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.

Ethical business practices

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

Code of Conduct training, including anti-corruption

Incidents of corruption


Comment: In 2018, Gränges updated its Code of Conduct with the focus to make it more modern and user-friendly. In connection to the launch, the company for the first time conducted a group-wide Code of Conduct e-learning. All employees, except for blue-collar employees in Gränges Americas who had classroom training, were invited to complete the training. Total training participation ended at 99 per cent, with 100 per cent in Gränges Asia and Gränges Americas and 98 per cent in Gränges Europe. Anti-corruption was included in the training. No corruption incidents were detected during 2018. During 2019, Gränges plans to implement a specific anti-corruption training for applicable employees.

Reporting principles and definitions: Data for Code of Conduct training participation is collected and consolidated annually via the e-learning system used for online training. Data from Gränges AB is included in the data for Gränges Europe. Comparable data for 2016 and 2017 are not available. Data for Code of Conduct training includes employees in duty and is adjusted for long-term sick-leave, parental leave, resignations and employees off duty for a longer period.

Applicable employees are defined as employees working in sales, purchasing and senior executives who have external contacts.

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.

Responsible and sustainable sourcing

Long-term target: Gränges’ 2025 target is that 100 per cent of the purchase value from significant suppliers should be committed to Gränges’ Supplier Code of Conduct or equivalent standard.
 

Significant suppliers

Supplier Code of Conduct commitment

Supplier audits


Comment: In 2018, Gränges rolled out its updated Supplier Code of Conduct to its significant suppliers. In total, 137 suppliers, corresponding to 98 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. In Gränges Asia and Gränges Europe, Gränges conducted in total ten supplier audits in 2018, of which one was a new supplier. Such audits are conducted periodically depending on suppliers’ strategic importance and results from supplier performance assessments.

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 from Gränges AB is included in the data for Gränges Europe. Comparable data for 2016 and for one indicator also 2017 is not available.

Significant supplier is defined as a supplier with a total purchase value above 5 MSEK, 5 MCNY or 0.5 MUSD. Local purchase value has been converted to SEK using average currency rates for 2018.

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.

Long-term target: Gränges’ 2025 target is that 20 per cent of the total sourced metal inputs should be sourced recycled aluminium.

Weight of sourced recycled aluminium

Share of sourced recycled aluminium


Note: Data for Gränges Asia and Gränges Americas has been restated compared to data presented in the Annual report 2017, due to an update of the parameter definition to only include third-party recycled aluminium. The previously stated data also included third-party processed recycled aluminium from Gränges’ operations.

 
Comment:
The use of sourced recycled aluminium increased significantly in 2018, driven by Gränges Americas where volumes more than doubled compared to 2017. The result was mainly achieved through expanded sourcing of recycled aluminium through commodity traders. It was also positively affected by expanded customer recycling programs. The result in Gränges Americas was slightly offset by a decline in sourced recycled aluminium in Gränges Asia and Gränges Europe compared to 2017, due to fluctuations in availability of recycled material which has sufficient quality.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles. Data for 2016 includes operations in the US.

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

Sustainable operations

Long-term target: Gränges’ 2025 target is to reduce energy intensity by 17 per cent versus 2017, and to increase the share of sourced renewable energy (electricity, heat, fuels).

Total energy use

Energy intensity

Share of renewable energy sourced


Comment: The energy intensity in Gränges Americas and Gränges Europe was reduced in 2018, resulting in a 1 per cent total improvement compared to the 2017 level. The improvement is a result of different energy efficiency measures at the production facilities. The use of district heating in Gränges Europe increased compared to previous years due to unusually cold weather until April, which led to a need for additional heating. Gränges’ total share of renewable energy was unchanged at 9 per cent (9). In Gränges Europe, the share was 2 percentage points lower compared to 2017 due to a slightly higher share of nuclear power in the purchased electricity mix, which replaced renewable energy sources. The share of nuclear power was slightly higher also in the purchased electricity mix in Gränges Americas, replacing non-renewable fossil energy sources.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles. Data for 2016 includes operations in the US.

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 heating.

Regulations: Gränges adheres to applicable energy regulations in the countries of operations; Gränges Asia under the Shanghai Energy Conservation Regulations and Gränges Europe under the Energy Efficiency Directive. Currently Gränges Americas does 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 site of Gränges Europe is certified in accordance with the energy management standard ISO 50001, while Gränges Americas and Gränges Asia have initiated pre-studies to implement an energy management system.

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

Total emissions of greenhouse gases


Note: Data for Gränges Americas’ 2017 scope 3 emissions has been restated due to updated data for primary aluminium use.

 

Carbon intensity


Note: Data for Gränges Americas’ 2017 scope 3 emissions has been restated due to updated data for primary aluminium use. Data for Gränges’ total 2016 scope 3 carbon intensity has been corrected due to a calculation error.

 

Emissions by category (scope 3)

Other emissions to air – dust


Note: Data for Gränges Americas’ dust emissions have been restated compared to data presented in the Annual report 2017, due to an update of the emission factors used.


