GRI 103-1 Explanation of the material topic and its boundary
A sustainable mindset and approach are part of SFS’s DNA and are also an important driver of innovation. As value creators, the employees use their expertise and embrace the “Inventing success together” corporate principle to develop more sustainable products and solutions that reduce direct and indirect emissions along the entire value chain, thereby contributing to the achievement of the Paris climate goals and offering customers corresponding added value.
Cold forming, one of SFS’s core technologies, achieves significant energy and material savings compared to alternative manufacturing processes (such as milling or turning). No material is removed during the cold forming process, rather the blank is brought into its final form during two to six shaping stages with virtually no material loss. The material savings are estimated at around 67% across the entire range of parts manufactured at SFS. Based on the Group’s annual consumption of raw materials, the emissions generated during steel production and the cutting performance no longer required, around 300,000 ton of CO2 emissions are prevented by using the cold forming process. This roughly corresponds to the annual CO2 emissions of approx. 50,000 single-family homes using a conventional oil or gas heater.
Since even the use of efficient technologies can have negative effects on the environment, society and climate, SFS constantly strives to improve them and continuously reduce its own emissions.
Environmental impact modeling is conducted together with Sinum and based on the principles of the company ecobalance, the greenhouse gas inventory according to the GHG Protocol (Corporate Accounting and Reporting Standard) and the methodology prescribed by the principles of the ISO 14040 standard. The holistic approach takes into account three different areas, referred to as scopes:
Scope 1: Emissions generated by direct sources of emissions within the company. At SFS, direct emissions are primarily caused by heat treatment and heating systems, the company’s own vehicle fleet and the use of process materials that result in direct emissions (refrigerants, etc.).
Scope 2: Emissions that arise during the production of externally sourced energy. At SFS, these are mainly generated through energy consumed (electricity) in connection with production at the individual sites of operations.
Scope 3: Emissions caused by the company’s activities but that are not under the company’s direct control (emissions caused by suppliers, service providers and waste disposal companies, etc.). Materials such as steel, non-ferrous metals, plastics and packaging materials are purchased from SFS. Other material sources of emissions include the transport of materials and products as well as employees’ business-related and commuter traffic.
A distinction is made between “upstream and downstream categories” in line with the upstream and downstream business processes in a value chain.
Upstream business processes
- Purchased electricity, steam, heating and cooling for own use
- Operational waste
- Purchased goods and services
- Rented assets for upstream business processes
- Business trips
- Capital goods
- Fuels for energy generation
- Employees’ commuter traffic
- Transport and distribution
- Operational facilities
- Company vehicles
- Production processes / use of process materials