Climate Change Data

voestalpine AG

Climate Impact & Sustainability Data (2019, 2020, 2022-2023, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:13.6 million tons of CO2e
Scope 1 Emissions:7.26 million tons of CO2e
Scope 2 Emissions:0.94 million tons of CO2e
Scope 3 Emissions:5.41 million tons of CO2e

ESG Focus Areas

  • Environmental

Environmental Achievements

  • Reduced CO2 emissions by 16% per ton of crude steel since 1990
  • Reduced SO2 emissions by 82% per ton of crude steel since 1990
  • Reduced NOx emissions by 65% per ton of crude steel since 1990
  • Reduced dust emissions by 96% per ton of crude steel since 1990
  • Achieved a CDP 'A-' rating for climate change mitigation and was promoted to the 'leadership' category

Climate Goals & Targets

Environmental Challenges

  • Energy-intensive processes still depend on fossil fuels, resulting in unavoidable emissions.
Mitigation Strategies
  • Continual optimization of technical processes (process integrated measures)
  • Use of state-of-the-art scrubbing facilities (end-of-pipe measures)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP

Certifications: ISO 14064-3

Awards & Recognition

  • CDP’s ‘A-’ rating
  • CDP’s ‘A’ rating for supplier engagement

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:12.4 million tCO2e (Scope 1)
Scope 1 Emissions:12.4 million tCO2e
Scope 2 Emissions:0.64 million tCO2e
Scope 3 Emissions:7.65 million tCO2e
Renewable Energy Share:5.6% (purchased electricity) + increasing share from hydropower and photovoltaics
Total Energy Consumption:38.7 TWh
Water Consumption:678 million m3
Waste Generated:1627 kt (hazardous and non-hazardous)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Action and Environmental Protection
  • Sustainability in the Supply Chain
  • Research and Development
  • Sustainable Products and Services
  • Human Resources
  • Health & Safety
  • Compliance and Corporate Governance
  • Stakeholder Management
  • Society

Environmental Achievements

  • Reduced Scope 1 CO2 emissions by approximately 1.2 million tons from 13.6 million tons in 2019 to 12.4 million tons in 2020 due to production downturn.
  • Reduced specific emissions of CO2 by about one-fifth, SO2 emissions by three-quarters, and NOx emissions by just under two-thirds since 1990.
  • Recycling rate of iron relative to product output was 26.5% in 2020.

Social Achievements

  • Implemented comprehensive safety and hygiene measures during the COVID-19 pandemic, protecting employees' health.
  • Offered comprehensive testing and vaccination options to its workforce.
  • Maintained operations during the pandemic through short-time work, capacity cutbacks, and cost-cutting programs.
  • Continued employee training and continuing professional development, exceeding EUR 43 million in expenditure.

Governance Achievements

  • Adopted a new Sustainability Strategy in 2021 defining quantitative and qualitative targets for sustainable development.
  • Complied with the Austrian Corporate Governance Code since 2003.
  • Implemented an efficient Compliance management system.

Climate Goals & Targets

Long-term Goals:
  • Achieve climate neutrality by 2050.
Medium-term Goals:
  • Lower Scope 1 CO2 emissions for steel production in Linz and Donawitz by 30% by 2030.
  • High Performance Metals Division will lower its CO2 emissions (Scope 1 & 2) by 50% by 2030.
  • Metal Forming Division’s production activities will be climate neutral by 2035.
Short-term Goals:
  • Reduce lost time injury frequency rate (LTIFR) by 30% by 2025 compared with 2020.
  • By 2025, all relevant production facilities should have implemented a standardized environmental management system (EMS) and obtained certifications pursuant to ISO 14001 or EMAS.
  • By 2025, 70% of the Group’s total purchasing volume (100% of all deliveries of critical raw materials) will be verified as to compliance with ESG criteria.

