Hydro's Chief Financial Officer and Executive Vice President Trond Olaf Christophersen shares the company's vision of a greener tomorrow.
In today’s rapidly evolving world, industries face mounting pressure to embrace sustainability as a core tenet of their operations. We all play a role in this story as we commit to reshaping industries while prioritizing environmental responsibility. This doesn’t mean ignoring our responsibility to drive efficiency and turn away from profitable opportunities—instead, it’s about recognizing how sustainability is in itself an economically rational move for the business community. Nowhere is this more evident than in commodities and the green metals revolution—driven by low-carbon aluminum and steel production and advances in recycling.
Producing aluminum, a metal often prized for its versatility, still generates carbon emissions. Recognizing this, Hydro has emerged as a forerunner in producing low-carbon aluminum from renewable energy sources, as well as investing heavily in aluminum recycling. Positioned as a market leader in this domain, Hydro anticipates a substantial uplift in earnings—up to 2 billion Norwegian kroner, or $190.5 million by 2030—driven by growing demand for greener products and practices. This commitment underscores not only a moral imperative but also a strategic investment in fostering a more eco-conscious future.
Hydro’s low-carbon aluminum is gaining traction as a key enabler for the green metals transition. By offering sustainable alternatives to traditional aluminum production, Hydro sets a precedent for the industry, demonstrating that profitability and environmental stewardship can go hand in hand.
Hydro’s dedication to sustainability extends beyond aluminum production to encompass a comprehensive approach to recycling. Recycling postconsumer scrap, such as used beverage cans (UBCs) or window frames, is the fastest route to zero-carbon aluminum. With the emergence of opportunities in the green transition, we are intensifying investments in recycling infrastructure. By 2030, the company aims to recycle 850,000 to 1.2 million metric tons of postconsumer scrap, a significant leap from current targets. This ambitious undertaking necessitates bolstering scrap sourcing and advanced sorting capabilities to meet the escalating demand for low-carbon, recycled products.
In addition to reducing carbon emissions, Hydro’s focus on recycling aligns with circular economy principles, minimizing waste and maximizing resource efficiency. By closing the loop on aluminum production, sustainability becomes more achievable.
Research shows that up to 80 percent of a product’s environmental impact is determined during the design phase. Recognizing this means collaboration will be a key aspect of sustainability as producers and designers come together to make net zero an accessible target.
One recent project that highlights what this model could look like comes from the new Hydro Circal 100R, the world’s first aluminum alloy produced at industrial scale made entirely from recycled postconsumer scrap. Hydro aims to spearhead a shift toward sustainable consumption with products like this, working with influential designers—most recently at Milan Design Week—to ensure they have access to greener materials. Collaboration is at the core of this effort, with Hydro partnering closely with designers to integrate recycled alloy into their creations, as well as influencing the material choices of other industries, thereby promoting eco-conscious design practices.
Transparency also is an important aspect of this journey, particularly regarding recycled products and low-carbon production practices. Stakeholders increasingly demand accountability, and environmental responsibility, clear communication and traceability throughout the value chain are very important. By offering comprehensive insights into the origins and sustainability attributes of products, the commodities industry can empower clients to make informed decisions that align with their environmental goals.
In today’s marketplace, customers value transparency and prefer greener products. By providing clear information, we can meet customer expectations but also drive green profits and contribute to a more sustainable business community. This commitment to transparency not only builds trust but also fosters a shared commitment to sustainability between producers and their clients, driving meaningful progress toward a greener future.
It’s clear that businesses worldwide can drive profitability through sustainability initiatives. By leveraging expertise and resources, companies can spearhead efforts that benefit their bottom lines and the planet. For example, intensifying recycling and waste reduction not only minimizes environmental impact but also leads to cost savings and efficiency improvements.
A holistic approach involves considering the entire life cycle of products and services, fostering innovation and market differentiation. Strategic partnerships and collaborations amplify impact by pooling resources and sharing best practices. From responsible sourcing to supporting environmental projects, businesses can forge alliances that accelerate progress toward sustainability goals.
Aligning financial incentives with environmental objectives not only fulfills ethical obligations but also taps into a lucrative market driven by increasingly eco-conscious consumers. Integrating sustainability into business strategies isn’t just about doing the right thing; it’s about seizing a smart and exciting business opportunity. With each step forward, businesses reaffirm their commitment to pioneering sustainability, paving the way for a brighter, more prosperous future.
Trond Olaf Christophersen is chief financial officer and executive vice president of Hydro, which is based in Norway.