2 Environmental matters

2.1 Sustainable solutions

Bystronic applies due diligence in environmental matters. Relevant impacts, risks and opportunities are regularly assessed, and appropriate policies implemented. As part of the double materiality assessment, Bystronic evaluates the potential positive and negative impacts its business activities have on the environment.

The most important risks to the environment are:

• Rising energy costs
• Stricter environmental regulations
• Availability of raw materials and spare parts

Bystronic also sees multiple environmental opportunities, such as:

• The development of new, energy-efficient technologies
• Rising demand for environmentally friendly products
• The growing popularity of circular economy principles

Bystronic has integrated climate-related risks into its risk management. Further information can be found in the Task Force on Climate Related Disclosures (TCFD) report.¹

The companyʼs environmental strategy and guidelines define goals and obligations as well as measures and responsibilities related to a range of environmental issues. Measures are taken to reduce negative impacts on the environment.

The companyʼs environmental goals include:

• Reduce greenhouse gas emissions in all areas in alignment with the net zero roadmap
• Reduce energy consumption and become a climate-neutral company
• Increase the energy efficiency of our products to assist with the decarbonization of customers
• Develop sustainable products and services to reduce/lower greenhouse gas (GHG) emissions
• Improve resource efficiency and reduce waste by using circular processes

The company published an environmental policy in 2024 reinforcing its commitment to the highest environmental standards regarding climate action, energy efficiency, circular economy, product design, pollution, waste management, biodiversity, and deforestation in operations and in the value chain.

2.2 Environmental initiatives

2.2.1 Renewable Energy

Bystronic is enhancing its sustainability efforts by installing solar panels at key production sites and converting its largest plants to renewable electricity where feasible. Additionally, the company is introducing ISO 14001 certification at new plants, electrifying the heating systems and increasing the share of electric vehicles in the fleet.

2.2.2 Cleantech solutions

Through its commitment to sustainability-led innovation, Bystronic focuses on material and energy efficiency in all of its customer quotes. We conduct life cycle analyses (LCAs) and use eco-design principles in the development of products. Our cleantech solutions portfolio encompasses a range of systems, services, and software that increase material and energy efficiency. These include products such as laser sources and chiller systems that save energy, and metal bend­ing and cutting technologies that reduce waste.

2.2.3 Service and maintenance

Bystronic is adopting circular approaches to extend product lifespans and boost resource efficiency. Service packages like ByCare keep machines in optimal condition and extend their service life and resale value, while also reducing errors, downtime and waste. Key initiatives include the proactive maintenance and refurbishing of machines and components, thereby preserving the energy and materials from the initial production. Preventive service programs identify and address issues early, enhancing longevity and productivity. Modu­lar designs allow easy upgrades and repairs, further extending ma­chine lifespans. Digitalization, through tools like BySoft Suite, also enhances material efficiency by streamlining operations.

2.2.4 Research and Development

Bystronicʼs modular machine and solutions design approach paves the way for future upgrades and modernization, which are vital for maintaining the value and efficiency of the machinery over time. By enabling the seamless integration of new technologies and components, Bystronic ensures that its machines keep pace with evolving industry standards and customer needs without needing to be completely replaced. New systems like ByCut Star and ByCut Smart exemplify this modular design approach. As part of the OnePlatform project, modularity in these machines ensures common parts are used, simplifying repair and spare part logistics, enhancing efficiency, and extending product lifespan. Moreover, the modular nature of Bystronicʼs machines allows for tailored configurations to meet specific customer requirements and ensures they can be optimized for different production environments. For example, our ByTrans Modular system provides scalable material handling solutions that grow with the customersʼ needs.

2.2.5 Innovative functions for sustainable sheet metal processing

Bystronicʼs commitment to improving operational efficiency and sustainability is visible in the resource and energy efficiency features integrated into our fiber laser cutting and bending machines, which are designed to optimize material use, reduce waste, and increase productivity.

