Content
Climate change
1. Introduction
2. Business
3. Performance
4. Governance
5. Sustainability
6. Financials
7. Appendices
E1 Notes on Climate change
Greenhouse gas emissions per business segment - consolidated activities
Million tonnes CO2e
2023
2022
2021
2020
2019
E1.1 Total greenhouse gas emissions in consolidated activities
Direct GHG emissions
7.15
7.63
6.94
6.52
Bauxite & Alumina
3.50
3.58
3.77
3.43
2.99
Reporting principles
Primary aluminium production
2.70
2.95
3.20
2.89
2.85
Total direct and indirect (scope 1 and scope 2) GHG emissions in Hydro consolidated activities. The
Remelters (in Metal Markets)
0.12
0.12
0.13
0.11
0.12
emissions are reported per segment and per country. GHG emissions have been calculated based on
Extrusions
1)
0.47
0.50
0.53
0.50
0.56
the principles of the WRI/WBCSD GHG Protocol according to the operational control principle.
Indirect GHG emissions
1.23
1.81
1.40
1.53
1.16
1.23
1.81
1.40
1.53
Total GHG emissions
7.95
8.39
9.44
8.33
8.05
Hydro’s direct emissions decreased in 2023 compared to 2022. The emissions reductions in primary
aluminium is primarily linked to the primary production stop at our Slovalco plant in 2022. The
implementation of electric boilers for steam generation at Alunorte and process improvements resulted in
improvements to specific emissions (ie. emissions per tonne product produced) since 2021, while the
emissions in 2019-2020 were lower due to production embargo at Alunorte and curtailed production at
Albras and Paragominas. To learn more about the embargo imposed on Alunorte in 2018, see Hydro’s
Annual Report 2018 and the section “The Alunorte situation”.
Million tonnes CO2e
2023
2022
2021
2020
2019
Brazil
5.04
5.00
5.69
4.92
4.36
Direct
4.37
4.40
4.64
4.23
3.73
Indirect
0.67
0.61
1.05
0.69
0.63
Norway
1.94
2.19
2.16
1.97
2.01
Direct
1.78
2.02
2.05
1.84
1.82
Indirect
0.16
0.17
0.11
0.13
0.19
Other
0.96
1.19
1.60
1.45
1.68
Direct
0.63
0.74
0.94
0.87
0.97
Indirect
0.33
0.45
0.66
0.58
0.70
Total GHG emissions
7.95
8.39
9.44
8.33
8.05
© Hydro 2024
81
Direct GHG emissions (scope 1) are calculated based on anode consumption during the electrolysis
process and use of fossil fuels. PFC (perfluorocarbon) emissions are calculated based on automatic
process measurements. PFC emissions comprise the two greenhouse gases CF4 and C2F6 which are
formed during anode effect situations in the aluminium electrolytic cells. Anode effect is mainly a result
of production instability, e.g. in connection to power outages. The reported direct emissions are
comparable to Scope 1 emissions as defined by the GHG protocol. All GHG emissions reported have
been converted to CO
2
equivalents (CO
2
e).
Electricity consumption (mainly primary
aluminium production)
1)
Includes GHG emissions from remelt activities in Extrusions
Greenhouse gas emissions per country - consolidated activities
Indirect GHG emissions (scope 2) are calculated based on Hydro’s consumption of electricity. Reported
indirect emissions cover GHG emissions from purchased electricity and emissions from Hydro’s
ownership share in the gas-fired power plant at Qatalum. The reported indirect emissions are
comparable to scope 2 emissions according to the GHG protocol. We report indirect emissions
according to the location-based method in the revised GHG Protocol Scope 2 Guidance, based on
emissions factors from the International Energy Agency (IEA). For our operations in Canada and the
primary aluminum producer Albras in Brazil, indirect emissions reflect the regional grid mix. For Hydro’s
Annual Report 2023 we have updated the factors back to 2019, and historical figures have been
updated accordingly. We do not to report indirect emissions according to the market-based approach.
GRI reference: GRI Standards 305-1 (2016) and 305-2 (2016).
