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Sustainability Strategy 2022

Our Sustainability Strategy

Specific factors we can influence

Nordic Steel Group has taken responsibility for the environment and sustainability for many years. A clear environmental management, with its own environmental management system and environmental handbook is part of the company's organization and daily operations. Nordic Steel has been a certified Eco-Lighthouse company since 2014. The environmental responsibility of the company is documented for  workplace environment, waste management, energy use, sourcing and transport.

In 2021, Nordic Steel was named Eco-Lighthouse of the Year 2021 due to the company's strong position in the green shift and green competitiveness.

In our sustainability strategy, we declare what Nordic Steel Group stand for and work toward - we take a clear position on being part of the green shift. Sustainability is about much more than climate and the environment. For us, working life and social responsibility are closely linked to environmental responsibility.

The UN Sustainable Development Goals (SDGs)
Norway's Greenest Steel Centre

As an industrial company, it is critical for us to take the lead. We will do what we can to reduce climate emissions. The UN has drawn up a work plan for the entire world that shows how our common challenges are connected. The work plan consists of 17 sustainable development goals that deal with climate, environment, economy and social conditions.

Nordic Steel supports UN's sustainable development goals. We have a number of measures and processes that emphasize the various goals. We divide our sustainable choices into three core factors: people, working life and the environment. The three areas are all linked to UN's sustainable development goals.

We have chosen specific goals, that we want to pay extra attention to. These are goals that we are able to make a noticeable contribution to. By highlighting set goals, we commit ourselves and make it even clearer what we are working towards achieving. 

We also contribute to the remaining sustainable development goals. We recognize many of the goals in our core areas of business. Gender equality, industry, innovation and infrastructure, sustainable cities and communities, responsible consumption and production, and cooperation to achieve the goals are all of high importance to us.

Nordic Steel sees sustainable choices and climate footprint as crucial factors to future competitiveness. As a business, we are committed to having a profile that is sustainable and climate-friendly. We take responsibility for the green shift and are proud to be Norway's greenest steel centre. As a visible company in the local community, we take responsibility for people, working life and the environment.

It is important to us to contribute to all areas possible. 

We are an important part of future solutions.

Words from Børre

It is not an option to not care. Sustainability is about the future of our children, the local community, Norway and the rest of the world. I sincerely care about this. In fact, I think it is a duty to take climate and sustainability seriously.

Climate change and the work to achieve UN's sustainable development goals are among the most important challenges facing the world today. The business community has a crucial role in this work and as a pioneering company, Nordic Steel Group takes its share of the responsibility. We can not do everything, but we must do our best in all areas we are able to influence.

One of the most important measures to be taken worldwide is to reduce greenhouse gas emissions. In Nordic Steel, we work with climate accounting which showcases that our greenhouse gas emissions have declined in recent years, despite growth and increased production volume. From 2019 to 2020, we have a reduction in CO2 emissions of 34 percent.

All electricity we use on our building and for our machines has a guaranteed origin. We will continue to choose green power. We choose carriers that are fair-transport certified and we recycle over 93 percent of all waste, to name some of our efforts. Every year, we will reach our goal of over 90 percent waste recycling. In 2021, 99 percent of our steel waste was sent for recycling. This is something we will continue. Our customers will get the option of recycled steel by choosing Nordic Steel.

However, our environmental footprint is not enough. The steel industry is a climate worst and indirectly we are involved in large greenhouse gas emissions. Therefore, our position is extra meaningful - if we are able to influence public and private actors to choose the most sustainable steel alternative, we are involved in changing an entire industry. Which is exactly what we want to achieve.

At Nordic Steel Group we place high demands upon ourselves and our partners, customers and suppliers. In our sustainability strategy, we are apparent in how we will work on topics such as the working environment, climate, environmental and waste management, supply chains, transport and as a contributor to society. The strategy is followed up by our sustainability manager, but the responsibility is well-rooted in all of us, and everyone knows exactly how to contribute.

