Sustainability Strategy

      In its capacity as a globally leading steel and technology group with about 51,600 employees and about 500 Group companies and locations in more than 50 countries, voestalpine is conscious of its comprehensive economic, environmental, and social responsibility. Sustainability is a cornerstone of all of the company’s decisions and actions. This affects areas as diverse as raw materials procurement, production, and product recycling; employee training and continuing professional development (CPD); all the way to employee health and diversity. It is no coincidence that voestalpine’s mission statement is the basis for its code of values: “We are shaping a better, safer, and more sustainable future.”

      voestalpine adopted a “Corporate Responsibility Strategy” (CRS) in calendar year 2018 in order to consciously and consistently underscore the significance of sustainability to all its decisions and actions. Its Corporate Development unit has further refined the CRS in cooperation with the divisions’ strategy units as well as the relevant specialist departments. In calendar year 2021, the revised version of the CRS was adopted as the Group’s “Sustainability Strategy” in close coordination with both the Management Board and the Supervisory Board of voestalpine AG. The United Nations’ “Sustainable Development Goals” (SDGs) provided the basic framework for the development of the Strategy.

      As an integrative component of the Group’s corporate strategy, sustainability as a concept is operationalized via individual strategies at the level of divisions, business segments, and functions. This takes the topic’s growing significance to both internal and external stakeholders into account. The Sustainability Strategy is conceived as a wholly integrated roadmap based on a best-in-class approach.

      Increasing focus on sustainability (organizational chart)

      By laying out its Sustainability Strategy, voestalpine has also signaled that sustainability as an issue is becoming increasingly important to financial and capital markets alike. The ongoing development of the legal framework was considered as much as changing market and competitive factors. Strategic principles and objectives were fleshed out at the Group level for every sphere of action. The Strategy is designed to be comprehensive and thus encompasses three pillars: the Economy, the Environment, and Society. It is designed to be put into practice in both voestalpine’s processes and business activities, as well as organizationally. Stakeholder management serves to ensure that the Sustainability Strategy and its progress are communicated both internally and externally. The following figure presents the Strategy’s core elements and its integration into the Group’s corporate strategy.

      Strategy’s core elements (organizational chart)

      Profitability and shareholder value are key to the long-term performance of a listed entity such as voestalpine. The commercially successful decarbonization of blast furnace-based steel production is at the heart of the climate protection measures designed to achieve the Group’s target of net zero in 2050. The aim here is to minimize both the economic risk as well as the greenhouse gas emissions. The sustainability strategy links economic aspects and objectives with social and ecological ones, which are viewed and managed in an integrated manner in terms of holistic risk management and the Group’s resilience and future viability. The Group Sustainability department, which was newly created in 2023, acts as a central coordination point for implementation of voestalpine’s sustainability strategy.

      In terms of processes, the focus is on the contribution of internal processes and the supply chain in terms of the SDGs and in achieving the sustainable development goals as well as in achieving the company’s sustainability targets. Sustainable business activity focuses on developing innovative and long-lasting products for and with customers, and on pushing the concept of the circular economy, also known as “circularity.”

      This helps to improve the environmental footprint of the products and therefore also that of the customers. Continuous development and expansion of the circular economy also reinforces the company’s security of raw materials supplies. The proportion of primary resources required in the processes and the volume of waste can be reduced even further by expanding material cycles and through processing by-products.

      The safety and health of our employees, their training and continuing professional development as well as a respectful corporate culture are material elements of sustainable organizations. The most recent crises sharpened our awareness of the fact that determined action is needed to overcome such events. This also applies to the climate crisis and other environmental, social, or economic force fields. voestalpine’s Sustainability Strategy prescribes which spheres of action are decisive to the company’s sustainable performance.