customers, we take action which indirectly reduces negative impacts within the area of ecosystems. This includes transitioning to circular business models to optimize resource utilization, shifting to electric-powered equipment to minimize tailpipe emissions, and developing water-efficient solutions that reduce our customers’ water use. Developing and providing our customers with sustainable solutions is integrated into our strategy and business model.