MINIMIZING OUR ENVIRONMENTAL IMPACT

Carpenter Technology is committed to protecting the environment and recognizes the need to minimize our impact through a managed sustainability program. Learn more about Carpenter Technology's environmental stewardship efforts below. 

Athens,  Alabama facility

ATHENS, ALABAMA FACILITY

Athens,  Alabama facility

ATHENS, ALABAMA FACILITY

STRATEGY & GOVERNANCE

Carpenter Technology's Board of Directors maintains overall responsibility for Environmental, Social, and Governance (ESG) related matters, including climate-related risks and opportunities.

The ESG Steering Committee, which includes functional and business leaders, ensures the company's sustainability strategy is aligned across the enterprise and defines annual and midterm targets that inform our public reporting. 

The Environmental, Health and Safety (EHS) team oversees our environmental management system with technical experts in all facilities where we operate. The EHS team develops policies and protocols that establish our global standards for energy management, and greenhouse gas emissions, air emissions, waste, water, scrap metal recycling, sustainable sourcing, and training. In addition, the EHS team is responsible for ensuring we are complying with applicable legal and regulatory requirements.

 

ENVIRONMENTAL MANAGEMENT SYSTEM

Our Environmental Management System includes mechanisms to regularly evaluate environmental compliance and managing changes in business operations while assessing actual and potential environmental impacts. We actively monitor and manage: Greenhouse gas emissions, energy use, air emissions, waste management, water management, and sustainable sourcing. 

Our reported environmental data cover all manufacturing operations. The data is tracked at the facility level and reported through the EHS team. 

In 2022, Carpenter Technology received ISO14001 certification for our Reading, PA, Latrobe, PA, and Athens, AL facilities, representing the majority of our operations. Our Liverpool, UK facility, which produces iron, nickel, and titanium powders for the additive manufacturing industry, also received ISO14001 Certification. 

 

WE ARE ISO14001 CERTIFIED.

GHG EMISSIONS AND TARGET REDUCTIONS

When it comes to GHG emissions, our product portfolio and manufacturing operations are differentiated from many other steel manufacturers around the world:

  1. Our specialty alloys do not require the coking or iron ore operations that are found in carbon steels, which require carbon-intensive inputs like coal.

  2. Our melting operations use low-carbon electric arc furnaces and vacuum-induction melting furnaces as opposed to blast furnaces.

  3. The majority of our material inputs are from reclaimed or recycled steel and alloys.

  4. Over 90% of our electricity is sourced from nuclear power and other carbon-neutral sources of power.

 

Emissions

As we emerge from the pandemic and ramp up our operations, we are seeing an increase in our absolute emissions and intensity. However, we expect our emissions intensity to quickly fall back to previous levels as our operations achieve — and surpass — previous output levels. To help put our emissions into the context of the broader steel industry, we also report our crude steel emissions. Production of crude steel is the basis for SBTi’s steel industry sector decarbonization approach. As you can see, our crude steel emissions are world-class for the industry and below SBTi’s publicly stated target for a “well below 2°C” scenario. In 2021, 91% of our electricity was sourced from nuclear power and other carbon-neutral sources. Going forward, we will look to increase and diversify our use of carbon-neutral and renewable power.

Scope 1 & 2 Emissions (Metric Tons, Thousands)

Carpenter-Technology-Scope-1-and-2-Emissions_Bar-Graph-1

91%-1
OF OUR ELECTRICITY WAS SOURCED FROM CARBON NEUTRAL POWER IN 2021

CO₂ Emissions Intensity

Carpenter-Technology-CO2-Emissions-Intensity_Bar-Graph

Crude Steel CO₂ Emissions Intensity

Carpenter-Technology-Crued-Steel-CO2-Emissions-Intensity_Bar-Graph

 

Target Reductions

Carpenter Technology has set the goal of reducing intensity of Scope 1 & 2 CO₂ emissions per ton of material by 30% by 2035. We are using 2019 CO₂ emissions as our baseline year, as it was the last full year of operation before the COVID-19 pandemic.

Carpenter-Technology-30%-REDUCE-Demissions

We plan to achieve this through four main activities:

  1. Recycle waste heat from our furnaces to improve efficiency of furnace operations.

  2. Convert natural gas-fueled boilers and furnaces to electric.

  3. Increase the share of carbon-free grid-electricity, using renewable and nuclear-based energy.

  4. Improve our operational efficiencies.

 

In addition, we will pursue other initiatives that will help us further drive down our CO₂ emissions.

Finally, we aspire to achieve net-zero carbon emissions by 2050 for Scope 1 & 2 emissions. Meeting this goal will require technological advancements — such as carbon capture systems and the use of hydrogen in specialty steels — and customer partnerships before becoming commercially feasible. We are committed to evaluating and investing in new technologies that will move us towards a net-zero future.

Carpenter-Technology-CO2-Emissions_Bar-Graph

 

Approach to Setting Targets

To set these targets, we conducted a detailed assessment of our operations, including onsite audits and an analysis of our historical data. We identified a set of opportunities to reduce CO₂ emissions, then prioritized those initiatives based on the greatest impact.

We also reviewed the Science Based Targets initiative (SBTi) guidance for the steel industry. SBTi’s sector decarbonization approach for the steel industry is based on the production of crude steel. Using the SBTi approach — measuring our emissions intensity only for manufacturing crude steel — we are below the target levels for a “well below 2°C” scenario. However, we continue to process material beyond the initial melting step associated with crude steel; our targets are for the entirety of our operations.

