27 EN: Strategy meets responsibility—sustainability at voestalpine

00:00:02:

00:00:03: Welcome to my podcast, a first Alpina

00:00:06: medium for

00:00:07: all employees, as well as fans and everybody who wants to become part of First Alpina in the future.

00:00:13: This episode was translated from the German

00:00:16: interview

00:00:16: with AI.

00:00:21: Welcome to a new episode of my podcast.

00:00:24: In the twenty seventh episode, we talk about a topic that many companies are currently focusing on, the Corporate Sustainability Reporting Directive, or CSRD for short, and how to make sustainability measurable.

00:00:37: I would like to welcome Ms.

00:00:38: Monica Aschenbrenner, head of Group Sustainability, and Mr.

00:00:42: Gerhard Edelmeyer, team leader reporting.

00:00:45: Would you please introduce yourselves briefly?

00:00:47: I'd be happy to.

00:00:48: I've been working at Fustalpina for over twenty years.

00:00:51: I have a technical background from my training, graduated from JKU with a degree in industrial engineering and technical chemistry and started my career at Fustalpina in research and development.

00:01:03: I then worked as a production engineer in the cooking plant, in the cooking plant's production operations for eight years before moving to the commercial side of the business at Fustalpina Rostov-Beschaffungs company.

00:01:14: There, I was responsible for iron ore purchasing and the associated logistics for supplying the plants.

00:01:20: And two years ago, I was given the opportunity to switch to First Alpine Group, the holding company, where I took over as head of group sustainability, means sustainability management for the First Alpine Group.

00:01:32: So you've had a long career with a lot of experience?

00:01:35: Yes, a little longer, yes.

00:01:36: May I also ask you, Mr.

00:01:37: Edelmeier, to briefly introduce yourself?

00:01:40: Yes, of course.

00:01:41: My name is Gerhard Edelmeier.

00:01:42: Perhaps I'll briefly describe my career path.

00:01:45: I graduated from the Commercial Academy in Linz in nineteen ninety six.

00:01:48: I then went on to study economics at the J.K.U.

00:01:51: After completing my studies, I was able to gain my first professional experience in the controlling departments of various other companies.

00:01:58: In two thousand eleven, I changed to the first alpena group where I worked in central controlling at style company where I was responsible for working capital management, profitability calculations and raw materials controlling.

00:02:10: Finally, just two years ago, I was able to change to the holding company of Fused Alpine Group to Ms.

00:02:16: Ashenbrenner's department.

00:02:17: And since April last year, I have been the team lead for the reporting and performance team.

00:02:22: So you have also been with Fused Alpine for quite some time?

00:02:25: Yes, that's correct.

00:02:27: Then I would like to start with you, Ms.

00:02:29: Aschenbrenner.

00:02:29: Let's dive right into the topic of the newest department at Fussdalpene.

00:02:34: Please explain to our listeners what the Group Sustainability Department is all about.

00:02:38: Sustainability is the name of the game.

00:02:41: What does that involve?

00:02:42: What exactly is your role there?

00:02:44: Basically, sustainability has become increasingly important in recent years.

00:02:49: On the one hand, companies are faced with higher expectations from society, politics and the economy.

00:02:55: On the other hand, and this is also a very decisive factor, the number of regulations, especially at the European level, has increased significantly.

00:03:03: This is one of the reasons why companies need to reposition themselves, restructure and to a certain extent rethink sustainability in order to comply with these regulatory requirements.

00:03:15: In response to this, the first Alpine group decided two years ago to establish a new department at the group level, namely group sustainability.

00:03:24: At the same time, it has also been newly anchored in the divisions in terms of organisation.

00:03:29: With this department, we are simply ensuring that this cross-departmental cooperation, but also this comprehensive cooperation, takes place at the divisional level.

00:03:38: In other words, a department that has many tasks.

00:03:41: Perhaps you could briefly describe how you fulfill the tasks of sustainability management.

00:03:46: So to come back briefly to the department itself, perhaps I'll start with that.

00:03:50: The department itself consists of a team of eight members.

00:03:54: The department is divided into two parts.

00:03:56: On the one hand, there is the reporting and performance management team for which Mr.

00:04:01: Edelmayer is responsible.

00:04:03: And then there is the environmental management team, which is responsible for corporate environmental management.

