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Targets and target fulfilment

On this page, more detailed information about Gränges’ long-term sustainability targets and target fulfilment is available. Click on the material topic to see all details.

Sustainable innovation and sales

Long-term target: Gränges’ 2025 target is that 100 per cent of Gränges’ products to have third-party verified sustainability information available.

Comment: In 2020, Gränges’ operations in Finspång developed and implemented a life-cycle and carbon footprint assessment (LCA/CF) tool which enables declarations of environmental impacts on a product level, starting with the products’ carbon footprint. In 2020, all products produced at the Finspång site had verified sustainability information available, which corresponded to 19 per cent (–) of the company’s total products.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles. Gränges will initially declare the products’ carbon footprint impact but aims to expand the information to cover other environmental impact categories and sustainability aspects. To ensure transparency and credibility, Gränges has engaged the external party IVL Swedish Environmental Research Institute to verify the carbon footprint methodology, process and routines. A verification report and statement is available on here > Details about the methodology and key assumptions can be found in Gränges’ Carbon footprint report, also available here >

Products with third-party verified sustainability information is defined as the packed products with third-party verified sustainability information available [tonnes] divided by the total packed products [tonnes].

Governance and policies: The topic is managed by SVP Technology & Innovation in cooperation with the regional sales and product development representatives.

Responsible and sustainable sourcing

Long-term target: Gränges’ 2025 target is that 100 per cent of all Significant suppliers are committed to Gränges’ Supplier Code of Conduct or equivalent standard.
 





Comment:
In 2020, 127 suppliers (154), corresponding to 97 per cent of the total purchase value from significant suppliers (99), had valid commitments to the Supplier Code of Conduct or had been assessed to have equivalent standards in place which are in line with Gränges’ sustainability requirements. In Gränges’ operations in Finspång, Europe, a few supplier contracts were renewed in 2020 without a commitment to the Supplier Code of Conduct. Efforts to have these suppliers sign the document will be initiated in 2021. In 2020, 25 of Gränges’ significant suppliers had a third-party verified desktop sustainability assessment available. Gränges also conducted five on-site supplier audits (seven) in 2020, of which no supplier was new. The operations in Finspång, Europe, did not conduct any supplier audits due to COVID-19 impacts. Supplier audits are conducted periodically depending on suppliers’ strategic importance and results from supplier performance assessments. In total, four new significant suppliers (19) were added to the supplier base in 2020 and will be included in the annual supplier sustainability responsible sourcing process from 2021.

Reporting principles and definitions: Data is reported at a regional level by the purchasing organizations and consolidated annually at group level using common definitions and principles. Data for Gränges AB is included in the data for Europe. All numbers exclude Gränges Konin and Gränges Powder Metallurgy.

Significant supplier is defined as a supplier with a total purchase value above SEK 5 million, CNY 5 million or USD 0.5 million. Local purchase value has been converted to SEK using average currency rates for 2019.

Governance and policies: The topic is managed by SVP Sustainability and the regional purchasing representatives. The governing policy is Gränges’ Responsible Sourcing Policy which outlines group-wide principles and requirements on responsible sourcing, including signing Gränges’ Supplier Code of Conduct. Three of the company’s production sites are certified in accordance with the quality management standard IATF 16949, which includes criteria on suppliers’ quality performance.

Long-term target: Gränges’ 2025 target is that 30 per cent of total sourced metal inputs is recycled aluminium.


 
 

Comment: In 2020, the share of sourced recycled aluminium reached 22.5 per cent (19.8), up by 2.7 percentage points. The result was driven by the operations in Americas and Asia who expanded sourcing of recycled aluminium through commodity traders and collaboration with suppliers and customers. The operations in Finspång, Europe, showed a slight decline due to lower volumes which resulted in a lower inhouse production of slabs and a relatively higher volume of sourced slabs which contained a higher share of primary aluminium.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles. All numbers exclude Gränges Konin and Gränges Powder Metallurgy.

Sourced recycled aluminium is defined as sourced recycled aluminium used as input materials [tonnes] divided by total sourced metal input materials [tonnes].

Governance and policies: The topic is managed by SVP Sustainability and the regional purchasing representatives. The governing policy is Gränges’ EHS Policy, which is reviewed annually and applies to all employees working at Gränges.

