Climate Change Data

Norsk Hydro ASA

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:40.7 kton CO2e
Scope 1 Emissions:40.7 kton CO2e
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:28.1 kton CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:76.2 GWh
Water Consumption:285 thousand m3
Waste Generated:14.8 thousand tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate change
  • Circular economy
  • Innovation and technology transition
  • Ethics and compliance
  • Responsible supply chain
  • Safe working environment
  • Local community value creation
  • Organization and people

Environmental Achievements

  • Reduced total greenhouse gas (GHG) emissions by 9% compared to the 2018 baseline.
  • Achieved ASI Chain of Custody (CoC) Standard certification across all Benelux plants.
  • Installed a new billet oven in Hoogezand, reducing natural gas consumption by 30%.

Social Achievements

  • Reduced the number of accidents at its sites.
  • Implemented 5S (housekeeping) and modernized factories.
  • Raised €15,000 for Villa Pardoes charity.

Governance Achievements

  • Adheres to Hydro’s Code of Conduct.
  • Provided compliance training on anti-corruption, Code of Conduct, competition law, data privacy, trade sanctions, human rights, integrity, and market regulations.
  • Hydro Extrusion Hoogezand plant awarded Platinum Ecovadis medal.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 or earlier.
Medium-term Goals:
  • Reduce specific CO2 emissions by 30% by 2030.
  • Reduce specific water consumption by 36% by 2030.
  • Reduce specific waste by 39% by 2030.
  • Increase post-consumer scrap recycling by 66% by 2030.
  • Supply all plants with renewable energy by 2025.
Short-term Goals:
  • Reduce total GHG emissions by 15% by 2025.
  • Achieve zero waste to landfill by 2025.
  • Increase post-consumer scrap recycling by 29% by 2025.

Environmental Challenges

  • Turbulent year due to the war in Ukraine and the effects of climate change.
  • Decarbonizing production processes.
  • Reducing water consumption and waste.
  • Increasing the use of recycled post-consumer aluminum.
  • Attracting more women to the workplace.
Mitigation Strategies
  • Investigating biomethane for smelting furnaces in Ghlin and circular gas in Drunen.
  • Improving energy efficiency.
  • Investing in recycling units (e.g., enlarging casting furnace in Drunen).
  • Installing a second wind turbine in Ghlin.
  • Working to supply all plants with renewable energy.
  • Implementing Closing the Loop systems with customers.
  • Implementing Hydro Extrusion Europe Women Network.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Hydro’s Supplier Code of Conduct
  • EcoVadis assessment platform
  • ASI certification promotion to suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding, heat waves
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products
  • Increased use of recycled aluminum

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, ISO 45001, ASI Performance Standard, ASI Chain of Custody Standard

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Hydro RESTORE (recycled aluminum)
  • Hydro REDUXA® (low-carbon aluminum)
  • Cradle to Cradle Certified® Silver light poles

Awards & Recognition

  • Platinum Ecovadis medal for Hydro Extrusion Hoogezand

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:9.35 million tonnes CO2e (ownership equity)
Scope 1 Emissions:6.79 million tonnes CO2e (consolidated)
Scope 2 Emissions:1.16 million tonnes CO2e (consolidated)
Scope 3 Emissions:13.41 million tonnes CO2e (ownership equity)
Renewable Energy Share:41.4% of total energy consumption
Total Energy Consumption:45.7 TWh
Water Consumption:283.7 million m3
Waste Generated:33% of spent pot linings to landfill
Carbon Intensity:0.61 tonnes CO2e per tonne alumina refined; 1.54 tonnes CO2e per tonne aluminium (electrolysis).

