BP-2 – Disclosures in relation to specific circumstances

As this is voestalpine’s first sustainability report prepared according to ESRSs, a comparison with previous reports, which were prepared on the basis of Global Reporting Initiative (GRI) standards, is not possible. As ESRSs do not require the disclosure of prior-year figures in the first year of reporting, no ESRS-specific figures from the previous year are provided.

This sustainability report also includes information related to the EU Taxonomy. This information is provided in the section on environmental information in the chapter “Disclosures in accordance with the Taxonomy Regulation.” The Sustainability and Diversity Improvement Act (Nachhaltigkeits- und Diversitätsverbesserungsgesetz – NaDiVeG) has been in effect in Austria since 2016 as the national implementing act for EU Directive 2014/95/EU (the Non-Financial Reporting Directive, NFRD), which mandates the disclosure of non-financial information. This Consolidated Non-Financial Statement has been prepared in accordance with Section 267a of the UGB as amended by the NaDiVeG and forms part of the Group Management Report. In addition, this Consolidated Non-Financial Statement has been voluntarily prepared in accordance with European Sustainability Reporting Standards (ESRS) in preparation for the reporting obligation under the Corporate Sustainability Reporting Directive (CSRD). The disclosed information regarding the EU Taxonomy is in accordance with Regulation (EU) 2020/852, as well as the current delegated regulations and supporting materials.

The reporting time horizons used by voestalpine are in line with ESRS recommendations. The periods referred to in the sustainability report are described as follows:

• short-term: reporting period of one business year
• medium-term: period from the end of the short-term horizon up to five years
• long-term: (more than 5 years)
• long-term: (more than 10 years)

In addition to the periods specified by ESRSs, the long-term period has been further divided into the two categorizations listed below. The reason for this is that sector or company-specific risks and opportunities often become relevant only further in the future, beyond the five-year horizon.

Value chain estimation

As part of the sustainability report, estimates are used to derive metrics for the upstream and downstream value chains, where direct measurements or primary data are not available.

This primarily concerns the greenhouse gas balance, specifically the indirect emissions from the upstream and downstream value chains, which are classified under Scope-3-categories according to the Greenhouse Gas Protocol. Specifically, these categories are:

• Scope 3—Category 1:
  Purchased goods and services
• Scope 3—Category 3:
  Fuel and energy-related activities
• Scope 3—Category 4:
  Upstream transportation and distribution
• Scope 3—Category 5:
  Waste generation
• Scope 3—Category 9:
  Downstream transportation and distribution

At present, external emissions databases are primarily used to calculate these emissions. The databases are based on market data as well as average company data, and are regularly updated. For instance, sector data from industry associations like EUROFER or worldsteel are utilized by this provider to regularly update the databases for the iron and steel sector. The secondary data used is based on average actual consumption and offers a reliable foundation with sufficient accuracy in greenhouse gas accounting.

At the same time, voestalpine is in direct discussions with suppliers to obtain access to primary data. The focus is on products that significantly impact the Group’s indirect greenhouse gas footprint. To further improve the accuracy of these estimates, enhanced measures in supplier engagement are planned to increase the share of primary data. In addition, new emissions databases are continuously evaluated, and, where necessary, more accurate secondary data are sourced from the system provider. Any potential measurement uncertainties primarily stem from the limited availability of primary data from the upstream value chain. The assumptions, estimates, and assessments that underlie the metrics are primarily based on market, industry, and average data.

Sources of estimation and outcome uncertainty

A certain degree of measurement uncertainty exists for individual parameters, particularly in high-volume measurements related to water and wastewater, as well as in the estimated costs of future environmental regulations.

Information on measurement uncertainties and assumptions can be found in the respective topic-specific sections.

Incorporation by reference

Please find a list of ESRS disclosure requirements that have been referenced in the report below: