Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable product offerings
• Responsible and sustainable sourcing
• Sustainable operations
• Diverse and high-performing teams
• Ethical business practices

Environmental Achievements

• Reduced total carbon emissions intensity by 8% versus 2019 and 18% versus baseline 2017
• Increased the share of sourced recycled aluminium by 2.7 percentage points to 22.5%
• Increased the share of renewable energy by 5 percentage points to 13%

Social Achievements

• Reached 100% participation in group-wide anti-corruption and Code of Conduct trainings
• Increased the share of women among senior management to 21%
• Increased the share of women in the total workforce to 15%

Governance Achievements

• 100% of all employees conducted the annual group-wide Code of Conduct training
• 100% of all white-collar employees conducted the annual anti-corruption training
• Minor updates to the Code of Conduct and launched a new version

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions due to the COVID-19 pandemic
• Increased Total Recordable Rate to 5.5 recordable accidents per million hours worked
• Only 97% of significant suppliers had a valid commitment to the Supplier Code of Conduct

Mitigation Strategies

• Implemented mitigation plans with measures to reduce the impact of the pandemic and adapt operations to the current market situation
• Implemented a reinforced general savings programme and organizational changes to adjust the cost base and improve efficiency
• Postponed capital expenditures and adjusted capacity through temporary site closures and temporary and permanent layoffs
• Developed a new global Responsible Sourcing Policy

Supply Chain Management

Supplier Audits: 5 on-site supplier audits conducted in 2020

Responsible Procurement

• Supplier Code of Conduct
• Sustainability risk screening and desktop assessments
• Supplier follow-up and engagement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Changes in environmental policy or legislation
• Shifting customer and consumer preferences towards products with lower climate impact

Opportunities

• Increased demand for aluminium products driven by a global focus on sustainable development

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001 (Huntingdon site), ASI Performance Standard (Shanghai site, provisional certification for Finspång)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• TRILLIUM® technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable innovation
• Product stewardship
• Responsible sourcing
• Sourced metals
• Emissions and climate impact
• Workplace safety
• Waste management
• Water management
• Career and leadership
• Diversity and inclusion
• Employee wellbeing
• Ethics and anti-corruption
• Energy

Environmental Achievements

• Reduced carbon emissions intensity from own operations and purchased energy (scope 1+2) by 8% compared to 2017.
• Reduced carbon emissions intensity from sourced metal inputs (scope 3) by 20% compared to 2017.
• Increased share of sourced aluminium scrap to 28.5%.

Social Achievements

• Implemented local water management plans in three sites (Finspång, Shanghai, and Newport).
• Newport site certified in accordance with Alliance for Water Stewardship’s (AWS) International Waters Stewardship Standards.
• Launched a new program in Huntingdon focusing on improving machine guarding.

Governance Achievements

• Successfully issued a five-year SEK 600 million Sustainability-Linked Bond tied to three sustainability performance targets.
• 100% of employees conducted Code of Conduct training.
• 100% of white-collar employees conducted anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Emerging regulation of carbon pricing mechanisms.
• Reduced demand for products and services due to changing customer behaviour.
• Reduced production capacity because of increased severity and frequency of extreme weather events.
• Varying recycling conditions and availability of aluminium scrap geographically.
• Challenges in recycling aluminium due to its combination with other materials.

Mitigation Strategies

• Systematically working in line with the company’s climate strategy.
• Actively collaborating with suppliers, customers, and other business partners to identify and capture new opportunities to reduce the climate impact.
• Expanding sourcing of low-carbon primary aluminium and aluminium scrap.
• Investing in dross press machine to recover aluminium from dross on-site (Finspång).
• Conducting a study on treatment of waste emulsions from the hot rolling mill to reduce hazardous waste (Shanghai).

Supply Chain Management

Supplier Audits: 24 on-site audits in 2021

Responsible Procurement

• Supplier Code of Conduct
• Sustainability risk screening
• Sustainability desktop assessment (EcoVadis)

Climate-Related Risks & Opportunities

Physical Risks

• Reduced production capacity because of increased severity and frequency of extreme weather events

Transition Risks

• Emerging regulation of carbon pricing mechanisms
• Reduced demand for products and services due to changing customer behaviour

Opportunities

• Development of energy-efficient products
• Expanding the use of low-carbon primary aluminium and aluminium scrap

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001, ISO 45001 (Shanghai site), ISO 50001 (Finspång, Shanghai, Saint-Avold sites), IATF 16949 (four production sites)

Third-party Assurance: EY (carbon emissions intensity and share of sourced aluminium scrap)

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 16
• 17

The report details how Gränges' initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Low-carbon and circular aluminium offerings based on more recycled materials.