ESG Focus Areas

  • Climate change
  • Nature
  • Social responsibility
  • Human rights
  • Circular economy

Environmental Achievements

  • Reduced total scope 1 and 2 GHG emissions by 6.5% from 2018 baseline.
  • Reduced indirect scope 3 GHG emissions by 32% from 2018 baseline.
  • Recycled 444,000 tonnes of post-consumer aluminium scrap (38% increase from 2022).
  • Sold 51,000 tonnes of Hydro CIRCAL.
  • Implemented Tailings Dry Backfill method at Paragominas mine.
  • Achieved conformance with the Global Industry Standard on Tailings Management (GISTM).

Social Achievements

  • Invested NOK 123 million in local communities.
  • Reached more than 40,000 people through education and skills initiatives (197,000 since 2018).
  • Improved employee inclusion index score to 74%.

Governance Achievements

  • Improved ESG scores on several important ratings.
  • Received Mercedes-Benz sustainability supplier award.

Climate Goals & Targets

Long-term Goals:
  • Net-zero GHG emissions by 2050 or earlier.
  • Eliminate landfill of all recoverable waste by 2040.
  • Eliminate the need for new bauxite residue storage areas by 2050.
Medium-term Goals:
  • Reduce Scope 1 and 2 GHG emissions by 30% by 2030.
  • Increase post-consumer scrap recycling capacity to 850,000-1,200,000 tonnes by 2030.
  • Demonstrate emission-free smelting technologies at industrial pilot scale by 2030.
  • Achieve EBITDA in the range of NOK 10-12 billion in Extrusions by 2030.
  • Increase EBITDA from Recycling to NOK 5-8 billion by 2030.
Short-term Goals:
  • Reduce Scope 1 and 2 GHG emissions by 10% by 2025.
  • Reduce upstream Scope 3 GHG emissions per tonne aluminium by 30% by 2030.

Environmental Challenges

  • Challenging markets and weaker financial results due to wars, geopolitical rivalry, and inflation.
  • Two contractor fatalities (one in Brazil, one in Qatar).
  • Decreased demand for extruded products in European markets (17% year-over-year).
  • Complex and evolving sustainability landscape.
  • Value chain concentration in Brazil.
  • Macro-economic developments, geopolitical tensions, protectionism, and trade disruptions.
  • Regulatory and policy framework uncertainty.
  • Technological breakthroughs by competitors.
  • Climate change (physical and transition risks).
Mitigation Strategies
  • Strategic capital allocation, including sale of Alunorte shares and acquisitions in Recycling and Extrusions.
  • Focus on safety improvements and fatality prevention.
  • Implementation of 2030 strategy: 'Pioneering the green aluminium transition, powered by renewable energy'.
  • Investments in recycling capacity and technology.
  • Investments in renewable power generation (Hydro Rein).
  • Ambitious decarbonization roadmap towards net-zero by 2050.
  • Strategic partnerships with leading customers.
  • Comprehensive climate risk assessments and adaptation plans.
  • Active engagement with regulators and industry associations.
  • In-house R&D and collaboration on zero-emission technologies (HalZero).

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability requirements for suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Water shortages
  • Extreme weather events
Transition Risks
  • Increased demand for low-carbon products
  • Higher costs for GHG emissions
  • Regulatory changes
  • Technological breakthroughs
Opportunities
  • Increased demand for low-carbon aluminium
  • Market premiums for sustainable products
  • Development of new zero-emission technologies

Reporting Standards

Frameworks Used: GRI Standards, ICMM requirements, EU Corporate Sustainability Reporting Directive (CSRD), European Sustainability Reporting Standards (ESRS)

Certifications: ISO 55001 (Asset Management), ISO 50001 (Energy Management)

Third-party Assurance: KPMG (limited assurance on sustainability statement)

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 8 (Decent work and economic growth)

Initiatives contribute to these goals through renewable energy production, low-carbon aluminium, recycling, and social programs.

Sustainable Products & Innovation

  • Hydro CIRCAL
  • Hydro REDUXA
  • Near-zero carbon aluminium

Awards & Recognition

  • Mercedes-Benz sustainability supplier award