Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Resource Intensity
• Pollution Control
• Foundry 4.0
• Climate Change
• Circular Economy
• Safety and Wellbeing

Environmental Achievements

• Improved metal yield at one manufacturer from 40% to 70%, resulting in a reduction in CO2 emissions of 2.62kg per casting using FEEDEX VAK sleeves.
• Reduced ladle lining time by half, reduced drying time from 9 hours to 1 hour, and shortened preheat from 4 hours to 1 hour using KALTEK ISO 60 BF, improving lining lifetime by 35%.
• Shortened core/mound drying cycles by 50%, improving energy consumption by 50% with SEMCO FD coatings.
• Reduced coating waste and increased core shop productivity by 25% with the Intelligent Coating Unit (ICU).
• Reduced casting scrap and rework requirements with the Intelligent Coating Unit (ICU).

Social Achievements

• Improved safety and wellbeing at work by limiting worker exposure to man-machine interactions through extended equipment lifecycles.
• Improved handling and safety with SEMCO FD coatings due to lighter filler combination and removal of zircon.

Governance Achievements

• Became signatories to the UN Global Compact, committing to support its principles on human rights, labour, environment and anti-corruption, and to advance the UN’s Sustainable Development Goals.

Climate Goals & Targets

Environmental Challenges

• High energy consumption, low energy efficiency, and high CO2 emissions in metal casting.
• Need to reduce atmospheric emissions of CO2.
• Tightening regulations of air pollutants.
• Water-based coatings vulnerable to attack by microorganisms and formaldehyde regulations.
• Need for formaldehyde-free coatings.

Mitigation Strategies

• Improving yield, thermal efficiency, and reducing heat losses in melting processes.
• Using FEEDEX VAK sleeves, KALTEK insulating lining systems, SEMCO FD fast dry water-based coatings, SEDEX and STELEX filters.
• Using SEMCO FF formaldehyde-free coatings, SOLOSIL inorganic binders, and INSTA powder-based coatings.
• Implementing Foundry 4.0 technologies like the Intelligent Coating Unit (ICU) and FERROLAB V measuring system.

Supply Chain Management

Responsible Procurement

• Encouraging supplier progress on sustainability.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

• FEEDEX VAK sleeves
• KALTEK insulating lining systems
• SEMCO FD fast dry water-based coatings
• SEDEX and STELEX filters
• KALPUR direct pouring
• SEMCO FF formaldehyde-free coatings
• SOLOSIL inorganic binders
• INSTA powder-based coatings
• VAPEX multi-life nozzles
• Intelligent Coating Unit (ICU)
• TRIAD Z linings
• KELLUNDITE lining systems

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Protection of the environment
• Human rights
• Employee well-being
• Responsible procurement
• Communities
• Governance
• Business ethics
• Supply chain

Environmental Achievements

• Reduced Scope 1 and 2 energy CO2e emissions per metric tonne of product packed for shipment by 16.5% vs 2019.
• Reduced normalised energy consumption by 9% vs 2019.
• Increased proportion of recycled materials from external sources used in production to 6.2% (target 7%).
• Reduced solid waste (hazardous and sent to landfill) per metric tonne of product packed for shipment by 21.8% vs 2019.
• 51% of grid electricity consumed was generated using processes that did not emit CO2, of which 41% was from renewable sources.

Social Achievements

• Launched Sustainable Procurement Policy and Supplier Assessment programme.
• Increased female representation in top management to 21% (target 30%).
• 100% of targeted staff completed anti-bribery and corruption training.
• Conducted sustainability assessments of suppliers covering 52% of Group spend (target 50% by end of 2023).

Governance Achievements

• Established a new governance structure for sustainability, including a Sustainability Council.
• Aligned environmental disclosures to the TCFD framework.
• Integrated ESG measures into the 2022 Long-term Incentive Plan.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events.
• Potential for increased carbon taxes without effective border adjustments.
• Rapid transition from iron to aluminium for light vehicle castings.
• Transition from Blast Furnaces to Direct Reduction Iron or Electric Arc Furnaces.
• Availability and consistency of recycled materials.

