Climate Change Data

Nammo AS

Climate Impact & Sustainability Data (2019, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Energy Consumption:7254452.98 kWh (non-renewable fuel) + 66673653.36 kWh (purchased electricity) + 28201882.56 kWh (purchased district heating)

ESG Focus Areas

  • Business Integrity
  • Human Rights
  • Cybersecurity & Proprietary Information
  • Value Chain Integrity
  • Supply Chain: Social Practices and Good Governance
  • Illicit Arms Transfers
  • Employee Safety and Wellbeing
  • Environmental Stewardship
  • Waste & Hazardous Materials Management
  • Climate Risk
  • Emissions
  • Energy Use
  • Water Management
  • Product Stewardship
  • Product Safety

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:58,842 metric tons of CO2e
Scope 1 Emissions:27,159 tons CO2e
Scope 2 Emissions:13,022 tons CO2e (Location based), 30,750 tons CO2e (Market based)
Scope 3 Emissions:18,661 tons CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:142,399,784.20 kWh
Water Consumption:1,152,008 m3
Waste Generated:12,262.33 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental Stewardship
  • Product Stewardship
  • Employee safety and well-being
  • Value chain integrity
  • Business integrity

Environmental Achievements

  • Reduced electricity consumption by 4.5% compared to 2021
  • Installed 360 solar panels at Nammo Vihtavuori, generating 109,000 kWh of renewable electricity annually
  • Reduced water consumption by 52% (1,737 cubic meters) and sulfuric acid by 5,970 cubic meters at Nammo Raufoss Mechanical department
  • Reduced lubricating oil by 13,000 liters at Nammo Raufoss Mechanical department
  • Reduced the department’s annual power consumption by 16.6% at Nammo Raufoss Mechanical department

Social Achievements

  • Achieved the lowest Lost Time Injury (LTI) value in company history (4.6 LTIs per 1 million working hours)
  • No serious injuries or fatalities reported in 2022
  • Increased reporting of accidents, near-misses, and hazardous conditions by 67%
  • Maintained a stable percentage of female employees at 27%

Governance Achievements

  • Completed all e-learnings on business integrity
  • Group-wide implementation of Nammo Management System
  • Strengthened screening and background control to mitigate the risk of sanctioned parties
  • Improved and strengthened distributor agreements for commercial sales

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 30% female workforce by 2030
  • Produce a total of 1,450,000 kWh per year from renewable energy installations
Short-term Goals:
  • Integrate physical climate risk assessment results into strategy process in 2023
  • Expand climate risk assessment to include transition risks in 2023
  • Improve profitability in the US business
  • Ramp up production across all facilities to meet demand

Environmental Challenges

  • Supply chain issues and long lead times for critical raw materials due to the war in Ukraine and lingering effects of the pandemic
  • Challenges in measuring Scope 3 emissions due to the large number of sub-suppliers and resource limitations
  • Significant GHG emissions from peat use at the Vihtavuori facility
  • Increased pressure on the sales organization from individuals and organizations seeking to buy products
  • Lack of diversity in the workforce
Mitigation Strategies
  • Investing in securing its supply chain of critical raw materials and components
  • Educating sites on reporting to improve data quality and accuracy, evaluating alternative fuel sources
  • Strengthening due diligence of customers and distributors in the commercial business area
  • Establishing an internal board to carefully evaluate all incoming requests
  • Setting KPI targets for each Group entity to achieve gender balance by 2030

Supply Chain Management

Supplier Audits: 1,086 third parties monitored, including 700 strategic suppliers; 10% categorized as high-risk

Responsible Procurement
  • Supplier Conduct Principles
  • Code of Conduct
  • Risk-based due diligence process
  • Supplier screening
  • Background checks
  • Self-assessment questionnaire

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme precipitation
  • Heat stress
  • Extreme winds
  • River and coastal flooding
Transition Risks
  • Materiality, consequences and adaptation to identified hazards
  • Increased pressure on the defense industry to improve manufacturing processes
  • New waves of ESG regulations and customer requirements
Opportunities
  • Technological innovation
  • Access to new ways of funding
  • Shifting product development and processes towards a circular economic model

