ESRS E1 Climate change

Climate change is one of the greatest challenges of our time and requires companies to take decisive action. voestalpine is one of Austria’s largest emitters of greenhouse gas and consequently needs to drastically curb its emissions. In order to reduce its carbon footprint, voestalpine is focusing on transforming production processes by relying on technological innovations, strategic investments, and close cooperation with customers and suppliers.

As part of the Science Based Targets initiative (SBTi), voestalpine is committed to substantially reducing its overall GHG emissions, with the aim of cutting its total Scope 1 and Scope-2-emissions by 30% and Scope-3-emissions by 25% by 2029 compared to the reference year 2019. Efforts are also simultaneously being made to increase the Group’s reliance on hydrogen and renewable energies in the pursuit of net-zero emissions by 2050.

With regard to Scope 1 and Scope-2-emissions, a key component of the Climate Transition Plan is the greentec steel climate protection program, which envisages the switch from coal-based blast furnaces to electric arc furnaces (EAF).

In addition to the technological transformation, supplier engagement is also playing an increasingly crucial role. Sustainable sourcing of raw materials and transparent supply chains are key drivers when it comes to bringing down total Scope-3-emissions. This presents both challenges and economic opportunities, particularly in light of the growing demand for low-emission steel products. At the same time, structural change continues to go hand in hand with high investment costs and market risks.

Climate change mitigation, climate change adaptation, and a sustainable energy supply are key challenges of our time. voestalpine takes an active approach toward these issues. Technological innovations, energy efficiency measures, and the gradual transition to renewable energy sources play a decisive role in this regard. Detailed information on the identified impacts, risks, and opportunities (IROs) in relation to climate change mitigation, climate change adaptation, and energy can be found in the following IRO table, which contains specific information on SBM-3.

STRATEGY

E1-1 – TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION

voestalpine aims to extensively reduce its greenhouse gas (GHG) emissions across its entire value chain and is committed to lowering its emissions in line with the scientifically validated 2 degree climate target as part of the Science Based Targets Initiative (SBTi). By calendar year 2029, Scope 1 and Scope-2-emissions are to be reduced by 30% and Scope-3-emissions by 25%. The targets set have been tested and validated by the SBTi and align with efforts to limit global warming set forth in the Paris Agreement.

As part of ESRS-compliant reporting, the basis for the calculation of the GHG footprint has been changed from the calendar year to the business year. Accordingly, the emission reduction targets stated in the Climate Transition Plan are presented on a business year basis. However, the targets up to 2029 validated by the Science Based Targets initiative (SBTi) continue to be calculated on the basis of the calendar year.

The Climate Transition Plan does not yet envisage targets below the 1.5°C target to limit global warming. The first stage of the plan and the necessary financial resources, namely a EUR 1.5 billion investment budget, have been given the go ahead for execution by the Management Board and Supervisory Board.

voestalpine also pursues the medium-term target of reducing its Scope 1 and Scope-2-emissions by 50% by business year 2035/36 and achieving net-zero emissions in the long term by the business year 2049/50 at the latest. Neither of these targets have been validated by the SBTi.

Implementation of this Climate Transition Plan is based on various decarbonization levers that cover the entire value chain. These include industrial electrification, with coal-fired blast furnaces replaced by electric arc furnaces (EAF) as the primary measure, the use of renewable energies to reduce CO₂ emissions, and improving energy efficiency in production processes and infrastructure. The supply chain is also actively involved in the decarbonization process through measures such as increasingly relying on CO₂-reduced input materials and optimizing the use of raw materials.

The financial resources required to implement phase 1 of the transformation have been taken into account in the medium-term business plan. Over the coming years, voestalpine plans to make targeted investments in low-emission technologies and energy-efficient installations. All required investments are quantified on a regular basis in order to ensure the transformation is economically sustainable. Detailed information on CapEx plans and key performance indicators can be found under E1-3 Actions and resources in relation to climate change policies and in the chapter on Taxonomy Regulation Disclosures.

Emissions data is collected annually, verified externally, and compared against the defined targets as part of this assessment. Technological advancements, legislative changes, and market conditions are accounted for in the assessment in order to adapt and further develop the transition plan if necessary.

The sustainability strategy constitutes an integral part of the Group’s strategy, uniting economic, social, and environmental aspects and targets. In order to achieve the objectives set forth in its strategy, voestalpine is relying on central decarbonization levers that facilitate the transition to lower-emission steel production.