© Hydro 2024
82
Climate change
1. Introduction
2. Business
3. Performance
4. Governance
5. Sustainability
6. Financials
7. Appendices
Content
E1.2
Total greenhouse gas emissions based on ownership equity
Reporting principles
Total direct and indirect (Scope 1 and Scope 2) GHG emissions in Hydro, based on ownership equity.
The emissions are reported per segment, and by country. GHG emissions have been calculated based
on the principles of the WRI/WBCSD GHG Protocol according to the equity share principle.
GHG emissions based on ownership equity are calculated based on our ownership share as per year
end 2023. The reported emissions includes Hydro’s share of emissions from all operations including
non-consolidated operations where Hydro has a minority interest.
GRI reference: GRI Standards 305-1 (2016) and 305-2 (2016).
Greenhouse gas emissions per segment - ownership equity
Million tonnes CO2e
2023
2022
2021
2020
2019
Direct GHG emissions
5.98
6.31
6.68
6.15
5.91
Bauxite & Alumina
2.21
2.26
2.37
2.16
1.88
Primary aluminium production
3.19
3.43
3.65
3.38
3.36
Remelters (mostly Metal Markets)
0.12
0.12
0.13
0.11
0.12
Extruded solutions
1)
0.47
0.50
0.53
0.50
0.56
Indirect GHG emissions
3.37
3.43
3.78
3.58
3.87
Electricity consumption (mainly primary
aluminium production)
3.37
3.43
3.78
3.58
3.87
Total GHG emissions
9.35
9.74
10.47
9.73
9.78
1) Includes GHG emissions from remelt activities in Extrusions.
The baseline emissions have been recalculated following the Alunorte and MRN transaction in 2023 with
Glencore. Read more about the transaction in the chapter Our Business. This resulted in significantly
lower direct and indirect emissions from the Bauxite & Alumina business area.
Greenhouse gas emissions per country - ownership equity
Million tonnes CO2e
2023
2022
2021
2020
2019
Australia
0.78
0.77
0.82
0.85
0.89
Direct
0.15
0.15
0.15
0.15
0.15
From electricity consumption
0.63
0.63
0.67
0.71
0.74
Brazil
3.04
3.02
3.40
2.95
2.61
Direct
2.67
2.68
2.82
2.58
2.26
From electricity consumption
0.37
0.34
0.58
0.38
0.35
Canada
0.46
0.46
0.47
0.46
0.48
Direct
0.25
0.26
0.26
0.25
0.25
From electricity consumption
0.20
0.20
0.21
0.21
0.22
Norway
1.94
2.19
2.16
1.97
2.01
Direct
1.78
2.02
2.05
1.84
1.82
From electricity consumption
0.16
0.17
0.11
0.13
0.19
Qatar
1)
2.21
2.25
2.29
2.28
2.37
Direct
0.54
0.55
0.59
0.58
0.55
From electricity consumption
1.67
1.70
1.70
1.70
1.82
Slovakia
0.02
0.15
0.35
0.31
0.37
Direct
0.01
0.08
0.17
0.15
0.17
From electricity consumption
0.00
0.07
0.18
0.16
0.20
Other
0.90
0.90
0.98
0.91
1.05
Direct
0.58
0.58
0.65
0.61
0.70
From electricity consumption
0.33
0.32
0.33
0.29
0.35
Total GHG emissions
9.35
9.74
10.47
9.73
9.78
1)
Most electricity at Qatalum is generated by Qatalum's fully-owned gas power plant. 39.000 tonnes CO2e came from net purchased
electricity from the national grid in 2023.
2019
6.29
0.24
0.00
6.52
83
Content
Climate change
1. Introduction
E1.3 Indirect (scope 3) greenhouse gas emissions
Reporting principles
Hydro’s indirect emissions based on ownership equity.
emissions are based on the IAI Scope 3 Calculation Tool Guidance.
Hydro presented our Scope 3 emissions for the first time in 2021, with 2018 as a baseline. We do
therefore not include Scope 3 emissions for 2020 and 2019.
GRI reference: GRI Standards 305-3 (2016).
Scope 3 Greenhouse gas emissions
Million tonnes CO2e
2023
2022
2021
2020
2019
2018
Upstream scope 3 emissions
11.95
13.30
14.88
19.64
Purchased goods and services
10.99
12.34
13.90
18.60
Fuel and energy related activities
0.70
0.69
0.70
0.73
Upstream transportation and distribution
0.26
0.27
0.28
0.31
Downstream scope 3 emissions
1.46
1.45
1.45
1.46
Downstream transportation and distribution
0.06
0.06
0.06
0.06
Processing of sold products
1.40
1.40
1.40
1.40
Total GHG emissions
14.75
16.33
21.10
The baseline emissions related to Scope 3 have been recalculated following the Alunorte and MRN
transaction in 2023 with Glencore. Read more about the transaction in the chapter Our Business. This
resulted in significantly lower downstream Scope 3 emissions from processing of sold products and
transportation and distribution due to reduced exposure to external sales of alumina. Some historical
numbers have also been updated due to improved data models and better granularity of data.
The reduction in upstream scope 3 emissions is mainly due to more conscious sourcing of aluminium metal,
as well as less sourcing of metal in general and lower production of primary aluminium.
Hydro’s upstream Scope 3 emissions are dominated by emissions from cold metal and aluminium scrap
provided from external suppliers. Hydro regards the carbon footprint of process scrap as equal to its metal
origin, Hydro’s Scope 3 upstream emissions are significant when including externally sourced metal.
Industry players who do not take the inherent carbon footprint of process scrap input into account will
report significantly lower Scope 3 emissions. Hydro believes that this method of accounting is inaccurate,
as it accounts for process scrap being carbon neutral, when in reality the process scrap has the same
inherent carbon footprint as its metal origin. Hydro believes that we need to focus on what drives real
change towards the green transition and we need to exercise our role as a responsible supplier and
© Hydro 2024
2. Business
3. Performance
4. Governance
5. Sustainability
6. Financials
7. Appendices
customer to influence the right development. If Hydro were to regard process scrap as carbon neutral,
Hydro’s upstream Scope 3 emissions would be significantly lower.
Hydro’s downstream Scope 3 emissions are dominated by processing of sold metal. As this processing
happens outside of Hydro’s control, our ability to influence these emissions are limited. Nevertheless,
reporting of these emissions contributes to give a holistic perspective on the total emissions of the value
chain of our sold products.
Hydro’s total reduction target on scope 3 emissions only includes upstream scope 3 emissions, as
downstream scope 3 emissions are beyond Hydro’s control. Hydro’s reduction target for upstream Scope
3 GHG emissions per tonne aluminium is calculated based on upstream scope 3 emissions from
purchased metal in the aluminium metal and extrusions business areas.
Alumetal and Hueck Lüdenscheid which were acquired during 2023 have not yet been included in the
calculations.
E1.4 Direct greenhouse gas emissions by GHG type
Reporting principles
Breakdown of reported direct GHG emissions in consolidated activities, by greenhouse gas type.
Direct GHG emissions per GHG type - consolidated activities
Million tonnes CO2e
2023
2022
2021
2020
CO
2
6.67
7.00
7.36
6.73
PFC (perfluorocarbon)
0.12
0.15
0.27
0.20
Other
0.00
0.00
0.00
0.00
Total
6.79
7.15
7.63
6.94
© Hydro 2024
84
Climate change
1. Introduction
2. Business
3. Performance
4. Governance
5. Sustainability
6. Financials
7. Appendices
Content
E1.5 Greenhouse gas emissions intensity
Reporting principles
GHG intensity of our alumina refining at the Alunorte alumina refinery and GHG intensity of the
electrolysis process from Hydro’s smelters, based on ownership equity, which are operational
performance indicators in Hydro. We also report GHG intensity based on net revenue, which is an
ESRS requirement, but not an operational target as this value varies based on market prices.
GHG intensity of alumina refining is calculated based on the total GHG emissions and production
volumes at our Alunorte alumina refinery. The reported GHG intensity covers all alumina refining in
Hydro.
