At ANDRITZ, sustainability governance is built on clear accountability and strong leadership support, ensuring transparency and long-term value creation. Our risk management framework integrates climate, biodiversity, water, and human rights considerations to drive resilience and responsible growth.
At ANDRITZ, effective governance is grounded in clearly defined roles and responsibilities across all levels of leadership. The Executive Board is responsible for steering the company’s global operations and executing its strategic direction. The Supervisory Board provides oversight and strategic guidance, ensuring transparency, accountability, and long-term value creation.
The Executive Board, supported by the Supervisory Board, is the highest body responsible for approving the guiding policies for sustainability and outlining sustainability principles that inform the company’s strategy.
On the operational level, sustainability is managed by the Chief Executive Officer, the other members of the Executive Board, the Group Sustainability function, the Group Corporate Compliance function, and other senior leaders across the different global functions and business areas.
The risk management process at ANDRITZ aligns with ISO 31000 and COSO Enterprise Risk Management (ERM) standards, focusing on identifying, analyzing, evaluating, mitigating, and monitoring risks. ANDRITZ conducts regular risk analyses within its operations and supply chains to identify and mitigate human-rights and environmental risks.
To ensure effective governance and accountability, ANDRITZ applies the Three Lines of Defense model as a foundational framework for risk and control responsibilities.
An internal control system ensures regulatory compliance and supports early risk detection. The Risk Management Committee reports on sustainability-related risks periodically to the Executive and Supervisory Boards, and the insights are embedded into operational decision-making and strategy development.
At ANDRITZ, understanding climate-related risks is key to building long-term resilience and identifying strategic opportunities. Our climate risk assessment is integrated into our enterprise risk management framework and supports our broader climate action.
We focus on two main types of climate risks: transition risks and physical risks, both assessed by third parties and ANDRITZ’s subject-matter experts.
Transition risks arise from the global shift toward a low-carbon economy and include regulatory, market, technological, and reputational changes. Our transition risk assessment is based on the internationally recognized Task Force on Climate-related Financial Disclosures (TCFD) framework and covers our full value chain, all business areas, and key regions.
Embedding climate scenarios in risk assessment
We have evaluated transition risks using two IPCC Shared Socioeconomic Pathways (SSPs):
Key risks identified include potential supply disruptions and rising costs associated with critical minerals and components, green steel, and bulk materials such as conventional steel. There is also a risk of delays or an inability to develop future technologies in a timely manner. In addition, regulatory developments such as CO₂ taxation and the expansion of the Emissions Trading System (ETS) present further considerations for the company’s strategic planning.
Transition risks are more pronounced under the SSP1 scenario, meaning that if current trends continue (SSP2), ANDRITZ demonstrates solid resilience. Overall, the results show that ANDRITZ is well prepared for the transition to a more sustainable economy. Our broad sector presence helps reduce both the likelihood and impact of these risks. By delivering enabling technologies and using renewable raw materials, particularly in our Pulp & Paper and Hydro business areas, ANDRITZ is well positioned to seize opportunities arising from the green transition.
Physical risks refer to the potential impacts of climate change on our operations and assets, such as extreme weather events and long-term shifts in climate patterns.
We assessed physical risks using two IPCC scenarios:
The analysis showed moderate exposure to physical risks through the 2030s, with key hazards including water stress, extreme heat, drought, and wildfires.
Our mitigation measures are closely aligned with both transition and physical risk assessments, supporting a comprehensive and forward-looking approach to climate resilience across ANDRITZ.
ANDRITZ has initiated a structured assessment of biodiversity-related risks and dependencies across its operations, using globally recognized tools and frameworks such as ENCORE, IBAT and Taskforce for Nature Related Financial Disclosures (TNFD). This process supports the integration of nature-related considerations into our broader environmental and risk management practices.
Our water risk approach is based on the Aqueduct Water Risk Atlas by the World Resources Institute, which we use to screen all locations within our environmental reporting scope. This screening helps identify and assess risks such as water availability, potential scarcity, and impacts on local communities and ecosystems. For each manufacturing site, the level of water stress is evaluated, and locations facing high or extremely high water stress are flagged and recorded in our reporting system.
At ANDRITZ, we recognize our responsibility to uphold human rights throughout our operations and supply chain. Our approach is guided by internationally recognized standards and regulatory requirements, including:
We proactively identify and address human rights risks across our value chain. Through rigorous risk assessments, supplier audits, targeted training, and robust complaints mechanism, we work to prevent, mitigate, and remediate potential violations. These measures reinforce our commitment to ethical business conduct, transparency, and sustainability.
Read more about our approach in our due diligence statements.
For many years, the top management of the ANDRITZ GROUP has made it crystal clear to all directors, managers and employees that business must be conducted in an ethical manner and in compliance with laws and internal rules.
Our 2030 governance targets focus on ethical conduct, responsible sourcing, and strong management systems that ensure accountability.
Key policies form the foundation of our responsible business, safeguarding environment, human rights, health and safety, ethical conduct, and compliance.
We demonstrate alignment with global standards through the UN Global Compact, SBTi‑validated climate targets and leading ESG ratings.