Decarbonization levers

The decarbonization levers are divided into three phases to achieve net-zero by 2049/50. The first phase runs until 2029/30 and contains clearly defined levers such as energy efficiency, industrial electrification, and the use of renewable energies to reduce Scope 1 and 2 emissions, along with supplier engagement and the use of decarbonized input materials to bring down Scope-3-emissions. Phase 2 and phase 3 will be specified in more detail over time, but their primary aims are to extensively transform processes and to fully decarbonize and offset remaining emissions. The graphic below outlines the key decarbonization levers. Please consult chapter E1-3 Actions and resources in relation to climate change policies for more detailed information on the individual actions assigned to the decarbonization levers.

Phase 1 – Decarbonization levers:

Phase 2 – Scope 1 & 2 decarbonization levers:

Phase 2 of the decarbonization levers involves making further progress on industrial electrification and scaling carbon capture and storage (CCUS). These levers aim to further reduce process-related emissions and facilitate the gradual switch to renewable energy sources. voestalpine makes continuous progress on advancing these technologies—including working on specific fields of application, building technical pilot plants, and incorporating the latest scientific findings from its own research activities along with findings arising from national and international R&D partnerships.

Phase 3—Scope 1 & 2 decarbonization levers:

Phase 3 marks the final step towards net-zero and is geared towards the full decarbonization of all emission sources. During this phase, the focus is on an approach that is open to all technology and creates opportunities for various solutions. Future developments and innovations will play a central role in sustainable emissions reduction or offsetting, thereby facilitating the lasting transition to a climate-neutral industry.

Climate Transition Plan

Investments and funding supporting climate change mitigation and climate change adaptation

In order to utilize the decarbonization levers as part of its decarbonization sustainability strategy and the EU Taxonomy, voestalpine launched a five-year CapEx plan in the business year 2023/24. Around EUR 1.5 billion has been earmarked for investment in the climate protection program greentec steel, which forms a key component of the company’s Climate Transition Plan.

The plan focuses on clearly defined decarbonization levers, which make a significant contribution to the transformation towards more climate-friendly production. As things currently stand, all related steps are progressing as scheduled without any delays. The investments are closely linked to the requirements of disclosure requirement E1-3 Actions and resources in relation to climate change policies and support both the achievement of the long-term climate targets and safeguarding voestalpine’s competitive standing in the global market.

The company has provided significant investments and funding to successfully realize its transition plan for decarbonization. voestalpine has also received funding commitments in the region of EUR 90 million to finance investments in both electric arc furnaces and further research activities. These funds come from the Transformation of Industry program funded by the Austrian Federal Government and support the implementation of central decarbonization levers.

CapEx from taxonomy-aligned activities is used as a key performance indicator to measure the progress of the actions as part of the decarbonization levers. In the current business year, a total of EUR 237.4 million of CapEx was reported as taxonomy-aligned (see also the chapter on EU Taxonomy), where EUR 145.4 million is attributed to the economic activity 3.9 Manufacture of iron and steel, of which, in turn, EUR 134.4 million represents greentec steel investments. No significant CapEx amounts were invested during the reporting period in relation to coal, oil, and gas-related economic activities.

voestalpine’s GHG emissions can primarily be attributed to the continued operation of existing installations, including blast furnace-based steel production. The analysis of the related GHG emissions was evaluated in the course of calculating the GHG footprint. These installations are integrated into existing production processes and represent important assets. Moving away from this technology is therefore technically and economically challenging, but will nevertheless be taken into account in the long-term voestalpine Climate Transition Plan. As phase 1 of the greentec steel project, voestalpine plans to replace two blast furnaces with electric arc furnaces (EAFs) by 2029/30 to reduce GHG emissions. In Phase 2, voestalpine plans to replace additional blast furnace-based production capacities and associated GHG emissions.

The associated transition risks were analyzed by voestalpine; please refer to ESRS 2 IRO-1 for more information. After the above action has been taken, any remaining GHG emissions have been accounted for in the Climate Transition Plan and do not jeopardize the achievement of the set emission reduction targets.

In addition to the analysis of aspects pertaining to GHG emissions in relation to assets and products, compliance with regulatory criteria related to climate-related benchmarks must also be assessed, with voestalpine falling under the Paris-aligned European Union benchmarks. This disclosure requirement is consistent with the requirements of Commission Implementing Regulation (EU) 2022/2453 and Commission Delegated Regulation (EU) 2020/1818 on climate-related benchmarks.