00:04:09: This division is also based here.

00:04:11: The reporting and performance management team is responsible for the annual publication of the sustainability report, in accordance with the applicable regulations of course.

00:04:20: On the other hand, a certain amount of monitoring and controlling also takes place there in order to ensure that we achieve the goals we communicate, which are measurable goals, and to measure whether we are actually achieving and accomplishing them.

00:04:34: And for this, for reporting, but also for these controlling activities, very, very intensive cooperation with a wide variety of departments within the group is, of course, necessary, be it the human resources department, the legal department, risk management, very, very important, the finance department, strategy, et cetera.

00:04:50: but cooperation with the divisions and the involvement of the divisions themselves is also crucial for good work here.

00:04:57: You mentioned environmental management.

00:04:59: What exactly does that involve?

00:05:01: Environmental management is the second area in the Group Sustainability Department.

00:05:06: And there are also a number of tasks to be carried out in the area of environmental management.

00:05:11: On the one hand, there is the Group's Environmental Data Management System.

00:05:16: This is where environmental data is collected and consolidated from all companies, so to speak.

00:05:22: On the other hand, environmental management also includes corporate greenhouse gas accounting, the calculation of total greenhouse gas emissions across the entire group, our direct and indirect greenhouse gases.

00:05:35: The employees in the environmental department are also involved in various interest groups, such as EuroFair, the Austrian Federal Economic Chamber and the World Steel Association, where they represent us on environmental issues, which also involves a wide range of different tasks.

00:05:51: As you say, a wide range of tasks.

00:05:54: We'll go into more detail on that later.

00:05:56: But now I'm interested in your personal approach.

00:05:59: We are all interested in the topic of sustainability, and you of course are particularly interested, as it is your area of expertise.

00:06:07: What does the word sustainability mean to you personally?

00:06:10: Yes, for me, sustainability means taking responsibility both professionally and privately.

00:06:15: For my family and me, for example, living sustainably is a fundamental value.

00:06:19: That doesn't mean we give up everything.

00:06:21: Honestly, we don't want to do that.

00:06:23: But we simply try to waste as little as possible, whether it's reducing food or packaging material, saving energy, etc.

00:06:32: In other words, even with these small measures, you can make a contribution and, as they say, reduce your footprint.

00:06:39: And are you able to integrate sustainability into your everyday life on a personal level?

00:06:44: We try, yes.

00:06:45: And what does sustainability mean in concrete terms for Fussdalpine?

00:06:49: Well,

00:06:49: for first Alpina itself, I would like to take up the topic of responsibility again and quote our CEO, Mr.

00:06:56: Herbert Eibensteiner.

00:06:57: In this context, he said that as a group, we take responsibility for the world in which we produce and for the people who walk this path with us.

00:07:06: So here too, the issue of taking responsibility is essential.

00:07:10: Sustainability itself is a central pillar of the corporate strategy and is consistently implemented in the individual, divisional and functional strategies.

00:07:20: There are concrete measures within the entire first alpine group on topics ranging from diversity, climate protection and the circular economy, to transparent supply chains, employee retention, which is a very important issue, and of course the protection of human rights, which is also essential and simply a major concern for us as a group.

00:07:40: You can read about all of this in the CSRD report.

00:07:44: One of the central themes of Füstalpina in terms of sustainability is climate protection.

00:07:50: Groupwide we report a greenhouse gas balance, the sum of all direct and indirect greenhouse gas emissions of Füstalpina group of around twenty five million tons of CO-II emissions per year.

00:08:04: This includes all direct and indirect greenhouse gas emissions.

00:08:07: Direct indirect, what's the difference?

00:08:09: Direct emissions, which account for about half of these twenty five million tons, are all emissions generated at our production sites.

00:08:17: Indirect emissions mainly come from our upstream supply chain.

00:08:20: These are emissions generated during the production and transport of our key raw materials, such as iron ore, coal, coke, alloys, etc.

00:08:28: And since we naturally have a significant impact on the environment and society with these twenty-five million tons of CO², we are striving to reduce this footprint and have set ourselves specific climate targets.

00:08:40: So, as you just explained, climate protection is naturally a key issue for fused alpine.

00:08:45: You also mentioned climate targets.

00:08:47: What interests me is what the climate targets of first alpine look like in detail.

00:08:52: Perhaps we can break it down a little.

