Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Emissions reduction
• Safety
• Human rights
• Labor conditions
• Ethical business practices
• Sustainable product development
• Water management
• Waste reduction
• Supply chain sustainability

Environmental Achievements

• Reduced water consumption by 6.7% in water risk areas relative to cost of sales
• Achieved 41% renewable energy share of total energy used in operations
• 95% of waste reused, recycled, or recovered
• Reduced energy consumption from operations relative to cost of sales by 1%
• Significant energy savings in various product lines (e.g., LED light towers, VSD+ compressors, iXM vacuum pumps)

Social Achievements

• 18% female employees
• 22% of total external hires were female
• 31% of recent graduates hired were female
• Reduced number of accidents per million working hours to 3.2 (from 3.5)
• Implemented HIV testing and wellness programs in Sub-Saharan Africa
• 99% of managers signed the Business Code of Practice
• 85% of significant suppliers confirmed compliance with the Business Code of Practice

Governance Achievements

• No deviations from the Swedish Corporate Governance Code
• Established a global IT security policy
• Implemented a zero-tolerance policy on bribery and corruption
• Used the customer assessment tool to investigate potential risks related to environmental, labor, human rights, and corruption

Climate Goals & Targets

Environmental Challenges

• Increased CO2 emissions from transport due to higher production volumes and air deliveries
• Maintaining supply chain standards with a large international supplier base
• Managing environmental risks in the supply chain (e.g., smelters)
• Lacking enforcement of legal and political infrastructure in some complex markets
• Risks related to the communication of financial information
• Transfer pricing risks and new tax rules and regulations
• Risks of corruption and fraud in various markets
• Human rights risks in countries with high risk of human rights abuse

Mitigation Strategies

• Investing in safer and more effective transports
• Risk-based approach to supplier management, including audits and compliance letters
• Developing water-risk management plans for operations in water-scarce areas
• Bilateral engagements with civil society and investors
• Procedures to ensure compliance with Group instructions, standards, laws, and regulations
• Global IT security policy, including quality assurance procedures
• Zero-tolerance policy on bribery and corruption, including facilitation payments
• Policies and procedures to match the standards in the UN Guiding Principles for Business and Human Rights
• Due diligence process and integration of internal controls for human rights violations

Supply Chain Management

Supplier Audits: 1,167 significant suppliers audited for quality; 858 for safety, health, environmental, and ethical standards

Responsible Procurement

• 10 criteria letter based on UN Global Compact and ILO Declaration
• On-site visits to ensure compliance
• Action plans developed with suppliers to meet criteria

Climate-Related Risks & Opportunities

Physical Risks

• Changes in mean precipitation affecting operations and supply chain

Transition Risks

• Increased fuel/energy taxes
• Regulations related to CO2 emissions

Opportunities

• Developing water-efficient or water-recycling products
• Meeting customer demand for sustainable products due to climate events

Reporting Standards

Frameworks Used: GRI G4 Core

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 16

Atlas Copco contributes to these goals through its focus on sustainable productivity, energy efficiency, human rights, labor conditions, ethical business practices, and responsible resource use.

Sustainable Products & Innovation

• GA VSD+ compressors
• iXM vacuum pumps
• LED light towers
• Scooptram ST7 battery-powered loader
• Battery pulse tool system

Awards & Recognition

• Atlas Copco Safety and Health award
• John Munck Award
• Peter Wallenberg Marketing and Sales Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Supply Chain Responsibility
• Human Rights

Climate Goals & Targets

Environmental Challenges

• Use of substances with adverse effects on human health or the environment
• Presence of conflict minerals in the supply chain

Mitigation Strategies

• Establishment of a Declarable List to limit the use of certain substances
• Requirement for suppliers to declare the use of listed substances
• Requirement for suppliers to disclose the presence of conflict minerals and due diligence progress

Supply Chain Management

Responsible Procurement

• 10-criteria letter for suppliers including compliance with Atlas Copco Group Declarable List

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: REACH, RoHS, California Proposition 65, Kyoto Protocol, Japan CSCL, TSCA

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Use of substances with adverse effects on human health or the environment.
• Presence of conflict minerals in the supply chain.

Mitigation Strategies

• Establishment of a Declarable List to limit the use of harmful substances.
• Requirement for suppliers to declare the use of listed substances.
• Requirement for suppliers to disclose the presence of conflict minerals and due diligence progress.

Supply Chain Management

Responsible Procurement

• 10-criteria letter for suppliers including compliance with the Declarable List.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: REACH, RoHS, California Proposition 65, Kyoto Protocol, TSCA

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Introduced a new compressor and dryer for carbon capture systems (ZR CO2 + ND CO2), supporting CO2 reduction in various industries.
• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Market risks: Changes in customer investment and production levels, economic downturn, geopolitical tensions, pandemics, trade changes, sanctions, financial crises.
• Financial risks: Currency, funding, interest rate, tax, and other financial risks.
• Production risks: Sub-supplier availability and raw material price fluctuations.
• Acquisition integration challenges: Difficulty in integrating acquired businesses successfully.

Mitigation Strategies

• Diversified sales across industries and countries to mitigate market risks.
• Financial risk management committee to control financial risks.
• Global network of sub-suppliers to minimize production risks.
• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ZR CO2 + ND CO2 compressor and dryer for carbon capture

Awards & Recognition

• Not disclosed