IMPACT, RISK, AND OPPORTUNITY MANAGEMENT

E1-2 – POLICIES RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION

As part of its sustainability strategy, voestalpine is committed to reducing GHG emissions as one of its key focus areas. Material impacts, risks, and opportunities form the primary focus in order to account for both climate change mitigation and efficient, sustainable energy use. Key concepts include:

• a Climate Transition Plan for decarbonization
• the use of environmental and energy management systems at relevant locations

The Climate Transition Plan and the Environmental and Energy Management Plan are closely linked to voestalpine’s sustainability strategy and support the company’s long-term competitive standing. The implementation of the greentec steel program within the framework of the Climate Transition Plan facilitates the sustainable development of the core business by gradually introducing low-emission technologies and optimizing existing processes. This ensures that steel production meets both the regulatory requirements and the increasing market requirements for climate-friendly products.

The environmental and energy management approach helps to realize operational efficiency gains and bring down energy costs, thereby promoting the economic stability of the company. The introduction of ISO 14001, ISO 50001, EMAS-certified systems ensures energy use is systematically optimized, thereby improving both resource use and long-term profitability.

The Climate Transition Plan also supports the increased integration of renewable energies and consequently the reduction of GHG emissions.

E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES

As part of the Climate Transition Plan, voestalpine has developed a comprehensive package of actions to reduce Scope 1, 2 and 3 GHG emissions and to lower energy requirements. These actions revolve around the ambitious transformation program greentec steel, which is considered the central and currently most important measure for the decarbonization of the company.

Phase 1 – Scope 1 & 2 decarbonization levers:

One important lever for Scope 1 & 2 emissions is industrial electrification, on which significant progress is being made thanks to greentec steel. As part of the first stage of the phased plan, one green electricity-powered electric arc furnace (EAF) will be built in Linz and one in Donawitz. This involves a shift away from carbon-based processes towards an electrified, low-emission production method, accompanied by a fundamental transition in the use of raw materials in crude steel production. A mix of materials is used, comprising scrap, liquid pig iron, and hot briquetted iron (HBI), with the mix adjusted according to the specific quality requirements. voestalpine sources the necessary HBI primarily from the direct reduction plant in Texas, USA: since 2022, a global steel manufacturer has held a majority stake in the plant; 20% is owned by voestalpine with corresponding supply agreements guaranteed over the long-term. A phased transition of certain production processes from fossil fuels to electric energy sources is also planned, in particular to further reduce dependence on natural gas.

These measures are currently being implemented and the aim is to generate around 2.5 million tons of CO₂-reduced steel annually from the business year 2027/28 onwards. The greentec steel program therefore represents a key building block in the CapEx plan with significant capital expenditure of EUR 1.5 billion, of which EUR 134.4 million has been reported as taxonomy-aligned in the business year 2024/25 (see also disclosures under E1-1 Transition plan for climate change mitigation). The financial resources for the implementation of the measures under the greentec steel program from phase 1 have already been approved.

Of the EUR 1.5 billion, EUR 498.9 million had already been invested by the end of the business year 2024/25 (of which EUR 244.5 million was invested in the business year 2024/25). Further information on investments to the amount of EUR 244.5 million for implementation of the measures made in the business year can be found in the Consolidated Financial Statements prepared in accordance with International Financial Reporting Standards (IFRS) (see chapter D.9 Property, plant, and equipment, and chapter D.10 Intangible assets in the Consolidated Financial Statements (IFRS)).

Targeted measures to increase the use of low-emission energy sources have been identified under the renewable energies lever. These include, in particular, the purchase of green electricity and the use of biomethane. This lever for reducing GHG emissions supports the achievement of voestalpine’s climate targets up to the business year 2029/30 initially.

Increasing energy efficiency includes targeted measures such as optimizing production processes and improving the energy performance of manufacturing facilities and buildings with state-of-the-art technology. Another key aspect is the optimization of combustion systems and the efficient use of excess energy by decoupling energy for use in other applications, such as supplying heat to adjacent operating units or supplying external grids. This lever likewise supports the achievement of voestalpine’s climate targets up to the business year 2029/30 initially.

Scope 1 & 2: decarbonization levers phase 2 and 3

An important lever in phase 2 is the advancement of industrial electrification by continuing with progress on the transformation of steel production processes, for example by expanding production capacities through the electric steel route. Actions for this lever are being developed and put into practice. The use of carbon capture and storage technologies (CCUS) is designed to further reduce process-related emissions. The aim is to accelerate the decarbonization and gradual conversion of remaining energy to renewable energy sources by the business year 2035/36. voestalpine is working on further developing these technologies and applications on an industrial scale, building technical pilot plants, and implementing the latest findings from research and development.

