Climate and environment
We look for any way in which we can reduce our impact on the environment and set targets that put focus on specific areas for improvement and action.
Our climate and environment targets
Climate change presents a huge threat to society and in 2021, we significantly raised our ambitions by committing to reducing greenhouse gas emissions throughout our value chain in line with the goals of the Paris Agreement.
For Atlas Copco’s own operations, this means that we aim to reduce emissions in line with keeping the global temperature rise below 1.5 degrees. We will also reduce the emissions from our value chain in line with keeping the temperature rise well below 2-degrees.
The targets have been validated by the Science Based Targets initiative and have been implemented during 2022.
| CLIMATE & ENVIRONMENT | 2022 | 2021 | 2022 | Target |
|---|---|---|---|---|
| Reduction in line with the 1.5 degree warming trajectory in CO2 e 1) emissions (tonnes) from scopes 1 & 2, compared to the baseline 2019 | –33% | –17% | –2% | –46% by 2030 |
| Reduction in line with the well-below 2 degrees warming trajectory in CO2 e 1) emissions (tonnes) from scope 3, compared to the baseline 2019 | +29% | +5% | +1% | –28% by 2030 |
| Significant direct suppliers with an approved environmental management system | 31% | 31% | 30% | Continuous increase |
| Water consumption (m3) in relation to cost of sales 2) | 8.4 | _ | _ | Continuous decrease |
| Reused, recycled or recovered waste from internal operations 2) | 92% | _ | _ | 100% by 2030 |
Following up our progress
Reducing emissions in our own operations
In 2022, the CO2 emissions from our own operations were 33% lower than in the baseline year, 2019. Addressing emissions from our company vehicles provides further opportunities for reductions.
Reducing emissions in our value chain
In 2022, the absolute emissions in scope 3 were 29% higher than in the baseline year. The main reason for this was increased sales, but the availability of renewable energy to our customers has also been lower than we expected.
Waste management
Most of our waste is constituted by scrap metal and the vast majority is reused or recycled. This share has been consistently high for many years. Our new target is that by 2030, we shall reuse, recycle or recover 100% of all our waste.
Our sustainability performance 1)
| EMISSIONS, ALL OPERATIONS 2) | base year (2019) | 2020 | 2021 | 2022 |
|---|---|---|---|---|
| Scope 1: Direct CO2e emissions (’000 tonnes) 3) 4) | 75 | 75 | 79 | 77 |
| Scope 2: Indirect CO2e emissions (’000 tonnes) 3) 4) | 87 | 83 | 56 | 31 |
| Scope 1+2: CO2e emissions (’000 tonnes) 3) 4) | 162 | 158 | 135 | 108 |
| Scope 2: Location-based indirect CO2e emissions (’000 tonnes) 3) 4) | _ | _ | _ | 138 |
| Scope 3: Other indirect CO2e emissions (’000 tonnes) 3) 4) | 170 634 | 172 279 | 179 393 | 219 822 |
| Scope 1+2: CO2e emissions/COS (tonnes) 3) 4) 7) | 3.0 | 3.0 | 2.3 | 1.5 |
| Scope 3: CO2e emissions/COS (tonnes) 3) 4) 7) | 3 141 | 3 226 | 3 016 | 2 962 |
| ENVIRONMENT, ALL OPERATIONS 2) | 2020 | 2021 | 2022 |
|---|---|---|---|
| Renewable energy for operations, % of total energy use 5) | _ | _ | 58.0 |
| Direct energy use in GWh 5) 6) | _ | _ | 159 |
| Indirect energy use in GWh 5) 6) | _ | _ | 359 |
| Total energy use in GWh 5) 6) | _ | _ | 518 |
| Total energy use in MWh/COS 5) 6) 7) | _ | _ | 7.0 |
| Total waste in ’000 kg | _ | _ | 54 855 |
| Waste (in kg)/COS 7) | _ | _ | 739 |
| Reused, recycled or recovered waste, % | _ | _ | 92 |
| Water consumption in ’000 m3 | _ | _ | 624 |
| Water consumption (m3)/COS 7) | _ | _ | 8.4 |
| ENVIRONMENT, PRODUCTION AND DISTRIBUTION UNITS | 2020 | 2021 | 2022 |
|---|---|---|---|
| Renewable energy for operations, % of total energy use | 44 | 58 | 67 |
| Direct energy use in GWh 5) | 100 | 115 | 108 |
| Indirect energy use in GWh 5) | 251 | 270 | 283 |
