Sustainable supply and recycling

Gränges’ 2030 goal is to reach 500 ktonnes recycled volume, equal to a tenfold volume versus baseline 2017. In 2023, Gränges reached an all-time high recycling volume of 210 ktonnes, equalling more than 4.5x the baseline 2017. This corresponds to a share of 42 percent of total sourced metal inputs, up by 8.9 percentage points versus 2022.

Gränges sources pre-consumer used materials from customers and recycling companies and post-consumer used materials from recycling companies. The company also recirculates processed aluminium from its own operations. Key factors to secure increased volumes of recycled aluminium is to collaborate with recycling processing companies and forming circular business models and partnerships with suppliers and customers.

A key decarbonization driver is to expand the sourcing of low-carbon primary aluminium. Gränges is dependent on the primary aluminium sector transitioning to low-carbon production and products. Currently, the availability varies depending on geography and renewable energy conditions. Gränges mainly uses low-carbon primary aluminium, both in the form of ingots and slabs, in its European facilities.

A key achievement during 2023 was the closing of the joint-venture with Shandong-Innovation Group (SIG) which will secure access to low-carbon primary aluminium in Gränges’ facility in Shanghai. This investment is expected to have a significant impact on the company’s decarbonization performance over time.

Promoting a responsible supply chain

With a supplier base of more than 3,500 suppliers globally, Gränges has an indirect impact on both environmental and social sustainability. Gränges works to mitigate sustainability risks and increase sustainability performance in the supply chain through supplier collaboration.

New responsible sourcing program

In 2023, Gränges updated its responsible sourcing program which will be implemented in 2024. Updates include a pre-check and sustainability risk screening for all new potential suppliers, and an extended onboarding including sustainability training. The supplier risk categorization will be based on sustainability risks and business impact (measured as annual spend), and follow-up will include either third-party on-site audits or evidence-based desktop assessments. As part of the new program, Gränges has committed to a 2030 goal of 100 percent sustainable suppliers, measured as the share of purchase value from active suppliers approved as sustainable in Gränges’ responsible sourcing process.

1. Pre-check and risk screening
   Potential supplier-specific sustainability risks are identified based on environmental, social, and corruption risks associated with the supplier’s country of origin and sector. The risk scoring model used is validated by a third-party.

2. Supplier onboarding
   Supplier signs the company’s Supplier Code of Conduct or has an equivalent standard in place, as part of onboarding new suppliers. Sustainability trainings are conducted with high and medium risk suppliers to raise their sustainability awareness and efforts.

3. Sustainability assessments
   Suppliers are addressed with third-party audits or thirdparty desktop assessments to further disclose sustainability performance – depending on the suppliers’ business impact and sustainability risk. Traders will be assessed using a self-assessment questionnaire.

4. Analysis and corrective actions
   Suppliers are contacted to discuss findings and mitigating actions if any non-compliance against the sustainability principles stipulated in Gränges’ Supplier Code of Conduct is raised in the sustainability assessments.

5. Continuous development
   Sustainability performance ratings are integrated into local supplier review procedures and tools such as supplier scorecards and discussions. Trainings are provided as applicable to support suppliers and help them improve.

6. Re-assessment and re-audit
   Suppliers’ sustainability risks and business impacts are annually reviewed. The frequency of re-audits is at least every three years. The frequency of desktop re-assessments is based on the assessment score, but at least every three years.