A strong commitment to sustainability
By managing its business in a sustainable and responsible way, Gränges strengthens its long-term competitiveness and creates financial and operational value for the company and its stakeholders. Sustainable business value is achieved by reducing undesired impacts of the company’s operations and at the same time enforcing positive contributions and opportunities that emerge from integrating sustainability aspects into the business and value chain.
A vital resource for a sustainable economy
Aluminium is a circular material, capable of being recycled infinitively without losing its original properties such as lightness, conductivity, formability, durability and impermeability. These properties make aluminium a vital resource for a circular economy, and an important material supporting key sectors, e.g. transport, construction, packaging and renewable energy technologies, to achieve their climate targets. With the global push for sustainable development and the transformation into a more resource efficient and circular economy, Gränges’ customers are increasingly recognizing the importance of sustainable materials.
Gränges is subject to the EU taxonomy and has in 2021 identified aluminium recycling as an eligible activity and an important enabler to support global sustainable development.
Developing sustainable aluminium products
Sustainability has been identified as one of the most important business drivers for Gränges and is integrated into the company’s core business and strategy. In line with the company’s purpose and promise, Gränges’ strategic priority is to develop sustainable aluminium products and solutions, characterized by having a low climate impact, being circular and resource-efficient, as well as being responsibly sourced and produced. To enable and speed up the development of sustainable aluminium products and solutions, Gränges leverages its sustainability framework to integrate sustainability into its business, work streams, and value chain.
A systematic approach to integrate sustainability
The company’s group-wide sustainability framework and accompanying 2025 targets was originally launched in 2019. It covers 13 sustainability aspects, grouped into five sustainability pillars, that are deemed to have the highest sustainability impact and are assessed by stakeholders to be most important for the company to address. Gränges has delivered good progress for many sustainability priorities in the past few years, and as a result the company in 2021 upgraded some of the 2025 targets. In 2021, Gränges also linked the achievement of three of its 2025 sustainability targets to its financing cost through issuance of a Sustainability-Linked Bond.
Gränges’ SVP Sustainability is responsible for driving the global sustainability strategy and facilitating progress across the framework and targets, while the regional Presidents execute and implement local sustainability strategies aligned with the Group strategy. Functional cross-regional teams ensure integration of sustainability aspects into key functions such as Purchasing, Sales, Production and Human Resources.
Sustainability commitments and initiatives
Gränges is since October 2016 a signatory to the UN Global Compact and undertakes to fulfil the principles relating to human rights, labour, environment, and anti-corruption. The principles also form the foundation of the company’s Code of Conduct and Supplier Code of Conduct. In addition, Gränges is committed to helping fulfil the 2030 Agenda and Sustainable Development Goals (SDGs) and the company has identified those SDGs that are most relevant and where the company has its largest impacts and contributions.
Gränges participates in various industry initiatives to ensure that aluminium is mined, produced, and used sustainably, and to drive change where it has the highest value chain impact. One such initiative is the Aluminium Stewardship Initiative (ASI), which works to bring together producers, users, and stakeholders in the aluminium value chain and maximize the contribution of aluminium to a sustainable society.
Successful issuance of Sustainability-Linked Bond
In September 2021, Gränges successfully issued a five-year SEK 600 million senior unsecured Sustainability-Linked Bond under the company’s updated MTN programme. The new bond is due in 2026. Gränges has tied the Sustainability-Linked Bond to the achievement of three defined sustainability performance targets (SPTs), which all play a central role in Gränges’ sustainability strategy:
SPT 1: Reduce carbon emissions intensity from own operations and purchased energy (scope 1+2) by 25 per cent by 2025 compared to 2017 measures in tonnes CO2e/tonne.
SPT 2: Reduce carbon emissions intensity from sourced metal inputs (scope 3) by 30 per cent by 2025 compared to 2017 measured in tonnes CO2e/tonne.
SPT 3: At least 30 per cent of total sourced metal inputs to be aluminium scrap by 2025.