Next generation of sustainable Mg primary production

Content

ü  Challenges Mg in the value chain

ü  Sustainability as a chance to regain strengths

ü  Concept & tools

ü  Way forward & conclusions

“Although, Magnesium s?ll has a strong posi?on in the “lightweight material-‐mix”, it has certainly lost ground to Aluminium, Carbon Fibre and Reinforced Steel”

5 principles

Source: Automo?ve Technology: Greener Products, Changing Skills, CAR May 2011

Another lightweight material comparison

The defini?on of Sustainability

“We are what we measure. It's ?me to measure what we want to be.”

ü Living within the limits ü Understanding the interconnec?ons among economy, society, and environment

ü Equitable distribu?on of resources and opportuni?es

Sustainability for Business & Produc?on

ü Product -‐ Safe and ecologically sound throughout its life cycle

ü Process -‐ Wastes and ecologically incompa?ble by-‐products are reduced, eliminated or recycled on-‐site

ü Workers -‐ Their security and well-‐being is a priority

Global & Corporate repor?ng interface

Mandatory repor?ng instrument

“Repor?ng sustainability makes it more valuable. One of the main corporate benefits is reputa?onal, another is the requirements of the supply chain. Repor?ng is an integral part of sustainability. Repor?ng mechanisms such as the GRI reinforce this.” “Global investors will only invest in companies in this part of the world if they see that companies are repor?ng honestly.”

SGX CEO Magnus Bocker

Corporate commitment – CEO study 2014

ü most CEOs surveyed agree that business has social as well as financial responsibili?es

ü 80% say it’s important for their business to measure and reduce its environment footprint

ü 74% agree that measuring and repor?ng non-‐financial impacts contributes to their business’ long-‐term success

Shi_ from shareholders to stakeholders ü In 2014, the European Parliament passed a new law will require its biggest companies to include sustainability factors as part of their annual financial reports

ü Today, 2,500 companies voluntarily produce sustainability reports; that will rise to nearly 7,000 by 2017, when the law goes into effect

ü Addressing their supply chains is the next big task

From voluntarily to mandatory – a chance for Magnesium?

ü OEMs and Tiers need to talk more about their raw material procurement strategies

ü Sustainability is already used on a large scale for all stakeholder communica?on

ü Excellent examples from Aluminium and Automo?ve companies

ü Magnesium must claim its value for sustainable content, in all major applica?ons and markets

Less known Magnesium landscape 1

2 3

4

5

Corporate Aluminium Reports 3

Text analysis based on LingRep technology by econob/Austria

Corporate Automo?ve Reports 5

Text analysis based on LingRep technology by econob/Austria

Excellent communica?on

ü  JLR is commifed to growing the business responsibly and sustainably, adding value to our customers, stakeholders and wider communi?es in which we operate. In 2015, we have been honoured to be recognised with the Queen's Award for Enterprise in Sustainable Development

ü  Crucially, the experience gained and lessons learned from the crea?on and implementa?on of a closed-‐loop value chain for automo?ve aluminum are poten?ally applicable to other materials and other industries.”

Excellent communica?on

ü  Ford recycles as much as 20 million pounds of aluminum stamping scrap per month using the closed-‐loop system at Dearborn Truck Plant, which builds F-‐150. That is the equivalent of more than 30,000 F-‐150 bodies in the largest configura?on – a SuperCrew body including doors, plus hood, tailgate and 6.5-‐foot cargo box.

ü  Op?ng for aluminum over steel in new automobile construc?on is the best way to reduce energy consump?on and carbon emissions

Concept & Tools including Sustainability

Circular Economy

ü Circular Economy as a complete concept has recently gained trac?on in European policymaking as a posi?ve, solu?on based perspec?ve for achieving economic development within increasing environmental constrains

ü Overall aim to manage all natural resources efficiently and, above all sustainable

ü Increasing the share of renewable or recyclable resources while reducing the consump?on of raw materials and energy and at the same ?me cukng emissions and material losses

Circular Economy

Regional legisla?on set-‐out tail-‐pipe goals

Will this policy lead to

lightweight vehicles?

