Alongside this direct anchoring of ESG themes, the corporate strategy provides for building a new business segment in line with environmental objectives. Management is exploring the market for new business areas, searching for highly profitable niches with a sound technology focus, primarily in the new energy sector, which will secure SBO a role as a leading supplier of high-tech solutions and products even outside its core business beyond the year 2030.

 

Our ESG strategy starts from an industry-wide high level of ecological efficiency and plans to achieve further improvement in all areas.

 

Reporting standards were drawn up and key performance indicators (KPIs) defined for central management together with target values. Their purpose is to identify potential inefficiencies and enable targeted management of the fields considered strategic. In the Environment (“E”) area this includes in particular the maintenance of strong environmental efficiency, which is demonstrated by a low CO2 emissions figure compared with the rest of the industry, optimized water and waste management, and the promotion of a circular economy, as there are major ecological benefits from returning steel scrap to the production of steel bars, for instance. Moreover, the share of renewable energy sources on own consumption is increased through targeted measures and thus the CO2 -efficiency of used resources improved further. In the Social (“S”) area, the focus is on employee safety and development. Governance (“G”) is divided into the strategic areas of responsibility, compliance and risk management as well as information security.

 

We traditionally pursue a policy of transparent reporting. In recent years the focus was on reporting Scope 1 and Scope 2 information from the business activities of a steel manufacturer and equipment supplier, backed up by values and measured quantities. A new feature included in reporting is the classification of key financial indicators according to environmentally relevant aspects based on EU environmental targets. In addition, a project is running to prepare the Group for professional Scope 3 reporting. Also, we are preparing publication of so-called science-based targets (SBTs), which determine what the extent of the Company’s CO2 reduction would have to be to effectively limit global warming to 1.5 degrees. Moreover, we strive to further expand ESG communication by reporting competitive ratings.

 

SBO’s current business activities include the manufacture of high-alloy, non-magnetic steels and high-precision production of stainless steels as special components for the oil and gas and other industries by applying innovative and additive technologies. Moreover, development and distribution of equipment are part of the Company’s offering which is primarily used for the efficient extraction of crude oil and natural gas, apart from application in the field of geothermal energy. According to relevant forecasts, global demand for these resources will increase beyond the year 2030, with a focus on the efficient and environmentally friendly extraction of these resources. Natural gas in particular plays a special role from an ecological point of view: gas as an energy source has an energy density comparable to liquid fuels and at the same time scores with a significantly higher ecological efficiency. The switch from coal to gas since 2010, especially in the power sector in the United States and Europe and in buildings and industry in China, has resulted in a reduction of global emissions by around 750 million tonnes of CO2 . In terms of eco-efficiency criteria, natural gas therefore makes a significant contribution to achieving the climate targets. SBO currently generates a relevant portion of its revenues from the sale or rental of products used to extract natural gas.

 

Swift and efficient communication paths within our Group ensure compliance with ESG requirements. Processes are constantly monitored and improved by both the SBO Executive Board and Group Compliance. Violations of our Code of Conduct are penalized. On top of that, we pursue a zero tolerance policy toward any form of corruption or anti-competitive behavior. We create programs for our employees to continuously promote them, keep them at the highest possible level of training and retain them in the long term.