CirChem AB (publ)
Climate Impact & Sustainability Data (2023-01 to 2023-03)
Reporting Period: 2023-01 to 2023-03
Environmental Metrics
ESG Focus Areas
- Climate change
- Circular economy
Environmental Achievements
- Achieved highest quarterly turnover from sales of recycled solvents (564 KSEK), a 54% increase compared to Q4 2022. This is almost in line with the full-year turnover in 2022.
- Increased recycling rate through process and purification method efficiency improvements.
- Building permit granted for expanding storage capacity from 100 tons to 350 tons.
Social Achievements
- Collaboration with Cradlenet at Nordic Sustainability Expo 2023.
- Initiated a recycling project for the automotive industry.
Governance Achievements
- Completed a rights issue that raised 35.1 MSEK before emission costs.
Climate Goals & Targets
Long-term Goals:
- Geographic expansion in Northern Europe with three additional facilities, indicating a potential turnover of 1,000 MSEK.
Medium-term Goals:
- Establish capacity for handling 25,000 tons of solvents per year with a 15% EBITDA margin on a turnover of 250 MSEK.
Short-term Goals:
- Positive cash flow and break-even at the Vargön facility.
Environmental Challenges
- Limited storage capacity impacting production volume.
- Long lead times in the production process (from waste delivery to purified solvent delivery).
- Potential impact of the Ukraine conflict on the planned expansion of the Vargön facility due to material availability and pricing uncertainties.
Mitigation Strategies
- Expansion of storage capacity from 100 tons to 350 tons (underway).
- Efforts to increase production hours through shift work and increased number of operators.
- Continuous calibration and optimization of the plant and purification methods.
- Establishment of decision-making processes and communication channels to streamline production expansion.
Supply Chain Management
Responsible Procurement
- Collaboration with Stena Recycling, Swed Handling, and Titab Pac.
Climate-Related Risks & Opportunities
Opportunities
- Increased demand for domestic/regional solvent recycling due to the Ukraine conflict and stricter regulations.
Reporting Standards
Frameworks Used: K3
UN Sustainable Development Goals
- SDG 9: Industry, Innovation and Infrastructure
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
CirChem's solvent recycling contributes to reducing waste, promoting resource efficiency, and mitigating climate change.
Sustainable Products & Innovation
- Recycled solvents