Working with suppliers to reduce the climate footprint

In Svanehøj, we are committed to working closely with our strategic suppliers to address and reduce supply chain emissions. Our partnership with Lemvigh-Müller is a great example.

Several of our suppliers already work strategically with ESG. One is Lemvigh-Müller, where we have placed purchases of bar steel, pipes, and fittings in an aGreenment-partnership.

With the partnership, we optimize the transport of goods through fixed deliveries instead of day-to-day delivery, thereby reducing CO2 emissions. At the same time, Lemvigh-Müller is committed to optimizing the planning, packing, and loading processes. Going forward, they will refuel trucks with HVO100 biodiesel, saving up to 90% CO2 and helping us reduce our climate impact throughout the supply chain.

- Our partnership with Lemvigh-Müller is a great example of how we work with our supply chain according to our ESG strategy. CO2 calculations are increasingly becoming a competitive parameter in the maritime industry, and in 2024, we will have CO2e emission data available for all the steel products we use in our production. It is an essential step towards reducing our Scope 3 emissions, says Johannes Christensen, Senior Sourcing Specialist in Svanehøj.

Steel accounts for around 7% of global CO2 emissions, and in Svanehøj, the purchase of steel products constitutes a significant part of our Scope 3 emissions. Fortunately, several steel producers are working to remove fossil energy from production, and fossil-free steel will be ready for the commercial market within the next few years. In Svanehøj, we are in ongoing dialogue with our suppliers about how to reduce the climate impact from steel products delivered to us.

Want to know more?

Read all about commitment to sustainability and find our ESG Report 2022 at svanehoj.com/esg