ü EU legisla?on sets mandatory emission reduc?on targets (end-‐tail pipe); av. 2014 123,4: 2021 target 95 grams of g C02/km

ü Limit value curve; only fleet average is regulated

ü Phase-‐in of requirements; 95% in 2020; 100% in 2021

ü Penalty payments -‐ excess emissions premiums 5€(1stg); 15€ (2ndg); 25€ (3rdg); 95€ (each g); from 2019 every g 95€

ü Eco-‐innova?ons; max. credits saving 7g/km

ü Super credits for low emission cars <50g/km; also apply 2020-‐2023

ü Pools ac?ng jointly ü Targets for smaller manufactures

ü Monitoring of emissions

ü Long-‐term target to maintain a clear emission-‐reduc?on trajectory

Regional legisla?on set-‐out tail-‐pipe goals

Concepts & Tools: Carbon Impact Factor

ü  CIF enables OEMs to demonstrate and communicate their efforts to reduce carbon intensity (risk) within their supply chain

ü  O_en no traceability of raw material inputs beyond the primary processing point

ü  As a result, different raw material data are aggregated or compounded

ü Raw Material policy is material neutral EU CRM list/secure sourcing policies

ü Raw material policies do not include (exis?ng & future) holis?c greener supply scenarios, and are focused historic paferns

ü Sustainability repor?ng do not show (essen?al) alloying elements & Cut a_er primary produc?on

ü CO2 reduc?on legisla?on does (partly) emphasize light-‐weigh?ng, but no par?cular connec?on to raw materials

ü OEMs/stakeholder knowledge for alterna?ve supply scenarios and reliable environment data from RM producers

The lack of coverage as chance for RM

Next genera?on of sustainable Mg

primary produc?on

All direct & indirect industry applica?ons


primary produc?on



primary produc?on


Example – 6 Challenges from Toyota

Example – Challenge 2 Life Cycle Zero CO2

ü Cukng total vehicle lifecycle CO2 emissions, including materials, parts and manufacturing

ü Developing, designing and using low-‐CO2 materials; reducing the amount of material and the number of parts used in order to cut overall CO2 emissions involved in manufacturing materials

ü Using recycled bio-‐materials more widely; designing vehicles for easy dis-‐assembly; other ini?a?ves focusing on environment-‐conscious vehicle designs

Awareness boost – “The Water App”

From Tail-‐pipe to CO2 heritage policy ü Every part used in a vehicle has its own CO2 footprint or heritage (e.g. current traceability on cas?ngs)

ü A vehicle is the “sum of parts” and its manufacturing process

ü Policy on OEM fleet targets (similar structure than tail-‐pipe policy) ü Progressively decreasing goal to Zero emissions vehicles in all its “life-‐stages”

ü Mul?ple policy elements for ü Material choice: LCA, CRM, CONFLICT, REGIONAL,…

ü  Circular economy: Planning, use-‐phases, recovery, recycling

ü  Lightweight: “Absolute” Weight of a vehicle

ü  Green procurement strategies of OEMs

ü More visible fiscal and other incen?ves

Sustainability – enable high volume growth? ü Magnesium industry need to invest into global spread raw material/semi-‐fabricated material supply base

ü Magnesium stakeholders need to engage into global policy process and inform & promote Magnesium

ü Magnesium needs to par?cipate in “own” Circular Economy best prac?ces projects, and close informa?on gaps on e.g. recycling

ü Informa?on of Magnesium LCA etc. must be up-‐dated and easy accessible for different value-‐chains and stakeholders to enable green procurement strategies

ü Magnesium must show its “sustainable value” in the Aluminium industry

ü More good examples from IMA and members on consumer/user level

Contact: Dr. Ing. Mar?n Tauber FAURIS GCV Management Honsdonkstraat 31 3120 Tremelo Belgium

cell: +32 471 136609 mail: [email protected] hfps://be.linkedin.com/in/taubermar?n

Next generation of sustainable Mg primary production

Automotive

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