Phase 3 marks the final step towards net-zero emissions by the business year 2049/50. As part of this long-term view, voestalpine is pursuing an approach that is open to different technology types and considers various solutions and technology options while simultaneously creating opportunities for the implementation of future advancements in technology and science to achieve net-zero emissions. Maximum flexibility and economic feasibility play a key role in this regard.

The focus is on replacing the remaining fossil pig iron capacity using fossil-free energy sources such as hydrogen, renewable energy, and the extensive application of CCUS technologies.

Scope 3: decarbonization levers

voestalpine is focusing on taking targeted action within its value chain to bring down indirect Scope-3-GHG emissions by the business year 2029/30. A key decarbonization lever in this regard is supplier engagement, which includes the use of verified Product Carbon Footprints (PCFs) for essential raw materials and close cooperation with suppliers for emission reduction. The sustainable transformation is also supported by the gradual substitution of primary and secondary raw materials (e.g., scrap and replacing primary alloys with reprocessed alloys), especially with regard to the interdependencies of future production with electric arc furnaces (EAFs).

One key measure to reduce Scope-3-GHG emissions is the planned use of decarbonized input materials. This approach makes a significant contribution to the achievement of voestalpine’s climate targets by the business year 2029/30, as increased reliance on low-emission precursors has the power to reduce the company’s carbon footprint along the upstream and downstream value chain.

The focus is on an approach that is open to all technology types and creates opportunities for various solutions. Future developments and innovations will play a central role in sustainable emissions reduction or offsetting, thereby facilitating the lasting transition to a climate-neutral industry.

Further action:

Actions to counter physical climate risks

In addition to the actions set forth in the Climate Transition Plan, actions to counter physical climate risks are also currently being implemented. One example is the construction of flood protection at Unterer Tollinggraben, near the Donawitz site. Activities are also being undertaken to counteract the impacts of long-term fluctuations in river levels, such as diversifying supply routes and making adjustments to logistics in the case of low water levels.

Direct energy consumption actions

In the divisions and at the sites, measures to reduce direct energy requirements are being implemented on an ongoing basis with the aim of improving existing processes and facilities. Corresponding action is being financed and implemented within the framework of the investment programs and continuous improvement processes.

Further activities to address competitive disadvantages resulting from the transition and structural change in European industry

voestalpine pursues targeted action to mitigate the risks arising from competitive disadvantages and structural change in European industry. These actions focus on the development of innovative products as well as acquiring new customers and tapping into new industries and geographic markets to stand out from the competition. voestalpine primarily addresses high-quality market segments and targets new customers by increasingly standing out in terms of product quality, flexibility, and service. voestalpine’s growing internationalization in high-yield processing fields based on the local for local principle likewise helps to safeguard the company’s competitive standing.

METRICS AND TARGETS

E1-4 – TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION

voestalpine has been committed to setting ambitious targets for reducing GHG emissions since 2022 as part of the Science Based Targets Initiative (SBTi). The set GHG emission reduction targets are gross targets and do not envisage GHG removals, carbon credits, or avoided emissions. More specifically, voestalpine pursues the near-term target of reducing its Scope 1, 2 and 3 emissions and achieving net-zero emissions in the long term, by the business year 2049/50 at the latest.

In order to achieve this target, voestalpine is committed to a science-based 2°C reduction path (well-below 2°C) in accordance with the SBTi, which aligns with the Paris Agreement and supports global efforts to limit global warming. The current Climate Transition Plan was not drafted under the premise of targets below the 1.5°C target to limit global warming (see E1-1 Transition plan for climate change mitigation).

The reduction targets were validated in 2023 on the basis of the general, non-sector-specific SBTi reduction path (absolute contraction approach). The targets up to 2029 validated by the Science Based Targets initiative (SBTi) continue to be calculated on the basis of the calendar year. As part of ESRS-compliant reporting, the basis for the calculation of the GHG footprint has been changed from the calendar year to the business year. Accordingly, the emission reduction targets are presented on a business year basis. A sector-specific decarbonization pathway has not been incorporated to date as there was no relevant pathway available for the steel industry at the time the targets were set. The SBTi is based on established climate and policy scenarios published by the IAMC, IPCC, and IEA in accordance with the Paris Agreement for the validation and development of emission reduction targets. Climate risks were accounted for when the targets were set.

