BP-2 – Disclosures in relation to specific circumstances

In this report, no external validation of the metrics has been carried out, apart from the metrics in subsections E1‑6 and E5‑5. 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 required by the EU Taxonomy Regulation.”

The reporting time horizons used by voestalpine are in line with ESRS recommendations. The periods referred to in the sustainability report are 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: period from the end of the medium-term horizon up to ten years

• long-term (extended): 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 ten-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 generated in operations

• 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. In order to verify the data set, which is partly based on projections for environmental and GHG metrics, a backtest was carried out using actual data from the previous year. The estimation methods used were found to be appropriate.

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

Changes in preparation or presentation of sustainability information

The methodology for presenting the coverage of key production sites by a certified management system for occupational health and safety was adjusted in the reporting year. In the previous business year, the metric referred to the proportion of certified companies and not to the employees actually covered by the management systems.

In this year’s report, the benchmark for the metric has been adjusted to meet ESRS requirements. Reporting now takes place at the employee level at material sites that are certified to ISO 45001 or an equivalent national standard.

It is not practical to retroactively adjust the comparative figures of previous reporting periods.

The difference is mainly a result of the change in methodology, which includes characteristics (e.g., employee numbers) that may change over time.

The calculation methodology for the gender pay gap has been revised to meet ESRS requirements. Average gross hourly earnings were calculated for the first time this year not at company level, but at Group level as a whole, thus avoiding an unequal weighting of the target hours.

Reporting errors in prior periods

In the last reporting year, Scope 3 category 3.2 was reported in the E1‑6 GHG emissions table but not taken into account. The totals have been corrected.

As a result of the abovementioned revision to the GHG emissions table, the figures for the 2024/25 business year have been revised in the GHG Intensity per net revenue table (see also E1‑6).

In the last reporting year, the pollutant parameter total phosphorus was overstated (see also E2‑4). A subsequent correction was possible, as a result of which the figure fell below the threshold required under Regulation (EC) No 166/2006. This emission is therefore no longer reported.

Based on occasional follow-up reports on pollutant monitoring, certain parameters for emissions to air and water were adjusted for the 2024/25 business year, and more detail was provided in the emissions overview table (see E2‑4).

Incorporation by reference

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