 

Carpenter-Technology-Emerging-Technology-Center-700DPI

Emerging Technology Center in Athens, Alabama

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WATER MANAGEMENT

To minimize our impact and mitigate risk on shared water resources, we implement best practices in water use while looking for ways to further reduce our water consumption.

Examples of water consumption and discharge reduction include:

  • We’ve reduced the nitrates in the treated water discharge from our Reading, PA, facility by nearly 64% since 1997.
  • Our Reading facility installed three cooling water treatment systems that reduce water consumption and discharge. 
  • Our facilities utilize high-rate water recirculation systems to minimize the amount of water required for cooling. These systems have water recirculation rates greater than 97%. 

We manage wastewater discharge in accordance with the National Pollutant Discharge Elimination System Permit put in place by the U.S. Environmental Protection Agency (EPA). All sites conduct routine monitoring of treated wastewaters and storm waters through sampling and analysis to ensure compliance with respective permits and limits. 



Water Use in 2021

Screenshot 2022-10-11 163255

 

WASTE MANAGEMENT

By preventing waste in our manufacturing processes, we can reduce environmental risks nd operational costs. We track the amounts and types of waste generated by each facility an review audits of our third-party waste management partners. 

In addition to waste reduction, we reuse or recycle as many byproducts as possible; for example, we reuse metal scrap in our melt operations. In 2021, we recycled 84% of all waste, including 100% of slag produced in our melt operations.

Our waste management approach ensures that all waste, including hazardous and nonhazardous waste, is disposed of in compliance with all federal and state hazardous waste management requirements, including the EPA's Resource Conservation and Recovery Act (RCRA). We dispose of waste at approved Treatment, Storage or Disposal Facilities that have obtained proper environmental permits for disposal. 

77% Waste
OF OUR WASTE WAS RECYCLED IN 2019

AIR EMISSIONS

We closely monitor and report air emissions from our major manufacturing sites. Emissions tracked include GHGs, nitrogen oxides (NOx), sulphur oxides (SOx), volatile organic compounds (VOCs) and hazardous air pollutants (HAPs). All air emissions data can be found in our latest SASB table.

All manufacturing facilities strictly comply with applicable regulatory requirements regarding emissions limits and hold valid air permits where required. We have implemented many measures to reduce emissions, including dust, mist, and fume pollution capture and control systems. Efficiency is always a consideration during equipment repair and upgrades; for example, production furnaces are retrofitted with higher efficiency burners and other components. The use of volatile compounds, particularly related to degreasers such as trichloroethane (TCA), trichloroethylene (TCE) and tetrachloroethylene (perchloroethylene or PCE), have been greatly reduced or eliminated.

SUSTAINABLE SOURCING AND SUPPLY CHAIN MANAGEMENT

We are committed to conducting our business in an ethical, legal, and socially responsible manner. We expect our suppliers, customers, and vendors around the world to operate in line with the values outlined in our Code of business Conduct and Ethics, Human Rights Policy, and Supplier Code of Conduct. 

Sustainable Sourcing

Carpenter Technology is proud to create products that contain as much recycled or reclaimed material as possible. We rely heavily on the use of reclaimed metal in our production of highly specialized metal alloys to reduce the need to procure carbon-intensive inputs:

  • We recover as much metal byproducts as possible from our operations.
  • We seek opportunities to source scrap material from customers to return to our production process. 

We also source materials from suppliers that align with our sustainability mission to reduce environmental impact through carbon-neutral programs, including our main source of pure nickel. 

73%
OF THE FEEDSTOCK USED IN PRODUCTION IS RECYCLED SCRAP

SUSTAINABLE SUPPLIERS

In 2022, Carpenter Technology introduced a Supplier Code of Conduct, requiring all suppliers and vendors to conduct their business with Carpenter Technology's high ethical standards, respect for fundamental human rights based on internationally recognized standards, and respect for environmental practices in line with applicable environmental laws and regulations worldwide. We are engaging with our suppliers around these topics. 

 

Screenshot 2022-10-11 164110
Screenshot 2022-10-11 164110

CONFLICT MINERALS: RESPONSIBLE MINERALS INITIATIVE

We ensure materials used in our products are sourced in an ethical manner and in compliance with applicable laws and regulations, including the Security Exchange Commission's "Conflict Minerals" rules. In accordance with these rules, we do not purchase any mineral that may originate from Democratic Republic of the Congo or any other region that is not certified conflict free. For more information, see our Conflict Minerals Policy and Conflict Minerals Disclosures

To remain at the forefront of sustainable sourcing practices, we work with the Responsible Minerals Initiative (RMI), a reputable third-party provider, to assess and validate conflict-free suppliers, including environmental sustainability and human rights. 

RMI provides the following tools and resources to ensure our business remains compliant and in support of sustainable mineral supply chains: 

  • Supply chain mapping using reporting templates
  • Third-party assessments of smelters, refiners, and downstream companies. 
  • RMI eLearning Academy provides training to supply chain professionals. 
  • Risk assessments to identify high-risk areas in mineral supply chains.
  • Reporting mechanisms to communicate due diligence programs. 

Supplier Policies: Supplier Code of Conduct and Human Rights Policy

In 2022, Carpenter Technology introduced a Supplier Code of Conduct requiring all suppliers and vendors to conduct their business with Carpenter Technology’s high ethical standards, respect for fundamental human rights based on internationally recognized standards, and respect for environmental practices in line with applicable environmental laws and regulations worldwide. We are engaging with our suppliers around these topics.

 

VIEW OUR POLICIES