Sustainable operations

Transitioning to renewable electricity by 2030

One key driver to reduce Gränges’ climate impact from its own operations is to increase the share of renewable electricity, and Gränges has an ambition to use 100 percent renewable electricity by 2030. All regions are actively investigating how to increase the usage of renewable electricity with the aim of finding long-term partnerships through Power Purchase Agreements (PPA). Gränges has significantly increased the use of renewable electricity in 2023. The facility in Shanghai converted to 100 percent renewable electricity and Gränges Americas extended its partnership with Entergy and increased the use of solar energy used to power the Newport facility. Gränges also installed solar panels on the roof of the production facility in Shanghai. The renewable electricity generated powers the Shanghai grid and community.

Improving energy intensity

Gränges mainly consumes energy in its production processes related to remelting and casting. To reduce costs and scope 1+2 emissions from its own operations, Gränges works actively to increase energy efficiency. The company uses digital processes and tools to analyze areas where energy can be saved, for example in improvement of metal yield and thermal processes. Gränges goal is to reduce energy intensity by 17 percent by 2025 vs. baseline 2017. In 2023, energy intensity increased by 7 percent vs. 2017, mainly as a result of increased energy usage needed to remelt the increased volume of recycled aluminium.

Phasing out natural gas

Over time, Gränges will work to phase out fossil fuels in production. Transforming to net-zero fuels imposes challenges as current decarbonization technologies on the market are still under development and existing possibilities come at a high cost. The company uses oxyfuel burners in the facility in Finspång and has investigated to converting cold air burners in cast house to oxyfuel in Gränges Americas. Switching to biogas is also an option that is being investigated.

Water management

Gränges uses water mainly for cooling purposes, such as cooling production equipment and preventing overheating and production disruptions. Water management is handled based on local circumstances since the production sites are located in areas with various water stress and risk. The company has set a goal to implement local water management plans in all facilities by 2025. This will ensure that local targets and activities to address water-related impacts are addressed across the Group. At the end of 2023, Gränges had implemented local water management plans in three sites: Finspång, Shanghai and Newport. The site in Newport is certified in accordance with Alliance for Water Stewardship’s (AWS) International Waters Stewardship Standards.

Waste management

Gränges aims to minimize and reuse materials to reduce waste to landfill and reduce the cost of raw materials. The company has an ambition to recycle and reuse waste in production where possible and reduce generation of hazardous substances. Hazardous waste includes for example dross generated in the re-melting process and oil used to cool down the mill and lubricate the interface between the rolls and the material. All sites have local waste handling procedures in place and work actively to reduce material consumption.

Gränges works to continuously improve the working environment as well as health and safety awareness and behavior. Occupational health and safety (OHS) management systems are implemented in all production facilities in line with local legislation, with the objective to proactively and quickly remove safety hazards and to drive safe behavior. Gränges’ goal is to reach a Total Recordable Rate (TRR) of 3.0 and a Severity Rate below 50 by 2025.

Key risks areas

Gränges has identified six key safety risk areas in operations: mobile equipment, fire suppression, machine safety and lock/ tag/verify, molten metal, confined space, and fall protection. Global Standards have been developed and rolled out for each risk area, including minimum requirements that all Gränges’ facilities have to implement. All regions have appointed a subject matter expert (SME) for each identified key risk area to ensure continuous improvement and implementation of risk mitigating activities.

Actions to improve physical safety and to foster a safety culture. To improve the physical safety environment, Gränges has installed guard rails and pedestrian access gates walkway. Gränges has also upgraded its cranes and fire protection systems, as well as equipped its forklifts with red lights marking the danger zone.

To increase safety awareness and foster a safety culture, Gränges provides annual health and safety trainings for employees, temporary staff, managers, and onsite contractors. Further, Gränges conducts internal cross assessments where regional safety representatives visit the production facilities to share learnings and provide feedback on safety improvements.

People and company culture are key to past and future success. Gränges aims to be the preferred employer in each location where it operates, and strives to provide a workplace where employees can thrive, realize their full potential, and contribute to developing a high-performing organization. Activities to attract and engage employees are driven by a people plan for each region, with clear targets and regular follow-up.

