Goal 13: Take urgent action to combat climate change and its impact
Climate change affects Elkem in different ways, both physically and when it comes to technology development, market adaption, reputation and regulatory limitations. Climate change mitigation exposes Elkem to several challenges and opportunities. Climate change response and transitioning to more sustainable solutions will impact our business and financial conditions going forward.
Climate change mitigation exposes Elkem to several challenges and opportunities. Climate change response and transitioning to more sustainable solutions will impact our business and financial conditions as we advance.
Our impact: Greenhouse gas (GHG) emissions (CO₂) are inherent to the process of the silicon, ferrosilicon, and silicones production. We acknowledge that our climate work is a continuous process. Elkem is well aware that the company must reduce the CO₂ emissions in line with the expectations in the Paris agreement, at the same time as we aim to contribute positively by providing solutions to the green transition.
Our long-term goal is to achieve carbon neutral metal production. Several research and development (R&D) projects are in place to develop the necessary technology to reach this goal.
Elkem announced an updated climate roadmap in 2021.
Impacted: Climate change affects Elkem in different ways, like technology development, market adaption, reputation, and regulatory limitations. One example is regulatory mechanisms like emission trading schemes. For example, changes in ETS regulations may cause a reduction of allowances and higher prices. This will increase Elkem’s direct costs which is a current risk in our operations. Therefore, reducing GHG emissions from production is a strategic goal. In addition, Elkem is monitoring how physical, chronic, and acute climate change effects could affect our locations and business.
Elkem published the first climate risk report in accordance with the TCFD recommendations in 2021. For more information about the financial impact of climate change, you can read the full report here.
SDG impact report 2021 – SDG 13
Target 13.1: Strengthen resilience and adaptive capacity to climate related hazards and natural disasters in all countries
Scope 1 emissions: 2.52 mill. tonnes
Biocarbon share of emissions: 22%
Energy recovery rate: 14%
CDP Climate change:
Increased ambitions for mitigating climate change announced in climate roadmap.