ESG AS A KEY FACTOR FOR SUCCESS

Sustainability is an integral part of ANDRITZ’s corporate policy and strategy. This is reflected in the day-to-day work of every employee, as well as in the Group’s leadership principles and business relationships. For ANDRITZ, sustainability is a crucial factor enabling the Group’s long-term success.

As a global leader in large-scale, state-of-the-art engineering solutions, our goal is to drive the sustainability transformation of power generation and manufacturing, empower the circular economy and enable the green transition.

We strive to be best-in-class in sustainability terms in the markets we serve, and to create maximum value for all our stakeholders. We focus on responsible corporate governance and ensuring a safe and viable future for society, our employees and all other stakeholders. We also seek to create sustainable and durable products that contribute towards conserving natural resources, protecting the environment and mitigating climate change.

STAKEHOLDER AND MATERIALITY ANALYSIS

Sustainable development is founded on understanding and accommodating diverse perspectives, as well as continually analyzing major issues.

ANDRITZ carried out the first materiality analysis in 2019, which has been repeatedly reviewed and updated.

ANDRITZ is committed to an active communication and information policy to ensure that dialogue with all stakeholders is transparent and based on trust.

ANDRITZ’s key stakeholders are:

- Employees
- Customers
- Suppliers
- Shareholders and investors
- Press and media
- Science and research community
- Governments and authorities
- Non-governmental organizations (NGOs)

The following topics have the greatest influence on the social impact of our business activities and affect stakeholder decisions to do business with ANDRITZ:

Adherence to legal and ethical standards, and the Group’s internal compliance
Responsible working conditions, safety at work and health care
Climate and environmental protection
Fair dealings with suppliers and business partners
Sustainable production and projects, as well as product safety
Responsible company management, ethics and business practices
Digitalization and innovation

ANDRITZ is currently working on an updated materiality analysis that reflects the new legal requirements of the EU’s Corporate Sustainability Reporting Directive (CSRD).

WE CARE – THE ANDRITZ SUSTAINABILITY PROGRAM

Our sustainability program “We Care” includes all of our current sustainability-related activities, as well as new measures, goals and plans. It is based on the three fundamental topics: digitalization and innovation, stakeholder management and corporate compliance. We strive to set and maintain the highest standards in these areas, and to continuously improve in line with global best practice.

ANDRITZ’s environmental, social and governance (ESG) commitments are also based on these three core areas. Our ESG goals have been chosen to reflect where we believe we can have the maximum positive impact, and where we can make the greatest contribution to a sustainable future. For all our focus areas we set ambitious goals.

REACHING OUR ESG GOALS

Environmental focus

Minimizing the environmental impact of our own business activities is a major goal for ANDRITZ. We are targeting to cut our GHG footprint (Scope 1+2 emissions) in half by the end of 2025 compared to 2019, and to significantly reduce water consumption and waste production.

With its sustainable solutions and products, ANDRITZ also seeks to help its customers achieve their goals in this area. The Group aims to generate more than half of its revenue from sustainable products and solutions by the end of 2025.

Goal	Measuring variable	Base year 2019	2021	2022	2023	Goal 2025
Reduce CO₂ emissions (scope 1+2) by 50%*	Tons CO₂ e/MEUR revenue	28.1**	29.3**	18.6**	18.0 (corresponds to -35.9% vs. 2019)	14.0**
Reduce water consumption by 10%*	m³/MEUR revenue	158.3	180.6	153.6	130.6 (corresponds to -17.5% vs. 2019)	142.5
Reduce waste volume by 10%*	Tons/MEUR revenue	10.7	7.8	7.0	8.7 (corresponds to -18.7% vs. 2019)	9.6
Increase revenue from sustainable solutions and products to over 50% of revenue	% of total revenue	46***	42	45	45	>50

Note: Only the sales of the included locations were incorporated.
*Compared with base year 2019
**The values were adapted due to an incorrect CO₂ factor.
***The value refers to 2020 as no comparable data is available for 2019.

Social focus

30% reduction in the annual accident frequency rate
End of 2023: 7%
Below 4.5% employee turnover due to voluntary resignations by the end of 2025
End of 2023: 5%
20% share of women in the workforce by the end of 2025
End of 2023: 17%

Governance focus

We aim at minimizing corporate risks and continuously enhancing compliance, with particular focus on sustainable supply chain management.

85% of procurement volume covered by assessed suppliers by the end of 2025
End of 2023: 90%
(A reassessment of the evaluation process and the goal is planned for 2024.)
No compliance infringements, achieved by implementing the highest corporate compliance standards and monitoring observation of these standards
End of 2023: 0
No event-driven profit warnings, achieved by detecting company risks at an early stage
End of 2023: 0

Concrete measures

To achieve our ESG goals, we have implemented effective actions in our focus areas.

ENVIRONMENTAL

Half of the electricity that ANDRITZ purchases comes from renewable sources.
The execution of energy assessments was started with a focus on our Metals locations which led to action plans to reduce energy consumption by e.g. insulating buildings, installing triple glazing with low-E glass or switching to LED lighting.
Photovoltaic systems in operation at ANDRITZ sites produced 4.2 GWh of green electricity in the reporting year. They have a total installed capacity of 12 GW peak.

SOCIAL

Employee engagement survey in 2023 to identify employee concerns, increase retainment and reduce employee turnover.
Various measures to strengthen internal communication and enhance inclusivity among leaders throughout the Group. Our aim is to foster a strong culture of diversity and inclusion.
Ongoing employee life cycle pulse surveys to map employee experience.
Enhanced internal and external occupational health and safety (H&S) training programs (IOSH Safety, Health and Environment for Construction Site Managers) for site managers, site supervisors and other project key personnel.
Close support for the most complex manufacturing locations through dedicated H&S programs, realized through specific Lean Six Sigma Yellow Belt trainings. These trainings are tailor made for ANDRITZ business requirements and provide fundamental knowledge and the toolset of the DMAIC (Define, Measure, Analyze, Improve, Control) process.
Implementation of a tailor-made digital H&S solution to steer and evaluate H&S performance across the Group.

GOVERNANCE

Continuous compliance training for employees.
Proactive and continuous communication with our purchasers.

ANDRITZ holds the following certifications and committed to the following standards and initiatives:

ISO 50001:2018 – Energy management systems
ISO 37301:2021 – Compliance management systems
ISO 37001:2016 – Anti-bribery management systems
ISO 55001:2014 – Asset management
IEC 62443 – Security for industrial automation and control systems
ISO/IEC 27001:2013 – Information technology – Security techniques – Information security management systems

Multi-site certification:

ISO 9001:2015 – Quality management systems
ISO 14001:2015 – Environmental management systems
ISO 45001:2018 – Occupational health and safety management systems

Moreover, all products and processes are certified internally and externally to the highest standards (Machinery Directive, ASME, GB 150, ISO 3834, ANSI, EN, DIN and ISO norms), and are reviewed regularly for possible H&S and environmental impacts.

Standards and initiatives: