Sustainability

Protecting our planet

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The forging industry is energy-intensive by nature. High temperatures, powerful machinery, and complex metallurgical processes have traditionally relied on fossil fuels. We're fully aware of the ecological impact of our activities, and we're committed to fundamentally transforming how we operate. This transformation isn't happening because it's easy or convenient, it's happening because it's necessary. Climate science is clear about what's required, and every industry must play its part. For Setforge, this means rethinking processes that have worked for decades, investing in technologies that are still emerging, and pioneering new approaches that can serve as models for the broader forging sector.

Our vision is ambitious but achievable: become the leader in low-carbon forging. This isn't just an environmental goal, it's central to our business strategy and competitive positioning for the decades ahead.

260 kg

CO₂eq per tonne forged in 2025/2026

-30%

Reduction in emissions intensity from Scope 1 and 2 per tonne forged between 2022 and 2026

-40%

Reduction in gas and electricity emissions between 2015 and 2026

Our decarbonization
Journey

Climate change is the defining challenge of our time. For Setforge, operating in an energy-intensive sector, this transformation is both a responsibility and an opportunity. We're investing in cleaner technologies, more efficient processes, and new ways of working that will make us more competitive while reducing our environmental footprint.

But technology alone won't get us there. Achieving our goals requires engaging all teams, from operators identifying energy waste on the shop floor to engineers redesigning processes, from logistics optimizing transport routes to purchasing factoring carbon into supplier decisions.
This is a collective effort that requires everyone's participation and ideas.

This commitment is embodied in our E-CAR program (Elimination Carbone), launched in 2021 as our comprehensive decarbonization initiative. It's also reflected in the pursuit of ISO 14001 environmental management and ISO 50001 energy management certifications across most group companies.

Seven companies already hold ISO 14001, and four have achieved ISO 50001, with rollout to all sites planned by 2030.

E-CAR

Carbon Reduction

Illustration Scope 1 and 2

E-CAR represents a step change in our approach to decarbonization. While previous initiatives focused primarily on energy efficiency and incremental improvements, E-CAR is a comprehensive transformation program with dedicated resources, clear governance structures, science-based targets, and a detailed roadmap extending to 2050. This is our flagship initiative for achieving our climate ambitions.

 

Critically, E-CAR isn't just a top-down technical program, it's designed to engage employees at every level. We've created communication campaigns to explain why decarbonization matters, organized workshops to help teams understand climate science, and encouraged idea-sharing across sites. When operators, engineers, logistics teams, and managers all understand the challenge and contribute solutions, the transformation accelerates and becomes embedded in how we work.

Vision 2050

Becoming the
low carbon
Forging
Leader

Our Science-Based Targets

Setting ambitious targets is one thing, ensuring they're grounded in climate science is another. By aligning with the Science Based Targets methodology, we're committing to reductions that aren't based on what seems achievable or convenient, but on what's actually necessary to limit global warming to 1.5°C. This approach provides credibility to our stakeholders and ensures we're contributing our fair share to the global climate effort.

We're committed to publishing our greenhouse gas emissions regularly and demonstrating measurable progress toward these targets, ensuring maximum transparency and accountability to customers, investors, employees, and the broader community.

Scope 1 and Scope 2

- 4.2% per year

Annual emissions reduction related to the company’s activities

Scope 3

- 2.5% per year

Annual emissions reduction from upstream and downstream activities

Strategic decarbonization axes

Achieving deep decarbonization requires action across multiple fronts simultaneously. With the E-CAR project, we've structured our efforts around complementary axes that together provide a comprehensive approach to emissions reduction.

Some initiatives will deliver results quickly, while others require longer-term investment and development. All are necessary for reaching our 2050 vision.

Reduction of Setforge's carbon footprint

Direct emissions scope 1

Direct Emissions (Scope 1)

Direct combustion and process emissions

❯

Focus area

Electrification of forging processes to reduce fossil fuel combustion

Energy management systems and process efficiency improvements

Hydrogen use for high-temperature furnace applications where electrification isn't feasible

Building renovation for better insulation and reduced heating/cooling needs

Daily monitoring of energy consumption through dedicated monitoring platforms

Value Chain Emissions (Scope 3)

Value Chain Emissions (Scope 3)

Upstream and downstream emissions

❯

Focus area

Transition to 100% recycled steel from electric arc furnaces rather than virgin steel from blast furnaces

Transport optimization (rail freight, electric fleets)

Supplier engagement programs to encourage parallel decarbonization efforts

Industrialization optimization to reduce material use without compromising performance

