Ladies and Gentlemen,
Dear Readers,
Sustainability is not simply a goal for us at voestalpine: It is a clearly defined path that we have been following consistently for many years. This approach is our way of meeting our comprehensive economic, social, and ecological responsibilities. Our sustainability strategy is our compass for all decisions and actions in our international Group and also points the way for our economic success—both today and in the future. This Corporate Responsibility Report focuses on how voestalpine and its employees bring the sustainability strategy to life around the globe.
We reached further milestones in the business year 2023/24 on our path towards a green future, and took some important steps towards implementing greentec steel—the ambitious phased plan with which voestalpine plans to play its part in achieving the climate targets. Specifically, the groundbreaking ceremony for the construction of the first two electric arc furnaces in Linz and Donawitz took place in September 2023. Construction work began in 2024, with commissioning scheduled for 2027. voestalpine can reduce its CO2 emissions by up to 30% by partially replacing the existing coal-based blast furnace technology with green electricity-powered electric arc furnace technology. This represents almost 5% of Austria’s entire annual CO2 emissions, making greentec steel the largest climate protection program in Austria.
We are also setting international standards in terms of sustainability with the world’s most advanced special steel plant in Kapfenberg, which officially went into operation in October 2023. This plant is a technological milestone for voestalpine and for the entire European steel industry. In addition to the high level of digitalization, the focus is also on environmentally friendly and resource-saving steel production.
However, we not only have very ambitious targets to reduce greenhouse gas emissions from the production stage (Scope 1). We are also working intensively to reduce Scope 2 emissions (energy procurement) and Scope 3 emissions (e.g., raw materials, transportation). The reduction target was assessed scientifically for its compatibility with the Paris target as part of the independent Science Based Targets (SBTi) Initiative, and was validated accordingly in September 2023 following an in-depth review.
In addition to all these technological developments, our employees are the driving force behind our sustainable development. Our priority is a respectful corporate culture that expects and encourages trust, diversity, self-determination, and personal responsibility. voestalpine respects the individuality of all its employees and their capabilities irrespective of gender, age, origin, creed, sexual orientation, or any potential disability. The company supports equal opportunities and implements health-preserving measures in the workplace, as well as offering work models appropriate for the various stages of professional life. Since 2013, voestalpine has supported the UN Global Compact (UNGC) whose ten principles stipulate fundamental duties with respect to human rights, work, the environment, and the fight against corruption.
A high level of commitment and above-average loyalty of our approximately 51,600 employees to the Group are key pillars of our success. This is why we attach great importance to supporting our employees, from comprehensive training and further education to numerous options for promotion and opportunities to work abroad, as well as company health care, sports and fitness programs, and childcare partnerships. voestalpine also introduced an employee shareholding scheme 23 years ago, which is now the largest employee shareholding scheme in Austria today, both in terms of voting percentages and share value.
Something that is particularly important to us is the fact that the voestalpine Group is one of the pioneers in Austria when it comes to offering young women a technical apprenticeship. There are now female apprentices in almost all 50 of the Group’s apprenticeship professions. Around 22 percent of young skilled workers are female, and voestalpine aims to further increase this figure with targeted measures. Women at voestalpine work in a wide variety of technical areas, such as production, research, quality control, and automation.
We also play a pioneering role in achieving a work/life balance. In September 2023, voestalpine became the first Austrian industrial company to offer 24-hour childcare for children up to the age of 12 at its site in Linz. We are creating an attractive offer for parents and children with this innovative concept of round-the-clock family childcare and a doubling of our childcare places in our vivo Kinderwelt.
Moving together and doing good: We launched a new exercise initiative for all employees worldwide from mid-April to the end of June 2023 based on this motto. While running, walking, hiking, wheelchair driving, or handcycling, employees were able to use an app to collect digital points known as “cares”, which voestalpine then converted into donations for charitable causes. We donated a total of EUR 700,000 in the past business year to Doctors Without Borders, Hilfswerk International, the Austrian Red Cross and UNICEF, as well as to selected aid projects.
I am delighted that the voestalpine cares run will continue in the coming business year.
I would like to thank all employees for their outstanding commitment and sense of community across locations and national borders, both in their day-to-day work and when it comes to supporting those who are in particular need of our help. We will continue to ensure that our employees have the overall conditions available to them that they need to develop and give their best. Because we know that this is the key to our joint success.
I hope you enjoy reading our Corporate Responsibility Report 2023/2024.
Yours truly, Herbert Eibensteiner
CEO of voestalpine AG