Responsible and sustainable sourcing

An efficient and sustainable supply chain is essential for Gränges’ long-term success. Gränges promotes responsible and sustainable practices in its supply chain and works to incorporate sustainability criteria into its sourcing agreements and partnerships. The aim is to improve supply chain sustainability performance and reduce the associated risks.

Our commitment

We will ensure that our suppliers maintain high sustainability standards by enforcing strict criteria in our supplier sourcing agreements and partnerships. We also commit to improve the environmental footprint in our supply chain by working with our suppliers and promoting sustainable practices.

Performance 2019

  • 154 suppliers (137) signed the Supplier Code of Conduct or were assessed to have equivalent standards in place which are in line with Gränges’ sustainability requirements. This corresponded to 99 per cent (98) of the purchase value from all significant suppliers1)
  • Increased the share of recycled aluminium to 19.8 per cent (16.7) of total sourced metal inputs, up by 3.0 percentage points versus 2018.
  • The share of renewable energy, from sourced electricity and heating, reached 8 per cent (9).
  • Carbon emissions intensity from purchased materials and sevices reached 10.5 tonnes CO2e/tonne (11,2), down by 7 per cent versus 2018 and 12 per cent versus baseline 2017, primarily driven by a higher share of sourced recycled aluminium.
We are dedicated to reducing Gränges’ climate impact from a life-cycle perspective. For 2019 I’m very proud that our operations in Americas has again managed to replace signifycant volumes of primary aluminium with recycled aluminium, leading to a considerable lower climate impact from our supply chain.
- Torbjörn Sternsjö, SVP Technology & Business Development

 

 

 

 

A global supply chain

In 2019, Gränges had around 2,500 (2,200) suppliers globally, of which 158 (143) were defined as significant1).

Around 77 per cent (85) of the purchase value from significant suppliers was related to direct materials, i.e. sourcing of primary ingots, rolling slabs, alloying elements, and recycled aluminium. Slabs were purchased directly from smelters while ingots were sourced mainly from commodity traders. Indirect materials and services accounted for some 23 per cent (15) of the purchase value, and important categories included transport, utilities and services.

Sourcing activities are mainly managed by the local procurement organization and the supplier base is generally geographically close to the respective markets.

1)Suppliers with a purchase value above SEK 5 million CNY 5 million or USD 0.5 million.

Responsible sourcing

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Sourced recycled aluminium

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Emissions and climate impact

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