In addition, we have made our choices and made it clear that we will be a leading part of the future industry. We already have substantial contracts on, among others, Dogger Bank A, B and C, which is the world's largest offshore wind farm, and Salmon Evolution, which is Northern Europe's largest land-based salmon farm.

Sustainability for us is also about business development and attaining new business opportunities. Profitability in operation is crucial to ensure secure jobs, while at the same time providing us with opportunities for new investments.

We are future-oriented and give young people and apprentices opportunities. All of the UN's sustainable development goals are important in Nordic Steel, but we have an extra focus on goals 3, 8 and 13. Goal number 8 is central to us as we must create new jobs and include young people into the work stock. I am glad that from 2022 we are looking to employ even more apprentices. At the turn of the year 2021-2022, there were five apprentices with us, with an average age of 20.4 years.

It is of high importance to me that the choices made in Nordic Steel Group are sustainable. If some of what we do can inspire others, it's positive. If our contributions can affect our industry, it means a lot more.

Proud manager of Norway's greenest steel centre.

The company: Nordic Steel Group

This is us

Nordic Steel is Norway's leading competence centre on steel. We work with advanced plate processing, certified welding and assembly. We supply customers in all industries, such as oil and gas, aquaculture and maritime industry, HVAC, transport and infrastructure, construction, defence and various other industries.

Since 1998, Nordic Steel has positioned itself as one of Norway's most serious steel centres. In 2019, the company moved into a modern, new head office at Bryne in Rogaland. Both the steel centre Nordic Steel and the steel contractor Nordic Steel Construction are located at the head office. The company has sales offices in Ålesund and Oslo. At the beginning of 2022, we will have approximately 100 employees.

Nordic Steel Invest AS owns Nordic Steel. Behind the investment company, we find Nordic Steel Group AS, where Verket Investering AS and XO Invest AS are owners.

The sustainability strategy is rooted in Nordic Steel Group's management and in all parts of the group.

‍ Eco-Lighthouse-certified

Nordic Steel is a Certified Environmental Lighthouse Company.

We are ISO 9001 certified. We use figures and data from Miljøfyrtårn's annual climate and environment report as a climate management tool. Environmental lighthouse certification helps us contribute to a number of sustainable development goals, especially in areas that deal with companies' input, activities, products and services (source: Environmental Lighthouse).

«Companies that choose to implement and actively use Miljøfyrtårn's environmental management system are highly contributing toward sustainable development. The final effect will depend on the company's ability and willingness to use the system and implement improvements (Miljøfyrtårns Gap analysis 2019). "

Through Miljøfyrtårn's digital system for environmental management, Nordic Steel is able to measure the effects of our sustainable development measures through advanced statistics and climate accounting. This is in addition making us capable of putting in place valuable actions and measures. 

We are to be the customer's first choice, because we know, understand and solve the customer's needs in the best way
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Opportunities and challenges regarding sustainability in the steel industry

Sustainable Choices

The steel industry is changing and in the years to come we will see major changes and new opportunities in relation to the transition towards a greener industry. During steel production, a lot of heat is needed to melt the steel. Production is therefore traditionally energy-intensive with high CO2 emissions. Fortunately, players in the steel industry and governments around the world are working on measures to reduce emissions.

Nordic Steel works closely with future-oriented players in the industry. We support the production of green steel and are closely 

closely follow the development with fossil-free steel production that is already underway. However, green steel is more than steel produced without climate emissions. We can offer steel with up to 80 percent recycled material to our customers.

The life of steel is almost infinite. Steel is the world's most recyclable material. It can be recycled time and time again, and is an important part of the circular economy. Recycling steel is a task we take very seriously. All steel scrap is sorted and sent for recycling. We use Stena Recycling AS, which is one of the most forward-looking partners within the circular economy. Stena ensures that all steel scrap goes back to the steelworks, for reuse.

