"Sustainability projects have proven to be good business – both for the environment and for the bottom line. Working for the environment is not more expensive, not at all. CO2 reduction and profitability go hand in hand," says Kristian Møller, Head of Group Strategy and ESG at Kyocera Unimerco in Sunds. The company provides cutting tools for machining as well as measurement equipment for the manufacturing industry.

We asked Kristian Møller to explain how Unimerco works with ESG. The conversation quickly focuses on the E – Environment: The company’s impact on the environment, such as energy consumption, water management, waste handling and biodiversity.

Among the Best Business Cases

Strong business cases abound at Unimerco when it comes to the E - nvironment. Driven by responsibility and doing the right thing, the company has, since 2020, intensified efforts to reduce CO2 and energy consumption.

"It has proven to be very good business – actually better than we expected. We reduce costs at the same time, and many of these initiatives are among our best business cases. Several investments have paid for themselves in under a year. A newly built solar park takes five years, but it sends a more visible and symbolic signal than replacing a compressor, which also has value," says Kristian Møller, adding without hesitation: "These are some of the best initiatives we have undertaken, so it’s not hard to have a dedicated person working almost full-time on environmental optimization."

From Overview to Concrete Action

But how do they do it in practice?

"Our approach is first to reduce consumption wherever we can. Then we optimize by transitioning to a more efficient solution. For example, we replaced ventilation systems, which significantly reduced energy use."

Kristian explains that they began by getting an overview of where energy is primarily consumed, which led to several revelations. Management and staff assumed machine capacity was the main energy driver. In reality, ventilation and compressors were the main culprits.

"Once you understand what consumes energy, you can drill down to specific areas. It helped us to start from a high-level view and then figure out how to reduce electricity use on individual machines. After that, it became straightforward to take initiative after initiative," says Kristian, who doesn’t find the process cumbersome:

"It did require planning and time, but once we got started, it flowed naturally, building step by step."

Tackle Tasks Bit by Bit

He emphasizes the importance of being concrete quickly. Talking endlessly without action doesn’t help:

"You can’t plan everything from the start, and I think you should avoid creating a huge project – a big bang with everything planned. After we got the helicopter view and saw the main problem areas, we approached tasks bit by bit. Some initiatives were intuitive; we saw an area that should be next and tested our approach from there."

Kristian also notes that initiatives are largely driven by employees motivated by sustainability and optimization. The effort started with a need to reduce costs, and internal pragmatists aligned these goals effectively.

Now Looking at Scope 3

His advice to other companies: Don’t overcomplicate ESG.

"It doesn’t have to be rocket science; common sense works. Keep it simple and don’t be afraid to try. Setting a goal of 50% reduction by 2030 sounds ambitious, but some initiatives have been much more impactful than others, and progress came faster than expected," says Kristian.

"Our Japanese owners have a goal of 46% CO2 reduction by 2030, based on 2021 levels. We surpassed that last year and set a new target of 70%."

Now Unimerco is turning attention to Scope 3. Scope 1 and 2 are internal operations, where control is direct. But steel, for example, has already been processed before reaching Unimerco. Scope 3 looks at the rest of the value chain. They now have a clear picture, and the largest footprint comes from purchasing new machines. The same approach is applied: helicopter view first, then practical action.

S and G Are in Good Shape

What about S (Social) and G (Governance)?

Unimerco is known as a workplace where 700 employees in Denmark enjoy good conditions. The company worked on ‘S’ even before ESG became widespread.

"Overall, we try to act responsibly. We have a long tradition of profit sharing, managing sick leave, and a handbook with clear guidelines," says Kristian, noting that the current focus is on diversity. Unimerco works on gender diversity so more women see the company as a potential workplace. Efforts also include adult apprentices and international hires to increase educational diversity.

Governance is tightly managed – both in Denmark and Japan. Rules on bribery, export control, and whistleblower protection ensure everything is within strict frameworks.

E, S, and G all require attention – but when it comes to the E, the knives are really being sharpened these days.