00:08:54: I'd be happy to.

00:08:55: Our specific goal for twenty twenty nine is to reduce our so-called scope one and two emissions by thirty percent or around four million tons.

00:09:04: Scope one emissions are all direct emissions.

00:09:07: Perhaps I should explain briefly that scope two emissions are indirect emissions that arise from the generation of purchased energy such as electricity.

00:09:16: In addition to this thirty percent reduction we want to reduce scope three emissions.

00:09:20: Indirect emissions from the supply chain by a further twenty five percent by twenty twenty nine.

00:09:26: These targets we have set ourselves have been scientifically reviewed and validated by the Science-Based Targets Initiative and are in line with the Paris Agreement's goal of limiting global warming.

00:09:37: We have also set ourselves medium term and long term targets.

00:09:41: The medium term goal is to reduce scope one and two emissions by fifty percent by twenty thirty five and to achieve net zero emissions by twenty fifty at the latest in line with the path set out by the EU.

00:09:54: In order to be able to demonstrate the achievement of these goals, we have developed a group-wide climate transition plan.

00:10:01: This transition plan contains or bundles all measures taken by the companies and divisions with regard to greenhouse gas reduction and energy saving.

00:10:10: And the main contribution in terms of our direct emissions, i.e.

00:10:14: in terms of reducing these direct emissions, naturally comes from our Green Textile Climate Protection Program.

00:10:20: A wonderful climate goal, NetZero sounds very, very good.

00:10:24: The recently published annual report has been expanded for the first time to include the consolidated non-financial statement in accordance with the Corporate Sustainability Reporting Directive.

00:10:35: It comprises five hundred pages, which is quite a lot.

00:10:39: Let's take a closer look at what this sustainability report contains and why it is being produced in the first place.

00:10:46: Basically, with this integrated CSRT compliance sustainability report in our annual report, we have fulfilled the legal requirements of the EU.

00:10:55: In other words, we have implemented the currently valid European regulations.

00:10:59: At the same time, this report creates transparency and traceability, which is also the EU's goal for the various stakeholders of Fustalpina, investors, banks, customers, suppliers,

00:11:10: etc.,

00:11:11: and provides information about our activities at Fustalpina in the areas of climate and environmental protection, social issues, our employees, and corporate governance.

00:11:22: As I mentioned earlier, we are obliged to publish this information in accordance with the regulations and we are also very concerned with this issue or rather it is very much a topic of discussion in reports on the company's impact on the environment and society.

00:11:38: However, companies are also required to address the opportunities and risks that may arise from sustainability issues such as climate risks to name one example.

00:11:49: This is a very topical issue.

00:11:51: And here, too, it is necessary for us to coordinate closely with a wide variety of departments, in this case, of course, with risk management, and to work closely together.

00:12:04: When you consider that Fussdalpina has more than five hundred companies and a large number of locations, it sounds like a very time-consuming project.

00:12:13: Mr.

00:12:14: Edelmeier, I would now like to turn to you.

00:12:16: How was this sustainability report created?

00:12:19: How was it organized?

00:12:21: And above all, how long in advance did you start planning?

00:12:25: Let's take a look back together.

00:12:26: We began the initial preparations for this first CSRD compliant report back in October, in an initial joint project with the divisions and with external support, we carried out this double materiality analysis, which forms the basis for the reporting.

00:12:40: We then set up this major CSRD project, so to speak.

00:12:44: This meant defining the project governance, including roles, responsibilities and decision-making processes.

00:12:50: How did we proceed from there?

00:12:51: As part of this process, we obviously had to onboard around fifty project members.

00:12:55: This means that as part of training courses, we primarily wanted to create and provide an understanding of the regulatory framework.

00:13:02: As the project progressed, we then divided this large team into small teams, divided the corresponding reporting requirements of these topic standards into small groups, and they then worked through these topic standards over the course of a year to develop and fulfill the reporting requirements and disclosures accordingly.

00:13:18: The ESRS are the set of rules and guidelines that govern sustainability reporting and they were naturally a major focus.

00:13:25: These include general information, strategy, business model and so on, but also topic specific information on climate protection, environmental protection, circular economy, the company's own workforce and the workforce in the value chain.

00:13:38: What interests me particularly now is the topic of data collection.

