Climate resilience assessment and climate scenario analysis for Sandvik

Challenge

Sandvik Australia (Sandvik), part of Sandvik Group, is a global, high-tech engineering group supplying equipment, tools, parts, service and technical solutions for the mining and infrastructure industries. Application areas include rock drilling, rock cutting, loading and hauling, tunneling and quarrying.

From 2026, Sandvik will be required to report on climate governance, strategy, risk management, and metrics and targets in line with the Australian Sustainability Reporting Standard (ASRS).

To prepare for these rapidly evolving requirements, Sandvik engaged SLR to support implementation activities ahead of its first year of mandatory reporting. This work aimed to ensure compliance with the ASRS requirements while strengthening Sandvik’s response to climate-related risks and opportunities, serving not only as a starting point for immediate actions, but also to establish a foundation for deeper analysis in following years.

Solution

Our team is experienced in climate risk and opportunity identification, climate scenario analysis and resilience assessments, and was selected to support Sandvik in working towards compliance in year 1 of ASRS reporting.

This included:

ASRS Diagnostic

In the initial phase, our team reviewed all relevant data on Sandvik’s current climate-related processes and disclosures, including interviews with key personnel, to assess alignment with ASRS requirements. Based on this review, an action plan was developed outlining key gaps, recommended actions, and indicative timelines to support the integration of climate change considerations into Sandvik’s long-term operations and decision-making.

Climate Resilience Assessment

This task involved selecting inputs for Sandvik’s climate scenario analysis, including three publicly referenced scenarios and four time horizons, aligned with ASRS reporting requirements, and business context. A screening process was used to identify and consolidate relevant climate-related risks and opportunities, comprising physical risks, transitions risks and opportunities for qualitative assessment.

The climate-related risks and opportunities were evaluated to understand how they could materialise under different climate scenarios and time horizons, with potential business impacts considered. Sandvik’s resilience to each was assessed based on current mitigation measures, inherent resilience, and the ease of future adaptation. An action plan was developed to guide risk and opportunity management, providing valuable insight into the company’s climate resilience across short, medium, long, and extended term timeframes.

Impact

Our work provided Sandvik with established systems, processes and analysis to enable long-term compliance against ASRS.

Sandvik gained a clear understanding of potentially material climate-related risks and opportunities, as well as their resilience under a range of possible climate futures. We also identified targeted actions to enhance resilience and support strategic decision-making amid evolving climate and regulatory conditions.