Sustainability performance

As a part of our handprint we measure the amount of CO₂ emissions avoided by using Metso Outotec technologies compared to industry baselines or alternative technology. Emissions of seventeen of our technologies are measured annually. In 2021, Metso Outotec’s CO₂ handprint was 10.1 million tonnes less of CO₂ equivalents in the seventeen technology areas (2020: 8.2 million tonnes of CO₂).

In addition to managing our handprint CO2 emissions, decreasing the environmental footprint of our own
operations as well as in our logistics and supply chain is a high priority. In 2021, we set ambitious new CO2 emissions reduction targets for our own operations: we target net-zero emissions by 2030, and a 50% reduction by 2024.

At Metso Outotec, we have calculated our scope 1, 2, and 3 greenhouse gas emissions in line with the GHG protocol methodology.

• Direct fuel use and the use of electricity and heating in our operations accounted for our CO₂ emissions were reduced by 58% compared to 2020 emissions (baseline year 2019).
• 53 Metso Outotec locations in 19 different countries are under the environmental reporting scope. Nearly all locations are now operating with renewable energy sources. All these locations have been granted Renewable Energy certificates or GOs.
• Our upstream and downstream logistics emissions reduced by 18% (baseline year 2019).
• In 2021, 95% of Metso Outotec’s R&D projects spend shad set sustainability targets.

In 2021, we continued to focus on reducing health and safety risks through improved risk management processes. In 2021, our LTIFR was 1.1 (2020:1.4) and TRIFR 3.1. (2020: 3.7). As a result of us identifying challenges with hand safety, we launched LEGIT, a hand safety program that revolves around five fundamental actions to prevent hand injuries. During 2021, the LEGIT program was provided to all frontline operational personnel. Good results included a 9% increase in hand-related issues being identified and controlled which resulted in an approximately 46% decrease in the number of lost-time injuries related to hands across the business.

We have over 13,000 suppliers in around 80 countries. We work closely with our suppliers to support them
in their sustainability practices and processes.

We have created several supplier e-learning courses about our supplier sustainability expectations, human rights, and safety. Our most recent e-learning module for suppliers explains Science Based Target setting methodology for CO2 emissions reduction and how our suppliers can contribute to reducing CO2 emissions in the supply chain.

We have started a supplier engagement program for Science Based Target (SBT) setting. This means that
suppliers are asked to set CO2 emissions reduction targets to contribute to the effort. We have set a target that 30% of procurement spend is with suppliers that have set Science-Based emissions targets by 2025.

• In 2021, 10.1% of the suppliers by spend had SBT CO2 emission target.

One way to ensure supplier compliance and continuous improvement is to conduct supplier audits. Our annual auditing program identifies the suppliers to be audited based on a supplier sustainability risk assessment.

• In 2021, we conducted 152 supplier sustainability audits and 71 percent of the corrective actions from 2021 were implemented by year end. We have also developed a supplier sustainability scorecard that allows close tracking of suppliers’ sustainability performance