Transition plan for climate change mitigation (E1-1)

Epiroc’s transition plan guides our shift towards a low-carbon, climate-resilient business model in line with a 1.5°C pathway, consistent with the Paris Agreement. Our transition plan is reviewed on an annual basis to ensure responsiveness to regulatory, scientific and market developments. These disclosures will be further developed in the coming years, as our work with our transition plan continues internally.

Alignment with overall business strategy

Leadership in automation, digitalization and electrification is a key element of our strategy and business model. Supporting our customers in their decarbonization journeys requires a transition to emissions-free machines (see definition in CO₂e emissions from use of sold products (scope 3)), access to renewable fuels, and enhanced energy efficiency across products and operations. We offer a range of solutions that can significantly reduce our customers’ CO₂e emissions.

While fossil fuel dependency is likely to continue in our customers’ industries for some time, the demand for lower or zero tailpipe emissions solutions is expected to grow over time as our customers electrifies their operations and as the offering of equipment with reduced or zero tailpipe emissions grows. Epiroc will continue to invest in R&D, acquisitions and partnerships to secure our position and support customers in their decarbonization journeys. We engage with customers to understand their evolving needs and regularly evaluate our strategy to remain aligned with market developments. This approach strengthens customer relationships by supporting their decarbonization journeys, diversifies our revenue streams, and contributes to long-term revenue growth.

GHG emission reduction targets

Our 2030 climate goals set the strategic ambition of our transition plan. They enable a long-term ambition of net-zero CO₂e emissions by 2050 and go hand in hand with EU’s goal of a climate-neutral economy in 2050. Responsibility for delivering on these goals lies with the divisions, and progress is regularly reported to Group Management, Audit Committee and the Board. For more details on our 2030 goals and targets, see Metrics and targets.

Decarbonization levers and key actions

Our decarbonization levers and key actions focus on our material impacts which are own operations (scope 1 & 2) and scope 3 categories upstream and downstream transportation, purchased goods and services and use phase of sold products. More than 95% of our emissions are represented in scope 3, and Epiroc’s decarbonization is thus largely dependent on the decarbonization in our entire value-chain. See an overview of our value chain CO₂e emissions in our base year (2019) in the illustration below. Non-material scope 3 categories are excluded in this illustration.

Our roadmap to achieve our 2030 goals is firmly anchored in the organization. Twice a year, roadmaps including decarbonization levers and planned actions are reported to Group Management. Key actions include actions within our direct operational control, as well as actions aimed at influencing customer and supplier operations. Some actions, particularly through R&D and supplier collaboration, may not immediately reduce CO₂e emissions, but are important to enable future reductions.

The successful implementation of our transition plan depends on several external factors, many of which are beyond our direct control. Key uncertainties include the pace of global grid decarbonization, demand for electric equipment, regional policy developments, and the availability and affordability of circular or fossil-free materials, which are subject to price volatility and supply chain constraints. Progress also depends on broader market and societal shifts, such as legislative timelines for circular economy adoption and the investment capacity of customers and suppliers, while technology development and local grid infrastructure upgrades remain critical enablers. Due to this, further analysis and prioritization will be needed to determine feasibility, timing, and impact of different actions. Implementation of actions will evolve as part of the ongoing planning and strategy development as well as by considering the technological feasibility and commercial suitability. Read more about our current actions in Actions and resources.

Our decarbonization levers and key actions for each of the 2030 climate goals are presented in the table below. We have calculated the CO₂e reduction potential of these actions and concluded that these levers with actions implemented could be sufficient to reach our 2030 goals. However, due to the implementation uncertainty and our high dependency on suppliers' and customers' action, these potential future CO₂e savings are uncertain and therefore not disclosed. All listed action types are currently active, except for the operations activities—switching to hybrid and electric company vehicles and switching processes to electric alternatives—which are still in the planning stage. 

Investments and funding supporting our transition plan

CO₂e-reducing initiatives and actions that involve capital or resource allocation are subject to the ordinary investment approval and budget processes in the divisions. In some cases, solutions that aren’t yet ready for large-scale use are being tested in pilot projects to prepare for future deployment. This ensures alignment with divisional priorities and climate targets and supports readiness for scaling when conditions allow. Our internal carbon price policy, implemented in 2025, will guide Epiroc’s decisions and investments toward lower-carbon alternatives. Read more in Policies for climate change.

