Ferronordic AB (publ)
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:76,680 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:14,186 MWh/year
ESG Focus Areas
- Planet first
- Fair workplace
- Sustainable offerings
Environmental Achievements
- All 20 workshops in Germany became renewable energy certified in 2022.
- Acquired a renewable energy certificate for its German operations in 2021.
- Reduced carbon footprint in Germany, Kazakhstan and Russia (though data limitations exist).
Social Achievements
- Implemented incident reporting system in Germany (previously in Russia).
- Increased training hours per employee to 36 in 2022.
- Improved diversity KPI, though specific numbers are not consistently reported across years.
Governance Achievements
- 100% of employees completed anti-corruption training in 2022.
- Established a whistle-blower function.
- Expanded quality and environmental management systems to Germany in 2022.
Climate Goals & Targets
Long-term Goals:
- Reach net zero in operations by 2050.
Medium-term Goals:
- Further investments in electric trucks and charging stations in 2023.
Short-term Goals:
- Reach 50% recycled material in total waste by 2025.
- Only use renewable energy for workshops by 2025.
- Reach 45 training hours per employee by 2025.
- Reach 80% employee engagement and 30% diversity by 2025.
Environmental Challenges
- Data limitations on carbon footprint mapping, particularly for purchased products and logistics.
- Challenges in waste management and recycling, especially in remote areas (previously Russia).
- Lack of internal resources delayed the inclusion of Germany in the group risk management process in 2022.
Mitigation Strategies
- Working towards setting up processes to capture accurate information on emissions.
- Focusing on waste categories to increase recycling proportion (aiming for 50% by 2025).
- Planning to include Germany in the group risk management process in the near future.
Supply Chain Management
Responsible Procurement
- Ferronordic only works with premium manufacturers with long-standing sustainability efforts.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact, UN Sustainable Development Goals (SDGs), ILO Basic Conventions, UN Declaration of Human Rights, OECD Guidelines for Multinational Enterprises, GHG Protocol, Nasdaq ESG Reporting Guide 2.0
Certifications: ISO 45001 (Russia, partially), ISO 14001 (Russia, partially), ISO 9001 (Russia, partially)
UN Sustainable Development Goals
- Goal 7
- Goal 13
- Goal 8
- Goal 10
- Goal 16
- Goal 5
- Goal 11
- Goal 12
- Goal 17
- Goal 3
- Goal 14
- Goal 15
Ferronordic is committed to all 17 SDGs, focusing on those where the Company’s business activities can have the most significant immediate impact.
Sustainable Products & Innovation
- Electric trucks
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:76,680 tCO2e (Germany and Kazakhstan)
Renewable Energy Share:80.6% (Germany)
Total Energy Consumption:1,407 MWh (Germany and Kazakhstan)
ESG Focus Areas
- Planet first
- Fair workplace
- Sustainable offer
Environmental Achievements
- 16 out of 22 workshops in Germany were certified with renewable energy certificates in 2023 (aiming for all by 2025)
- 4.79% of total trucks sold were electric in 2023
- Received up to EUR 23m in government subsidies for investments in electric trucks in Germany.
Social Achievements
- Implemented incident reporting system in Germany in 2022
- Annual anti-corruption training completed by 100% of employees
- 4,298 hours of total training in 2023 (9.5 hours/employee)
Governance Achievements
- Established a Sustainability and Ethics committee in 2023
- Complied with the Swedish Code of Corporate Governance in 2023
- Annual compliance audits conducted
Climate Goals & Targets
Long-term Goals:
- Reach net zero emissions in operations by 2050
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Achieve 80% employee engagement and 30% diversity by 2025
- Use only renewable energy for workshops by 2025
Environmental Challenges
- High costs in Germany due to slower market demand
- High inventory levels across all segments
- Negative operating result in 2023
Mitigation Strategies
- Launched efficiency program in Germany to reduce costs by SEK 60m annually
- Initiatives to reduce inventory levels expected to deliver results in the first half of 2024
- Management changes in Germany and Kazakhstan to improve sales and profitability
Supply Chain Management
Responsible Procurement
- Procurement Policy with rules and threshold values
- Collaboration with premium manufacturers focused on sustainability
Climate-Related Risks & Opportunities
Transition Risks
- Emissions regulations
- Changes in fuel technology
Opportunities
- Sustainable transport solutions
- Government subsidies for electric vehicles
Reporting Standards
Frameworks Used: UN Global Compact, UN Sustainable Development Goals (SDGs), EU Taxonomy
Certifications: ISO 9001 (Germany), ISO 14001 (Germany)
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 13 (Climate action)
Initiatives related to renewable energy and electric vehicles contribute to these goals.
Sustainable Products & Innovation
- Electric trucks