More specifically, the company is committed to reducing its Scope 1 and Scope-2-emissions by 30% and its Scope-3-emissions by 25% by the business year 2029 as part of the SBTi. The GHG emissions covered are described in E1-6. voestalpine also pursues the medium-term target of reducing its Scope 1 and Scope-2-emissions by 50% by the business year 2035/36 and achieving net-zero emissions in the long term by business year 2049/50 at the latest. Neither of these targets have been validated by the SBTi.

The Scope-2-GHG emissions used to calculate this target were calculated using the market-based methodology.

SBTi’s validation of the 2029 reduction target ensured that the targets were consistent with the company’s greenhouse gas inventory limits. The targets were subsequently published, including as part of the Carbon Disclosure Project (CDP).

The base year for tracking progress on target attainment was defined as calendar year 2019. Based on the requirements of the GHG Protocol and the SBTi, a standardized procedure for reviewing and, if necessary, adjusting the GHG footprint for the reference year was developed in the reporting period.

An assessment took place on the basis of five defined categories and thresholds to determine whether a rescaling of the initial calculations is necessary, for example due to structural changes in the Group, methodological developments, or new scientific findings. Due to the recalculation of the GHG balance for the base year 2019 (as a result of the sale of the HBI plant in Texas, for example), the absolute emission levels in t CO₂e have changed in light of the revision of the initial data. This led to the recalculation and re-validation of the absolute target variables according to the valid SBTi standards. In the next business year, namely 2025/26, voestalpine plans to consider updating the targets under the SBTi.

The set GHG emission reduction targets pertain to the material impacts, opportunities, and risks related to climate change mitigation, climate change adaptation, and reducing the physical climate risks and transition risks to which voestalpine is exposed. The targets cover the company’s own operations as well as the upstream value chain, in particular raw materials, energy, and input materials. Responsibility for monitoring progress on target attainment as part of the Climate Transition Plan lies with the Management Board and Supervisory Board of voestalpine AG. Progress has been made on the targets with the divisions and the Head of Sustainability Management at voestalpine.

The GHG emission reduction targets are integrated into the voestalpine Decarbonization Climate Transition Plan, which is explained in detail in E1-1 Transition plan for climate change mitigation. To achieve the targets, voestalpine has defined various decarbonization levers that cover both Scope 1 and Scope-2-emissions as well as Scope-3-emissions. These levers are also described as part of the Climate Transition Plan under E1-1 Transition plan for climate change mitigation. Their overall quantitative contribution to achieving the GHG emission reduction targets is described in a detailed list of individual actions under E1-3 Actions and resources in relation to climate change policies.

Target: 2°C reduction path (near-term science based targets)

Target: GHG reduction (mid-term target)

Target: net-zero

E1-5 – ENERGY CONSUMPTION AND MIX

As an energy-intensive company, voestalpine views sustainable energy management as an indispensable part of its corporate strategy. Continuous process optimization has resulted in efficiency gains.

Moving forward, technological transformations, in particular the use of electric arc furnaces (EAF), will help the company make further progress in this regard. A further reduction in fossil fuels is to be achieved on the one hand by increasing the proportion of renewable energies, and on the other hand by further efficiency increases in all production processes. These initiatives contribute both to global climate protection and to securing the company’s long-term competitiveness.

Information on the Group’s total energy consumption can be found in the table below:

The total energy consumption shown includes fossil energy for metallurgical processes, such as reducing agents for the blast furnace process, and energy from fuels.

voestalpine generates electricity in its captive power plants from process gases and uses it to drive both the production process and the downstream processing steps. This enables the Group to cover a large part of its electricity requirements from its own generation. voestalpine currently also uses renewable energy produced by hydropower. Generation from renewable sources amounts to 143,069 MWh, while generation from non-renewable sources comes to 1,469,741 MWh.

Energy intensity based on net revenue:

voestalpine operates in several high climate impact sectors which incur significant energy consumption and GHG emissions. According to regulation (EC) No 1893/2006 (NACE regulation), these include:

• C – Manufacturing
• G – Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
• H – Transport and Storage; and
• L – Real Estate Activities

The revenues of the entire Group were analyzed and compared with revenues in high climate impact sectors in order to assess the energy intensity of the climate-intensive activities.

E1-6 – GROSS SCOPE 1, 2, AND 3 AND TOTAL GHG EMISSIONS

voestalpine calculates its company-specific GHG footprint in accordance with the provisions of the Greenhouse Gas Protocol using primary data, databases, and value chain information. Modeling is based on recognized methods and is applied Group-wide for production and sales locations worldwide. The evaluation methodology “EF 3.1 Climate change total” was applied for this reporting year.

