Resource use (E5)
Efficient use of raw materials
SFS is committed to the sustainable use of resources throughout a product’s entire life cycle – from development to disposal. Efficient designs, the targeted use of recycled and renewable materials as well as innovative manufacturing technologies make it possible to conserve raw materials and reduce emissions. Clear guidelines, certified environmental management systems and robust supply chains support this strategy. The focus here is not only on minimizing the use of material and waste, but also on durability, reparability and local procurement.
Target and boundary (E5-1)
Responsible use of resources
SFS considers it pivotally important to use resources responsibly and promote a functioning circular economy. Resource use influences both the company’s environmental impact as well as its competitiveness. The topic was identified as material within the context of the double materiality analysis, as SFS makes a contribution toward creating a regenerative economy through its efficient use of materials, sustainable product design and innovative business models.
Material impacts
The use of raw materials results in the use of non-renewable resources, particularly in procurement and manufacturing. This influence is reduced to a minimum through responsible material selection, sustainable procurement processes and efficient manufacturing techniques.
At the same time, sustainable product design has positive effects, for example through the development of products that are durable and recyclable, the use of reusable packaging and by taking the entire product life cycle into consideration during development.
Opportunities and risks
Growing demand for sustainable, resource-efficient products opens up strategic growth opportunities for SFS. Developing innovative solutions enables us to gain market share and strengthen our competitive position with regard to sustainability.
The risks mainly relate to the availability of suitable materials and the growing demands on research and development. The use of new or more complex materials, particularly in regulated sectors such as the medical devices and automotive industries, can result in higher costs and modification-related outlay. There is also a risk that products meeting high sustainability requirements might be less attractive for more price-sensitive customer segments. Nevertheless, this is outweighed by the opportunity for the SFS Group to leverage its innovation and responsible use of resources as a way of positioning itself as a sustainable company on the market.
Impact, risk and opportunity management (E5-1, E5-2)
Management follows clearly defined guidelines. The Code of Conduct obligates all employees to develop products and services that take economic, environmental and social benefits into account throughout the entire life cycle, thereby creating sustainable added value. The Sustainability guidelines lay out this commitment in more concrete terms by requiring the sparing use of raw materials, resource-efficient product and process design and use of the cold forming process, a core technology that offers significant material savings compared to other manufacturing technologies. Of our 117 ESG reporting locations, 67 (PY 65) are currently certified to ISO 14001.
Clear requirements also apply to our suppliers. The Supplier Code of Conduct obligates suppliers to practice sustainable resource management, waste reduction and recycling. Production waste should be recycled as far as possible.
Actions and resources (E5-2)
In practice, SFS promotes recycling programs at its production facilities, optimizes packaging designs and examines the use of recyclates. Sustainable design principles, which are evaluated using our sustainability scorecards, are already incorporated at the product development stage; these make it possible to design modular components, for example, that are easier to repair or dismantle. In addition to this, SFS’s value engineering approach focuses on innovations that increase the use of recycled materials, promote the use of renewable energies and boost the energy efficiency of our products. Financial and technological resources are allocated for these activities. The EHS Group Manager informs the Group Executive Board regularly of progress and any changes made.
Metrics and targets: Share of renewable materials increased marginally (E5-3 bis E5-5)
SFS’s goal is to continuously increase the percentage of recycled materials used in production and improve the recyclability of its products. Specific quantitative targets are currently being worked out and will be defined as part of efforts to refine the environmental management system. Qualitative control elements will be used until the environmental management system is fully implemented. The main materials used and the percentages of secondary raw materials are disclosed in the table below:
Materials used (resource inflows)
in tons | 2025 | % | +/–% | 2024 | % |
Raw materials (e.g. ores, minerals, wood) | 69,088.8 | 42.7 | –7.2 | 74,446.1 | 45.6 |
Associated process materials (e.g. lubricants) | 3,733.0 | 2.3 | 3.3 | 3,615.2 | 2.2 |
Semi-manufactured goods or parts | 14,716.6 | 9.1 | –14.6 | 17,242.4 | 10.6 |
Packaging materials (e.g. paper, cardboard, plastics) | 12,797.9 | 7.9 | 1.2 | 12,641.1 | 7.7 |
Trading goods | 61,573.0 | 38.0 | 11.3 | 55,309.9 | 33.9 |
Total weight of products, technical and biological materials sourced | 161,909.3 | 100.0 | –0.8 | 163,254.7 | 100.0 |
Thereof renewable materials | 13,288.4 | 8.2 | –0.1 | 13,295.1 | 8.1 |
The previous year’s figures have been restated for better comparability. The joint venture Sunil SFS Automotive Parts Co., Ltd. was excluded, and the subsidiary Triangle Fastener Corporation was included (−5,799.0 t in total weight).
Around 80% of the materials used at SFS come from the categories of raw materials (predominantly steel) and trading goods. Due to the large volumes used, we would like to systematically increase the percentage of recycled materials in these two categories. In the reporting year, SFS increased the proportion of renewable materials marginally to 8.2% (PY 8.1%).
Our products are characterized by high durability. Return and reuse concepts are gradually being expanded, particularly for trading goods and in the area of tool reconditioning. These efforts are aimed at steadily increasing the percentage of recycled materials in products and packaging. Although waste has not been identified as material, it is being minimized systematically and dealt with properly.
Outlook
The efficient use of materials and promotion of sustainable product solutions are key components of the SFS Group’s sustainability strategy. Our resource-efficient production methods, the expansion of recycled materials in purchasing volume and innovative product designs are helping us make an important contribution toward reducing resource consumption and decarbonizing the value chain.