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 product offerings

Long-term target: Gränges’ 2025 target is that 80 per cent of its products have verified sustainability information available.

Comment: The company in 2019 conducted a life-cycle assessment (LCA) pre-study in the operations in Europe covering selected products to decide on scope and calculation methodology to be used in the sustainability product declarations. In line with the pre-study, Gränges plans to build its declarations on LCA methodology in accordance with ISO 14040 and ISO 14044. Detailed results for this indicator will be presented once Gränges has started to measure the share of its products having verified sustainability information available.

Reporting principles and definitions: Reporting principles and definitions will be presented once Gränges has established a foundation for how the company will assess and communicate the sustainability performance for its products from a life-cycle perspective.

Governance and policies: The topic is managed by SVP Research & 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.
 

Significant suppliers

Supplier Code of Conduct commitment

Supplier audits



Comment:
In 2019, Gränges continued to roll out its Supplier Code of Conduct to its significant suppliers. In total, 154 suppliers (137), corresponding to 99 per cent of the total purchase value from significant suppliers, signed the Supplier Code of Conduct or were – via an internal escalation process – assessed to have equivalent standards in place which are in line with Gränges’ sustainability requirements. Gränges’ operations in Asia and Europe conducted in total 7 supplier audits in 2019, of which no supplier was new. Such audits are conducted periodically depending on suppliers’ strategic importance and results from supplier performance assessments. In total, 19 new significant suppliers (17) were added to the supplier base in 2019.

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. Comparable data for 2017 is not available for one indicator.

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 Technology & Business Development and the regional purchasing representatives. The governing policy is Gränges’ Code of Conduct which states that the Supplier Code of Conduct, which in turn outlines Gränges’ requirements on suppliers’ commitment to sustainability principles, should be included as part of the supplier contract. 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 20 per cent of total sourced metal inputs is recycled aluminium.

Weight of sourced metal inputs

Weight of sourced recycled aluminium

Share of sourced recycled aluminium

 

Comment: The use of sourced recycled aluminium increased to 19.8 per cent (16.7) in 2019, driven by the operations in Americas where the share increased by 6 percentage points. The result was mainly achieved through expanded sourcing of recycled aluminium through commodity traders and customer collaborations. In the European operations, the share of sourced recycled aluminium increased slightly whereas the Asian operations showed a slight decline driven by fluctuations in availability of recycled material of sufficient quality.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles.

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 Technology & Business Development and the regional purchasing representatives. The governing policy is Gränges’ EHS Policy, which is reviewed annually and applies to all employees working at Gränges.

Sustainable 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 sourced renewable energy (electricity, heat, fuels) is increased versus baseline 2017.

Total energy use

Energy intensity

Share of renewable energy sourced



Comment:
The total energy use decreased by 1 per cent in 2019 to 1,215.7 GWh (1,231.4). Due to lower production volumes, the energy intensity however increased by 7 per cent compared to 2018 and reached 3.5 MWh/tonne (3.3). In Americas, the increased energy intensity was also explained by a changed production mix, with a higher share of recycled aluminium and an increased focus on producing products with a lower gauge. Gränges’ total share of renewable energy decreased to 8 per cent (9), driven by Europe where the share of nuclear power in the purchased electricity mix increased. The energy mix in Asia also showed a slight decline in renewable energy sourced, whereas the energy mix in Americas was basically unchanged.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles.

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: The topic energy use and intensity is managed by SVP Process Engineering & Operational Development and the regional representatives from operations. The topic sourced renewable energy is managed by SVP Technology & Business Development 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 Europe and Asia are certified in accordance with the energy management standard ISO 50001, while the operations in Americas is 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.

Total emissions of greenhouse gases

Carbon emissions intensity

Emissions by category (scope 3)

Other emissions to air – particulate matter

Other emissions to air – nitrogen oxides (NOX)

Other emissions to air – sulphur dioxide (SO2)


Comment:
In 2019, total carbon emissions intensity (scope 1+2+3) decreased by 6 per cent compared to 2018. The carbon emissions intensity from own operations and purchased energy (scope 1+2) increased by 8 per cent compared to 2018, driven by increased energy intensity in all regions. The carbon emissions intensity from purchased materials and services (scope 3) decreased by 7 per cent compared to 2018, driven by increased use of recycled aluminium replacing primary aluminium in Americas and by an improved material efficiency in all regions. Emissions of nitrogen oxides and sulphur dioxide decreased compared to 2018 due to lower consumption of natural gas and liquified petroleum gas.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles.

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 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, particulate matter, volatile organic compounds (VOC) and, in some regions, oil emissions.