Data collection, GHG modeling, and the presentation of findings are subject to external verification in accordance with ISO 14064-3. The GHG reporting system limits correspond to the voestalpine consolidation limits (see Consolidated Financial Statements) and include domestic and foreign fully consolidated companies over which voestalpine exercises operational control, taking into account materiality limits for Scope 1 and Scope-2-emissions in GHG accounting. The materiality assessment identified the most significant Scope 3 categories, which led to an adaptation of the reporting in the business year of 2024/25 compared to previous years. The change affects the comparability of the reported GHG emissions between the reporting periods and is explained in this chapter.

voestalpine’s GHG emissions have been compiled in consideration of reporting periods that may differ from those of some companies in the value chain. In the case of relevant events and changes affecting emissions between different reporting periods, the corresponding events and changes are taken into account. No significant deviations or changes are known at present.

The GHG footprint of voestalpine AG is divided into three areas referred to as scopes:

• Scope 1: direct emissions from internal or controlled sources
• Scope 2: indirect emissions from the generation of purchased energy, both market and location-based, consumed by the company
• Scope 3: indirect emissions along the upstream and downstream value chain

Scope-3-GHG emissions are largely based on secondary data, as primary data from suppliers or other partners in the value chain is not yet available in the comprehensive quality required. The scopes shown cover carbon emissions and other climate-relevant GHG emissions in accordance with the Kyoto Protocol and the GHG Protocol standard. Accordingly, Scope-3-emissions of consolidated entities are taken into account, whereas Scope-3-emissions of non-consolidated entities are not taken into account. For other entities in the value chain, indirect issues are taken into account in category 1 “purchased goods.” All emission levels are reported in CO₂ equivalents (CO₂e).

Scope-1-emissions

voestalpine’s Scope 1 direct greenhouse gas emissions come from its own companies and sites, the majority of which are emitted in Austria at its Linz and Donawitz sites. 98% of these emissions come from installations covered by the EU Emissions Trading System (ETS).

No biogenic CO₂ emissions from biomass combustion were emitted in the reporting period.

Scope-2-emissions

voestalpine uses two methods to calculate Scope-2-GHG emissions:

• Location-based method: 
  based on average emission factors for energy generation in specific geographic regions according to the GHG Protocol Scope 2 Guidance (Glossary, 2015).
• Market-based method:
  uses specific emission factors for the producers from which the company purchases electricity. Evidence is obtained through guarantees of origin or certificates for renewable energies.

The share of market-based Scope-2-GHG emissions covered by contractual instruments is 32%. Contractual instruments from energy suppliers that meet the requirements of the GHG Protocol were taken into account, including guarantees of origin and declared electricity mix information.

Databases based on average energy generation data at national and partly sub-national level were used to calculate Scope 2 location-based GHG emissions.

Direct biogenic GHG emissions resulting from biomass combustion but not included in Scope 2 are reported separately in Scope 1. A breakdown of the biogenic CO₂ content is not possible for the emission factors used to calculate Scope-2-GHG emissions and is therefore not included in the report.

Scope-3-emissions

As part of the materiality assessment, voestalpine conducts an evaluation of all Scope 3 categories to identify the main indirect GHG emissions in its value chain. Categories with a share of less than 1% of corporate emissions or categories that are not relevant under the Greenhouse Gas Protocol are not considered material and are therefore not included in the GHG footprint. In the business year 2024/25, this concerned the following categories:

• 3.6 Business travel
• 3.7 Employee commuting
• 3.8 Upstream leased assets
• 3.10 Processing of sold products
• 3.11 Use of sold products
• 3.12 End-of-life treatment of sold products
• 3.13 Downstream leased assets
• 3.14 Franchises
• 3.15 Investments

Supplier engagement improves Scope 3 data quality

As part of supplier engagement, verified product carbon footprints (PCFs) are collected from suppliers and accounted for in the GHG footprint. Currently, GHG accounting is primarily based on secondary data from databases that do not record a reporting period. The proportion of primary data is still low and is preferably obtained from carbon footprints, for example from verified environmental product declarations (EPDs). The data published in Life Cycle Assessments (LCA) and verified externally are valid for up to five years. Due to the available data quality, primary data on Scope-3-emissions is not used for GHG accounting.

No biogenic CO₂ emissions from biomass combustion or bioremoval were emitted along the value chain in the reporting period.

The following tables show the GHG intensity per net revenue and the connectivity of GHG intensity.