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic.
  • Economic downturn at the start of the business year 2020/21.
  • Decarbonizing steel production while remaining competitive.
  • Ensuring sufficient quantities of renewable energies at competitive prices for decarbonization.
Mitigation Strategies
  • Instituted short-time work, capacity cutbacks, and cost-cutting programs.
  • Developed a comprehensive plan for decarbonizing steel production by 2030 and achieving carbon-neutral production by 2050.
  • Applied for funding from the EU ETS Innovation Fund and IPCEI.
  • Engaged in open dialogue with stakeholders, including political decision-makers and environmental organizations.

Supply Chain Management

Supplier Audits: Annual evaluation of raw materials suppliers; risk assessment concept to be developed in 2021/22.

Responsible Procurement
  • Compliance with environmental and social principles.
  • Sustainable supplier management integrated into procurement processes.
  • Code of Conduct binding on all suppliers and business partners.

Climate-Related Risks & Opportunities

Physical Risks
  • Floods
  • Low water levels
  • Heavy snowfall
  • Droughts
  • Strong wind
  • Temperature fluctuations
Transition Risks
  • Regulatory changes (e.g., EU ETS)
  • Market shifts (demand for green steel)
Opportunities
  • Development of energy-efficient products and processes
  • Development of green hydrogen-based steel production

Reporting Standards

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

Certifications: ISO 14001, EMAS, ISO 50001, ISO 45001 (50% of production companies)

Third-party Assurance: Deloitte Audit Wirtschaftsprüfungs GmbH

UN Sustainable Development Goals

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

voestalpine actively contributes to the implementation of these SDGs through its business activities.

Sustainable Products & Innovation

  • High and ultra-high tensile steels for lightweight construction.
  • High-performance materials for aerospace.
  • Leova®UNUM steel trellis post for viniculture.
  • Steel base plates for photovoltaic installations.
  • Tailormade functional steel (TFS).

Awards & Recognition

  • Not disclosed

Reporting Period: 2022-2023

Environmental Metrics

Total Carbon Emissions:608 tCO2e (Scope 1 & 2)
Scope 1 Emissions:312 tCO2e
Scope 2 Emissions:296 tCO2e
Total Energy Consumption:749,901 kWh (electricity)
Waste Generated:475,568 kg (total waste)

ESG Focus Areas

  • Economic Sustainability
  • Social Sustainability
  • Environmental Sustainability

Environmental Achievements

  • Reduced CO2 emissions by about 40 tonnes/year through company car fleet renewal.
  • Reduced CO2 emissions by about 1.8 tonnes/year by installing water dispensers and eliminating plastic bottles.
  • Improved waste sorting and recovery, achieving 97% waste recovery in FY22-23.

Social Achievements

  • Achieved zero accidents for over 12 months.
  • Increased female representation in the workforce to approximately 30%.
  • Implemented smart working, allowing one day of remote work per week for many employees.
  • Implemented a welfare platform allocating €800 per employee (€64,017 total).

Governance Achievements

  • Implemented a common risk management model aligned with the voestalpine Group.
  • Established a compliance structure with Compliance Officers.
  • Maintained Cribis Prime Company certification, indicating high commercial reliability.

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions (implied, not explicitly stated with a year)
Medium-term Goals:
  • Reduce CO2 emissions by 50% in operations (Scope 1 & 2) by 2029.
  • Contribute to a 25% reduction in CO2 emissions in the supply chain (Scope 3) by 2029.
  • Reuse over 90% of recycled scrap and secondary raw materials by 2030.
Short-term Goals:
  • Reduce water consumption (not specified)
  • Reduce waste (not specified)

Environmental Challenges

  • Supply chain disruptions (implied, not explicitly stated)
  • Competition from companies with more assertive business strategies (mentioned in letter to stakeholders).
Mitigation Strategies
  • Investing in initiatives to showcase the economic advantages of high-quality, longer-lifetime products.
  • Focusing on energy efficiency and reduced CO2 footprint to help customers cut emissions.
  • Implementing Lean Management and an Operating Model to improve efficiency.

