Financial responsibility

Boliden’s financial performance contributes to improved welfare in society through the generation and distribution of economic value. Information on our financial performance is available in our Annual and Sustainability Report.

Our economic contribution to society

Salaries are an important part of Boliden’s economic contribution to society. We aim to offer competitive wages in line with business and local needs. Our philosophy is based on “pay for performance” by aligning compensation with company and individual performance and goals. For white-collar employees hired directly from university, Boliden applies entry-level wages, depending on the level of education required for different jobs.

Several of Boliden’s most important locations, and locations where major investments have been made, are in regions where economic stimulus is needed. We are aware of our important role in locations where we are the largest employer in a community and a generator of positive trickle-down effects, such as tax income to finance public services, and as a foundation for a private service sector. This status brings both privileges and responsibilities.

Beyond wages, our contribution to society includes investing in education and engaging with students, nurturing competence and enabling people to switch from one occupation to another to make them more employable, sponsoring local organizations, and making investments that benefit the company and the community. Through this contribution, we support job creation and strengthen the contribution of rural communities to national economic prosperity.

Social impact assessments are conducted to assess the consequences for the local community in relation to expansions, closures and other significant changes to our operations. Identified impact is addressed using the mitigation hierarchy.

Boliden experienced some supply chain issues due to the Covid-19 pandemic during 2022, which effected mining production and concentrate deliveries. Despite this, production was stable throughout the year, both in Mines and Smelters.

Read further details of how Boliden manages, follows up on, and monitors its performance in relation to these aspects in the Annual and Sustainability Report.

Financial implications and other risks and opportunities related to climate change

Our goal is to be a sustainable first link in the metal value chain – and to achieve this by investing in modern technology and developing safe and energy-efficient low-carbon processes.

Climate change risks and opportunities are both physical and financial. Assessments on physical climate risks have shown that Boliden’s sites do not face severe physical risks due to climate change in the short to medium term (read more here). Metal production is an energy-intensive process that generates both direct and indirect carbon dioxide emissions. To address the climate change issue, Boliden has several development projects ongoing. Read more in the Energy and climate section in this Sustainability Index.

All of Boliden’s smelter operations (Odda, Bergsöe, Rönnskär, Kokkola and Harjavalta) have been fully exposed to the European Emission Trading Scheme (ETS) since 2013. The ETS is a strategic challenge for Boliden, not only in calculating the costs that may be entailed in future purchases of emission allowances, but also in working on opportunities to reduce emissions, given the production levels and available technology. The Boliden Group has a comprehensive governance structure to manage climate related risks and opportunities, and in 2022, the Group upgraded its targets to further reduce its CO2 emissions.

Low-carbon metals

Low-carbon copper and zinc will play a key role in the sustainable transition to achieve the goal of net zero CO2 emissions by 2050 set by the EU. The greater use of renewable energy and the electrification of society needed to combat climate change both require more copper. Copper and zinc mining and smelting activities are known to generate significant amounts of greenhouse gas emissions. As a leading sustainable metals and mining company (according to Wood McKenzie and CRU), Boliden is well positioned to supply copper and zinc with low-carbon footprints. The integration of our own mines and smelters and being one of the world’s largest recyclers of metal from electronic material, enables us to produce a low-carbon copper cathode and a copper cathode originating from 100% recycled material.

Boliden’s low-carbon copper is produced from copper mined in our own mines in the north of Sweden, with a low-carbon electricity grid mix. Therefore, the Boliden Low-carbon Copper has a relatively low footprint of <1.5 kg CO2eq/kg Cu.

The primary raw material for Boliden’s recycled copper is electronics. By efficiently recovering metals that have been circulating in society, the need for new mines can be minimized.

Boliden’s low-carbon special high grade (SPG) zinc is produced from zinc concentrates mined from Boliden’s mines in Ireland and Sweden. The Boliden Low-carbon Zinc has a footprint of <1.0 kg CO2eq/kg Zn.

Expansion of Odda

We are investing EUR 700 million in our Odda Smelter in ­Norway. The investment will mean an increase in the annual production capacity of zinc from 200 ktons to 350 ktons per year and will substantially improve productivity while also avoiding a significant amount of future maintenance. In addition to zinc, it will also be possible to extract the bi-metals lead, gold and silver. The increased production capacity together with improved energy efficiency and a new, long-term contract for the supply of fossil-free electricity will restult in a further reduction in the already low-carbon dioxide intensity. In a sustainability context, the new facility will have long-term energy agreements that will supply the facility with fossil free energy.

Note: Boliden’s copper carbon footprint has been assured by Intertek, in ­accordance with the Greenhouse Gas Protocol – the Product Life Cycle Accounting and Reporting Standard – and reviewed in accordance with the principles of ISO 14064-3. Boliden’s carbon footprint has a comprehensive scope and uses a conservative approach when calculating the footprint. This includes the full supply chain of raw materials, transportation and auxiliary bulk goods and chemicals, such as explosives, from cradle-to-Boliden gate, and excludes credits from energy and by-products.