We will do all we can in areas where we can contribute. In our own operations, transport and selection of suppliers and partners, we make sustainable choices. We are glad to offer fabrication with recycled steel and can help ensure environmental requirements for the customer by offering steel that is recycled and produced in a more environmentally friendly manner.  We can provide our customers with thorough documentation, presentation of environmental declarations on products (EPD) and climate accounting.

The steel industry worldwide is experiencing exciting development. We know that this gives us great opportunities. Nordic Steel is a safe and serious partner in the green shift.

Stakeholders

Things that make us better

Nordic Steel has a large number of stakeholders who are in various contact with us and affected by our activities. These are employees, owners, customers (both existing and new ones), suppliers, partners, apprentices, carriers, industry professionals, other companies located in the Håland industrial area and the local community. In addition, we can mention authorities, which administer regulations and laws that we abide to.

It is important for us to have an open and active dialogue with our stakeholders. Feedback, suggestions and experiences we get from them are used to make new and improved choices.

Sustainable Choices in the Nordic Steel Group
Human (Good health and Quality of Life)

Nordic Steel Group will attract and develop talent in a wide variety of disciplines. Our organization gets stronger when we have a diversity of backgrounds, genders, ages and ethnicities. Health, safety and the environment are at the forefront of the business and active responsibility is taken for the employees' health.

We have therefore chosen the UN's goal of good health and quality of life, as a goal we will work specifically towards.

"Good health is a fundamental prerequisite for people's ability to reach their full potential and to contribute to the development of society."

Gender Equality and Human Rights

A crucial part of people's fundamental rights is education, work and a satisfactory standard of living. In Nordic Steel Group, it goes without saying that gender equality is part of our rights. Gender equality at all levels is an important part of the business and everyone should have equal opportunities.

The company is set in the mechanical industry, which has traditionally been, and still is, a male-dominated industry. There are few women among the employees, but the number has increased in recent years. In a society that has been plagued by pandemics for a long time, we view access to vaccines as an important right.

At Nordic Steel, we have encouraged employees to take the Covid vaccine, and allowed them to take it during work hours. We have also encouraged and paid for the flu vaccine for all employees. In case of new needs for vaccines, we will follow the same procedure.

Health, Safety and Environment

Everyone should have a safe workplace and everyone should come home safely at the end of the workday. There is a high focus on HSE through training, follow-up, routines and safety rounds, to mention some. Good employment conditions and solid insurance schemes also contribute to securing employees on a daily basis.

Work Environment

A good working environment is essential to the employees' physical and mental health. We believe that employees who thrive at work do a better job. A good social environment is something we work towards every day. Low absence due to sickness and low turnover contribute to this.

In Nordic Steel Group we have:

• Follow-up of sick leave

• Collaboration with the occupational health service

• Occupational health assessments

• Ergonomic audits and risk assessment

• Noise measurements

• Safety inspections

• Employee 1:1

• First aid training

• Department meetings

• Social activities

We believe that employees who thrive at work do a better job

Workout room

Nordic Steel has arranged for self-training and physical activity with a state-of-the-art workout room in the building. All employees and their families have access to the workout room. Personal training programs and guidance for the individual, along with various types of treatments for those who need it, are available to all employees.

City bike

It is convenient to travel environmentally friendly to and from Nordic Steel. We have electric city bikes just outside our front door. The city bike can easily be used together with public transport tickets and is available to anyone.

Electrical Car Charger

As a responsible employer and contributor to the local community, we have several electrical car chargers available for customers, employees and anyone else who needs charging outside of our building.

Healthy Lunch Offer

We offer a healthy and varied lunch buffet in the canteen every day. Gathering around the table is valuable for the workplace social environment. Through certified canteen operations, food waste is reduced.

The Local Community

A sustainable local environment and community are important to us. We sponsor local sports teams to help ensure good conditions for children and young people.

