This report covers the reporting period from 1 January – 31 December 2019, and it has been prepared in accordance with the GRI Standards: Core option (2016).
Starting with the first environmental report in 1997, GF has been continuously expanding the recording and collection of sustainability-relevant data. Initially, only environmental indicators were collected, and since 2005, social indicators have been included in the report.
The comprehensive Sustainability Report has been published every two years since 2005, with an interim report published in the intervening years. Sustainability Reports from previous periods are available on the GF website. Additionally, information on energy consumption, CO2e emissions and management of water as a resource is also provided annually to CDP (Carbon Disclosure Project).
Scope of data collection and reporting
In the year under review and in line with the organizational adjustments of GF, the scope of reporting was adopted accordingly:
- As part of the strategic realignment of GF Casting Solutions and to strengthen its positioning in the aluminum and magnesium light-metal segments, the iron foundry in Herzogenburg (Austria) was divested as of 30 September 2019. The foundry contributed a significant share to GF’s environmental footprint. For this reason and to ensure data consistency and comparability over time, the environmental data presented in this report, in the KPI tables, and the indicators relevant for target achievement apply a 9/12 ratio (9 months of 2019) according to the site’s respective consumption in the year under review.
- Additionally, during 2019, the production capacities as well as 300 jobs were shifted from GF Casting Solution’s location in Werdohl (Germany) to Romania and Austria. Due to the nature of the shift, its impacts will be transferred to two different locations as of reporting year 2020. For the year under review, the consumption data of this site is included in the data shown in the KPI tables. However, the calculation for target achievement indices does not include the site in Werdohl for all the previous years and is adapted accordingly compared to the information shown in the Sustainability Report 2018.
- Two companies with three locations acquired by GF in the previous years (GF Precicast SA, Novazzano (Switzerland), GF Precicast SRL, Arad and GF Casting Solutions SRL, Pitești (both located in Romania)) were incorporated in the Sustainability Report in 2019 for the first time. Therefore, their data is included in the absolute figures presented in the KPI tables. However, as stated in the Sustainability Report 2017, these sites are excluded in the Sustainability Targets 2020.
In line with the previous reporting periods, the information presented in this Sustainability Report accounts for the equity share that GF owns in the individual companies under the Corporation’s control. This is aligned with the approach used in financial reporting and is based on the following criteria:
- All companies in which GF owns 50% or more of equity are consolidated at 100% and
- For companies where GF has a joint venture participation of 50% or less, environmental and health and safety data are weighted accordingly.
Scope and calculation of Sustainability Targets 2020
The target achievement for the environmental indicators are calculated in relation to the production volume. The average consumption in the years 2013–2015 serves as a baseline to reflect a more realistic consumption path.1
The Sustainability Targets were introduced in 2015 and have to be achieved within five years, i.e. by 2020 at year-end. In order to provide companies with a realistic timeframe for target achievement, companies that joined GF before 2017 are included in the calculation for the achievement of the Sustainability Targets 2020. Companies that joined later have individual targets. Business acquisitions, divestments as well as closures can also affect the results. Organizational adjustments during 2019 are explained in the section “Scope of data collection and reporting.”
The companies acquired during 2019 have three years to be consolidated in the social and environmental reporting system. Economic performance indicators cover all of the companies under the scope of Corporate consolidation, as reported in the Annual Report 2019.
In the year under review, GF had 142 companies. About 72% of them report their indicators, which covers over 98% of the production sites and 96% of the total workforce.
The financial performance indicators follow Swiss GAAP FER principles (Swiss Generally Accepted Accounting Principles Accounting and Reporting Recommendations) and are consistent with those reported in the GF Annual Report 2019.
The social performance indicators are presented in this report based on the data collected from all sales and production companies worldwide with more than ten employees. They report this information to the sustainability teams at the divisional and Corporate levels on a monthly and bi-annual basis using the Sustainability Information System. Environmental performance indicators are reported by the production companies according to the same cycle.
With regard to environmental figures, GF tracks and records the energy and water consumption (on the input side) and air emissions, waste, and wastewater (on the output side). The environmental impact of transportation within GF’s locations, as well as business travel by plane or company car, is also calculated. The environmental footprint of purchased materials, the construction of facilities and buildings, as well as the use of products by customers are not yet covered at this point in time.
Transparent and verified reporting is important to GF. Therefore, the Sustainability Report is externally assured by PricewaterhouseCoopers AG (PwC). This includes the validation and verification of selected environmental and social performance indicators relevant to the GRI-Standards: Core option.