Strategy and stakeholders

Strategy, business model and value chain (SBM-1)

Epiroc is a global productivity partner for mining and construction customers and accelerates the transformation toward a sustainable society. Epiroc develops and provides innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. The company also offers service and other aftermarket support as well as solutions for automation, digitalization and electrification. By being in attractive niches and prioritizing innovation, aftermarket and operational excellence, we strive to add value to our stakeholders. Our success is reinforced by our strong company culture and our integrated approach to sustainability. See more in Administration Report.

Epiroc’s value chain connects innovation, responsible sourcing, efficient manufacturing, and expert service to deliver lasting value for our customers and stakeholders. By focusing on productivity and integrating sustainability throughout each step, we ensure reliable solutions that support productivity and long-term growth.

Epiroc has integrated sustainability into its strategy, vision and mission. Our mission to accelerate the productivity and sustainability transformation in our industry directly aligns with the environmental risks and opportunities associated with the transition to a low-carbon economy where electrification and circularity play a key role, as well as our long lasting focus on safety for our customers and employees. We are also committed to increase inclusion and diversity and to uphold high ethical standards throughout our entire value-chain. Our 2030 goals address our most important impacts, risks and opportunities in relation to climate change, health and safety, and ethics. Major Epiroc companies are ISO 9001, 14001 and 45001 certified.

Acquisitions that support long-term profitable growth are a natural part of Epiroc's strategy. Many recent acquisitions have strengthened our capabilities related to the sustainability transformation, for example on product safety. However, at the same time newly acquired entities may not initially align with all of our sustainability standards and in the short term affect progress against our goals. The integration of acquired entities is therefore key to manage material impacts. 

Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)

The material impacts, risks and opportunities (IROs) identified through the double materiality assessment adhere from or are related to Epiroc's business model and strategy. The IROs provide input to Epiroc’s strategy development and enterprise risk management processes and influence Epiroc's business model by shaping innovation, operational processes, and the adoption of new technologies. Further, the IROs inform our ongoing efforts to enhance sustainability, guide target-setting, and prioritize actions. A more detailed explanation of material impacts, risks and opportunities and their relation to strategy and business model can be found under each topical standard.

Epiroc has not identified any current financial effects on its financial position, performance or cash flow. None of the identified material risks or opportunities are likely to lead to a material adjustment of its carrying amounts of assets and liabilities within the next annual reporting period.

Interests and views of stakeholders (SBM-2)

We define our most important stakeholders as those groups that we aim to create value for, or that Epiroc is dependent on for the long-term value creation of the company. To understand the perspectives, concerns, and expectations of our stakeholders, Epiroc continuously conducts stakeholder dialogues as part of normal business operations. It also contributes to the understanding of direct and indirect impacts from our operations and along the value chain. Stakeholder’s views are taken into consideration in operations and impacts strategy and business model, as presented in the table below.  We regularly communicate stakeholders' perspectives and concerns to the Board of Directors and Group Management. Specific updates also occur through quarterly updates on our 2030 sustainability goals and annually in relation to our employee survey. Stakeholders’ views and perspectives informed the double materiality assessment.