Materiality Analysis
Mantena conducted its first materiality analysis in 2023. We identified 17 topics that are material to Mantena.
In 2023, we conducted our first materiality analysis to identify the sustainability topics that are most material to our business. During the insight phase, we conducted stakeholder analyses, risk assessments, document reviews, and interviews with key employees. We examined the entire value chain and aspects related to environmental, social, and governance issues.
Through this analytical work, we identified 17 sustainability topics that we consider material to Mantena, of which nine topics have high materiality. These 17 topics form the basis for our sustainability strategy (goals and actions) and sustainability reporting.
What is double materiality?
Double materiality is a fundamental principle in the ESRS (European Sustainability Reporting Standards) and defines what should be reported in a sustainability report. A sustainability topic is considered material when it meets the criteria defined for significant impact, financial materiality, or both.
Material impact
Actual or potential negative and positive impact a business has on people and the environment in the short, medium, and long term.
Financial Materiality
Sustainability topics that have or may have an impact on our cash flows, development, performance, and position in the short, medium, and long term.
Assessment of Materiality
To assess material topics, we have asked questions such as:
- How much harm does the specific activity cause?
- How many people are negatively affected by it?
- What is the cost of reversing the negative effects of the activity?
- What is the potential positive impact of addressing the topic?
- How will this affect Mantena's economy?
- Are there commercial opportunities for Mantena?
We provide a brief overview of our assessments of the sustainability topics that we consider to have medium and high materiality.
Materiality analysis summarized
Climate and Environmental Footprint from the Production and Transport of Input Factors in Our Production
A pilot project in 2022/23 indicated that 98% of our emissions come from the supply chain (scope 3 = indirect emissions from the value chain). The impact on the external environment is therefore considered high, relatively speaking. Mantena faces strict requirements regarding which suppliers can be used and is a small player in a value chain consisting of large global component manufacturers.
However, we have the opportunity to work strategically to identify and approve alternative suppliers. This creates bargaining power and makes it easier to set requirements for suppliers. Due diligence assessments provide, and will continue to provide, valuable insights over the coming years, enabling us to make knowledge and fact based decisions.
Climate and Environmental Footprint from Transport Between Workshops
Parts and materials used in production are largely transported by road between Mantena's various warehouse locations and workshops. Since Mantena delivers much of the component maintenance from the workshop in Grorud, this impact is significantly lower than it could have been with a higher degree of outsourcing (which would increase the number of kilometers each component needs to be transported). However, this transport still accounts for a large share of Mantena's impact, and we have the opportunity to influence this ourselves. Transport between workshops is also a significant cost for Mantena.
Climate and Environmental Footprint from Our Workshops
The climate and environmental footprint of our workshops is complex. Energy consumption is related to production, heating, and lighting. Additionally, there are pollution risks associated with noise, water contamination, use of various oils, and handling of hazardous waste. Large amounts of waste are also generated from our workshops, both from the various production processes and from parts that need to be replaced due to wear, damage, or other reasons.
Our overall assessment is that the workshops have a medium impact on climate and the environment. Where we are tenants, we can ask the landlord to implement energy efficiency measures and proper waste management. In most workshops, however, Mantena is not the tenant; the train operators are. In such cases, the requirements must be directed at the operator, who is also the customer. There are, of course, areas we can control ourselves, such as the use of oils, handling of hazardous waste, and the degree of waste sorting.
Increased Component Lifespan
The increased lifespan of components can be considered a sub-element of the climate and environmental footprint from the workshop. However, we choose to highlight this topic because Mantena can significantly influence component lifespan, and the impact on climate and the environment will be substantial. This topic also has high financial materiality, as part costs account for 35-40% of a train's maintenance costs.
Climate risk / Extreme weather impact
Extreme weather in the Nordic region can cause significant damage to railway infrastructure, directly impacting Mantena's economy. It can also halt or delay access to input factors from more vulnerable areas, affecting Mantena's ability to meet contractual obligations. While Mantena cannot influence the weather, we can take steps to create a more robust business model to cope with the consequences of climate change.
Create circular value chains
Circular value chains are those in which products and materials are used for as long as possible and recycled within a closed loop. The railway industry faces several challenges in this regard:
- High degree of customization increases material needs
- High proportion of safety-critical components and wear parts limits the reuse value within the industry
- Manufacturers rarely facilitate standardization and reuse
- A non-existent second-hand market
- A large number of vehicles to be phased out over the next few decades
Mantena is part of this value chain and will do what we can to influence and address these challenges.
More freight and passenger transport by rail
The railway is the most environmentally friendly mode of transport we have, and it is an explicit goal in Norway, the Nordic countries, and Europe to shift more freight and passenger transport to rail. To succeed in this, excellent customer experiences on the railway must be created, and the price must not be too high. Good maintenance is about creating excellent customer experiences in a cost-effective manner, making this topic highly material. Good maintenance alone cannot create excellent customer experiences. It requires good cooperation within the ecosystem and increased government investment in the maintenance of railway infrastructure.
Increase the lifespan of trains (value preservation)
Trains are significant investments for society and have a high expected lifespan (30-40 years). In Norway, we have trains that are significantly older than this and still part of the schedule. How these trains are maintained and upgraded greatly affects both their technical lifespan and the customer experience.
Mantena’s opportunity to influence this lies in developing maintenance strategies and using our expertise to propose improvements and opportunities to those responsible for maintenance and the material owners.
Additionally, original manufacturers often stop producing parts for older train types. Mantena offers various services to ensure parts availability (examples include 3D scanning and printing, identifying alternative suppliers, procurement, and warehousing). Europe has a large proportion of older vehicles, and we believe this is an area where Mantena can make an impact, with high financial materiality.
Social Conditions in the Supply Shain (human rights and working conditions)
Mantena's suppliers are primarily located in Central Europe, but subcontractors can be spread across the globe. There is a high risk that both suppliers and subcontractors may violate Mantena's and general social standards. Currently, we do not have sufficient documentation on the supply chain, but due diligence assessments provide, and will continue to provide in the coming years, better insights, enabling us to make knowledge- and fact-based decisions.
Health and Security
Mantena operates in the heavy industry category, and many of our operations are manual and require human involvement. Therefore, there is a high risk of serious human injuries. This topic is assessed as having a high degree of materiality. While there will always be a risk of injuries in this type of business, there are significant opportunities to reduce the severity and frequency of injuries.
Diversity and Equality
Mantena has a high proportion of skilled workers, and the railway industry has historically been male-dominated. Mantena has 90.6% male employees. We are a diverse workplace in terms of ethnicity. The average age is high but decreasing. Diversity and equality are and will remain significant topics for Mantena. There is a great potential for impact, but to significantly increase the proportion of women, we rely on more women choosing to obtain trade certificates in our fields. Mantena also plays a role in influencing career choices.
Safe journey for the end user
At Mantena, safety comes first. The equipment Mantena maintains operates at high speeds and transports people and valuable goods. A safety breach can cause accidents with potentially catastrophic consequences. This topic has very high materiality. At Mantena, we have full control over our delivery quality, and we work according to procedures and requirements. This is about our core business – the proper maintenance of rolling stock.
2023 is the first year Mantena is comprehensively reporting on sustainability matters. The reporting for 3 is inspired by the new Corporate Sustainability Reporting Directive (CSRD). Mantena will be required to report in accordance with the CSRD starting from the 2025 financial year.