Awards & Recognition

• Platinum award in the 2021 EcoVadis sustainability ranking

Environmental Metrics

ESG Focus Areas

• Climate Change
• Recycling
• Responsible Sourcing
• Workplace Safety
• Business Ethics

Environmental Achievements

• Reduced total carbon emissions intensity (scope 1+2+3) by 22% versus baseline 2017.
• Increased share of sourced recycled aluminium to 32.7% (above the 2025 target of 30%).
• Reduced scope 1+2 carbon emissions intensity by 7% to 0.82 tonnes CO2e/tonne.
• Reduced scope 3 carbon emissions intensity by 4% to 8.1 tonnes CO2e/tonne.

Social Achievements

• Launched Gränges Endure, a sustainable product brand.
• Reduced employee turnover by 20% in Gränges Americas.
• Shanghai team maintained deliveries during a two-month COVID-19 lockdown.
• Polish employees supported Ukrainian neighbors.

Governance Achievements

• Achieved dual ASI certifications for five sites (three in Americas, two in Eurasia).
• Supplier Code of Conduct commitment reached 97%.

Climate Goals & Targets

Environmental Challenges

• Volatile demand and supply chain disruptions.
• Complete lockdown of Shanghai plant.
• Fire in Konin plant.
• War in Ukraine.
• High inflation and interest rates.
• Record high aluminium prices.
• High employee turnover.
• Tragic fatal accident in Salisbury facility.

Mitigation Strategies

• Close partnership with customers on productivity and cost mitigation.
• Renewed main credit facilities.
• Offset cost increases with price increases.
• Implemented a two-pronged improvement plan focusing on high-risk programs and safety leadership and culture in Gränges Americas.
• Intense work to improve safety performance following the fatal accident in Salisbury.
• Investments in recycling and casting operations.
• Investments in battery foil production.
• Increased use of renewable energy.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainability risk screening
• Desktop sustainability assessments
• Follow-up and engagement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, ASI Performance Standard, ASI Chain of Custody Standard

Third-party Assurance: EY

Sustainable Products & Innovation

• Gränges Endure products

Awards & Recognition

• Platinum rating from EcoVadis (two years running)

Environmental Metrics

ESG Focus Areas

• Climate change
• Circularity
• Responsible sourcing
• Workplace safety
• Business ethics

Environmental Achievements

• Reduced scope 1+2 carbon emissions intensity by 20% to 0.66 tonnes CO2e/tonne
• Reduced scope 3 carbon emissions intensity by 4% to 7.8 tonnes CO2e/tonne
• Increased sourced recycled aluminium to 41.6% (210 ktonnes)
• All aluminium rolling and recycling sites achieved ASI certifications

Social Achievements

• Improved employee retention in the US
• Implemented training programs for first-line managers focusing on safety, leadership, culture, and values
• Introduced a senior leadership program
• Updated Gränges’ brand positioning and core values

Governance Achievements

• 100% of employees participated in Gränges’ Code of Conduct training
• 100% of white-collar employees participated in Gränges’ Anti-corruption training
• No confirmed incidents of corruption detected

Climate Goals & Targets

Environmental Challenges

• General economic slowdown and uncertainty
• Weakened demand in several market segments (HVAC, specialty packaging, other niches)
• High inflationary environment
• Increased downstream focus on inventory management
• High employee turnover in the US
• Supply chain risks (supplier delivery failures, sustainability risks, legal risks)
• Climate transition risks (regulatory changes, market shifts)
• Climate physical risks (extreme weather events)

Mitigation Strategies

• Systematic work on productivity and price
• Ongoing capacity and optimization investments
• Optimized inventory management
• Commercial flexibility
• Price management
• New partnerships with suppliers and customers
• Increased recycling capabilities
• Increased renewable energy usage
• Wages and monthly incentive schemes to improve employee retention
• Comprehensive onboarding program for new employees
• Frontline leadership training
• Supplier agreements
• Own cast houses in production facilities
• Responsible Sourcing Policy and program
• Supplier Code of Conduct
• Sustainability risk screening and desktop assessments
• Contingency planning
• Diversified product portfolio
• Global presence

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Policy and program
• Sustainability risk screening and desktop assessments

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in the electric vehicle and battery market

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, ASI Performance Standard, ASI Chain of Custody Standard

Third-party Assurance: EY

Sustainable Products & Innovation

• Gränges Endure (low-carbon aluminium products)

Awards & Recognition

• EcoVadis Platinum rating (three times in a row)