Climate strategy

Gränges is committed to combatting climate change and reducing the climate impact from its business and along the value chain. Managing the climate topic therefore runs throughout the company’s sustainability framework and value chain.

Taking a life-cycle perspective

Gränges works actively to take product stewardship and reduce climate impact along the value chain and across the life-cycles of its products. This means that the company looks at the climate impact from extraction of bauxite until the products’ end-of-life. In 2021, 91 per cent of Gränges’ total climate impact originated from sourced metal inputs (scope 3) and 9 per cent from own operations and purchased energy (scope 1+2). Gränges follows the Greenhouse Gas Protocol Standards to calculate the cradleto- gate climate impact from bauxite extraction to delivery of Gränges’ products to customers. The product manufacturing, use, and end-of-life phases are currently excluded in Gränges’ climate impact calculations due to a lack of relevant data.

Ambitious climate targets

In 2018, Gränges launched a 2025 climate target to reduce carbon emissions intensity from own operations and purchased energy (scope 1+2) by at least 25 per cent versus 2017. In 2021, Gränges also disclosed a quantitative target to reduce carbon emissions intensity from sourced metal inputs (scope 3) by at least 30 per cent versus 2017, upgraded from the previously directional target. Gränges strives to take a holistic approach in reducing the climate impact and therefore measures total carbon emissions intensity (scope 1+2+3) as the key metric. 

Value chain collaboration 

Gränges actively collaborates with suppliers, customers, and other business partners to identify and capture new opportunities to reduce the climate impact. Supply chain collaboration for example covers sourcing of aluminium scrap, low-carbon primary aluminium as well as energy from low-carbon sources. Customer collaboration includes design and development of innovative and sustainable aluminium products and solutions. Gränges also works internally to increase resource efficiency including energy, materials, waste, and water. 

Climate-related risks 

Climate-related risks are integrated in Gränges’ multi-disciplinary and company-wide risk management process. In conjunction with Gränges’ first submission to CDP in 2021, the company conducted a risk and opportunity workshop with selected members of senior management. 

The largest climate-related risks were identified to be emerging regulation of carbon pricing mechanisms, reduced demand for products and services due to changing customer behaviour, and reduced production capacity because of increased severity and frequency of extreme weather events. By systematically working in line with the company’s climate strategy, Gränges aims to mitigate such risks. Refer to page 49 for more information. 

Total carbon footprint, 2021 

Total carbon intensity, scope 1+2 1) 

Total carbon intensity, scope 3 1) 

1) 2017–2020 exclude Gränges Konin and Gränges Powder Metallurgy. Comparable carbon intensity for 2021, i.e. excluding Gränges Konin and Gränges Powder Metallurgy, was 0.73 tonnes CO2e/tonne for scope 1+2 and 9.3 tonnes CO2e/tonne for scope 3. 

Collaboration to reduce climate impact in the automotive industry

In 2021, Gränges and the aluminium and energy company Hydro joined forces to provide low-carbon and circular aluminium offerings to the automotive market. Through the partnership, Gränges sources low-carbon primary aluminium from Hydro. An increased use of aluminium in transport applications reduces the weight, energy consumption and carbon footprint of the vehicle as well as the range of electric vehicles when in use. It also contributes to improved resource efficiency in the product manufacturing process. Gränges and Hydro are both committed to pushing the boundaries for low-carbon and circular aluminium products and supporting the automotive industry to become more sustainable.