Supply Chain Management

Responsible Procurement
  • Mostly intercompany purchases (66% Böhler, 23% Uddeholm, 7% Buderus).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, AS 9120 REV. B (Bohler Division)

Sustainable Products & Innovation

  • 3D printing powders
  • Engineered Products
  • Additive Manufacturing

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:12.5 million tons of CO2e (Scope 1, 2023)
Scope 1 Emissions:12.5 million tCO2e (2023)
Scope 2 Emissions:0.60 million tCO2e (market-based, 2023)
Scope 3 Emissions:8.85 million tCO2e (2023)
Renewable Energy Share:3% of total energy consumption (2023)
Total Energy Consumption:36.4 TWh (2023)
Water Consumption:739 million m3 (2023)
Waste Generated:169 kg per ton of product (non-hazardous, 2023)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Action and Environmental Protection
  • Sustainability in the Supply Chain
  • Research and Development
  • Sustainable Products and Services
  • Human Resources
  • health & safety
  • Compliance and Corporate Governance
  • Stakeholder Management
  • Society

Environmental Achievements

  • Reduced Scope 1 and Scope 2 emissions by a certain percentage (exact figures not specified, but a 30% reduction target by 2029 is mentioned)
  • Groundbreaking ceremony for construction of two electric arc furnaces in Linz and Donawitz (to reduce CO2 emissions by up to 30%)
  • World’s most advanced special steel plant in Kapfenberg officially opened (focus on environmentally friendly and resource-saving steel production)

Social Achievements

  • Launched voestalpine cares run, donating EUR 700,000 to charitable causes
  • Became the first Austrian industrial company to offer 24-hour childcare for children up to age 12 at its Linz site
  • Increased the proportion of women in technical apprenticeships to 22%

Governance Achievements

  • Updated Code of Conduct for Business Partners
  • Established a Group Sustainability department
  • Implemented a board and committee structure for consistent cross-functional cooperation on sustainability

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero CO2 emissions by 2050
Medium-term Goals:
  • Increase the use of scrap in crude steel production by 50% by 2030
  • Reduce Scope 1 and Scope 2 emissions by 30% by 2029 (relative to 2019)
  • Reduce Scope 3 emissions by 25% by 2029 (relative to 2019)
  • Achieve climate neutrality in Metal Forming Division's production activities by 2035
  • Increase the proportion of women in management positions from 14% to 18% by 2030
Short-term Goals:
  • Reduce water consumption (exact target not specified)
  • Implement standardized environmental management system (EMS) and obtain certifications at all relevant production facilities by 2025
  • Evaluate 70% of the Group’s total purchasing volume (especially 100% of all critical raw material deliveries) based on sustainability criteria by 2025
  • Reduce LTIFR by a further 30% to 5.5 by 2030

Environmental Challenges

  • Supply chain disruptions due to climate events
  • Potential cost risk from increases in the price of emission allowances
  • Risks associated with the greentec steel climate protection program (complexity, schedule changes, financing)
  • Data limitations in determining Scope 3 emissions
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Needs-based hedges for short-term price fluctuations in emission allowances
  • Detailed risk analyses and project organization for greentec steel
  • Gradual expansion and extension of the proportion of specific data from the supply chains for Scope 3 emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Risk classification model using predefined sustainability criteria
  • Updated Code of Conduct for Business Partners
  • Supplier life cycle management process
  • Training programs for procurement employees

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Low water levels
  • Snow load
  • Drought
  • Storms and strong winds
  • Temperature fluctuations
Transition Risks
  • Rising GHG emission costs
  • Implementation of EU climate targets
Opportunities
  • Growing market for green products
  • Customer interest in climate-friendly steel products
  • Growth potential in energy and electromobility sectors

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, EMAS, ISO 50001, ISO 45001, ResponsibleSteel

Third-party Assurance: Deloitte Audit Wirtschaftsprüfungs GmbH

UN Sustainable Development Goals

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

voestalpine's business activities contribute to these SDGs

Sustainable Products & Innovation

  • greentec steel
  • High-strength and ultra-high-strength steels
  • Tailor-made functional steel technology
  • Rail steels with increased toughness
  • Modular profile systems for robots

Awards & Recognition

  • First place in BEST RECRUITERS ranking within its industry (14th time in a row), 5th place overall