Material Topic: Economic Performance

201–1  Direct economic value generated and distributed

Net sales in 2018 totaled SEK 52,454 (49,531) million. Boliden has developed the description of the company’s value creation and has, therefore, redefined some of the economic indicators from those used in previous GRI reports. All of the indicators are ­reported with two comparative years. Boliden also reports revenues and operating profit per Business Unit and country-­by-country tax payments in the Annual Report.

201–2  Financial implications and other risks and opportunities in the organization’s activities due to climate change

Boliden’s goal is to be a sustainable first link in a metal’s value chain – and to achieve this goal by investing in modern technology and developing stable environmentally, safe and energy-­efficient low carbon processes.

Climate change risks are both physical and financial. The stress that heavy rain can bring on Boliden’s water management systems is one example of a physical implication. Boliden has made capacity investments over the past few years in response to heavy rains and in order to comply with the limits stipulated in relevant permits and to achieve the Group target of reducing discharges to water.

Metals production is a very energy-intensive process that generates both direct and indirect carbon dioxide emissions. Boliden’s direct carbon dioxide emissions primarily arise from the ­metallurgical processes, transportation, and heating requirements. The indirect carbon dioxide emissions derive from purchased electricity. To address the climate change issue, Boliden takes part in development projects focusing on, for example, improving heat recovery, the further electrification of transports, and trials involving replacing fossil fuels with biofuels in process applications.

All of Boliden’s smelter operations (Odda, Bergsöe, Rönnskär, Kokkola and Harjavalta) have been fully exposed to ETS, the European Emission Trading Scheme, since 2013. The ETS is a strong strategic challenge for Boliden, entailing not only calculating the costs that may be entailed in future purchases of emission allowances, but also working on opportunities to reduce emissions, given the production levels and available technology. The allocated emissions allowances for Boliden’s smelters for the period 2013–2020 total 3.9 Mtonnes, which is in line with the direct emissions forecast. The rules for emissions trading, and the financial implications for Boliden after 2020, are uncertain.

In 2018, the Group management formulated a climate target to apply from 2017 onwards. The target is to reduce the CO₂ intensity by 3% per year, measured as (tonne CO₂/tonne metal). The CO₂ intensity performance will be measured with 2012 as a base year.