Circular economy approaches including product recyclability

InDirect emissions scope 2

Indirect Emissions (Scope 2)

Emissions from purchased energy

❯

Focus area

Improved energy efficiency through a program to upgrade facilities, including LED lighting and compressed air networks

Process optimization to fundamentally reduce energy consumption per part produced

Waste heat recovery from industrial processes to heat facilities and offices

A dedicated purchasing entity committed to sourcing the lowest-carbon energy possible for all group sites

Influence and innovation

Suppliers & Innovation Partners

Suppliers & Innovation Partners

Supply chain environmental collaboration

❯

Focus area

Supplier selection criteria explicitly incorporating carbon performance alongside traditional factors

Encouraging our partners to implement decarbonization initiatives

Co-development projects with technology providers to create solutions tailored to forging

Transparency requirements on product-level carbon footprints to enable informed decisions

Long-term partnerships with companies demonstrating aligned sustainability values and commitments

Smart Factory

Smart Factory

Digitally-driven energy efficiency

❯

Focus area

Connected sensors and IoT devices for real-time consumption monitoring across all utilities

Energy dashboards with AI-driven insights to identify optimization opportunities

Predictive maintenance algorithms to maximize equipment efficiency and minimize waste

Digital twins for virtual process optimization

Development of a replicable low-emission factory model that can be deployed across sites

Saving water... A key challenge!

Water is one of the most critical resources in forging operations, and one we take seriously. Across all our production facilities, water management is fully integrated into E-CAR, our group-wide decarbonization and environmental performance program.

Working alongside water agencies, we have deployed a range of concrete measures: evapo-concentrators, closed-circuit phosphating lines and automated monitoring systems with connected meters. Every site is tracked, every liter accounted for.

- 32%

of water consumption between 2022 and 2026
Per tonne forged

Certification and recognition

Third-party validation provides external verification of our environmental performance and helps us benchmark progress against industry standards. These certifications aren't endpoints, they're frameworks for continuous improvement and accountability. They also demonstrate credibility to customers, investors, and other stakeholders who are evaluating our sustainability commitments and want independent confirmation of our practices.

White logo of Afnor Certification - AFAQ Iso 51001 Energy.
Logo Ecovadis Bronze March 2026

SETFORGE L'HORME: PIONEERING THE PATH

Setforge L'Horme was the first site to embark on the E-CAR journey, pioneering the decarbonization approach that would later be deployed across the group. As our flagship facility, L'Horme tested initiatives, validated technologies, and refined methodologies that have now been adopted by other Setforge companies. The lessons learned here, both successes and challenges, have informed our group-wide strategy and accelerated implementation at other sites.

Selected for Bpifrance's Decarbonization Accelerator program, Setforge L'Horme benefits from expert guidance and financial support that has enabled ambitious investments in clean technologies. Today, other Setforge sites are following the path that L'Horme blazed, adapting proven solutions to their specific contexts while contributing their own innovations to our collective knowledge base.

How we act

Major decarbonization projects implemented or underway at Setforge L'Horme include:

Heat treatment modernization

-850 tons CO₂

Gas furnace replacement

-415 tons CO₂

Compressor heat recovery

-50 tons CO₂

Additional waste heat recovery

-100 tons CO₂

Electric forklifts

-27 tons CO₂

Engaging All Teams

At Setforge L'Horme, we've learned that hardware investments alone don't create lasting change. We're developing connected meter infrastructure and comprehensive energy dashboards that make consumption visible in real time, allowing teams to see the direct impact of their actions. This data transparency creates accountability and enables rapid response when inefficiencies are detected.

Climate awareness initiatives have been central to employee engagement. "Fresque du Climat" workshops help teams understand the science behind climate change and why our decarbonization efforts matter. Sports challenges centered on E-CAR themes have created friendly competition while raising awareness. These activities transform abstract environmental goals into tangible team experiences.

The result is a workplace where sustainability conversations happen naturally, in production meetings, at shift changes, during problem-solving sessions. When decarbonization becomes embedded in daily operations rather than remaining an initiative managed by specialists, the pace of improvement accelerates significantly.

Industry Engagement

Decarbonization challenges are too complex for any single company to solve alone. Working in networks allows us to share lessons learned, avoid repeating others' mistakes, and collectively push for the systemic changes, in technology, infrastructure, and policy, that enable broader transformation. These collaborations help us inspire others with our initiatives while learning from peers who are tackling similar challenges.

The support of public institutions is also essential to our projects, providing not only financial backing but also expert guidance and access to cutting-edge research that accelerates our transformation. We're active members of several networks and programs working to accelerate industrial decarbonization.

Logo ALLICE

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