00:13:42: I can imagine that it is not always so easy to collect data and that there is data that is particularly difficult to capture.

00:13:49: How do you deal with that?

00:13:51: Of course, there are also a few new indicators in the new reporting framework, such as the gender pay gap.

00:13:57: The gender pay gap describes the difference in earnings between women and men, which is usually expressed as a percentage difference in average gross hourly wages.

00:14:05: This means that this key figure and others have not actually existed for us until now.

00:14:09: We now have to define and elaborate on their content, roll them out across the group and collect the data.

00:14:15: In addition to data collection, the ESRS also requires consideration of the entire value chain.

00:14:21: This means looking beyond the boundaries of our own company, upstream and downstream value chains.

00:14:26: Collecting this data is, of course, very challenging and time-consuming.

00:14:31: Fortunately, there are some transitional provisions to make things easier.

00:14:34: This means that certain data does not have to be disclosed in the first reporting year, but only in the second year, or even later.

00:14:41: Now, I can imagine that it is really very, very complex to obtain supplier data.

00:14:46: You just mentioned that.

00:14:47: How do you deal with it as a team when the data you receive is really so vague?

00:14:51: What do you do in that case?

00:14:53: On the one hand, there is the option of accessing official data in the first instance.

00:14:57: That means when I think of the greenhouse gas balance, there are regulations or values that can be used which will then gradually be replaced with actual values over the next few years.

00:15:07: This means that you really have to take a close look at what you are using and consider how you can actually access real data in the future.

00:15:15: So this is a very complex task.

00:15:17: What other challenges did you face in preparing this report?

00:15:21: There were certainly a number of other things to consider.

00:15:24: Yes, one major challenge was certainly the changeover from calendar year to business year for environmental data.

00:15:29: The CSRD stipulates that companies must prepare their sustainability reports based on the business year.

00:15:35: Until now, we have always reported on a calendar year basis and we have now tried to adapt our first report to the business year as best as possible.

00:15:43: Another issue is the scope of consolidation.

00:15:46: Basically, the sustainability report is based on financial reporting.

00:15:50: However, as we have now heard, other data must also be included in sustainability reporting.

00:15:54: I

00:15:55: would now like to move on to digitalization.

00:15:58: Of course, that is also a huge umbrella term.

00:16:00: Are there any specific tools or platforms that support data collection and evaluation, and perhaps also help to understand the content?

00:16:09: Specifically, what role does digitalization play in CSRD reporting in general?

00:16:14: Yes, in general, I believe that digitalization is becoming increasingly important.

00:16:17: Digital processes, integrated, automated processes are basically the future.

00:16:22: We already have a tool in the environmental sector that we have been using for many years.

00:16:26: If you think about human resources, for example, we have financial systems in place, but of course we now want to improve them even further to digitize even more so that we can handle these enormous manual and time-consuming processes better in the future.

00:16:40: Specifically, this means that we have decided to draw up a catalog of requirements for this year, detailing what we want to do and where we can get even better IT support and we want to develop a concept for this in the current business year.

00:16:53: In other words, digitalization is advancing and has become indispensable.

00:16:57: It is a very important factor for efficient work.

00:17:00: Quite right.

00:17:01: So that really sounds like a lot of work that needs to be done before this report is finished.

00:17:05: and then it goes even further because the finished report is also audited externally.

00:17:10: What happens there?

00:17:12: Yes, that's right.

00:17:13: The report is really subjected to a content review.

00:17:15: Compared to the past, reporting has become much more future-oriented thanks to the CSRD.

00:17:21: This means that the audit no longer only checks whether the content is correct and consistent, but also whether the measures we describe are feasible.

00:17:27: And that is now a new approach to auditing.

00:17:30: Thank you very much for now, Mr.

00:17:31: Edelmeyer.

00:17:32: I would now like to come back to Ms.

00:17:34: Aschenbrenner.

00:17:35: What interests me is how does Fustalpina implement all these issues?

00:17:39: Are there any special features or points that Fustalpini takes very seriously in terms of accuracy and sustainability?

00:17:47: Basically, all sustainability issues are very important to us.

00:17:51: Of course, the issue of employees is highly relevant.

00:17:54: In other words, the workforce of our own company.

00:17:57: Here, Fürst-Alpina stands for a working environment based on fairness, safety and mutual respect.

