SOC and SVHC impacts, risks and opportunities (SBM-3)
Material impacts, risks and opportunities and their interaction with strategy and business model
The material sustainability matters related to pollution are management of Substances of concern (SOC) and Substances of very high concern (SVHC). The equipment we provide for our customers must endure extreme conditions and prolonged use, where selective inclusion of certain SOC and SVHC ensure reliability and longevity.
| Substances of concern and very high concern | Location in value chain | Time horizon | |||||
| Up- stream | Own operations | Down- stream | Short- term | Medium- term | Long- term | ||
| SOC and SVHC can be a risk to health and environment, and may hinder recycling or reuse | Actual negative impact | o | o | o | o | o | |
| SVHC presence may limit sales due to increasing legislation and pressure for removal | Risk | o | o | o | o | ||
To increase product performance and durability in the use phase, limited use of SOC and SVHC are incorporated into materials, parts and products. These substances pose risks to human health and the environment, primarily in our up-stream value chain. At the same time, removing the substances can reduce the lifespan of parts and materials leading to more waste and the need for more frequent repairs and servicing. Some SOC and SVHC hamper the recycling or reuse of products and materials. For Epiroc, lead is the most relevant example of a SOC and SVHC substance. Progress is followed to ensure substitution from hazardous chemicals to safer alternatives.
The presence of SVHC may limit sales opportunities in certain markets as there are increasing requirements and pressure on absence of such substances. Additionally, increasing regulations drive increased compliance costs and may necessitate alternative solutions and redesign of products to replace SVHC. Limited availability of alternatives may increase costs, affecting long-term planning and investment.
Processes to identify and assess material pollution-related impacts, risks and opportunities
The materiality assessment also considered other environmental impacts from pollution to land, air or water at different types of sites. At production sites and larger service centers impacts are often linked to the risk of leakage to nearby land and water bodies of, for example, oils, chemicals, and waste. These types of environmental effects from our own operations are local by nature and managed in accordance with local permits and regulations. Our ISO 14001 certified management system require active work to mitigate local impacts. Consultations with local stakeholders occurs as part of environmental permit processes or as part of regular meetings with different local stakeholders. This is part of normal business and no additional measures were introduced in the context of the double materiality assessment process. The assessment did not include a specific screening of all sites and business activities.