GHG intensity of the electrolysis process is calculated based on greenhouse gas emissions and
production volumes in Hydro’s smelters, based on ownership equity. This is an operational target that
excludes extraordinary emissions resulting from e.g. start-up of curtailed capacity. The methodology for
calculation is site specific, and historical figures may be subject to change.
GHG intensity based on net revenue is calculated based on total Scope 1 and Scope 2 emissions,
divided by total revenue as reported in the consolidated income statement .
GRI Reference: GRI Standards 305-4 (2016).
GHG intensity - Alumina refining at Alunorte alumina refinery
2023
2022
2021
2020
2019
metric ton (mt) CO2e per mt alumina
0.61
0.62
0.63
0.65
0.71
The implementation of electric boilers for steam generation at Alunorte and process improvements have
resulted in an improvement in emissions per tonne alumina refined compared to previous years.
GHG Intensity - Electrolysis, based on ownership equity
2023
2022
2021
2020
2019
metric ton (mt) CO2e per mt aluminium
1.54
1.57
1.64
1.59
1.60
For the GHG intensity per tonne aluminium from the electrolysis process, Slovalco was excluded in 2022
due to production curtailment, and Albras excluded from 2019 due to extraordinary emissions during the
start-up of curtailed capacity.
GHG Intensity - consolidated emissions per revenue
mt/NOK million
2023
2022
2021
2020
2019
40.3
63.1
60.3
53.8
GHG intensity based on net revenue is an ESRS reporting requirement but not an operational target for
Hydro, as the value will vary depending on market prices. The value is calculated based on total GHG
emissions and net revenue from consolidated activities. See Note 1.4 to the consolidated financial
statement for information on revenues by segment.
E1.6 Energy consumption
Reporting principles
Total energy consumption in Hydro’s consolidated activities, reported by energy carrier, sector use and
country of consumption.
Energy consumption includes energy generated by Hydro operations as well as purchased energy.
Energy consumption includes energy losses in hydroelectric plants. Other energy sources reported
includes heating, cooling and steam generated in Hydro operations as well as purchased steam and
heat in the Extrusions business area.
GRI Reference: GRI Standards 302-1 (2016).
Energy consumption per energy carrier - consolidated activities
1)
Petajoule (PJ)
2023
2022
2021
2020
2019
Coal
11.4
13.4
13.1
14.0
13.4
Coke
13.8
15.0
16.1
15.9
15.4
Electricity
93.1
99.2
102.2
97.9
95.7
Gasoline
0.0
0.0
0.0
0.0
0.0
Natural gas
12.0
12.1
12.9
12.1
13.4
Natural gas liquids
0.9
0.9
0.9
2.0
1.4
Oil
27.4
26.1
28.9
23.7
19.1
Other
6.1
5.8
5.9
5.0
4.6
Total energy consumption in PJ
164.6
172.4
180.1
170.6
162.9
Total energy consumption in TWh
45.7
47.9
50.0
47.4
45.3
1) With the sale of Hydro Rolling in 2021, we have excluded historical figures on energy consumption associated with the business area.
Energy consumption per sector - consolidated activities
1)
Petajoule (PJ)
2023
2022
2021
2020
2019
Bauxite & Alumina
47.6
47.2
47.1
41.6
35.7
Electrolysis/Carbon/Casting
100.6
108.6
115.6
113.0
109.6
Remelters
2.5
2.6
2.7
2.4
2.4
Extruded Solutions
12.7
13.8
14.4
13.4
15.0
Other
1.2
0.3
0.3
0.3
0.2
Grand Total
164.6
172.4
180.1
170.6
162.9
1) With the sale of Hydro Rolling in 2021, we have excluded historical figures on energy consumption associated with the business area.
All fully-owned smelters, 6 remelters and 19 Extrusion sites are also certified according to the ISO 50001
Energy Management systems, representing 62 percent of Hydro's total electricity consumption.
