Climate strategy: Reducing impacts along the value chain

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 through 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 its value chain and across the life-cycles of its products. This means that Gränges looks at the climate impact all the way from extraction of bauxite until the products’ end-of-life.

To achieve life-cycle benefits, Gränges actively collaborates with suppliers, customers and other business partners to identify and capture new opportunities to reduce the climate impact. Gränges works with its suppliers to source more recycled aluminium, low-carbon primary aluminium as well as energy from low-carbon sources. The company also works with its customers to design and develop innovative and sustainable product offerings, including alloys that are resource efficient in the use phase and which are recyclable at products’ end of life. Gränges also works internally to reduce its own energy intensity and increase the use of renewable energy.

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 25 per cent versus 2017. The company has also set a target to reduce carbon emissions intensity from sourced metal inputs (scope 3) by 30 per cent versus 2017. Gränges strives to take a holistic approach in reducing the climate impact and the company tracks total carbon emissions intensity (scope 1+2+3) as the key metric to measure such performance.

Reducing the carbon footprint

In 2020, total carbon emissions intensity was reduced by 8 per cent versus 2019 and 18 per cent versus baseline 2017. This was mainly driven by expanded sourcing of recycled aluminium as well as low-carbon primary aluminium. In absolute figures, the total carbon footprint was reduced by 10 per cent versus 2019 and 27 per cent versus baseline 2017 to 3,510 ktonnes CO2e (3,910). Emissions from purchased materials and services (scope 3) accounted for 92 per cent (93) of the total footprint whereas 8 per cent (7) related to emissions from own operations and purchased energy (scope 1+2).

The carbon emissions intensity from purchased materials and services was reduced by 8 per cent versus 2019 and 20 per cent versus baseline 2017. Carbon emissions intensity from own operations and purchased energy increased by 1 per cent versus 2019 and 3 per cent versus baseline 2017, mainly a result of higher energy intensity. Gränges follows the Greenhouse Gas Protocol Standards to Calculate its climate impact from bauxite extraction to delivery of Gränges’ products to customers.1)

1) The product manufacturing, use and end-of-life phases are excluded in Gränges' climate impact calculations due to a lack of relevant data. Gränges will work to add these phases to its scope for calculations, to support customers to reduce climate impacts along the value chain.

Note: All numbers exclude Gränges Konin and Gränges Powder Metallurgy.

Sourcing low-carbon aluminium

In 2020, Gränges initiated a collaboration with Alcoa to source EcoLumTM rolling slabs, part of Alcoa’s SUSTANATM line of low-carbon products, produced at hydroelectric-powered aluminium smelters and guarantee no more than 4.0 tonnes CO2e per tonne aluminium, including scope 1 and scope 2 emissions from bauxite mining and alumina refining. This carbon footprint is significantly lower than the industry average and the cooperation reinforces Gränges’ focus to collaborate along the value chain to reduce climate impact.

“Gränges has demonstrated a commitment to its customers by using sustainable materials, including our low-carbon EcoLumTM. We are proud to partner with Gränges and demonstrate leadership in an economy that is becoming even more focused on sustainability and responsible production.”, says Tim Reyes, Executive Vice President and Chief Commercial Officer, Alcoa.