Resource-efficient operations

Long-term target: Gränges’ 2025 target is that energy intensity is reduced by 17 per cent versus baseline 2017, and that the share of renewable energy (electricity, heat, fuels) is increased versus baseline 2017.

 

  


Comment:
In 2020, the total energy use increased slightly to 1,220.2 GWh (1,215.7). The energy intensity increased by 3 per cent compared to 2019 and reached 3.6 MWh/tonne (3.5), driven mainly by lower production volumes in the sites in Shanghai and Finspång due to COVID-19 impacts. This was, however, partly offset by improvements in the operations in Americas, where the energy intensity was reduced as a result of new production equipment. Gränges’ total share of renewable energy increased to 13 per cent (8) driven by an increased share of renewable electricity in the mix. Gränges’ operations in Finspång since 2020 source specified electricity from 100 per cent hydro power. The increase for Asia is partly explained by using a regional electricity mix in the 2020 reporting compared to a national average mix being used in previous years’ reporting.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles. All numbers exclude Gränges Konin and Gränges Powder Metallurgy.

Energy intensity is defined as total energy use [MWh] divided by the total packed products [tonnes].

Renewable energy sources are defined as wind, solar, hydro, geothermal, tidal and biomass. The share of renewable energy is calculated as renewable energy sourced [MWh] divided by the total energy used [MWh] using total energy use per source and the supplier-specific mix for delivered electricity and district heating.

Regulations: Gränges adheres to applicable energy regulations in the countries of operations; Gränges’ operations in Asia under the Shanghai Energy Conservation Regulations and the operations in Europe under the Energy Efficiency Directive. Operations in Americas do currently not have any energy related regulations affecting its operations.

Governance and policies: Governance and policies: The topic energy use and intensity is managed by SVP Process Engineering & Operational Development and the regional representatives from operations. The topic renewable energy is managed by SVP Sustainability and the regional purchasing representatives. The governing policy is Gränges’ EHS Policy, which is reviewed annually and applies to all employees working at Gränges. The production sites in Finspång and Shanghai are certified in accordance with the energy management standard ISO 50001, while the sites in Americas are preparing for implementation.

Long-term target: Gränges’ 2025 target is that carbon emissions intensity from own operations and purchased energy (scope 1+2) is reduced by 25 per cent versus baseline 2017. The company has also set a long-term target that carbon emissions intensity from purchased materials and services (scope 3) is reduced versus the 2017 baseline.



 




Comment:
In 2020, the total carbon emissions intensity (scope 1+2+3) decreased by 8 per cent compared to 2019. The carbon emissions intensity from own operations and purchased energy (scope 1+2) increased by 1 per cent versus 2019 and 3 per cent versus baseline 2017, primarily driven by an increased energy intensity. The carbon emissions intensity from purchased materials and services (scope 3) decreased by 8 per cent versus 2019 and 20 per cent versus the baseline 2017, driven by an increased use of sourced recycled aluminium replacing primary aluminium in Americas and Asia and by sourcing of low-carbon primary aluminium in Finspång, Europe, and Asia. Emissions of particulate matter, nitrogen oxides and sulphur dioxide decreased in the operations in Asia and Finspång, Europe, compared to 2019 due to lower consumption of natural gas and liquified petroleum gas. In Americas however, these emissions increased due to a higher consumption of natural gas.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles. All numbers exclude Gränges Konin and Gränges Powder Metallurgy.

Greenhouse gas are presented as carbon dioxide equivalents. In accordance with the GHG Protocol, the definitions of the respective scopes are the following.

Scope 1 is defined as direct emissions from Gränges’ operations, which include production facilities, office buildings and company owned vehicles. Emissions are calculated based on fuel consumption and emission factors.

Scope 2 is defined as energy indirect emissions from the generation of purchased electricity and heat consumed by Gränges, in production facilities and office buildings. Emissions are calculated using specific data from Gränges’ electricity and heat suppliers.

Scope 3 is defined as other indirect emissions. These include emissions from extraction, production and processing of main purchased materials, fuel and energy related activities (not included in scope 1 or scope 2), upstream and downstream goods transportation as well as business travel. Fuel and energy related activities include production of fuels used in Gränges’ operations and in generation of purchased electricity. Emissions from producing primary aluminium are based on regional industry averages, and supplier data is used for purchased slabs and recycled aluminium. Emissions from producing fuels are based on regional industry data and emissions from transportation and business travel are based on specific data from Gränges’ transport routes.