‍ Action Plan - we shall:

• Carry out social activities such as monthly Friday meetups, barbecues, company vacations and christmas dinners

• Annual green week in the office, concerning everything from food to tips, advice and reminders about sustainable measures in the workplace and in the employee's home

• Position ourselves locally by supporting local businesses and sports. Among others, we support Bryne FK, Nærbø IL Handball, Viking FK, Varhaug IL

... we take responsibility for a serious and decent working life, with skilled workers, salaries, apprentices and working conditions
Working Life (Decent Work and Economic Growth)

Nordic Steel Group ensures a reliable and safe working life for many. The UN's sustainable development goals, which are about promoting lasting, inclusive and sustainable economic growth, full employment and decent work for all, are also one of the goals we have chosen to focus on.

Apprentices

We provide jobs and opportunities to apprentices and people who for various reasons are not participating in work stock. At the end of 2021, we had five apprentices employed in the company, in 2022 we are looking for seven new apprentices.

Customers and Industries

Through a differentiated customer portfolio and deliveries to a diverse set of industries, Nordic Steel is less exposed to fluctuations in the market. In 2021, the distribution of Nordic Steel's turnover to various industries were: Oil and gas (22.5%), transport and infrastructure (20.4%), aqua and maritime industry (17.4%), renewable energy (16.6% ), construction (14.9%) and various industries (9.9%).

Forward-looking

Nordic Steel has the willingness, expertise and resources to invest in the future. As a central company on Jæren, the company invests in buildings, machinery and equipment for increased productivity, safe working life and getting more people to join the work stock. 

The Oslo Model

It is a matter of course for Nordic Steel Group to follow current laws and regulations in Norway. We take quality, health, environment and safety seriously. We follow all regulations in, among others, the Oslo model, which means that we take responsibility for a serious and decent working life, both with skilled workers, salaries, apprenticeships and good working conditions.

‍ Action Plan - we shall:

• Search for people who have fallen out of the work stock in positions possible

• Continue to focus on, and deliver offers to projects within renewable energy. In 2021, the share of renewable projects were 16.6 percent. We are dedicated to increase the share in 2022

• Inform about the Oslo model when delivering bids

• Profile involvement in green projects

Environment (Stop climate change)

Nordic Steel Group will contribute toward counteracting climate change and its consequences. The goal of stopping climate change is therefore a key goal for us.

It is important for us to do our best in all areas we can influence. We have our own environmental management system in the company, with its own environmental handbook, which all employees are introduced to once hired.

Through Miljøfyrtårn's climate accounting, we provide annual reporting of greenhouse gas emissions. Our environmental footprint has declined in recent years. In 2016, CO2 emissions were 103.39 tonnes. In 2020, it had decreased to 58.96 tonnes. In the year alone from 2019 to 2020, the decrease in CO2 emissions was 34 percent. The decline is particularly positive as in the same period we have an increase in both production volume, size of premises and number of employees. The largest emissions come from energy consumption. We actively seek to reduce our environmental footprint by streamlining production and making environmental demands to suppliers and partners.

Renewable Electricity

We are located in a building that was brand new in December 2019. The entire building, from the production halls, the machines and the administration, is powered by 100 percent green hydropower from the Lysefjord.

Waste Management

We sort and recycle 

what is possible from production through approved schemes. Together with leading recycling companies, we ensure that all steel waste is recycled and becomes part of the circular economy.

Chemicals

We use minimal hazardous chemicals and actively seek sustainable and environmentally friendly substitutes.

Transportation

We have contracts with companies that are fair-transport certified. This means that the vehicle fleet, service, employment contracts and salaries must be in order. We take the see to it duty seriously.

Sourcing

In the case of framework agreements, our supplier must be able to document environmental responsibility or certification.

Green Steel

We can offer green steel, which is steel that is manufactured in a better way, with, among other things, high contents of recycled steel.

