Outokumpu aims at being the industry benchmark for sustainability: Commits to more stringent climate target and establishes an ESG Advisory Council
Outokumpu updates its sustainability strategy and aims to become the industry benchmark for sustainability. The company commits to the Business Ambition for 1.5°C objective according to Science-Based Targets (SBT) initiative, clearly raising its earlier climate objectives. In addition, the company is establishing an ESG Advisory Council to support its sustainability work.
“With the commitment to the Business Ambition for 1.5°C, we are not only enabling our customers to decarbonize their value chains, but also want to set the benchmark for a bright and sustainable stainless steel industry”, says Heikki Malinen, President and CEO of Outokumpu.
“The new ESG Advisory Council will be a most valuable forum that brings an external holistic view to our continuous sustainability development. Its expertise will also promote Outokumpu’s aim to set the industry benchmark in sustainability, as well as supporting our efforts in balancing business needs with sustainability goals”, he continues.
Commitment to the Business Ambition for 1.5°C objective
The amount of the company specific CO2 emission reductions will be determined during the approval process with the SBT organization. The new reduction target will not affect the earlier announced capital expenditure in 2021–2022.
Outokumpu’s long-term climate target is to reduce its direct and indirect CO2 emissions as well as those of its supply chain (scopes 1, 2 and 3) to reach carbon neutrality by 2050. Outokumpu is well on track to reach its current climate target of cutting emissions by 20% by 2023 from the 2014–2016 baseline after 17% reductions in emissions by the end of last year.
Outokumpu has reduced its emissions by increasing the share of recycled material in stainless steel production to more than 90%. In addition, the company has increased the share of low-carbon electricity in its energy consumption, improved energy efficiency and reduced transport emissions.
Outokumpu is the first stainless steel producer to commit to the SBT initiative and has already been a member since 2016, when the company’s earlier 2°C climate objectives were approved.
Establishing of an ESG Advisory Council
The new ESG Advisory Council to the CEO will support Outokumpu in its continuous improvement in sustainability work. The council’s role will be to challenge and comment the company’s ESG strategy, roadmap development and actions as well as facilitate dialogue and exchange of views between Outokumpu and its stakeholders.
Outokumpu’s external ESG Advisory Council members are as follows:
- Olli Dahl, PhD (Technology), Professor, Environmental Technology, Aalto University
- Lucas Joppa, PhD (Ecology), Chief Environmental Officer, Microsoft
- Sirpa Juutinen, Partner, Sustainability & Climate Change, PwC Finland
- Julia Woodhouse, Board Member, Member of the Audit Committee, Outokumpu
Virtual Capital Market Update today, on May 6 at 2.00 pm EEST
Outokumpu will present its updated sustainability strategy at its virtual Capital Markets Update today, at 2.00 pm EEST. Please follow the virtual event online at www.outokumpu.com/en/CMD.
Outokumpu’s sustainability strategy
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Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs some 10,000 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com