Mitigation Strategies

• Developed business continuity plans and weather event risk map.
• Implementing energy efficiency improvements and conversion to non-fossil fuels.
• Developing products for aluminium castings and thin-section automotive components.
• Adjusting R&D and product development priorities.
• Implementing programmes with customers to recover and recycle refractory products.

Supply Chain Management

Supplier Audits: 138 audits/year

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Sustainability Assessment programme (EcoVadis).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, storms, wildfires)
• Water shortages

Transition Risks

• Increased carbon taxes
• Market shifts due to transition to electric vehicles and alternative steel-making processes

Opportunities

• Development of energy-efficient products and services for low-carbon processes.
• Growth in markets for renewable energy and electric vehicles.

Reporting Standards

Frameworks Used: GRI Standards: Core option, TCFD

Certifications: ISO 14001:2015 (20 sites), ISO 45001:2018 (5 sites)

Third-party Assurance: Carbon Footprint Ltd (Scope 1, 2 & 3 emissions)

UN Sustainable Development Goals

• Goal 8
• Goal 3
• Goal 9
• Goal 5
• Goal 12
• Goal 6
• Goal 13

Vesuvius' operations contribute to these SDGs through various initiatives related to economic growth, health and safety, industrial innovation, gender equality, sustainable consumption and production, water management, and climate action.

Sustainable Products & Innovation

• DuraSleeve*
• DuraFlex* 5H
• Rapid Fire* Shotcrete
• FEEDEX* FEF
• Basilite* Quick Start

Awards & Recognition

• Financial Times’ European Climate Leaders list
• Usiminas Innovation Awards
• PRE Circular Economy Awards
• World Refractories Association Safety awards
• ERPA Safety award
• TATA 4-star ratings
• Ternium Safe Supplier

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Safety
• Gender Diversity
• Ethical Business Conduct
• Sustainable Supply Chain
• Employee Well-being

Environmental Achievements

• Pro forma reduction of Scope 1 and Scope 2 CO2e emission intensity per metric tonne of product packed for shipment by 20.2% vs 2019.
• 71% of grid electricity consumed in sites was generated from renewable sources in 2023.
• Reduction of solid waste (hazardous and sent to landfill) per metric tonne of product packed for shipment by 13.4% vs 2019.

Social Achievements

• Increased female representation in the Senior Leadership Group to 20% (2022: 20%).
• LTIFR of 0.6 per million hours worked (significantly lower than 2022's 1.08).
• 100% of targeted staff completed anti-bribery and corruption training.

Governance Achievements

• Established a Sustainability Council to oversee sustainability activities.
• Integrated ESG measures into the Group’s remuneration strategy.
• Completed due diligence for more than 2,500 counterparties worldwide, terminating relationships with 106 that didn't meet standards.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events.
• Potential for carbon taxing or emissions rights trading schemes.
• Rapid transition from iron to aluminium for light vehicle castings.
• Maintaining gender diversity targets.

Mitigation Strategies

• Business continuity plans and insurance to address weather events.
• Energy efficiency improvements and conversion to non-fossil fuels.
• Developing products for aluminium castings and other markets.
• Internal talent development programs and external recruitment strategies.

Supply Chain Management

Supplier Audits: 157 audits in 2023

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Sustainability Assessment program (EcoVadis)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing
• Market shifts (e.g., transition from iron to aluminum castings)

Opportunities

• Growth in sustainable end-markets (e.g., renewable energy, electric vehicles)
• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI, TCFD, UN Global Compact

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: Carbon Footprint Ltd (limited assurance for Scope 1, 2, and 3 GHG emissions)

UN Sustainable Development Goals

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 3: Good Health and Well-being
• SDG 5: Gender Equality
• SDG 6: Clean Water and Sanitation

Vesuvius' initiatives contribute to these goals through various programs and actions related to employment, innovation, resource efficiency, emissions reduction, health and safety, gender equality, and water management.

Sustainable Products & Innovation

• Products for sustainable end-markets (e.g., renewable energy, electric vehicles)
• Energy-efficient refractories
• Recycled products

Awards & Recognition

• MSCI ESG rating of AA
• CDP rating of A-
• EcoVadis Gold rating
• Green Factory award (Bayuquan, China)
• PRE Environment Awards (Skawina, Poland; Grossalmerode, Germany)
• Green Champion of the Year award (Foseco India)