Governance and policies: The topic is managed by SVP Process Engineering & Operational Development (direct emissions from own operations), SVP Technology & Business Development (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 Asia and Europe are certified in accordance with the environmental management standard ISO 14001, while the sites in Americas 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.

Water withdrawal, by source

Water withdrawal, by region

Note: All water withdrawal is categorised as freshwater ( 1,000 mg/L Total Dissolved Solids).

Water intensity


Comment:
In 2019, total water withdrawal decreased by 8 per cent compared to 2018, partly due more normal weather conditions in Europe which led to a reduced need for cooling water, and partly due to the replacement of cooling tower units in the Huntingdon production site. The water intensity, however, increased slightly due to lower production volumes. In 2019, Gränges agreed on the key elements of the local water management plans, and in 2020 the company aims to implement such plans in three production facilities.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles.

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.

Total Recordable Rate (TRR)

Severity Rate

Comment: In 2019, Total Recordable Rate (TRR) reached 4.4 (6.1), an improvement of 28 per cent versus 2018 driven by a strong behavioural safety programme and a successful implementation of a 5S system in all plants. Severity Rate improved slightly to 142 (165) driven by significant improvements in Gränges’ operations in Asia, partly offset by Europe where one accident led to a long recovery time for the injured individual.

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. Contracted workers are included in the safety statistics except for disclosure of employee coverage of OHS management systems which is based on number of employees on 31 December.

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 working at Gränges.

All Gränges’ production sites, covering 98 per cent of Gränges’ total employees in 2019, has an occupation health and safety (OHS) management system in place, implemented in line with applicable legislation. The OHS system in the Shanghai site is certified in accordance with OHSAS 18001, covering 29 per cent of all Gränges’ employees. The sites in Americas and Europe have initiated pre-studies to implement OHS management systems in accordance with OHSAS 18001 or ISO 45001. In line with Gränges’ internal safety assessment process, cross-assessments were in 2019 conducted in the Salisbury and Finspång sites, covering in total 38 per cent of total employees. The remaining sites were assessed in 2017–2018.

Gränges has employee-managed safety committees at all plants. The efficiency of the committees is monitored by the Supervisory safety committees, headed by the regional Presidents. In the operations in Americas, each plant has an employee-managed safety committee supported by local management.

Diverse and high-performing teams

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

Total number of employees by category

Employment contract and type, by gender and region

Comment: Total number of employees decreased by 1 per cent to 1,782 (1,803) in 2019, mainly driven by efficiency improvements in Gränges’ operations in Europe, partly offset by a continued high recruitment rate in the operations in Americas. The total number of contracted workers was 104 (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. Data is based on headcount on 31 December. Comparable data for contracted workers 2017 is not available.

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.

Performance and development discussion

Comment: In total, 100 per cent (99) of all employees received a performance and development discussion in 2019. Per gender and category, 100 per cent of all women and men and 100 per cent of blue-collar and white-collar 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. Comparable data for 2017 is not available. 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. The definition was updated in 2019 to clarify that individuals who are long-term absent are excluded from the calculation.

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.

Gender balance by region

Gender balance and age structure 2019

Comment: The share of women among the total workforce remained unchanged at 14 per cent (14) in 2019, with small increases for Gränges’ operations in Americas and Asia. The share of women among senior management was unchanged at 20 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. 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: Total sick-leave was unchanged at 1.6 per cent (1.6) in 2019. Total employee turnover increased to 11.8 per cent (9.1) as a result of record low unemployment rates and a strong employment market in the US. The continued high recruitment rate in the Americas operations led to a higher turnover rate as many new employees ended their their employment during the first time period at Gränges. By gender, employee turnover was 12.7 per cent among men and 6.4 per cent among women and by category 13.9 per cent among blue-collar employees and 7.1 per cent among white-collar employees. There was no employee survey in 2019.

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.

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. Next group-wide survey will be conducted in 2020. Comparable data for 2017 is not available.

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.

Code of Conduct training

Anti-corruption training

Incidents of corruption

Comment: In 2019, Gränges continued to roll-out an annual group-wide Code of Conduct training. All employees, except blue-collar employees in Gränges’ operations in Americas who conducted classroom training, were invited to complete an e-learning. Total training participation ended at 99 per cent (99), with 100 per cent participation rate in the operations in Asia and Americas (100) and 98 per cent (98) in Europe. Gränges in 2019 also developed an anti-corruption e-learning which 100 per cent of all white-collar employees completed. No corruption incidents were detected during 2019.

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. Comparable data for 2017 is not available, and for one indicator, comparable data is not available for 2018. Data includes employees in duty and is adjusted for long-term sick-leave, parental leave, resignations and employees off duty for a longer period. The anti-corruption training was conducted October to November 2019 while the Code of Conduct training was conducted November 2019 to January 2020.

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.