Carbon emissions intensity is defined as total emissions of greenhouses gases [tonnes CO2e] divided by the total packed products [tonnes].

Other emissions to air  of particulate matter, nitrogen oxides, and sulphur dioxide are calculated either based on fuel consumption using local emission factors or based on continual measurements. Emissions of oil and VOC are not reported as methods and data collection procedures are currently being harmonized across the organization. Gränges aims to start reporting on these emissions next year.

Regulations: Gränges observes all applicable local and international laws and regulations for environmental impact. Emission limits in Europe are based on requirements from the Industry Emissions Directive (IED). Gränges’ production site in Finspång is not included in the EU emissions trading system, EU ETS. In Asia, emission limits are linked to Regulations of Shanghai Municipality on the Prevention and Control of Atmospheric Pollution, and in the US the National Ambient Air Quality Standards (NA AQS) provides the relevant legal framework. Local authorities continually monitor compliance to ensure that emissions are within limits. Emissions regulated by legislation include nitrogen oxides, sulphur dioxide and particulate matter. In some regions volatile organic compounds (VOC) and oil emissions are also regulated.

Governance and policies: The topic is managed by SVP Process Engineering & Operational Development (direct emissions from own operations), SVP Sustainability (indirect emissions from purchased energy and from purchased materials and services), and the regional operational and purchasing representatives. The governing policy is Gränges’ EHS Policy, which is reviewed annually and applies to all employees working at Gränges. The production sites in Shanghai, Finspång, and Huntingdon are certified in accordance with the environmental management standard ISO 14001, while the Salisbury and Newport sites are preparing to implement an environmental management system. Emissions are monitored and managed as part of daily operations. Compliance is a prerequisite for Gränges’ continued license to operate.

Long-term target: Gränges’ 2025 target is that all sites have implemented a local water management plan.




Comment:
In 2020, the total water withdrawal decreased by 11 per cent to 2,864 m3 (3,203) compared to 2019, primarily due to lower production volumes in the Shanghai and Finspång sites which led to a reduced need for cooling water. The operations in Americas, however, increased water withdrawal due to installation of a new cooling tower at the Newport site. As a result of the lower production volumes, the water intensity increased in all regions. The Group total water intensity, however, still decreased due to significantly lower water withdrawal in the operations in Finspång. In 2020, Gränges implemented local water management plans in the Finspång and Shanghai sites.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles. All numbers exclude Gränges Konin and Gränges Powder Metallurgy.

Water withdrawal is defined as water used in the production facility withdrawn from wetlands, rivers, lakes, own wells, municipal water suppliers or from other public or private water utilities [m3].

Water stress is defined as the ratio of total water withdrawals to available renewable surface and groundwater suppliers. The definition is based on Aqueduct Water Risk Atlas developed by World Resources Institute, where the result for the indicator “Baseline water stress” is high (40–80 per cent) or extremely high (> 80 per cent) in the area.

Water intensity is defined as total water withdrawal [m3] divided by the total packed products [tonnes]

Regulations: The water use and management for Gränges’ operations in Asia is regulated via permits and by legislation such as Water Pollution Prevention and Control Law of the People’s Republic of China, Water Law of the People’s Republic of China, and Management in Shanghai Drainage Ordinance.

Governance and policies: The topic is managed by SVP Process Engineering & Operational Development, and the regional representatives from operations. The governing policy is Gränges’ EHS Policy, which is reviewed annually and applies to all employees working at Gränges.

Long-term target: Gränges’ 2025 target is that Total Recordable Rate (TRR) is < 3.0 recordable accidents per million hours worked and that Severity Rate is < 50 lost workdays per million hours worked.




Comment: In 2020, Total Recordable Rate (TRR) was 5.5 (4.4). Despite the increase versus 2019, this was the second best performance since 2013. Severity Rate improved by 23 per cent to 109 (142) as the accidents had less serious consequences and led to fewer lost workdays. During 2020, there were 20 recordable workplace accidents (17), of which hand and finger injuries represented half of the accidents. Four of these accidents (three) were defined as serious, where one contracted worker and three employees were injured. Two of the serious accidents were caused by the “critical-five” hazard categories, in this case molten metal as well as machine guarding – lockout and tagout.

