A materiality analysis was used in the 2023/24 business year to systematically identify Group risks and opportunities in connection with social, societal, and environmental aspects, and assess the impact of these. (Further details regarding the material risks can be found in the chapter “Risk Management,” and further information on the materiality analysis can be found in the chapter “Stakeholder and CR Management”).
voestalpine analyzes the current market and competitive environment as well as new technological developments in regular environment analyses as part of the Group-wide strategy process. Risks and opportunities for the Group are derived from this before being evaluated.
This enables opportunities to be seized rapidly and in a targeted manner in a challenging and dynamic market environment. This supports the Group’s value-enhancing growth and contributes towards the continuous improvement of voestalpine’s competitiveness. Some examples of the opportunities identified for voestalpine in connection with the developments towards decarbonization and the establishment of a circular economy can be found below.
DECARBONIZATION AND GREEN TRANSFORMATION
voestalpine is entering the next generation of steel production with greentec steel. The Group is investing in one green electricity-powered electric arc furnace each in Linz and Donawitz for this purpose. These enable the electrification of energy-intensive processes and the reduction of around 30% of CO2 emissions. This represents almost 5% of Austria’s entire annual CO2 emissions, making greentec steel the largest climate protection program in Austria.
This flagship project provides an opportunity to participate in the growing market for green products in the long term and to play an active role in shaping this. The transformation towards “net zero” also opens up some attractive options, with many customers already showing a strong interest in climate-friendly steel products, including improvng their own carbon footprint by using high-quality CO2-reduced premium steel. For example, voestalpine already supplies almost 40 companies from various industries with high-quality steel products from the greentec steel edition, which have a reduced carbon footprint. Direct emissions can be reduced by optimizing the manufacturing process. This is achieved through an innovative mix of raw materials in which coke, for instance, is replaced in part by reducing agents that contain hydrogen.
The green transformation and the increasing focus on sustainability also offer attractive growth potential for voestalpine. This applies to the energy segment, which is characterized by strong growth rates in renewable energies and sustainable technologies, as well as the rise of electromobility and the continuous trend towards rail transportation. In the Railway Systems division, voestalpine is developing into a global rail infrastructure provider with digital plant monitoring and logistics as well as service solutions for all customer segments. In addition, the topic of sustainability and the ESG impact of the value chain is becoming an increasingly important subject for debate within society as well as in the procurement strategies of many companies and on the financial markets, particularly in Europe. The consistent positioning as an economically and ecologically sustainable company, together with the focus on top-quality products and services with a low ecological footprint, creates opportunities for price premiums and the potential to distinguish us from the competition, as well as in relation to securing public funding in the fight against climate change and promoting the transition.
CIRCULAR ECONOMY
Further development and expansion of the circular economy is an important pillar for voestalpine in terms of reducing emissions, conserving resources, and securing raw materials supplies. voestalpine is pursuing the goal of closing, slowing down, and reducing the loops on three levels, thereby actively contributing towards climate and environmental protection. This is achieved by:
- the further expansion of scrap circuit loops and the increasing use of internal and external scrap in steel production, which is to be increased by 50% by 2030,
- the processing and reuse or marketing of by-products and the extension of the service life of products, e.g., by repairing used turnouts, and
- the increased use of renewable energy sources and the recovery and recycling of energy, e.g., by extracting and utilizing waste heat.
Research and development (see also the chapter “Research and Development”) plays a key role in promoting the circular economy as it provides an important link between the strategic sustainability goals and voestalpine’s products and services. The key tasks here involve identifying and developing future opportunities and new potential for the circular economy in the companies and divisions. The focus is on the treatment and reuse of by-products from production processes, CO2 reduction, improving resource efficiency, and the development of innovative product and service solutions for voestalpine customers. The recycling and recovery of materials provides economic benefits. In light of growing markets and changing legal standards that support renewable materials, voestalpine aims to successively increase its market share with innovative sustainable products and services. A circular economy can generate business opportunities, create jobs along the entire value chain, and also ensure better living and working conditions.