Ovako Releases Sustainability Report

Ovako has published its Sustainability Report for Financial Year 2025, its second report inspired by the European Sustainability Reporting Standards (ESRS) framework. The report is independently assured by KPMG and presents audited ESG performance data, at a time when many industrial companies are scaling back sustainability commitments in response to cost pressures.

The findings show that Ovako's Imatra site recorded all-time low direct emissions of just 231 kg of CO₂ per tonne of sold steel goods. Since 2015, Ovako has reduced its Scope 1 & 2 CO₂ emissions per tonne by 59 percent.

Recent decarbonization initiatives include a fossil-free hydrogen facility for heating steel prior to rolling and VTD (Vacuum Tank Degassing) in Hofors; the modernization of the rolling mill furnace in Boxholm, reducing energy consumption by 50 percent and cutting emissions by almost 60 percent; and a recently converted bloom furnace to oxyfuel technology in Imatra, further reducing CO₂ emissions and energy consumption.

Key highlights from the FY2025 report include:

Record-low emissions intensity: Ovako's steel products contain 97 percent recycled content, with Scope 1, 2, and 3 emissions at 0.35 tCO₂e per tonne of hot-rolled steel, representing a 51 percent reduction in CO₂e emissions since 2015. Looking only at Scope 1 & 2 emissions, the reduction is 59 percent per tonne of sold goods.

Net-zero pathway: Ovako is committed to reducing its Scope 1, 2, and 3 emissions per tonne of hot-rolled steel by 25 percent by 2030 and by 75 percent by 2040 from a 2021 baseline, and ultimately to achieving net-zero emissions across the entire value chain by 2045.

Industry-leading safety: With a Lost Time Injury Frequency Rate (LTIFR) of 0.7, a significant reduction of 94 percent since 2015, Ovako continues to set a high standard across its industry. Ovako's LTI rate is below the global steel industry average.

Employer recognition: For the fourth year in a row, Ovako has been nominated as Career Company in Sweden of the Year. The Career Company Award is based on an extensive review of nearly 2,000 students and young professionals and is given to organizations that offer unique career and development opportunities. Ovako has repeatedly been highlighted for its inclusive culture, strong sense of purpose, and its ability to combine technology, sustainability, and human development.

"With a clear strategy, engaged teams, and strong partnerships, we are well-positioned to lead the transformation to a sustainable steel industry — with a purpose to create steel for a decarbonized society," says Marcus Hedblom, president and CEO of Ovako Group. “Our ESG disclosure is a comprehensive overview of both our relentless productivity and ethical fiber. By communicating openly about actions and their impacts, we reinforce our commitment to responsible business practices and creating long-term value for stakeholders and the planet.”

ovako.com/en/sustainability/sustainability-targets/