Norsk Hydro Asa · OSL:NHY
Norsk Hydro Asa — ESG Presentation (October 2020)
19 slides from Norsk Hydro Asa's sustainability presentation, Oct 8, 2020
Slide 1: Nordea Sustainability event, October 8 2020
Hydro Nordea Sustai if October 8 2020
Slide 2: Hydro: the global and complete aluminium company
Hydro: the global and complete aluminium company “…create a more viable society by developing natural resources into products and solutions in innovative and efficient ways” 114 years of Aluminium Hydropower Engaged in the Global reach, Involved and industrial – metal of the – infinitely entire valu
Slide 3: Pioneer: three decades of environmental reporting
Pioneer: Cut electrolysis Karmøy Primary Climate neutral 3 decades of emissions by technology pilot production: environmental 70% 15% more 70% based on reporting renewable by 2020 since 1990 energy in a lifecycle perspective efficient power
Slide 4: 2030 Ambition: Cut CO2 emissions by 30%
2030 Ambition: Cut CO2 emissions by 30% -36% -22% 4
Slide 5: On the path to ZERO: technology shift needed
But continued progress requires a technology shift Investing in R&D for low- or zero-carbon technology toward 2050 On the path to ZERO Exploring different paths toward 2050: • Carbon-free process • Carbon Capture and Storage (CCS) Carbon Capture and Utilization (CCU) • Biomass anodes 5
Slide 6: Biodiversity and bauxite residue targets towards 2030
Brazil-Norway Biodiveristy Research Consortium - 1 to 1 rehabilitation of available Key targets mined areas (ongoing) towards - Utilise 10% of bauxite residue 2030 output (2030) - Recycle 65% of spent pot lining (2030) - 50% reduction in fossil fuel related, non- GHG emissions (2030 on 2017 baseline
Slide 7: Assess and mitigate risks to people; human rights
Obligations Assess and mitigate risks to people “Hydro is committed to respecting and promoting human rights of all individuals potentially affected by our operations” -Hydro’s Code of Conduct GOAL: The impact on people Beyond compliance Empowering 500.000 people with education and skills developmen
Slide 8: Closer to our local communities – building trust
Closer to our local communities – building trust We succeed when the communites around us succeed Social responsibility Human rights Partnership with Social projects impact UNICEF signed 10 programs and projects assessment Work with education and skills targeting education and 2018 2030 development
Slide 9: Fuel source most important differentiator
Fuel source most important differentiator CO2e emissions from primary aluminium production CO2e emissions from primary aluminium full value chain Tonnes CO2e/tonne aluminium, 2020 Tonnes CO2e/tonne aluminium, 2019 Coal 20 20 15 15 15 Gas 10 10 Renewables 5 5 10 ~3 0 0 0 Global Average Hydro Smelters
Slide 10: Aluminium CO2 footprint by origin
Aluminium CO2 footprint by origin 100% Post Circal 75R REDUXA Primary Primary Primary Primary Primary Consumer 75% Post 4.0 extrusion produced in consumed Global produced in Consumer ingots Europe in Europe average China kg CO2e Europe average average 20 15.0 – 19.0 /kg Al 4.0 15 10 16.5 15.0 5 8.6
Slide 11: Greener products: From REDUXA 4.0 to 2.0
Greener products: From REDUXA 4.0 to 2.0 New energy mix in Alunorte important enabler to reach 2.0 From REDUXA 4.0 Towards REDUXA 2.0 by 2030 <0.6 3.4 – 4.0 kg CO2e/kg AI 0.1 Other 1.6 Casting Smelting 1.4 0.1 -0.3 Casting 0.1 Smelting 2.0 kg CO2e/kg AI 0.2 PCS 1.3 Power generation Anode Alumina 0.1
Slide 12: Growing demand for Hydro's greener facade solutions
Growing demand for Hydro’s greener facade solutions 60 Hydro CIRCAL-project for 250 MNOK in 16 countries during 1 year Sales volume Hydro CIRCAL 45000 40000 35000 30000 25000 Økern Portal, Norway 20000 15000 10000 5000 0 2019 2020 2021 Sales volume tonnes Ticon, Norway HELL energy drinks 12
Slide 13: A car made of 100% recycled material would have ~85% reduced CO2 footprint
A car made of 100% recycled material would have ~85% reduced CO2 footprint CO2 breakdown (virgin material) CO2 breakdown (recycled material) (XC60 ICE example) kg (XC60 ICE example) kg Ferrous metals 3 439 Ferrous metals 573 Polymer 400 83% Polymer 67 Aluminium 2 926 Aluminium 146 Elastomer 421 Elas
Slide 14: Opportunity for automotive OEMs to reduce CO2 footprint of a car
An opportunity for the Automotive OEMs to drastically reduce the CO2 footprint of producing a car The Volvo case – total CO2 emissions from producing a car would be 30% lower with 75R -18% -23% -30% 7 971 49% 6 561 6 109 5 657 VolvoAverage EI Hydro REDUXA 4.0 CIRCAL 75R Global European Average Alumi
Slide 15: Operating within a changing regulatory environment
Operating within a changing regulatory environment …which have implications for Hydro and Three key carbon leakage measures… aluminium • Low-carbon competitiveness depends on EU Emissions Trading free allowances to support investments in System (ETS) green transition • Continuation of CO2 indirect c
Slide 16: Sustainable Finance
Sustainable Finance Good and realistic definitions are key to make finance sustainable Our message: • More transparency and harmonization of sustainability evaluations in investments is welcome, as it contributes to drive the EU towards a low-carbon economy • EU initiative to mobilize investments in
Slide 17: Growing Hydro's renewable business: becoming a wind park operator in Norway
Growing Hydro’s renewable business: Becoming a wind park operator in Norway Sourcing platform for fully-owned smelters, Norway1) TWh 20 18 16 14 12 10 8 6 4 2 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Current captive RSK volu
Slide 18: 2030 ambition: roadmap to cut CO2e emissions by 30%
2030 ambition: roadmap to cut CO2e emissions by 30% Innovation and technology development key enablers toward CO2-free processes Ambition to reduce own Greener energy mix at Alunorte: R&D for low- or zero-carbon emissions by 10% in 2025, Key enabler for new climate technology towards 2050 30% by 203
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