Comment:
The direct and energy indirect carbon intensity (scope 1+2) decreased by 6 per cent compared to 2017, driven by improved energy intensity and by a higher share of low carbon nuclear electricity, which replaced fossil fuel-based electricity in Gränges Americas. The carbon intensity for other indirect emissions (scope 3) decreased by 6 per cent compared to 2017, mainly driven by increased use of recycled aluminium replacing primary aluminium in Gränges Americas, and by improved material efficiency in Gränges Asia. Emissions of dust decreased compared to 2017 due to lower 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. Data for 2016 includes operations in the US.

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 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].

Dust emissions are calculated either using local emission factors or based on continual measurements.

Other emissions such as nitrogen oxides, sulphur dioxide, oil and VOC are not reported as methods and data collection procedures for these emissions are currently being harmonized across the organization. Gränges aims to start reporting 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). In Asia, 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, dust, 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), SVP Technology & Business Development (energy and other indirect emissions), 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 of Gränges Asia and Gränges Europe are certified in accordance with the environmental management standard ISO 14001, while Gränges Americas has initiated a pre-study 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 to implement water management plans in all sites.

Water withdrawal, by source

Water withdrawal, by region

Water intensity

Comment: In 2018, total water withdrawal increased compared to 2017, to the same level as in 2016. The withdrawal of surface water increased in the Finspång facility in Gränges Europe due to unusually warm weather from June to August, which led to increased need for cooling water. The increase in Gränges Europe was however offset by improvements in Gränges Americas, where replacement of cooling tower units in the Huntingdon facility significantly reduced the water withdrawal. In 2019, Gränges will initiate work to develop local water management plans in all sites.

Reporting principles and definitions: Data is reported at regional level and consolidated annually at group level using common definitions and principles. Data for 2016 includes operations in the US.

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

Regulations: The water use and management for Gränges 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 to have a Total Recordable Rate of 3.0 and a Severity Rate of 50.

Total Recordable Rate (TRR)

Severity Rate

Comment: In 2018, the Total Recordable Rate (TRR) reached 6.1 (7.8), an improvement by more than 20 per cent. The Severity Rate however deteriorated because of two accidents that resulted in long recovery of the injured individuals.

Reporting principles and definitions: All incidents and accidents are registered and categorized in incident reporting systems. Events reported in the incident reporting systems are followed weekly and monthly. Data is reported at regional level and consolidated monthly at group level using common definitions and principles. Data for TRR 2016 includes operations in the US. Comparable data for Severity Rate 2016 is not available.

Contracted workers, defined as individuals working onsite or offsite on behalf of Gränges, are included in the safety data.

Recordable accident is defined as 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 the regional safety representatives. The governing policy is Gränges’ EHS Policy, which is reviewed annually and applies to all employees working at Gränges. The production site of Gränges Asia is certified in accordance with the occupational health and safety standard OHSAS 18001 while Gränges Americas and Gränges Europe have initiated pre-studies to implement an occupational health and safety management system in accordance with OHSAS 18001 or ISO 45001.

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 increased to 1,803 (1,637) in 2018, mainly driven by the expansion plans in Gränges Americas to expand the production plant in Huntingdon and restart production at the Newport plant.

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 Gränges Europe. Data is based on headcount on 31 December 2017 and 2018. Comparable data for 2016 is not available.

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, 99 per cent of Gränges’ employees received a performance and development discussion in 2018. By gender, 100 of all men and 99 per cent of all women received a performance and development discussion. By category, 100 per cent of white-collar employees and 99 per cent of blue-collar employees received a performance and development discussion. A few individuals in Gränges Europe did not receive a performance and development discussion since they were absent during the period when the annual performance and development discussions were conducted.

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 Gränges Europe. Comparable data for 2016 and 2017 is not available. Data covers employees in duty adjusted for 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 to have at least 30 per cent women among senior management.

Gender balance by region

Gender balance and age structure 2018

Comment: The share of women in the total workforce remained at 14 per cent (14) in 2018 with a small decline in Gränges Americas due to the high number of men among new recruits to support the expansion of the Huntingdon plant and restart production at the Newport plant. The share of women among senior management was unchanged at 20 per cent (20) with a small increase Gränges Americas who increased the number of women in the regional management team.

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 Gränges Europe. Data is based on headcount on 31 December 2018 and 2017. Comparable data for 2016 is not available.

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 85.

Comment: Total sick-leave during the year ended at 1.6 per cent (2.0). Total employee turnover increased to 9.1 per cent (7.4) as a result of low unemployment rates and strong employment market in the US as well as a high number of new employees in Gränges Americas and Gränges Europe to support the company’s expansion plans. Some of the new employees ended their employment during the first-time period at Gränges. Employee engagement index for 2018 was 78.

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 Gränges Europe.

Data for sick-leave and employee turnover is based on average number of employees during 2018 (expressed as present full-time positions). Data for 2016 does not include operations in the US.

Data for employee engagement comes from Gränges’ employee survey. Results for 2018 include Gränges Asia and Gränges Europe. Gränges Americas plans to conduct an employee survey in the first half of 2019. Comparable data for 2016 and 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.

Sustainable product offerings

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

Comment: Detailed results for this indicator will be presented once Gränges has put in place and 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.