Sustainability framework

For VAT, sustainability means creating long-term value not just for the company, but also for the environment and the people we affect. "Creating value sustainably" can only be achieved when our actions ensure a prosperous future for the company, the planet, and the people impacted by our work. Therefore, sustainability at VAT is built around three key pillars: People, Planet, and Performance where People represents the social dimension, Planet, the environmental dimension, and Performance, the economic dimension. All the sustainability efforts undertaken by VAT contribute to one (or multiple) of these three dimensions.

Internally, we foster a diverse and inclusive work environment where all employees can be their unique selves, no matter their gender, racial and ethnic background, sexual orientation, physical and mental disabilities, age, religion or socioeconomic backgrounds. We believe that an inclusive and diverse team can increase productivity, creativity and innovative ideas and we therefore promote employee learning development. Externally, we make sure that the same ethical standards are applied across our supply chain, protecting workers’ rights. We also take initiatives to increase our positive impact on the communities where we operate and society at large. 

Our priority is to implement measures to reduce VAT’s environmental impact on the most relevant dimensions. It is important for us to consider also the repercussions that exist between the global warming as a result of greenhouse gas emissions, the use and pollution of water and the impact on biodiversity. Therefore, VAT’s primary environmental goal is to decrease the CO2 emission-intensity of our sites, as well as across our value chain to limit climate change. Additionally, we strive to improve resource efficiency including water, energy, and land. In the future, we also want to assess our impact on biodiversity, primarily for our own business but also for our value chain

We at VAT believe that considering the environment and the people goes hand in hand with both increased efficiency and continued business success. We want to harness the benefits of resource efficiency, circularity, and sustainable innovation to continue creating value and growing our business. Apparent opportunities arise given that both economic and environmental considerations aim for the most efficient use of resources. Besides that, we implement sustainability criteria into our product design early on, enabling better solutions for our clients and opening new business opportunities.

Governance

VAT includes sustainability into its business strategy using a framework based on the identified material topics according to the double materiality assessment performed in 2022. Our strategy also allows us to further contribute to the UN’s sustainable development goals (SDGs), to define clear targets per topic and to follow a prioritized roadmap of measures to work towards these goals. In line with our governance structure, the sustainability strategy was endorsed by VAT’s Group Executive Committee as well as the Sustainability Committee of the Board of Directors.

 

Our contribution to the SDGs

VAT takes care of the health, wellbeing, and safety of its employees. We carry out awareness campaigns on health issues such as breast cancer or mental health. Through VATcares, we also provide essential humanitarian aid on a global scale. 

VAT prioritizes initiatives that support STEM education, providing local education programs beyond our own training schemes, internships, and apprenticeships. VAT sponsors students to explore science and technology-related career paths.

We are committed to an inclusive workplace where all have equal opportunities for advancement. We strive to increase gender diversity for example by inspiring young talents and setting hiring targets. 

We strive to minimize our water footprint, source freshwater, and discharge wastewater without negatively impacting ecosystems, both for VAT's operations and its suppliers, for example by using advanced wastewater treatment systems.

As part of our effort to reduce GHG emissions, VAT is increasing its share of energy consumed from renewable sources at all our production and service sites, as well as promoting the use of more energy efficient technologies, such as solar panels.

By integrating human rights considerations into our policies and business processes, we aim to protect our employees’ rights and well-being, and create an environment where people and businesses can thrive.

VAT innovates to become a key player in the development of sustainable technologies, through products empowering emission-reducing technologies, such as solar photovoltaic, solar thermal technologies and nuclear power.

We are promoting an efficient use of aluminum, water and other resources. By prioritizing waste reduction, recycling, and proper disposal methods, we aim to minimize our ecological footprint, conserve resources, and promote a circular economy.

By decreasing our GHG emissions, VAT aims to mitigate its impact on climate change, contribute to global efforts to reduce carbon emissions, and safeguard the environment for future generations.

Sustainability targets

Health, Safety, & Wellbeing

  • Maintain accident severity below 10 by 2026
  • Set up ISO 45001 (Health & Safety) management system by 2025

Human rights

  • Conduct human rights risk assessment at all VAT manufacturing sites
  • Train at least 95% of employees in human rights

Diversity, equity, and inclusion

  • Increase the share of women among new hires to 24% by 2027 and 25% by 2030
  • Increase the share of women in leadership positions to 25% by 2027

Workers in the supply chain

  • Conduct supply chain assessment with 80% of suppliers (by spend) in 2025
  • At least 90% of suppliers have signed VAT's Supplier Code of Conduct by 2025, and 100% by 2026

Impact on society

  • By 2029, 30% of employees are taking part in a social activity organized or supported by VAT

Climate change

  • Reduce scope 1 and 2 emissions by 50% by 2025 (versus 2022)
  • Reduce scope 3 emissions in line with SBTi 2033 (versus 2023)

Water impact

  • Conduct a water stress assessment per each VAT site by 2025

Use of energy

  • Increase the share of renewable energy consumed at VAT to over 90% by 2027

Profitable growth

  • Provide product-specific information on sustainability and circularity to clients for 20% of sales by the end of 2025

Circular economy

  • By 2029, increase the value of VAT's service offering by ensuring longevity and the promotion of product circularity

Resource efficiency

  • Increase the recycling rate of the scrap metal at VAT manufacturing sites to 100% by 2025

Enable sustainable technologies

  • By 2029, step-up the R&D efforts to ensure thought leadership in sustainable technologies

Resilience

  • By 2025, have mitigation plans for sustainability risks in place and managed in the group-wide risk management process
  • Over 95% of employees have completed the cybersecurity training by 2025
  • Maintain zero confirmed case of corruption
  • By 2025, 100% of reported whistleblowing concerns are investigated and closed

More details can be found in our Sustainability report.