As part of Renishaw’s commitment to achieving Net Zero by 2050, the company has set a strategic target to reduce Scope 3 greenhouse gas (GHG) emissions by 50 per cent by 2030. To reach this target, Renishaw prioritised the most material sources of Scope 3 emissions in its value chain.

Renishaw’s analysis shows that the second-largest contributors to Scope 3 emissions are “purchased goods and services” and “capital goods,” together accounting for approximately 30 per cent of total Scope 3 emissions. Within these categories, raw metals — particularly aluminium and steel — are the highest GHG-emitting commodities. In the company’s FY2024 review, raw metal procurement accounted for around 16 per cent of purchased goods and services emissions.

To reduce these upstream emissions while continuing to deliver high-quality precision products, Renishaw’s Sustainability, Procurement and Materials Science teams launched a focused project in 2023 to investigate the aluminium supply chain, assess emission hotspots and identify practical pathways to lower the carbon intensity of purchased aluminium. The Machine Tool Products Division (MPD) supported the work by supplying OMI-2 bodies for material evaluation and testing.

Renishaw’s principal supplier for raw metal is Aalco, the UK’s largest independent multi-metals stockholder, which supplies Renishaw with roughly 500 tonnes of aluminium and 500 tonnes of other raw metals annually. Aalco’s existing commitment to sustainable sourcing made them a natural partner for the initiative.

Challenge

Primary (virgin) aluminium production is highly energy intensive and therefore a major source of upstream GHG emissions. Transitioning to secondary (recycled) aluminium offered a route to large emissions reductions but posed technical and supply-chain challenges for a precision engineering company.

Recycled aluminium can vary in chemical composition and may present contamination risks; machining and metallurgical performance needed to match primary alloy benchmarks. Identifying low-emission foundries and reliable secondary supply chains required supplier engagement and primary sustainability data. Renishaw also needed to move beyond pilot testing to an approach that could scale across the company’s aluminium purchases without disrupting production or product performance.

Solution

Renishaw developed an in-house methodology to guide supplier engagement and to support suppliers in building GHG emissions reduction plans. A supplier engagement programme was presented to the company’s ESG Steering Committee towards the end of 2024 and received positive feedback and approval to proceed.

In 2024, Renishaw and Aalco executed a transition from primary to secondary (recycled) aluminium for selected products. Using the new methodology, Renishaw identified a secondary aluminium supply chain with an emission factor of 1.78 kgCO₂e per kg of aluminium, versus 5.37 kgCO₂e per kg from the previous supply route, a 67 per cent reduction in emissions intensity for the aluminium used.

To ensure recycled material met Renishaw’s standards, the Materials Science and MPD teams conducted a thorough evaluation program. This included site visits with Aalco to a foundry and processing mill in Italy to review the recycling and remelting processes and assess contamination control and processing variables. Chemical and metallographic testing, along with machining trials on components such as OMI-2 bodies, were conducted to compare the recycled alloy with the primary alloy and confirm mechanical and metallurgical performance.

These evaluations confirmed that recycled aluminium met Renishaw’s requirements for product integrity and manufacturability. Using the Aalco transition as a proof point, Renishaw increased the recycled content of the aluminium it buys from approximately 75 to 100 per cent recycled content for the majority of its aluminium purchases and began collaborating with five other key aluminium suppliers to help them develop emissions reduction plans using the same methodology. The programme and methodology were formally approved by the ESG Steering Committee, enabling Renishaw to embed the approach across its supply chain.

Results

The identified secondary aluminium supply chain reduces the emission factor from 5.37 to 1.78 kgCO₂e/kg, delivering a substantial and measurable lowering of the carbon intensity for Renishaw’s aluminium purchases, a crucial contribution toward the company’s 50 per cent Scope 3 reduction target by 2030.

Raw metal procurement was identified as contributing roughly 16 per cent of purchased goods and services emissions; the aluminium initiative directly addresses this material hotspot. Renishaw has moved the majority of its aluminium purchases from around 75 to 100 per cent recycled content for key products and is actively supporting five additional aluminium suppliers to develop emission reduction plans.

Comprehensive testing validated that recycled aluminium delivers the mechanical and manufacturing performance required for Renishaw’s precision components, ensuring no compromise to product quality. The project also established a repeatable methodology and governance approach for supplier engagement on emissions reductions.

Renishaw has strengthened its sustainability reporting by collecting primary data from key suppliers, enhancing the accuracy of Scope 3 emissions calculations and identifying targeted reduction opportunities. The collaboration with Aalco now serves as a model for scaling similar initiatives across other commodity groups. In addition, Renishaw has advanced its emissions management capabilities by developing carbon metrics to track manufacturing waste and prioritise high-impact interventions. It has also created training materials to help teams calculate GHG emissions more accurately and integrate sustainability considerations into equipment selection.

Building on this progress, Renishaw will expand the supplier engagement methodology to its steel supply chains and continue to strengthen data quality across material Scope 3 categories while reviewing and updating its Climate-related Financial Disclosures. The company will also keep carbon metrics and training materials under review to ensure they remain fit for purpose and continue to drive further reductions.

In parallel, Renishaw is embedding sustainability into product design and innovation. Key deliverables include a Design for Sustainability guidance document and a product-level carbon calculator tool developed in consultation with product divisions. These tools will be rolled out to engineers in FY2026 to help track progress against customer-facing emissions targets and demonstrate product-level emissions benefits.

For more information about Renishaw’s ESG commitments, visit the latest financial report.

Further information at www.renishaw.com

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