Sustainable supply and recycling

Increasing sourcing and usage of sustainable materials and energy are vital for Gränges to reduce the climate impact from scope 3 and the company is committed to promote responsible and sustainable practices in the company’s supply chain.

Sustainable materials

Using sustainable materials is key for Gränges to reduce its climate impact from scope 3. The company focuses on increasing recycling and expanding the use of low-carbon primary aluminium.

Using recycled aluminium can save up to 95 per cent of the energy needed to produce primary aluminium. Gränges has a target to tenfold the recycled volumes by 2030 compared to baseline 2017. To achieve this ambition Gränges will invest in process and technology innovation to increase recycling capabilities, in strategic partnerships with customers to build closed-loop collaboration and in supplier partnerships with recycling companies and traders to secure recycled aluminium.

Sustainable energy supply

Using renewable energy is key to reduce Gränges climate impact from its own operations. The company has a target to increase the usage of renewable energy from scope 1 and 2 to at least 20 per cent by 2025. All regions are actively investigating how to increase the usage of renewable energy including renewable electricity agreements with energy suppliers and solar panel installations.

Responsible sourcing

Gränges is committed to operating in accordance with responsible, ethical and sound business principles and expects its suppliers to maintain similarly high sustainability standards. Gränges has a responsible sourcing programme to enforce sustainability practices in the supply chain.
To further promote responsible production, sourcing, and stewardship of aluminium across the aluminium industry, Gränges has been a member of Aluminium Stewardship Initiative (ASI). Five of Gränges’ production facilities are certified against ASI Performance Standard and ASI Chain of Custody Standard.

Gränges’ responsible sourcing programme

In line with Gränges’ Responsible Sourcing Policy, all sites are to operate a local responsible sourcing programme covering its significant suppliers. The programme is used as a platform to enforce sustainable practices, ensure continuous improvements, develop collaboration, and build lasting relationships with suppliers.

Significant suppliers are requested to sign Gränges’ Supplier Code of Conduct based on the ten principles of the UN Global Compact. The policy includes basic sustainability requirements on suppliers including human rights, labour rights, business ethics and environmental performance.

Significant suppliers are annually screened in a desktop tool for potential environmental, social and corruption risks based on the purchasing category and country of origin. The aim is to identify and mitigate sustainability risks in the supply chain.

Suppliers categorized as medium or high-potential risk suppliers are required to complete a desktop sustainability assessment, currently managed by EcoVadis. The questionnaire aim to grade suppliers’ performance within all sustainability areas and has an evidencebased approach.

Results from the desktop assessments are integrated into local supplier review procedures, e.g. supplier scorecards as well as supplier discussions and on-site visits, as applicable locally.

Gränges uses an internal escalation process to decide on appropriate actions in cases where a supplier declines to participate in any of the previous mentioned steps or receive a low score in the EcoVadis assessment. All sites have a local escalation team and routine in place and deviations can lead up to blocked purchase orders and business termination.