NF12 EU taxonomy
The EU taxonomy is a classification system to provide companies, investors and policymakers with definitions of economic activities to be considered environmentally sustainable. As of 2021, all European public interest entities with more than 500 employees are required to report on the EU taxonomy.
The taxonomy recognizes activities, in selected sectors, that make a substantial contribution to at least one of the EU’s climate and environmental objectives, while at the same time doing no significant harm to any of the other objectives and meeting minimum social safeguards (taxonomy aligned).
Sandvik has identified eligible activities (economic activities from which Sandvik gets net revenues, included in the taxonomy delegated act for climate change mitigation and adaptation), mainly within the manufacturing sector and will report on share of turnover, capex and opex connected to these activities.
Sandvik has done a thorough review of its own operations to determine applicable eligible activities, based on the descriptions in the EU delegated acts and supporting NACE code information. The precautionary principle has been applied and activities that are not clearly defined in the EU taxonomy have been left out, for example the mining sector.
The following activities were deemed eligible:
3.6 Manufacture of other low carbon technologies (climate change mitigation): The powder/additive manufacturing business within Sandvik Manufacturing and Machining Solutions and battery- and cable-electric mining vehicles within Sandvik Mining and Rock Solutions. Powder/additive manufacturing have several environmental advantages compared to subtractive manufacturing. It requires less manufacturing steps, resulting in reduced energy consumption and GHG emissions. Less raw material is needed as the powder production results in almost no waste and all the surplus powder can be reused. You can produce lighter components, reducing the fuel consumption and GHG emissions in for example aerospace and automotive. Battery and cable-electric driven loaders and trucks demonstrate substantial life cycle GHG emission savings compared to the best-performing alternative technology available on the market, diesel-driven vehicles.
3.9 Manufacture of iron and steel (climate change mitigation): Advanced stainless steels and special alloys from Sandvik Materials Technology. The offering covers a large variety of products, such as tubes, pipes, bars and strip steel, which are included as eligible activities under the taxonomy. Sandvik Materials Technology is included as eligible, excluding minor parts of the Tube and Kanthal divisions with products in titanium, zirconium, gold or platinum.
We expect to report on additional activities as the taxonomy develops in the years to come.
EU taxonomy
Group |
SEK M |
Eligible economic activities, % |
Non-eligible economic activities, % |
|---|---|---|---|
Turnover |
99,105 |
15 |
85 |
Capex |
–4,907 |
14 |
86 |
Opex |
–4,484 |
20 |
80 |
Reporting principles
The turnover was determined the same way as externally reported net revenues in the income statement (line revenues), further explained in the notes G2 and G3. The allocation of the eligible part has been done using product accounts.
This year’s capex was defined as investments in property, plant and equipment, note G14, and intangible assets, note G13, together with the IFRS 16 right of use assets, note G15. The total capex amount can be found in the movement schedule in each note’s addition row. For note G14 property, plant and equipment, the rental fleet column is not part of capex. The allocation of the eligible part has been done using profit centers or a specific selection of entities. Opex includes R&D costs and maintenance, and repairs costs. The allocation of the eligible part has been done using the combination profit centers or a specific selection of entities and accounts and cost types. Our analysis is based on information available on January 31, 2022.