• Nesting Software: Our software that optimizes fiber laser cutting and reduces metal consumption up to 14% for the same pro­duction volume. The software op­timizes the cutting plan by narrowing web widths, increasing the number of parts on the cutting plan, and adjusting the cutting path to minimize waste. Additionally, it adjusts laser power and speed based on the material and sheet thickness. By analyzing the size and shape of residual sheets, the software identifies the most efficient way to use them in subsequent cutting processes.
• Intelligent Cutting Process (ICP): A coaxial camera monitors the cutting process through the nozzle of the fiber laser and ensures reliability through proactive and reactive measures. This reduces downtime and material waste in case of nozzle loss. By preventing unrecognized cut interruptions, the ICP feature helps minimize waste.
• Parameter Wizard with Artificial Intelligence (AI): This feature combines intelligent human-machine interaction and AI-based optimization to support the operator when a new type of metal is introduced. Leveraging AI helps to quickly and precisely define the correct parameters to optimize cutting quality, eliminating the need for time-consuming trial and error methods.
• Nozzle Control Tool (NCT) & KerfScan: NCT enables automatic nozzle centering in seconds and monitors nozzle condition and type. KerfScan examines the oxygen cut to detect residual slag inside the cutting gap/kerf, which allows parts to be recut as needed. This combination ensures a consistent, high-quality cutting process that reduces waste and rejected parts.
• Laser Angle Measurement System (LAMS): This feature ensures precision and productivity in the bending process by eliminating the need for time-intensive measuring and part correcting. LAMS optimizes metal waste reduction by achieving precise angles and minimizing misshaping, ensuring that the first bend is flawless.
• Nitrogen generators: Nitrogen generators, like NitroCube and Airco System, enable in-house production of high-purity nitrogen for fiber laser cutting systems, reducing energy use and carbon emissions. In Bystronicʼs life cycle assessment, nitrogen use was the largest contributor to indirect CO₂ emissions. Traditional methods require substan­tial power and transportation, increasing the carbon footprint. In-house generation eliminates the need for transport and allows efficient, on-demand nitrogen production, offering environmental and fi­nancial benefits.
• Laser sources and chiller systems: Laser sources and chiller systems are the core of our laser cutting machines. They are also the main drivers of energy consumption and carbon emissions. As part of our commitment to deliver cleantech solu­tions, we have identified significant potential in optimizing the energy performance of our laser sources and chiller systems, which we aim to explore with our R&D.

2.3 Decarbonization

Energy and climate change are key topics with global impact along the value chain. This has led us to step up our decarbonization efforts. The most important climate risks are (as described in our TCFD report):

• Risk of increasing operational costs due to carbon pricing (€50 to €150 per ton), new taxes (the EU Carbon Border Adjustment Mechanism: CBAM), new regulations (EU eco-design rules), and new efficiency targets (energy label)
• Risk of an increase in energy costs, which impacts machine use and production
• Risk of extreme weather events that damage infrastructure, equipment or material.

In 2023, we joined the Science Based Targets initiative (SBTi), to further reduce the carbon emissions of our business, our suppliers, and our customers. Our goal is to achieve net-zero operations and to achieve a net zero value chain by 2050.

At our headquarters in Niederönz, we replaced natural gas heating with geothermal heating, reducing natural gas usage. A milder winter in 2024 also reduced energy consumption for buildings and district heating. Additional photovoltaic panels boosted the production of renewable electricity. Increased machine deliveries from Chinese plants, however, led to higher non-renewable electricity consumption. The share of usage of renewable electricity will slightly increase in 2025 with the upcoming activation of the Power Purchase Agreement (PPA) for the US plant.

Scope 1 and 2 greenhouse gas emissions exceeded the 2024 science-based targets reduction (Target: 10,344 tCO₂e). This was mainly driven by reduced manufacturing activities.

Scope 3 emissions account for over 99% of Bystronicʼs carbon footprint. With 74% from product use, Category 11 is the highest emission source. These emissions are based on electricity consumption throughout the entire product life cycle, according to GHG Protocol guidelines. 22% of Scope 3 emissions come from purchasing goods and services (Category 1). The year-over-year reduction of Scope 3 emissions was mainly due to reduced manufacturing activity.

Further information on the system boundaries, assumptions and calculation methods are published in the “Data Calculation Methodology 2024” at the following link.

2.4 Resource efficiency and circularity

Bystronicʼs approach to circularity includes efforts to increase recycling, re­use and extended lifespan. With our positioning as a full solutions provider, we can make a significant contribution here. The most important risks related to circularity are (as described in our TCFD report):

• Risk that the logistic costs will impact material costs. Circularity must be embedded in the business model and the products to limit the increasing cost of purchases
• Risk of being late compared to the competition, commitment to climate targets and the positioning of Bystronic as a sustainability pioneer

We set a 2030 target to reduce waste by 20%. The reduced waste generation in 2024 compared to prior year is, however, partially due to reduced production activity.

In 2024, water consumption data was collected from 9 out of 10 manufacturing sites and 8 out of 29 sales entities. We are improving our data collection year-over-year and will soon include all company sites.

Although water use in our production facilities plays only a minor roll, the topic of water use in the machinery industry is important. Bystronic needs to investigate to what extent its supply chain may be impacted by water scarcity, floods, storms, and other weather and coastal disaster risks. With the help of the Aqueduct Water Risk Atlas of the World Resources Institute, Bystronic has assessed the water-related risks at its manufacturing plants. Special attention needs to be paid to the Tianjin production plant and its supply chain to avoid future disruption related to potential regional water quotas in Chinese industry.

Details on data performance indicators and calculation methods can be found in the “Data Calculation Methodology 2024” online.