At Outokumpu, we are committed to mitigating climate change. In 2021, Outokumpu committed to the Science Based Targets Business ambition of keeping global warming at 1.5°C and continues to work towards carbon neutrality by 2050.
Our vision is to be the leader in sustainable procurement by embedding circularity and responsible sourcing of materials, products, and services in the core of all procurement decisions without compromising on quality or financial efficiency.
Sustainable supply chain management is one of the priorities in our sustainability work at Outokumpu. We support our suppliers towards more sustainable operations and eliminate any environmental or social harm, across the stainless-steel value chain, to foster human rights and accelerate the green transition. Under the heading of sustainable supply chain management we combine several activities, all with one goal: creating a transparent, monitored and responsible supply chain with partners that we know and that fulfil our high standards – from the trader all the way back to the mine where our raw material is coming from. In 2023, we focused on improving the supply chain transparency and solidifying processes to evaluate supplier sustainability performance. As a result, our supply chain mapping and data gathering now covers a broader scope, even beyond direct suppliers. In addition, we developed the supply chain risk management processes by utilizing our global risk and control management process and system, and by expanding the country based risk rating to cover all categories.
Supply chain emissions account for 67% of our entire emissions. Scope 3 emissions originate from raw materials such as ferronickel, burnt lime, dolomite, as well as other alloying elements. We continuously work together with our suppliers to identify new innovations and opportunities to reduce our supply chain emissions. Throughout 2023, we established new partnerships to strengthen the supply of sustainable raw materials and reduce emissions from it. For example, we acquired a share in the Canadian company FPX Nickel and signed a letter of intent with Greenland Resources Inc., a company specialized in low-emission molybdenum, to further strengthen our sustainable supply chain. During 2023, we managed to keep our recycled material content at an all-time high of 95%. Looking ahead, we aim to increase recycling as steel scrap and recycled metals from any waste management can replace raw material use, although the amount of scrap depends on the availability of suitable scrap. Therefore, we partnered with CRONIMET to further secure the sourcing and retain the supply of high-quality scrap within Northeastern Europe and launched Inner Circle to ensure a sustainable supply chain for steel scrap.
Outokumpu was the first in the industry to offer a productspecific carbon footprint (PCF) for our products in Europe. PCF measures emissions caused by a product from the extraction of raw materials to our gate – from cradle to gate. It enables customers to evaluate their value chain emissions and to minimize their carbon footprint by selective material sourcing, and it helps them reach their climate targets. Making this specific data available means that our customers no longer need to rely on average industry figures for their own carbon footprint calculations. In 2023, PCFs were externally verified besides the last two remaining sites, which are in the process of being validated.
As part of our sustainability efforts, we have developed an entirely new product line, called Circle Green, which has an up to 93% reduced carbon footprint compared to the global average and engaged in numerous campaigns with our customers to promote the sustainability of Circle Green, our other products and stainless steel as a material.
