Credit: PixabyMetso Outotec Oyj is a Finnish company that provides technology and services for the mineral processing and metals refining industries. It started in 1940 as a state-owned copper company. Sustainability is a strategic priority for the company and links it to its financial performance.
“Our commitment to net-zero CO2 by 2030, as well as growing our Planet Positive sales can now be tied to our financing arrangements. This is a strong signal to everyone, including our customers, suppliers, and capital markets, that we are truly ‘walking the walk’ with sustainability,” says Marius Verwoerd, VP of Sustainability at Metso Outotec.
Metso Outotec is cutting its Scope 1(operations) and 2 (the fuels it buys) emissions to achieve net zero by 2030. It is also working to ensure that its significant suppliers (Scope 3) will have Science-Based Targets by 2025.
In 2021, the company decreased its CO2 emissions in its facilities by 58%, compared to the 2019 baseline, representing a cut of 70 kilotons of CO2. It also implemented nearly 90 environmental projects that cut CO2, energy, water, and waste. And it has100 new initiatives planned for the coming years.
It says that we must accelerate the shift toward electrification to solve climate change. That means moving to more renewable energy, increasing the usage of low-carbon technologies, and deploying energy-efficient technologies. It is also a trend in the industrial sector, which will increase the demand for metals such as copper, nickel, and lithium — raw materials used in EV batteries.
As a major technology supplier, Metso Outotec is well-positioned to play a role in this transition. For example, its mining equipment and technologies can reduce CO2 emissions. “Our products offer energy-efficient alternatives for material transport, size reduction, mineral separation, and dewatering. In metals, we offer industry-leading, environmentally sustainable solutions.”
It says that about half of its products are already electric, lowering operational costs and allowing for more access to renewable energy sources.
But the company puts its money where its mouth is, committing to cut its CO2 emissions from operations. About 85% of the electricity consumption at its most prominent locations comes from renewable energy sources — often in the form of renewable energy certificates. By purchasing those certificates, the company guarantees the producers of wind and solar energy that they will have a market.
In 2020, the Scienced-Based Targets initiative verified its carbon emission targets to keep temperature rises in check. In 2021, it increased those reduction targets — now at a 50% reduction by 2024 and net-zero CO2 emissions by 2030.
“Sustainability is a strategic priority for Metso Outotec. We provide solutions that support our customer industries’ decarbonization. Sustainability targets linked to financing is yet another demonstration of our strong commitment to a 1.5-degree journey and the fight against climate change,” says Eeva Sipilä, CFO at Metso Outotec.
Energy efficiency is another priority. For example, at its Tianjin, Suzhou, Alwar, and Sorocaba sites, the old lights were replaced by new LED illumination types, resulting in lower maintenance costs and energy bills. At the Alwar factory, it converted the diesel boiler to LPG. And at the Prerov foundry, it invested in a new system for pre-heating of ladles and is reducing its natural gas consumption. At the Quzhou foundry, it is replacing fossil fuel-driven forklifts with electric-driven in its factories, improving air quality and saving fuel.
Since 2020, The company has sought to reduce CO2 emissions by 20% in logistics by 2025. It is also targeting 30% of its biggest suppliers by getting them to join the Science-Based Targets initiative. That number was 10% in 2021. It says that its spending rates with companies committed to Science-Based Targets increased by 2% in 2019 and 10% in 2021.
It also says it will spend 100% of its R&D budget on initiatives with a sustainability target related to energy, emissions, water, circularity, or safety.
Metso Outotec works with more than 13,000 suppliers in more than 80 countries to help them develop their sustainability practices. Together, they look closely at risk management, protecting reputation, and minimizing business disruptions that could lead to increased delivery times. The effort leads to more efficiencies in the supply chain and improved operations.
Metso Outotec’s products' biggest environmental impacts are generated when used in customers’ operations. That is why it is focusing on its “Planet Positive” products, which it says are more energy and water efficient. They are helping to cut customers’ CO2 levels. The goal is to increase sustainability rates up-and-down the supply chain, including among its customers.
“Metso Outotec has demonstrated a strong commitment to sustainability, and with this Framework, such commitment can now extend even further into capital markets. We are proud to have worked with the company in this process, and we are confident that Metso Outotec can continue to pave the way for others in this highly important area,” says Juho Maalahti, Finnish Country Lead for Sustainable Finance Advisory at Nordea.
