Long-term target: Gränges’ 2025 target is that carbon emissions intensity from own operations and purchased energy (scope 1+2) is reduced by at least 25 per cent versus baseline 2017 and carbon emissions intensity from sourced metal inputs (scope 3) is reduced by at least 30 per cent versus the 2017 baseline.
Comment: In 2021, total carbon emissions intensity (scope 1+2+3) amounted to 9.3 tonnes CO2e/tonne. Excluding Gränges Konin and Gränges Powder Metallurgy, the intensity was reduced by 4 per cent to 10.0 tonnes CO2e/tonne (10.4) compared to 2020.
Carbon emissions intensity from own operations and purchased energy (scope 1+2) was 0.88 tonnes CO2e/tonne in 2021. Excluding Gränges Konin and Gränges Powder Metallurgy, the intensity was reduced by 11 per cent to 0.73 (0.83) versus 2020 mainly driven by more energy efficient production and a decrease in energy intensity in Gränges Americas and Gränges Asia.
Carbon emissions intensity from sourced metal inputs (scope 3) was 8.4 tonnes CO2e/tonne. Excluding Gränges Konin and Gränges Powder Metallurgy, the intensity was reduced by 3 per cent to 9.3 (9.6). The reduction was driven by a higher share of sourced aluminium scrap replacing primary aluminium in Gränges Americas and Gränges Finspång, and by increased sourcing of low-carbon primary aluminium in Finspång. The scope 3 intensity increased slightly in Shanghai because of lower volumes of low-carbon primary aluminium.
In 2021, total greenhouse gas emissions amounted to 4.600 ktonnes CO2e, 4.660 ktonnes CO2e with location-based approach.
Emissions of particulate matter, nitrogen oxides and sulphur dioxide increased in all production facilities compared to 2020 due to higher consumption of natural gas and liquified petroleum gas as a direct result of the increased production 2021.
Reporting principles and definitions: Data is reported with a market- based approach. Data is reported at regional level and consolidated annually at group level using common definitions and principles. Data for Gränges Powder Metallurgy is included in the data for Gränges Eurasia. Numbers for 2019 and 2020 do not include Gränges Konin and Gränges Powder Metallurgy.
Greenhouse gas emissions 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, heat and steam consumed by Gränges, in production facilities and office buildings. Emissions are calculated using specific data from Gränges’ electricity, heat and steam 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 energy. Emissions from producing primary aluminium, purchased slabs and aluminium scrap are based on regional industry averages or supplier data. 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 greenhouse 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.
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 Konin is included in EU emissions trading system, EU ETS. Finspång is not included as the site is below the threshold of rated thermal input. In Shanghai, 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.
Policies: The governing policy is Gränges’ EHS Policy, which is reviewed annually and applies to all employees working at Gränges. All production sites are certified in accordance with the environmental management standard ISO 14001, where the Newport site achieved certification in January 2022. Emissions are monitored and managed as part of daily operations. Compliance is a prerequisite for Gränges’ continued license to operate.