| Total energy use in GWh 5) | 351 | 385 | 391 |
| Total energy use in MWh/COS 5) 7) | 6.6 | 6.5 | 5.3 |
| Total waste in ’000 kg | 31 036 | 35 071 | 39 112 |
| Waste (in kg)/COS 7) | 581 | 590 | 527 |
| Reused, recycled or recovered waste, % | 93 | 93 | 94 |
| Water consumption in ’000 m3 | 384 | 395 | 403 |
| Water consumption (m3)/COS 7) | 7.2 | 6.6 | 5.4 |
1) Calculations according to GRI Standard Guidelines, www.globalreporting.org
2) All operations include all entities
3) CO2e stands for carbon dioxide equivalent emissions
4) The reporting of greenhouse gas emissions is done in accordance with the GHG Protocol (ghgprotocol.org). Country factors used for energy come from the International Energy Agency. Scope 2 is presented both as market-based and location-based according to the GHG Protocol. A market-based approach has been applied unless otherwise stated. Factors from NTM (transportmeasures.org) are used for transport of goods when emission data is not provided by the transport company.
Scope 1 includes direct energy in own operations and fuel used in company vehicles. Scope 2 includes indirect energy from own operations and electricity from company vehicles. Scope 3 includes GHG emissions upstream and downstream in the value chain.
Out of scope emissions data for direct CO2 emissions from biologically sequestered carbon (e.g. CO2 from burning biomass/biofuels) was 3 561 tonnes in 2022.
5) Energy use excludes fuel and energy from company vehicles.
6) Total energy includes both indirect and direct energy used. Atlas Copco does not report cooling or steam separately. The calculation of direct energy, i.e. energy generated by the company for its own production or operation, comprises all fuels used on the sites, including diesel, oil, biofuel, gasoline, solar, geothermal, propane and natural gas.
7) Operating costs include cost of sales, marketing expenses, administration expenses, research and development expenses, other operating
expenses, deducted for employee wages and benefits. COS, when presented in relation to sustainability information, refers to cost of sales at standard cost in MSEK.
How our targets relate to the UN Global Goals
Global Goal 6: Clean water
We are working to continuously reduce our water consumption. Since 1984 Atlas Copco has supported the employee-driven initiative “Water for All”. Since its start more than 2 million people have gained access to clean water and improved sanitation.
Global Goal 7: Affordable and clean energy
Atlas Copco undertakes a range of activities to reduce CO2e emissions from energy in operations and transport of goods, such as installing solar panels, buying renewable electricity and avoiding air freight.
Global Goal 9: Industry, innovation and infrastructure
Energy efficiency in our products and service is a key selling point for Atlas Copco. The main environmental impact is in our customers’ use of our products. All projects for new and redesigned products must assess the environmental impact of the product. Products are developed with a life-cycle perspective.
Global Goal 12: Responsible consumption and production
We strive to make production as efficient as possible and reduce waste. We seek to decrease the total waste produced. Our chemical handling follows strict protocols. Components that contain conflict minerals are not accepted and Atlas Copco monitors and screens its supply chain.
Global Goal 13: Climate action
We have set science-based targets to be a part of the solution to global warming and climate change. Our largest impact is in the use of our products, and we provide solutions designed to reduce our customers’ energy consumption and carbon emissions. We also work to lower our own energy consumption, switch to renewable energy and give preference to transport that minimizes climate impact.
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