Reporting principles and definitions: All incidents and accidents are registered and categorized in local incident reporting systems. Events reported are tracked weekly and monthly. Data is reported at regional level and consolidated monthly at group level using common definitions and principles. Data includes contracted workers and is based on total working hours 1 January–31 December. Data for employees covered by OHS management systems and internal safety assessments is based on headcount on 31 December. All numbers exclude Gränges Konin and Gränges Powder Metallurgy.

Contracted worker is defined as individuals working onsite or offsite on behalf of Gränges.

Recordable accident is defined as medical treatment cases, restricted work cases and lost workday cases.

Total Recordable Rate (TRR) is defined as total number of recordable accidents per million hours worked.

Lost workday cases are defined as number of recordable accidents resulting in absence from work.

Lost workdays are defined as the sum of workdays by employees being absent from work due to a recordable accident.

Severity Rate is defined as total number of lost workdays per million hours worked.

Serious injury is defined as an irreversible injury such as an amputated finger or lost eyesight, or a reversible injury causing prolonged periods of pain or suffering for the employee, or an accident with an absence longer than 15 days.

Governance and policies: The topic is managed by SVP Process Engineering & Operational Development and regional safety representatives. The governing policy is Gränges’ EHS Policy, which is reviewed annually and applies to all employees and individuals who are directly or indirectly related to Gränges’ operations, such as independent contractors and consultants who work on behalf of Gränges. Contracted workers are covered by all safety processes, and where applicable in the efforts to identify and evaluate work related hazards and risks. Moreover, contracted workers are covered by Gränges’ safety training, depending on the type of tasks.

OHS management systems: All Gränges’ production sites, covering 98 per cent of Gränges’ total employees in 2020, has an occupational health and safety (OHS) management system in place, implemented in line with applicable legislation. The OHS management system also covers contracted workers. In the Shanghai site, the OHS system is certified in accordance with OHSAS 18001 (ISO 45001 from 2021), covering 29 per cent of all Gränges’ employees. The sites in Americas and Finspång have initiated pre-studies to implement OHS management systems in accordance with ISO 45001.

Internal safety assessments: Gränges generally conducts cross assessments every six months at the sites. Due to the COVID-19 situation in 2020, only one assessment was conducted at the Finspång site, covering in total 25 per cent of total employees. The remaining sites were assessed in 2018–2019.

Safety committees: Gränges has employee-managed safety committees at all plants which consult on the working environment and work for increased safety. Issues addressed include occupational health care, identifying and evaluating hazards, as well as follow-up of corrective actions to eliminate risks. The efficiency of the committees is monitored by the Supervisory safety committees, headed by the regional Presidents. Contracted workers are not represented in the safety committees. In the operations in Americas, each plant has an employee-managed safety committee supported by local management. Input and questions from contracted workers is captured in recurrent meetings. Due to the COVID-19 pandemic, no safety committee meetings was conducted in Americas in 2020. In the operations in Asia, safety committee meetings are conducted quarterly. In Finspång, safety committee meetings are held two to four times per year. Contracted workers do not participate in the meetings but are treated in the same way as Gränges’ employees when it comes to OHS.

Diverse and high-performing teams

Long-term target: Not applicable as this is a general disclosure.


Comment: In 2020, the total number of employees decreased slightly to 1,774 (1,782). This was mainly driven by layoffs at the Finspång site due to the lower production volumes, partly offset by a continued high recruitment rate in the operations in Americas. The total number of contracted workers was 116 (104).

Reporting principles and definitions: Data is reported at a regional level and consolidated annually at group level using common definitions and principles. Data for Gränges AB is included in the data for Europe. All numbers exclude Gränges Konin and Gränges Powder Metallurgy. Data is based on headcount on 31 December.

Contracted worker is defined as individuals working onsite of offsite on behalf of Gränges.

Permanent contract is defined as a contract for an indeterminate period.

Temporary contract is defined as a contract of limited duration.

Full-time employee is defined according to national legislation and practice regarding working time, such as employees working a minimum of nine months per year and 30 hours per week.

Part-time employee is defined as employees working less than a full-time employee.

Governance and policies: Not applicable as this is a general disclosure.

Long-term target: Gränges’ 2025 target is that 100 per cent of all employees annually receive a performance and development discussion.

Comment: In 2020, 100 per cent (100) of all employees received a performance and development discussion.

