E5 Resource use and circular economy

We are committed to playing our part in building a global economy based on circular business models. By minimizing waste and finding new ways to capture sustainable materials and products within closed loops, we can bring environmental benefits for air, land, and water. Circularity is integrated in our strategy and our business model, and is one of our sustainability focus areas and an important aspect of our sustainable solutions. We actively work with prolonging the lifecycle of our products and increase resource recovery. We aim to increase recycled content in our products, we run buyback programs to reuse materials and offer reconditioning and refurbishment of our products. Recycled materials and remanufacturing/reconditioning are material within circularity as potential and actual positive impacts. It is also assessed as an opportunity. Waste-related negative impacts are present throughout the complete value chain. We have considered the implications of waste not being recycled or correctly handled, such as pollution to air, water, and soil.

E5-1 Policies related to resource use and circular economy

Sandvik has adopted several policies and procedures to manage our material impacts and opportunities related to resource use and circular economy.

Sandvik Group has not employed a policy commitment on transitioning away from the use of virgin resources, including relative increases in the use of secondary (recycled) resources.

Sustainable sourcing is governed through our Responsible sourcing of minerals and metals procedure and Supplier sustainability evaluation procedure, included in the Procurement policy. The Responsible sourcing of minerals and metals procedure applies to the sourcing of tin, tantalum, tungsten, gold, and cobalt used in our products. The purpose of the procedure is to ensure compliance with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas and relevant legislations. The Supplier sustainability evaluation procedure outlines our work to identify, mitigate and account for adverse environmental, human rights, and governance impacts from our supply chain. It outlines rules for evaluating and approving a supplier as compliant with our Sandvik Supplier Code of Conduct. The procedure establishes the utilization of EcoVadis to screen suppliers for inherent risks based on country and industry-related risks.

All circularity-related policies and procedures are part of our Group governance framework, The Sandvik Way, and accessible on our global intranet. The Code of Conduct, Supplier Code of Conduct, Business Partner Code of Conduct, and a short version of the EHS policy is accessible on our external website home.sandvik.

E5-2 Actions and resources related to resource use and circular economy

Our circularity-related policies, along with Group objectives and targets, guide our circularity-related actions. Each business area develops plans to meet these objectives, with annual targets set to drive performance at all organizational levels. Through our decentralized way of working, sites, divisions, and sales areas can implement actions appropriate for their context and the markets where they operate. Common focus areas, ways of working, and best practices are shared and decided upon in the business areas and Sandvik Group councils.

Through our community involvement and sponsorship activities, we have the opportunity to contribute to addressing waste-related challenges in the areas where we operate. For example, this may include supporting local communities to develop innovative ways to reuse or recycle waste materials.

E5-3 Targets related to resource use and circular economy

We have a group-wide waste circularity target to reach a minimum of 80 percent waste circularity within our own operations by 2025. This target relates to preparing for reuse and recycling in the waste hierarchy. In 2025, we reached a waste circularity rate of 72 percent (74).

We did not reach the waste circularity target of 80 percent in 2025. A main challenge to improving waste circularity and reaching our waste circularity target is identifying and implementing viable solutions for waste types that are currently non-recyclable due to their characteristics. In geographical areas with limited recycling infrastructure, finding disposal alternatives to landfill remains a challenge.

Targets on increased circular product design, such as design for durability, dismantling, repairability, recyclability, and circular material use rates, are not available on a Group level, but exist on a divisional and business area level. We track the effectiveness of our policies through several monitoring processes, with each policy outlining how compliance is monitored.

E5-5 Resource outflows

Products and materials

We are committed to playing our part in building a global economy based on circular business models. For Sandvik, a circular business model includes all parts of the product lifecycle, from design and sourcing, to use, prolonging the lifecycle, and resource recovery. We work strategically with strengthening circular business models and offerings across our business areas. Developing circular business models is a critical part of our sustainability focus areas.

Circularity begins at the design state, where we aim to design products for longer lifespans, refurbishment, reuse, and easy recyclability. We aim to increase recycled content in our products. We run buyback programs where we repurchase customers’ used cemented tools, carbide inserts, and drill bits, and use them to manufacture new tools.

We prolong the product lifecycle through initiatives such as inserts reconditioning and equipment refurbishment that bring our products back to their original quality, several times. Our reconditioning centers extend the lifespan of solid round tools, such as carbide drills and end mills, restoring them to original quality and prolonging their total lifecycle. This process not only maximizes the utilization of raw materials in manufacturing but also reduces cutting tool costs for customers. Our refurbishment program brings new life into aging mining and rock processing equipment, offering a sustainable alternative to purchasing new machinery. By refurbishing and upgrading key components, the program not only extends the lifespan of equipment but also significantly reduces its environmental impact. This initiative supports the circular economy, cuts waste, and minimize the need for new raw materials.

We take full end-to-end responsibility for batteries in our mining equipment, including battery design, secondary applications and end-of-life management. Lithium-ion batteries are typically considered to be at end-of-life at 80 percent of their capacity. However, mining operations present unique opportunities to utilize the remaining capacity. Sandvik batteries from high-consumption vehicles, such as trucks, can be repurposed for equipment with lower energy requirements, such as loaders, or be integrated into stationary energy storage systems, supporting site infrastructure such as lighting and charging stations. When batteries reach the end of their operational life, we ensure responsible recycling through regional partnerships. While China currently dominates recycling capabilities, initiatives are underway to develop facilities in North America, Europe, and elsewhere, creating a more efficient network.

Waste

After mining tailings, our most significant waste fraction 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. Within our own operations, metals have a close to 100 percent recycling rate.