© Hydro 2024
85
Climate change
1. Introduction
2. Business
3. Performance
4. Governance
5. Sustainability
6. Financials
7. Appendices
Content
Energy consumption per country - consolidated activities
Petajoule (PJ)
2023
2022
2021
2020
2019
Brazil
81.4
79.0
79.9
71.9
61.7
Norway
66.4
72.1
71.7
72.5
71.5
Slovakia
1.2
5.6
12.0
11.1
12.8
Other
15.6
15.8
16.5
15.2
16.8
Total energy consumption
164.6
172.4
180.1
170.6
162.9
The reduction in total energy consumption in 2023 is due to lower energy consumption at the Norwegian
smelters, in addition to the stop in primary aluminium production at Slovalco, in Slovakia.
E1.7 Renewable energy consumption
Reporting principles
Renewable energy consumption is estimated based on total energy consumption by energy carrier and
data on country specific energy mix in the electricity grid from the International Energy Agency (IEA).
Electricity derived from biofuels, waste, hydro, geothermal, solar, wind and tide are considered
renewable.
GRI Reference: GRI Standards 302-1 (b) (2016).
Renewable energy as a share of total energy consumption in Hydro’s consolidated activities is estimated
to 41.4 percent in 2023, compared to 40.7 percent in 2022.
E1.8 Energy intensity
Reporting principles
Energy intensity of the alumina refining at Alunorte is calculated based on total energy consumption at
Alunorte divided by total alumina production.
Energy intensity in Hydro’s consolidated smelters is calculated based on direct current consumption in
the electrolysis process per kg aluminium.
Energy intensity based on net revenue is calculated based on total energy consumption in Hydro’s
consolidated activities, divided by total revenue as reported in Hydro’s consolidated income statement.
GRI Reference: GRI Standards 302-3 (2016).
Energy intensity - Alumina refining
2023
2022
2021
2020
2019
GJ per mt alumina
7.97
7.97
7.56
7.67
8.20
Energy intensity - Electrolysis process
2023
2022
2021
2020
2019
MWh per mt aluminium
14.03
13.88
14.00
14.07
14.15
Total energy consumption in consolidated activities per revenue
MWh/NOK million
2023
2022
2021
2020
2019
MWh per NOK million
236.03
230.37
334.10
343.18
302.47
Energy intensity based on net revenue is an ESRS reporting requirement but not an operational target for
Hydro, as the value will vary depending on market prices. The value is calculated based on total energy
consumption and net revenue from consolidated activities, since the Hydro group is classified as operation
in a high climate impact sector, even if significant portion of total revenues are associated with activities in
non-high climate impact sectors, such as renewable energy. See Note 1.4 to the consolidated financial
statement for information on revenues by segment.
© Hydro 2024
86
Climate change
1. Introduction
2. Business
3. Performance
4. Governance
5. Sustainability
6. Financials
7. Appendices
Content
E1.9 GHG emissions and energy use in 50/50 joint venture Qatalum
Reporting principles
Direct GHG emissions (scope 1) is reported on 100 basis, including emissions from Qatalum’s on-site
natural gas use for electricity generation.
Indirect GHG emissions (scope 2) is reported on 100 basis and calculated based on electricity use from
the grid and IEA emission factors for the Qatari grid mix.
Power consumption for liquid metal production is calculated based on total liquid metal production at
Qatalum in 2023 and the average power consumption per kg of liquid metal produced.
Total power consumption is calculated based on total consumption of electricity, gasoil and natural gas.
GHG emissions and energy use in 50/50 joint venture Qatalum
2023
2022
2021
2020
2019
Direct GHG emissions (Scope 1), million
metric tonnes of CO2e
4.63
4.62
4.74
4.75
4.80
Indirect GHG emissions (Scope 2), million
metric tonnes of CO2e
0.03
0.08
0.01
0.01
0.15
Power consumption for liquid metal
production, TWh
1)
8.73
9.64
9.38
9.50
9.33
Total energy consumption, TWh
25.53
24.23
24.07
23.93
24.68
1) 2023 numbers are not direcly comparable to previous years due to change in reporting methodology.
