Sustainability Framework 2025
GF improved in areas such as energy and water intensity as well as its accident rate over the past five-years. To extend this momentum into the future and address some of society’s most pressing challenges, GF defined its 2025 strategy that includes a set of ambitious sustainability targets.
Developing the Sustainability Framework 2025
Developing the Sustainability Framework 2025 consisted of three phases.
- Phase one consisted of a bottom-up approach. Key internal and external stakeholders were consulted in a series of interviews on a broad range of material topics.1 This was then supplemented by a qualitative impact analysis along GF’s value chain. The purpose was to rank topics’ relevance for sustainable development. A workshop with key representatives of all relevant internal departments led to the identification of three distinct focus areas and a proposal for an ambition for each. This overview was discussed with and approved by the Executive Committee as a framework for the refinement of supporting goals.
- The second phase entailed a structured project to identify the practicable yet ambitious targets. The three focus areas were assessed in detail by GF’s three divisions to factor in the specifics of their individual businesses. The findings and proposals were then jointly discussed and finalized in a series of workshops to ensure that GF sets an ambitious five-year plan.
- The final phase consisted of obtaining the Executive Committee’s approval. The three divisional Presidents presented how they intend to realize the proposed framework in the context to their respective operations and markets. Finally, the Board of Directors approved the Sustainability Framework 2025.
GF’s sustainability strategy is now fully integrated into GF’s overall Strategy 2025, which was a key theme throughout its development phase. This means that GF does not see sustainability as a separate topic but rather as being at the heart of its business.
The Sustainability Framework 2025 in a nutshell
The Sustainability Framework 2025 consists of three focus areas: Product Portfolio, Climate & Resources, and People & Well-being. A clear long-term ambition was set for each:
- GF’s product portfolio will focus on innovative products and solutions for a sustainable lifecycle.
- GF will work to decouple resource consumption from growth in its operations and supply chain, thereby minimizing its environmental footprint.
- GF will foster a diverse, engaging, and safe workplace and strive to be the best employer it can be.
To realize these ambitions, the framework is supported by eight concrete goals with corresponding quantitative targets.
What the three focus areas of the Sustainability Framework 2025 mean in detail
GF’s product portfolio
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GF defined a goal to propel its ambition of providing customers with sustainable options:
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- Generate 70% of GF’s sales from products, systems, or solutions that have social or environmental benefits.
GF’s ambition is to provide its customers with products, systems, and solutions that are sustainable throughout the products’ lifecycle.
GF’s portfolio is therefore to be characterized by a larger proportion of products that offer social or environmental benefits for customers and/or end-consumers. At year-end 2020, 58% of GF’s sales came from products and solutions that have social or environmental benefits. GF is committed to increasing this portion to at least 70% by 2025.
The Corporation’s three divisions serve distinct business markets. As a result, different criteria were defined for their respective product portfolios’ social and environmental benefits.
- GF Piping Systems: small carbon footprint, higher energy efficiency, reduced water losses, a long lifespan, lightweight handling, no substances of very high concern, and life cycle assessments (LCAs) with proven benefits.
- GF Casting Solutions: lightweight design, the right materials, and the process used to manufacture components for alternative drives.
- GF Machining Solutions: reduced energy consumption of machines, resource efficiency along a machine’s lifecycle, and skills transfer to the operator.
GF’s impact on the climate and resources
GF’s operations and value chain consume resources and impact the climate. Going forward, GF is committed to reducing these impacts by progressively decoupling consumption from growth.
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In the years ahead, GF aims for its production sites to optimize their consumption of energy and water and to reduce waste. It also wants to use its influence to reduce the carbon footprint of its supply chain.
This ambition is articulated in four specific goals:
- GF aims to reduce its GHG emissions in absolute terms by 12.5% by 2025 (Scope 1 and Scope 2 emissions).2 GF’s Scope 1 emissions mainly consist of natural gas, biogas, fuel oil, and, to a lesser extent, fuel used for internal transportation needs. GF’s Scope 2 emissions consist of its electricity consumption.
- Although GF’s operations are generally not water-intensive, the project team identified fifteen (15) GF production sites that consume water and are located in water-scarce areas. GF’s target for these 15 sites is to reduce their water intensity by 20% by 2025. 2, 3
- GF’s waste is almost entirely non-hazardous. Nevertheless, the company has responsibility to reduce the amount of waste incinerated and landfilled. It therefore aims to reduce its waste (hazardous and non-hazardous) by 20% by 2025.4
- GF is committed to extending its sustainability standards to its suppliers. Its goal is to conduct a comprehensive sustainability assessment of around 500 key suppliers, which together account for around 80% of its procurement spend.
GF’s people and their well-being
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GF’s ambition is to cultivate a diverse, engaging, and safe workplace for its people. To realize this ambition, GF set three goals for 2025 for diversity and inclusion, employee engagement, and a safe and healthy working environment:
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- Diversity and inclusion: offer 25% of newly appointed management positions to women, while also addressing the broader aspects of diversity and inclusion worldwide.
- Employee engagement: at least 80% of employees would recommend GF as an employer of choice. The assessment will be based on a survey conducted every two years in all three divisions.
- Health and safety: reduce the accident rate by at least 30% relative to the previous three-year average. GF has consistently improved the safety conditions for its employees and contractors and wants to continue the Zero Risk campaign.
Contribution to GF’s customers, employees, and the community
GF’s ambitions for the three focus areas and the eight defined goals are aligned with the UN Sustainable Development Goals (SDGs). This helps ensure that the Corporation meets not only the needs of its customers and employees, but also those of the broader community in which it operates. GF’s sustainability goals contribute to 11 of the 17 SDGs and support the global agenda for 2030 as defined by the United Nations and supported by the individual governments.