Reporting Standards

Frameworks Used: GRI, TCFD, UN Global Compact

Certifications: ISO 14001 (at 70% of sites), ISO 45001, ISO 27001, UK Cyber Essentials

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 17 (Partnership for the Goals)

Various initiatives contribute to these goals through responsible resource management, waste reduction, renewable energy adoption, and collaborative partnerships

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Sustainability Award at the local Industry Conference in the Raufoss Industry Cluster in 2022 (Nammo Raufoss Mechanical department)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:45,593 tCO2e/year
Scope 1 Emissions:11,035 tCO2e/year
Scope 2 Emissions:15,485 tCO2e/year (location-based), 42,917 tCO2e/year (market-based)
Scope 3 Emissions:19,071 tCO2e/year
Total Energy Consumption:529,487 GJ (approx. 147,080 MWh)
Water Consumption:1,073,454 m3/year
Waste Generated:31,627 tons (non-hazardous) + 1,312 tons (hazardous)/year
Carbon Intensity:4.96 ton CO2 per MNOK revenue in 2023

ESG Focus Areas

  • Environmental Stewardship
  • Employee safety and well-being
  • Value chain integrity
  • Business integrity
  • Corporate Governance

Environmental Achievements

  • Reduced CO2 intensity by 16% from 2022 and 44% since 2019 (per million NOK revenue)
  • Reduced Scope 1 emissions from fuel combustion by 1,323 tons
  • 10% reduction in water use at Nammo Vihtavuori nitrocellulose plant
  • Three Life Cycle Analyses (LCA) completed on key products

Social Achievements

  • Increased health & safety reporting by 14%
  • Sick leave declined to 4.3 percent
  • Percentage of female employees increased to 27.6 percent
  • 94% completion of monthly compliance e-learning

Governance Achievements

  • 94% completion of mandatory training modules
  • Established a new internal audit program
  • No legal repercussions for corruption, anti-competitive practices, illicit trade, or ethical violations

Climate Goals & Targets

Long-term Goals:
  • Achieve an overview of environmental footprint on core products
  • Secure resilient operations according to risk mitigation plan
  • Reduce climate footprint for commuting by 30% per person compared to 2019 levels
  • Reduce climate footprint for business travel by 30% per person compared to 2019 levels
Medium-term Goals:
  • Increased diversity and >30% female employees
  • >75% waste sent to recycling, reuse or recovery
  • >1.5% reduction per year in emission (Intensity based, per revenue in local currency)
  • Complete physical and digital audits for all critical suppliers
Short-term Goals:
  • Achieve a minimum of 28% female employees
  • Yearly assessment of all new suppliers and audit of selected existing suppliers
  • Reduce total amount of waste and increase recycling rate to >75%
  • Reduce emission from energy consumption annually by 1.5% compared to 2019

Environmental Challenges

  • Two serious accidents at two sites (one fatality, one serious injury)
  • Strained supply chains
  • Increased production pressure due to global events
  • Geopolitical instability and active conflicts driving increased demand
Mitigation Strategies
  • Thorough investigations and corrective actions following accidents
  • Securing long-lead time production equipment, materials, and components
  • Investing nearly three times more than in an average year to increase output
  • Strengthening organizational and operational resilience and capacity
  • Implementing risk mitigation strategies

Supply Chain Management

Supplier Audits: Nearly 140 supplier audits conducted in 2023

Responsible Procurement
  • Supplier Conduct Principles
  • Due diligence process
  • Screening of over 500 key suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • River and coastal flooding
  • Wildfire
  • Heat stress
Transition Risks
  • Carbon costs and increasing regulation
  • Impacts of speed of regulatory shift on business planning
Opportunities
  • Becoming the recognized low/no carbon supplier of choice
  • Low carbon access to green debt
  • Adaptation leading to increased operational performance

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001

Sustainable Products & Innovation

  • Eco-friendly ammunition and propulsion systems

Awards & Recognition

  • Industry Honorary Award (Nammo Raufoss)
  • Female Employee Award (Nammo Raufoss)
  • Premier Award for performance in 2022 (Nammo Raufoss)