ESG targets

ANDRITZ’s current sustainability program runs from 2021 to the end of 2025. Having already achieved – and partly surpassed – most of our ESG (Environmental, Social, Governance) targets for 2025, we have now set our new targets for 2030.

Our purpose, “Creating Growth that Matters”, sets sustainability at the core of ANDRITZ. It drives us to create lasting value for our employees, stakeholders, society, and the planet. Our vision is to become a recognized leader in delivering innovative and economically viable solutions for the green transition.

As part of this commitment, Climate Action (SDG 13) is a cornerstone of our strategy. We recognize the urgent need to combat climate change and its impacts, and we align our operations and innovations to support a low-carbon, climate-resilient future.

The new targets of ANDRITZ`s sustainability program are designed to align the company with global climate goals, enhance employee well-being, and ensure responsible governance. They focus on:

ENABLING THE GREEN TRANSITION

ANDRITZ aims to provide innovative low-carbon and resource-efficient solutions to its customers and reduce the environmental footprint of its own operations. KPIs track progress on climate protection, water conservation, and waste minimization. Climate targets include a 42% reduction in absolute scope 1 and 2 emissions and a 25% reduction in absolute scope 3 emissions from 2023, in line with the Paris Agreement’s 1.5°C goal. The share of revenue from products enabling customers’ green transition is to increase to over 50%.

Our focus regarding water lies on water use in water-stressed areas. The goal is a reduction of 25%. We also want to reduce the amount of waste sent to landfills by 25%.

SUPPORTING PEOPLE'S GROWTH

We are committed to creating a safe and fair work environment that promotes equal opportunities and personal development. Measures focus on increasing the representation of women in leadership roles, reducing voluntary turnover, and enhancing employee engagement. Reducing work-related accidents remains a top priority.

GOVERNING WITH INTEGRITY

ANDRITZ upholds high ethical standards and responsible business practices throughout its operations and value chain. The focus is on ensuring high sustainability standards among suppliers through assessments, social audits, and external ESG ratings. In addition, we aim to expand sustainability-related certification of our own operations.

An overview of the 2030 ANDRITZ ESG KPIs is provided in the table below.

ENVIRONMENT		SOCIAL		GOVERNANCE
E-impact revenue	>50%	Lost Time Injury Frequency Rate (LTIFR)	< 1	Supplier prequalification**	> 90%
Climate GHG emissions, absolute • Own operations (Scope 1+2): • Value chain (Scope 3):	–42% –25%	Women in leadership positions	> 15%	Supplier social audits	> 100 in total
Climate GHG emissions, relative • Own operations (Scope 1+2):	18 → 10 t/MEUR	Voluntary employee turnover	< 4%	Sustainability-rated suppliers***	20,000 suppliers rated by third party
Water use in water-stressed areas*	–25%	Employee engagement index	75% employees participating	Certified sustainability management index****	100% of the set 2030 target
Waste to landfill	–25%

^{* Water-stressed areas as defined in the Aqueduct Water Risk Atlas tool of the World Resources Institute (WRI).}
^{** Accumulated external purchasing volume (direct spend) through suppliers with an annual purchasing volume of more than EUR 250 000 in one of the past two consecutive years, and new suppliers created in current year with a purchasing volume of more than EUR 25 000.}
^{*** External ESG rating integrated into ANDRITZ’s Supply Chain Management IT tools.}
^{**** Index includes selected sustainability-related ISO standards covering management of environment, energy, OHS, quality and compliance.}

Our 2025 sustainability program, “We Care,” guides our initiatives and goals, and is structured around three core focus areas—Environmental, Social, and Governance (ESG)—each aligned with specific Sustainable Development Goals (SDGs).

ENVIRONMENT:

Reducing the environmental impact of all business activities is a key priority for ANDRITZ, by focusing on climate action and decarbonization.

