“For many, it can feel complex and heavy to keep up – but for us in the steel industry, following these developments daily is a part of our work,” says Edwin Grönkvist, Global Sustainability Manager at Suzuki Garphyttan.
The company has initiated several activities to become compliant with coming legislations. We are not in scope for CSRD now, but to still have a high standard for reporting we will follow a non-mandatory standard, VSME.
“The benefits with structured and standardized reporting are, except for being compliant, that we can provide the correct information to our customers and make it easier for them to report. With this we can through in yet another abbreviation in the mix”, says Edwin.
Other advantages for Suzuki Garphyttan with this way of reporting is that we build trust with our stakeholders and we also make sure we have everything in place if legislation change.
Carbon Border Adjustment Mechanism
Carbon Border Adjustment Mechanism - CBAM - affects companies, like Suzuki Garphyttan, importing steel into the EU. Since we, as importers do this declaration the products we sell are compliant and customers in the EU do not need to report. Our customers in EU countries that buy from our UK factory must still report in line with CBAM. This means that our site in the UK has a different role to our site in Garphyttan, actively supporting clients and providing data when exporting to customers in EU countries.
Jonathan Chappell, Product & Project Manager at our Leeds production facility, has worked with CBAM since its implementation, he explains:
“I often see situations where timely, accurate CBAM information is critical. My role is to ensure our customers receive all the data they need when importing our products from the UK into the EU."
Our Leeds team is fully preparing to ensure a seamless transition when the next phase of CBAM takes effect next year:
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- Administrative ease → We will continue to supply all required reporting data directly to the EU customers in the EU format, ensuring minimal disruption to their operations.
- Monetary Fairness → As EU manufacturers will also face additional costs under the European Trading Scheme (ETS), we are aligning our approach so that the impact on our customers mirrors how EU-based competitors handle these costs - whether they choose to absorb them or pass them on to their customers.
There are preparations ongoing for a UK CBAM as well, meaning that companies in the UK importing steel needs to report. For example, a client in the UK buying from Site Garphyttan or Dusseldorf, will have to follow UK CBAM.
Ecodesign for Sustainable Products Regulation
What lies closest ahead for Suzuki Garphyttan is the Ecodesign for Sustainable Products Regulation, abbreviated ESPR. The directive tightens requirements on circularity, repairability, and resource-efficient product design.
“Here we need to collaborate across our organization – product development, marketing, production – to get it right from the beginning. We must find ways to create products that both meet customer expectations and at the same time are more sustainable, hopefully these requirements align” Edwin explains.
Within ESPR, you will also find the abbreviation DPP, which stands for Digital Product Passports. Wire from Suzuki Garphyttan is often a part of other products, so it is crucial that our product passports are in place to enable our customers to provide complete reporting of their products.