Waste

GRI 306-1,2,3,4,5

We began reporting on GRI 306 Waste 2020 in our 2020 Sustainability Report and have set ourselves the target of reducing the share of waste disposed in 2030 to 21% of total waste, representing a 50% decrease compared to the 2019 baseline of 42%.

In 2022, we reduced the share of our waste disposed to 28% of total waste. Total waste includes diverted waste (recycled and reused) and disposed waste (incinerated with and without energy recovery and landfilling). Waste data from 166 operational sites were consolidated in 2022.

The share of waste disposed means the total weight of waste directed to disposal by Oerlikon calculated as a percentage of the total weight of waste generated by the Group. Currently, many of the waste-reduction initiatives are implemented locally. For example, our team in Germany leveraged digital technology for their picking list system, enabling pickers to receive scanned inventory lists for shipping over mobile devices, removing the use of paper and thus reducing paper waste.

We are working on improving the quality of our reporting on waste and will begin to work more closely with sites that have a high level of disposed waste (in absolute values) to identify solutions. Our goal is to continue to identify measures and work toward achieving our 2030 waste target.

Circular Economy

GRI 3-3

At Oerlikon, we see the future of sustainability as inextricably linked to circular-economy innovations, regenerative practices and advanced recycling management. Circular approaches are therefore central to our strategy for optimizing our environmental performance.

Though the programs are still in the early stages, we are looking into circular solutions that convert our waste streams to raw materials for use in other industries. In our supply chain, we are purchasing recycled materials for reuse.

To achieve our hazardous waste goal, multiple units across Oerlikon worked to recycle or recover waste streams for reuse. For example, at our site in Aurangabad, India, we installed an effluent treatment plant that ensures zero liquid discharge. This plant is being used to treat 120 m³ per year of effluent generated from the tool cleaning and stripping process, and both streams are collected in separate tanks and further treated, resulting in an annual reduction of solid hazardous waste to only 50 kg and no liquid discharge.

These are some examples of our efforts to contribute to and participate in the circular economy. As we define the processes and measures to systematically gather and analyze data, identify measures and report on waste, we seek to work in parallel, and also within our ongoing Scope 3 project, to improve circularity along our value chain.

Waste	Unit	2022¹ Total	2021² Total	2019 Total
Hazardous waste	kilotons	10.2	10.2	11.6
Non-hazardous waste	kilotons	13.2	11.9	11.3
Total waste generated	kilotons	23.4	22.1	22.9
Total waste diverted from disposal	kilotons	17.0	15.2	13.3
Total waste directed to disposal	kilotons	6.5	6.9	9.6
Share of waste disposed	kilotons	28%	31%	42%

¹_{Including 2021 acquisitions.}
² _{Excluding 2021 acquisitions.}

Promoting Resue by Extending Tool Life

Case Example

Oerlikon India has expanded the cutting tools reconditioning services it offers to customers located in Vietnam, Thailand and the Philippines as well as India.

Reconditioning is an excellent way to give tools a second, third or multiple new lives, which results in less disposed waste and supports the circular economy.

Win-win Situation by Introducing Waste Oil Barrels to the Circular Economy

Case Study

The Oerlikon Metco site in Shanghai, China uses oil as fuel for the coating process of thermal spraying and mainly discarded the empty kerosene drums as waste. Within a year, around 120 such barrels are needed.

To avoid hazardous waste, such barrels were burned in the past. The site signed a new hazardous waste agreement and chose a new supplier who has the ability to clean waste oil barrels. The barrels from Oerlikon Metco Shanghai are in very good condition after use and show hardly any damage. The new supplier collects the used barrels free of charge because they are able to resell them directly after cleaning.

With this new agreement, the site can save on the costs of disposing such barrels, and also ensure that they have been treated and returned to the market in compliance with all relevant legal requirements.

Waste Reduction by Recycling Activated Carbon

Case Example

Activated carbon is used to regenerate solvents that are part of the coating process. At Oerlikon Balzers in Suzhou, China, a partner takes back the used activated carbon and recycles it in line with the principles of the circular economy.

The partner also offers us the new activated carbon at a lower price. This alternative to disposal is not only more cost-effective, but also saves energy and CO₂ and reduces the amount of waste.

Less Waste with Newly Developed Auxiliary Fixture

Case Study

Facings with grooves are used in synchronizer rings in automotive transmission systems. To assemble them, that is, when they are inserted, carbon strips with oil grooves are preloaded. At Oerlikon Metco in Shanghai, China, up to 70 carbon strips were discarded per shift in the past because the filigree carbon strips broke easily when employees manually preloaded them. Furthermore, the joint of the carbon strip could not fully (100%) rest on the bump of a ring as required when done manually.

With a newly developed auxiliary device, the operator can now easily rotate the carbon strip into the ring without damaging it, and the strip can be placed with absolute accuracy. Errors are significantly reduced by this new fixture, and the scrap rate has thus been reduced from 3% to 0.2%. This not only saves waste, but also generates and average cost savings of CHF 14 000 per month, depending on the amount of products produced.