Ceratizit Group, headquartered in Mamer, Luxembourg, has presented its sustainability strategy that aims to bring the company to the forefront in sustainability for the hard metal and cutting tool industry by 2025.
In order to become truly sustainable throughout the company, Ceratizit plans to look at the entire value chain with regard to environmental, social and governance (ESG), and also include its cooperation with partners. In the first phase, the focus will be on those aspects that have the greatest leverage effect.
“Climate change is one of the greatest challenges of our time and requires the industry to rethink in many areas as well,” stated Thierry Wolter, Ceratizit board member. “For Ceratizit customers to also be able to produce more sustainably, the company has set itself ambitious targets for its own products and services. “Our vision is to be the leader in sustainability in the hard metal and cutting tool industry by 2025,” Wolter continues.
In an effort to drastically reduce its own carbon footprint quickly, Ceratizit is initially focusing on three major levers; one decisive factor is the increase in the use of secondary raw materials to over 95%. Compared to primary raw materials from ore, their processing requires 70% less energy and reduces CO2 emissions by 40%. A positive side effect is the safeguarding of the supply chain for raw materials, so that both the customers and Ceratizit are said to benefit twice.
Another focus is on the power supply. Ceratizit plans to switch the power supply of all sites to green electricity from wind, solar and water power in the next few years. Closely related to this change in power supply is the issue of hydrogen supply. It is needed as a production medium in the hard metal industry, especially for the production of tungsten powder. Up to now, this hydrogen has mainly been obtained from natural gas by steam reforming, so-called ‘grey’ hydrogen. Going forward, Ceratizit plans to use ‘blue’ hydrogen, which is produced from water by electrolysis with green electricity. For this purpose, the company will cooperate with its existing suppliers and also build its own electrolysis plants.
The first milestone in the implementation of the new strategy is 2025, by which time Ceratizit plans not only to be CO2 neutral, but to reduce the actual emissions by 35% compared to the reference year 2020. The second stage, 2030, envisages a reduction of 60% compared to 2020 with the help of further measures.
The most ambitious goal, however, is to achieve “net zero” by 2040 – a target envisaged by the Paris Climate Agreement only for 2050.
Wolter concluded, “Reducing CO2 emissions along the entire value chain by at least 75% by 2040 is, without question, a challenge. However, with a view to future generations, we see no alternative to this path and are pleased to also let our customers participate in this through products such as our ‘GreenCarbide’ rods, our award-winning SilverLine milling cutter with sustainability formula, as well as a wide range of services.”