Gränges’ cultures and values

In 2023, Gränges launched an updated set of core values – sustainable, action oriented, and committed. The core values guide employees in their daily actions and lay the foundation for how to conduct business responsibly and ethically.

Talent and leadership development

Good leaders are of the utmost importance to remaining successful over time. Gränges has a structured process for working with talents and aims to develop one of the best talent programs in the industry for managers, senior managers, and key experts. Mentorships and job rotation are important factors in addition to leadership training.

Investing in the team

Gränges offers a competitive compensation package, but also prioritizes a good social and physical work environment, continuous training, and interesting development opportunities for its employees. In addition, employees are provided with occupational health services both on and off site, including flexible work options, wellness grants, and regular health checks. Gränges follows up on employees’ general motivation and wellbeing via the annual performance and development discussion. The company also conducts employee surveys every two years to track status.

Promoting an inclusive workplace

Gränges is committed to being an open and inclusive employer, with zero tolerance for discrimination. Diversity aspects include gender equality as well as ethnic diversity, where the latter is mainly applicable for Gränges Americas. Gränges aims to expand the diversity of its work force which is an important aspect to attract and retain employees, but there are challenges to do so. This includes cultural aspects, shift work, a flexible job market, and the geographical location of the production facilities.

Gränges is committed to running its business in an ethical and responsible way and being an ethically sound partner in all its relations and in the societies in which the company conduct business. Gränges’ Code of Conduct outlines the company’s ethical principles and is based on international standards on human rights, labor conditions, the environment, and anti-corruption, including the UN Global Compact and its ten principles.

Counteracting corruption

Gränges’ Anti-Corruption Policy provides an overview of Gränges’ anti-corruption principles and explains the basic legal and ethical requirements that shall be followed to avoid corrupt practices throughout business activities conducted for Gränges. Gränges has zero tolerance and will always act rapidly, stringently, and vigorously if discovering corruption or unethical behaviour as it can prevent economic development, distort competition, increase costs, and damage confidence and reputation.

Global ethical trainings

To ensure effective implementation of the Code of Conduct and the Anti-Corruption Policy, Gränges conducts annual trainings which covers all employees, the Board of Directors as well as contracted workers. The trainings combine facts and guidelines with practical ethical dilemmas to increase the knowledge of how to act in specific situations and are updated annually. In 2023, Gränges reached a 100 percent completion rate in both trainings.

Whistleblower Function to detect misconduct

Gränges has an externally managed Whistleblower Function that aims to detect irregularities that may seriously harm Gränges’ business or employees. The function is available for Gränges’ employees and business partners on the company’s website, intranet or by phone and information can be provided anonymously without the fear of retaliation.

A trusted member of local communities

Gränges strives to be a good corporate citizen and an active and trusted member of local communities. Positive contributions to these communities are made by maintaining an open dialogue and by building strong and long-lasting relationships.

Gränges creates local jobs that offer employees good employment terms and a safe work environment. The company also contributes to charitable causes and is engaged in sponsorship, mainly at local level and locations where Gränges has operations. Gränges sponsors education, cultural events, local sports clubs, sports competitions, and various types of non-profit organizations.

In Finspång, Gränges sponsors Curt Nicolin Gymnasiet (CNG), an upper secondary school, to which Gränges offers internships and summer jobs for students, as well as Linköping University. As part of these efforts, and in collaboration with CNG, Gränges offers internships to individuals who have recently come to Sweden. Gränges also takes an active role in supporting local associations in Finspång and participates in various initiatives to develop and make Finspång an even more attractive town. Gränges in Finspång also participates in IGE Day – Introduce a Girl to Engineering – an event which aims to raise young girls’ interest in technology and engineering.

In the US, Gränges’ employees participate in a number of community activities including supporting local school supply drives, food drives and holiday gift donations. Both company and employee team contributions are made for charitable causes including support for local youths sports team, and sponsorship of local athletic events and arts festivals.

In Shanghai, Gränges makes donations to a city level charity in the neighbourhood of Jiading, for example supporting education for children in poor families. Gränges also sponsors two university labs to encourage students to actively study metallurgy and to help with research in connection to specific projects. The company also supports the local Swedish Chamber of Commerce to promote cross culture communication and helping to spread Swedish culture in the Shanghai area.