Reduce GHG emissions (Scope 1+2) per MEUR sales by 50% by the end of 2025 (base year: 2019)
Reduce water consumption per MEUR sales by 5% compared to the preceding year
Reduce waste volume per MEUR sales by 5% compared to the preceding year
Increase share of certain sustainable solutions and products to over 50% of Group revenue by 2025

Key SDGs addressed as a part of our environmental focus area:

SDG 6, Clean Water and Sanitation

SDG 7, Affordable and Clean Energy

SDG 9, Industry, Innovation and Infrastructure

SDG 12, Responsible Consumption and Production

SDG 13, Climate Action

Our performance

Environmental targets	Metric	Base year 2019	Status 2021	Status 2022	Status 2023	Status 2024	Target 2025	Original target 2025
Reduce CO2 emissions (scope 1+2)	tons CO2e/ MEUR revenue	28.1	29.3	18.6	18.0	13.7 (-51%)	14.0 (-50%)	14.0 (-50%)
Reduce water consumption	m3/MEUR revenue	158.3	180.6	153.6	130.6	136.8 (-14%)**	130.0 (-18%)**	142.5 (-10%)**
Reduce waste volume	tons/MEUR revenue	10.7	7.8	7.0	8.7	6.8 (-36%)**	6.5 (-40%)**	9.6 (-10%)**
Increase revenue from sustainable solutions and products	% of total revenue	46*	42	45	45	44	>50	>50

^{Note: Only the sales of the included locations were incorporated.}
^{* Figures relate to 2020 as no comparable data for 2019 available}
^{** -10% target for water and waste was already achieved in 2023. An additional reduction target of -5% was integrated into the base year calculation to develop a revised 2025 target.}

SOCIAL:

Our goals in this area focus on ensuring workplace safety and strengthening ANDRITZ as an attractive employer. We are committed to continuously reducing the frequency of workplace accidents that result in lost working hours, lowering voluntary employee turnover, and increasing the representation of women in our workforce.

Reduce lost time injury frequency rate (>1 day absence) by 30% every year
Reduce voluntary turnover rate to less than 4.5% by the end of 2025
Increase number of female employees to 20% by the end of 2025

Key SDGs addressed as a part of our social focus area:

SDG 3, Good Health and Well-being

SDG 4, Quality Education

SDG 5, Gender Equality

SDG 8, Decent Work and Economic Growth

Our performance

Social targets	Metric	Base year 2019	Status 2021	Status 2022	Status 2023	Status 2024	Target 2025
Reduce LTIFR by 30% compared to the preceding year	Accidents*/million working hours	6.1	3.1	2.8	2.6	2.3 (-12%)	-30%
Reduce voluntary turnover rate	% of total employees	6.0	6.5	6.0	5.1	4.1	<4.5
Increase share of female employees	% of total employees	16.2	16.6	16.4	17.0	17.2	20

^{* Accidents causing >1 day’s absence}

Goal	Measuring variable	2024	Goal 2024	Goal 2025
Share of female leaders	% of total female leaders	14.0%	14.1%	14.5%
Equitable opportunity index	External benchmark from Glint, based on the average score across all companies participating in the surveys.	65%	64%	67%
Inclusive leader index	External benchmark from Glint, based on the average score across all companies participating in the surveys.	70%	67%	71%
Employee appraisals (focus on salaried employees)	% of salaried employees who have participated in a performance review, documented in the #APeople database	85.4%	65%	95%

GOVERNANCE:

We are committed to minimizing corporate risks and continuously strengthening compliance, with a particular focus on sustainable supply chain management and resilience.

Ensure early identification of company risks to avoid negative effects on the company (goal: zero event-based profit warnings)
Enforce and constantly check the observance of highest corporate compliance standards in all units and activities of the Group (goal: zero misconducts)
Cover 85% of the supply volume (accumulated external purchasing volume [direct spend] through suppliers with an annual purchasing volume of more than EUR 250,000 in one of the past two consecutive years) by means of orders placed with assessed suppliers by the end of 2025

Key SDGs addressed as a part of our governance focus area:

SDG 8, Decent Work and Economic Growth

SDG 16, Peace, Justice, and Strong Institutions

SDG 17, Partnerships for the Goal

Our performance

Governance targets	Metric	Base year 2019	Status 2021	Status 2022	Status 2023	Status 2024	Target 2025
No event-driven profit warnings	Number of event based profit warnings	0	0	0	0	0	0
No compliance violations	Number of incidents of corruption and antitrust violations	0	0	0	0	0	0
Coverage of 85% of the supply volume* by assessed suppliers by 2025	% supply volume* with assessed suppliers	78**	82	82	90	91	85

^{* Accumulated external purchasing volume (direct spend) through suppliers with an annual purchasing volume of more than EUR 250,000 in one of the past two consecutive years,}
^{and new suppliers created in current year with a purchasing volume of more than EUR 25,000}
^{** Figures relate to 2020 as no consistent and comparable data for 2019 are available}