00:18:03: We have a wide range of ongoing activities to retain our qualified and motivated employees, but also to attract new ones.

00:18:10: This is a high priority for us.

00:18:12: Of course, transparency in the supply chain is also important to us, and above all, as I mentioned earlier, ensuring that human rights are upheld is also a key task.

00:18:21: To this end, we rely on partnerships, long-term supply relationships, etc.

00:18:26: I have already mentioned what is relevant for first alpine in the area of climate and environmental protection.

00:18:34: On the one hand, this is, of course, the reduction of emissions, be it greenhouse gases, air pollutants, water emissions, etc.

00:18:42: But the circular economy is also a very important issue.

00:18:45: On the one hand, the circular economy naturally brings economic benefits, but we also ensure that we reduce our ecological footprint as a result.

00:18:54: The circular economy is, of course, a very, very important tool and is becoming increasingly important.

00:19:00: Where does Fushtal Pin come in here?

00:19:03: Where does Fushtal Pin stand on the path to a truly circular economy?

00:19:07: Here too, we have a wide range of activities or are implementing a wide range of activities in the divisions, whether it's the use of scrap as a raw material base, the use of slag in the cement industry, the extraction of waste heat.

00:19:22: etc.

00:19:23: So there is a lot to do here as well.

00:19:25: It is important that we comply with EU regulations, the national circular economy strategy and the requirements of our customers, which is essential.

00:19:35: We are simply pursuing the goal of closing or slowing down cycles in order to conserve resources and secure the supply of raw materials.

00:19:43: And of course, this ultimately contributes to climate and environmental protection, as I mentioned earlier.

00:19:49: It is also important that we have set ourselves a voluntary, concrete, measurable goal.

00:19:55: We also report this in our CSRD report.

00:19:58: To increase the use of scrap by fifty percent in twenty thirty compared to the amount used in twenty twenty three, that is our goal.

00:20:06: Listening to you, it's clear how passionate you are about sustainability.

00:20:10: I'd like to ask you, is there anything you'd like to share with your colleagues in the field of sustainability, both inside and outside First Alpina?

00:20:19: Basically, sustainability simply has to be lived.

00:20:22: That means you have to do it, you have to implement it.

00:20:25: Only then is it effective.

00:20:27: Raising awareness of the issue is also a central task of group sustainability and all sustainability managers.

00:20:33: The important thing is that every single contribution counts, no matter how big or small.

00:20:40: It's not that one person has to do everything right, but that many people have to do many things right, so to speak.

00:20:46: Thank you very much for your explanation.

00:20:49: I have one final, very personal question for you.

00:20:56: Dear Ms.

00:20:57: Aschenbrenner, what is your favorite moment?

00:20:59: Well,

00:20:59: when I think back over the last few weeks and months, my favorite moment at this point in time is definitely the moment when we published our CSRD compliant report.

00:21:09: That was when we successfully completed the project.

00:21:11: We had over fifty project members from different divisions and departments contributing.

00:21:16: And I would like to take this opportunity to thank them once again.

00:21:20: I can well believe that this is your favorite moment.

00:21:23: So much work, so much energy, such complex issues and then you succeed and it's handed in and you can breathe a little easier.

00:21:31: Mr.

00:21:32: Edelmeier, may I also ask you what your favorite moment is?

00:21:35: Well, I can't think of a better one.

00:21:37: Looking back, our first CSRD report was truly a mammoth task, which we really solved together with the divisions within the group.

00:21:44: I would like to join in thanking everyone involved and I also see this as my favorite moment.

00:21:49: Thank you very much, dear Ms.

00:21:50: Ashenbrenner.

00:21:50: Thank you very much, dear Mr.

00:21:52: Edelmeyer.

00:21:53: We can tell that you are passionate about the topic of sustainability.

00:21:56: Many thanks.

00:21:58: As always, at the end of the episode, we've summarized three key takeaways for you, dear listeners.

00:22:04: Sustainability is a central pillar of the Foustal Pinae corporate strategy and is implemented across the individual division, business unit, and functional strategies.

00:22:14: The recently published annual report was, for the first time, expanded in accordance with the Corporate Sustainability Reporting Directive, CSRD, to include the so-called Consolidated Non-Financial State.

00:22:29: First Alpina.

00:22:53: one

00:23:00: step ahead.