Our current major investments to support the transition in own operations (scope 1 & 2) focus on energy efficiency measures. In our value chain (scope 3), major investments target product development with an emphasis on emissions-free products (see definition in CO₂e emissions from use of sold products (scope 3)) and energy efficiency projects. To reach our 2030 climate goals, further investments in these categories as well as increased purchases of renewable transport fuels and less carbon-intensive steel will be needed. For more details, see Actions and resources. Details of future investments and their timing will be disclosed over the coming years as implementation progresses.

We have issued green bonds to support the implementation of our transition plan, where funds have been allocated to projects that directly contribute to our 2030 climate goals. In 2022 and 2023, we issued in total BSEK 4 in green bonds to fund projects within eco-efficient/circular economy, energy efficiency and sustainable water and wastewater management. Until 2024, a total of BSEK 1.4 has been allocated for battery-related products, including R&D, battery fleet, and test equipment and MSEK 60 for solar panels. This year’s allocated funds will be presented in the 2025 year’s Green bond report. These funds have supported the implementation of new technologies and solutions needed to reduce CO₂e emissions in both our own or customers´ operations.

In 2024, we published a Sustainability-Linked Financing Framework including three climate-related key performance indicators, that will enable sustainability-linked financing. A ten-year MAUD 200 sustainability-linked loan was signed in 2024 with the Nordic Investment Bank (NIB). This framework provides financial incentives that will support the implementation of the transition plan. 

Locked-in GHG emissions

We have performed a qualitative assessment of potential locked-in GHG emissions associated with our key assets and products. Locked-in GHG emissions refer to expected future GHG emissions generated over the lifetime use of assets or products already in use or planned to be in use.

Locked-in emissions within key assets could trigger the transition risk of not achieving the CO₂e emissions reduction in line with our 2030 climate goals and we risk negative reputational impact. Read more in Climate change impacts, risks and opportunities. We do not consider our GHG emissions from key assets as locked-in, as we can directly influence our own operations. In some cases, such as buildings and heating systems, significant investments may be required to enable phase-out. For leased assets, certain GHG emissions may be constrained by landlord agreements, limiting our ability to influence them directly. Capital projects are continuously monitored to minimize the risk of future locked-in emissions. 

Every diesel machine that we place in the market will carry locked-in GHG emissions for the duration of its life, potentially jeopardizing our customers CO₂e reduction goals, and increase exposure to transition risks such as stranded assets and regulatory pressure. The lifespan of mining equipment can vary significantly depending on the type of equipment, usage and maintenance practices. In 2025, the average age of our equipment fleet in operation was 8.6 years and 38% of it was older than 10 years. Rarely, the life expectancy extends beyond 2050. This will enable a transition to equipment with zero tailpipe emissions to achieve net-zero operations in the future. Our key strategies to handle these locked-in GHG emissions are electrification of product portfolio, enabling conversion kits and enabling use of renewable fuels.

Exposure to coal, oil and gas

We have no significant CapEx amounts during the reporting period related to coal, oil and gas-related economic activities and are not excluded from the EU Paris-aligned Benchmarks.

Implementation of transition plan

For each 2030 climate goal, a council is responsible for establishing a roadmap. Divisions set divisional short-term targets and are responsible for the results. Twice a year, roadmaps that include current and planned actions and progress are reported to Group Management and discussed in detail. The progress on 2030 goals is reported to the Board quarterly. Read more about the goals under Metrics and targets. 

In 2025, divisional transition plans were developed and subsequently consolidated at Group level. Each divisional plan was approved by the respective divisional management, and the consolidated plan was approved by Group Management. The development of the transition plans strengthened accountability for the 2030 climate goals and net-zero ambitions within the divisions, while also deepening the understanding of key gaps and the actions required to address them.

Implementation of actions in the transition plan relies on investment and funding. Read more in Investments and funding supporting our transition plan above.