As the world focuses more on sustainability, battery manufacturers face increasing pressure to meet strict environmental and ethical standards. The EU Battery Regulation and independent third-party assessments, such as EcoVadis, play a crucial role in ensuring that companies uphold these principles. Celltech Group, a global battery manufacturer and supplier, has been dedicated to sustainable battery manufacturing for many years. With multiple EcoVadis medals earned by both Celltech companies and its long-term partners, alongside the sustainability initiatives applied by our mother company Addtech AB, we are continuously improving our sustainability practices. This article explores the significance of third-party sustainability ratings.
Why is it Important to Rate Battery Manufacturers’ Sustainability Performance by an Independent Third Party?
The battery industry has significant environmental and ethical implications throughout its supply chain. Independent third-party assessments offer an objective measure of companies’ performance in areas such as environmental protection, labour practices, and ethical governance.
Using independent ratings such as EcoVadis, battery manufacturers and wholesalers can ensure transparency and accountability, helping them comply with regulations and improve their operational processes. EcoVadis assesses companies across various criteria, with a focus on real-world impact, relying on verifiable documentation to ensure that sustainability claims are backed by evidence.
What is EcoVadis?
EcoVadis provides sustainability ratings across environmental, social, and governance (ESG) criteria tailored to the specific industry and location of the company being assessed. Its ratings allow businesses to monitor their sustainability performance and identify areas for improvement. EcoVadis uses a mix of internal company data and external sources, such as information from NGOs and government bodies, to deliver a comprehensive evaluation.
For companies like Celltech, EcoVadis helps benchmark sustainability practices against industry peers and offers a structured approach to managing and improving ESG performance across supply chains.
Celltech Group’s Achievements with EcoVadis
Currently, two of Celltech’s five factories hold an EcoVadis medal, with Celltech Solutions Oy earning a Gold medal. This places Celltech among only six battery manufacturers worldwide with this level of distinction. Additionally, Celltech Abatel AB, a sales office within the group, holds a Silver medal, positioning it in the 90th percentile of companies rated by EcoVadis. This means their performance is equal to or better than 90% of all companies rated by the platform.
Globally, 200 battery manufacturers have received an EcoVadis medal. Celltech’s long-term partners and suppliers, Hoppecke and Saft, have both been awarded the Platinum medal, the highest rating EcoVadis offers. They are the only two battery manufacturing companies worldwide that have achieved this.
Sustainability Actions of Our Suppliers Hoppecke and Saft
Both Hoppecke and Saft have taken significant steps to ensure their operations meet stringent environmental standards:
Hoppecke
Hoppecke has focused on reducing its carbon footprint by optimising energy usage and recycling lead-acid batteries. Their efforts also extend to sustainable production processes aimed at minimising waste and emissions.
Saft
Saft prioritises energy-efficient battery solutions, with a strong focus on reducing greenhouse gas emissions during production and ensuring the ethical sourcing of materials. Their sustainability approach covers the entire lifecycle of their batteries, from material extraction to recycling. Both Celltech Oy and Celltech Abatel AB ship nickel-cadmium batteries to Saft’s recycling plant in the south of Sweden.
UN Global Compact, SDG, SBT, CDP and TCFD
EcoVadis is not the only way to measure sustainability objectively. Several other platforms and systems exist as well. As a part of Addtech Group, Celltech Group companies support the ten basic principles of the UN Global Compact. Our internal Code of Conduct and our Code of Conduct for Suppliers are based on fundamental international conventions. We use the UN’s Global Sustainability Goals as the starting point in our dialogue with stakeholders and in our materiality analysis, as well as in identifying sustainability-related risks and opportunities as part of our overall risk analysis process. Our sustainability work is fully integrated into our business and strategy planning to ensure that we develop in the direction of our long-term sustainability objectives.
By the end of 2022, Addtech committed to Science Based Targets (SBTi) and has for several years reported to the Carbon Disclosure Project (CDP) to ensure transparency in climate-related reporting. Another voluntary framework that Addtech partly reports on is The Task Force on Climate-related Financial Disclosures (TCFD). By following the framework, we increase transparency and relevance in our reporting on climate-related risks and opportunities and how this can affect profitability.
Read more about Addtech’s sustainability initiatives here.
EU Battery Regulation
Alongside third-party evaluations, the EU Battery Regulation sets out specific requirements for battery manufacturers, covering areas such as carbon footprint, responsible sourcing, and recycling efficiency. Celltech Group ensures compliance with these regulations. This compliance not only meets regulatory demands but also aligns with customer expectations for sustainability.
Read more about how companies using batteries should prepare for the EU Battery Regulation here.
Celltech Group’s Approach to Sustainability
Celltech integrates sustainability into all operations, from product design to supply chain management. The group’s sustainability strategy focuses on several key pillars:
- High-quality Products
- Celltech Lifecycle – our circular economy model
- Active Sustainability Reporting according to the Global Reporting Initiative (GRI).
- Sustainability Targets
- Code of Conduct and ESG Policies
- Commitment to UN Global Compact and Science-Based Targets
Celltech Group’s commitment to sustainability is reflected not only in its achievements with EcoVadis medals but also in its adherence to the EU Battery Regulation and other sustainability initiatives. EcoVadis offers additional layers of assurance, making it easier for companies like Celltech to continuously improve their sustainability metrics.
Together with long-standing partners like Hoppecke and Saft, Celltech is part of an industry-wide movement towards more sustainable and efficient battery production. Through continuous improvement, transparent reporting, and rigorous supply chain management, Celltech ensures its products meet the high environmental and ethical standards required by both regulators and customers.