Reporting principles and definitions: Data is reported at a regional level and consolidated annually at group level using common definitions and principles. Data for Gränges AB is included in the data for Europe. All numbers exclude Gränges Konin and Gränges Powder Metallurgy. Data covers employees in duty adjusted for those who are long-term absent as well as new employees who did not have a performance and development discussion as they started their employment after the period when the annual performance and development discussions were conducted.

Governance and policies: The topic is managed by SVP Human Resources and the regional human resources representatives.

Long-term target: Gränges’ 2025 target is that at least 30 per cent of senior management is women.


Comment: In 2020, the share of women among the total workforce increased by one percentage points to 15 per cent (14). The share of women among senior management also increased by 1 percentage points to 21 per cent (20).

Reporting principles and definitions: Data is reported at a regional level and consolidated annually at group level using common definitions and principles. Data for Gränges AB is included in the data for Europe. All numbers exclude Gränges Konin and Gränges Powder Metallurgy. Data is based on headcount on 31 December.

Senior management is defined as employees eligible to participate in Gränges’ long-term incentive (LTI) programme.

Governance and policies: The topic is managed by SVP Human Resources and the regional human resources representatives. The governing policy is the Diversity Policy, which is reviewed annually and applies to all employees working at Gränges.

Long-term target: Gränges’ 2025 target is that Employee engagement index should reach at least 85.

Comment: In 2020, total sick-leave increased to 2.0 per cent (1.6), driven by COVID-19 measures taken to mitigate the impact from the pandemic. Total employee turnover increased to 16.0 per cent (11.8) mainly as a result of impacts related to the COVID-19 outbreak. Such impacts include layoffs at the Finspång site due to a lower production volume as well as retirements and challenges to get employees to return at the Salisbury site in conjunction with and following a temporary idling of the plant. By gender, employee turnover was 16.6 per cent among men and 12.6 per cent among women and by category 17.0 per cent among blue-collar employees and 13.7 per cent among white-collar employees. Employee engagement index increased to 78 in 2020 versus 77 in the 2018 survey, which is in line with relevant benchmark for other industrial companies.

Reporting principles and definitions: Data is reported at a regional level and consolidated annually at group level using common definitions and principles. Data for Gränges AB is included in the data for Europe. All numbers exclude Gränges Konin and Gränges Powder Metallurgy. Data for sick-leave and employee turnover is based on average number of employees (expressed as present full-time positions). Data for employee engagement comes from Gränges’ employee survey, which is conducted every other year. Contracted workers are not included in these key performance indicators.

Sick-leave is defined as all absent hours for sickness within a year divided by total annual working hours (as applicable in local standards). Excludes permitted leave absences such as holidays, study and parental leave.

Employee turnover is defined as number of employees who leave the organization (voluntarily or due to dismissal, retirement, or death in service) during the reporting period divided by total number of employees converted to full-time positions.

Employee engagement index is a calculated mean from a number of questions in Gränges’ employee survey related to energy and clarity, two important dimensions of employee engagement. The mean is converted to an index 0–100.

Governance and policies: The topic is managed by SVP Human Resources and the regional human resources representatives.

Ethical business practices

Long-term target: Gränges’ 2025 target is that 100 per cent of all employees are annually trained in the Code of Conduct, and that 100 per cent of all white-collar employees are annually trained in anti-corruption.



Comment: In 2020, Gränges continued to conduct its annual groupwide Code of Conduct and anti-corruption training. All employees, except blue-collar employees in Gränges’ operations in Americas who conducted classroom training, were invited to complete a Code of Conduct e-learning and total training participation ended at 100 per cent (99). Gränges also conducted an anti-corruption e-learning which 100 per cent of all white-collar employees conducted. No corruption incidents were detected during 2020.

Reporting principles and definitions: Data for Code of Conduct and anti-corruption training participation is collected and consolidated annually via the e-learning system used for online training. Data for Gränges AB is included in the data for Europe. All numbers exclude Gränges Konin and Gränges Powder Metallurgy. Data for anti-corruption training is not available for 2018 as the training was launched in 2019. Data includes employees in duty and is adjusted for long-term sick-leave, parental leave, resignations and employees off duty for a longer period.

Governance and policies: The topic is managed by Gränges’ General Counsel and the regional legal representatives. The governing policy is Gränges’ Code of Conduct which is updated annually and applicable for all employees and board members in entities owned by Gränges. It also applies to independent contractors and consultants or others acting on behalf of Gränges. Also, Gränges’ Anti-Corruption Policy defines, explains and expands on what Gränges means by corruption.