‍ Action Plan - we shall:

• Offer more environmentally friendly manufactured steel in all relevant bids

• Reduce the use of hazardous chemicals to less than eight

• Actively work to reduce CO2 emissions every year. One measure to be made in 2022 is to test electrical trucks. If the truck meets our requirements, we will switch from diesel to electric truck at the next change of trucks

• Recycle more waste every year

• Prepare climate accounting for the products we produce

Selected Data from Nordic Steel

Below are data from the past three years for selected factors in Nordic Steel. These are critical input factors that can be linked to the measurement of UN's sustainable development goals.

Co2 emissions

2019: 90.30 tonnes

2020: 58.96 tons

2021: Clear approx. in April 2022

In the past years, CO2 emissions in Nordic Steel have been sharply declining. We have gone from having 4,500 square meters of production premises at Orstad in 2019 to 6,000 square meters of production premises at Bryne from 2020. During the same time period, there has been an increase in turnover and employees. Although the size of the premises and the number of employees and turnover is increasing, CO2 emissions have still managed to decrease (see Figure 3).

Energy is the largest source of emission at Nordic Steel. It is therefore important to us to take measures in the field of energy. Even though the current factory and administration building is larger than a few years ago, lower figures on emissions show that the building is more energy-efficient. All lights have motion sensors and are switched off when a room is not in use. This ensures that no unnecessary power is left on (see figure 4).

In addition, we have an agreement on renewable electricity for the building and all machines that we use, through a renewable guarantee from Lyse. This means Lyse is obliged to produce at least as much clean, renewable electricity as we consume. All CO2 emissions in energy are thus compensated with renewable electricity from Lyse.

Waste recycling

2019: 90.6 percent

2020: 90.8 percent

2021: 93.0 percent

In Nordic Steel, there are solid routines for the handling of waste, with waste sorting stations throughout the building. In environmental accounting, the amount of waste that is sent for recycling is measured continuously. Efforts have been made to mark waste sorting stations in several languages, to ensure correct sorting. Several measures have been taken to reduce the proportion of paper waste.

Nordic Steel has a contract with the leading players in the circular economy. Through Stena Recycling AS, we ensure that all steel scrap is used as recycled steel. In 2021, 308,723 kilos of steel scraps were sent for recycling. 99 percent was recycled into new, more environmentally friendly steel. Waste recycling is a priority task and an increased amount of waste is to be recycled every year.

Absence due to Illness

2019: 2.3 percent

2020: 4.4 percent

2021: 2.9 percent

The working environment in Nordic Steel is good and we work actively to maintain a healthy environment with several measures to promote the well-being of our employees. The company has, among other measures, a separate social committee consisting of employees from all departments. It should be positive thing to work for Nordic Steel and it is important to have enjoyable days together in the workplace.

Sick leave is low and the goal is for self-reported and long-term absence in total not to exceed 4 percent. The number in 2020 is somewhat higher due to several cases of long-term illness. After two years marked by the covid pandemic, absence is still very low.

‍ Absence Injuries

2019: 0

2020: 0

2021: 0

The statistics on absence injuries show zero all the way back to 2013. Health, environment and safety is a continuous focus, emphasising through training, detailed plans of action and risk analyses. Regular safety inspections are conducted. We focus on the use of the correct safety equipment and HSE is a topic at all out meetings. The goal is zero injuries any day. Any HSE deviations must be registered and processed if they occur.

‍ Apprentices

2019: 2

2020: 2

2021: 5

The number of apprentices reflects new apprentices being employed in the current year. Most apprentices are in Nordic Steel for two years, the actual number of apprentices is thus higher than the one shown in the statistics. 

Nordic Steel has been looking for apprentices in more subjects in 2021 and 2022 than before. In recent years, the company has had apprentices in the production engineering subject, the sheet metal worker subject and the welding subject. In 2021, there was an apprentice in the logistics subject. In 2022, there is also a search for an apprentice in the office and administration subject in addition to the more traditional subjects.

Nordic Steel prioritises future-oriented workforce and searches for more apprentices each year.