In Finnish
Content type
Back to news

Published on 03.04.2025 at 15.15

Terrafame's results at the target level in the mining industry's sustainability standard assessment

Sustainability is at the core of Terrafame's operations and also a significant competitive advantage in the global battery chemicals market. In the latest external verification of TSM Finland, which is based on the international Towards Sustainable Mining standard, Terrafame achieved at least level A in every category.

Terrafame is committed to continuously improving its sustainability. The Towards Sustainable Mining (TSM) standard provides assessment tools that enable companies to adopt and develop practices to become more sustainable in terms of nature, people, and the economy.

Although Terrafame's main industry is chemical manufacturing, the company utilises TSM Finland's tools to develop its operations. Terrafame's production process starts from its own mine, located in the same industrial site as the company's other operations.

The assessment tools also form the basis for external verification conducted every three years. In the latest verification, Terrafame achieved at least an A level in each area, as per the company’s targets. The most significant improvements were seen in the tools for climate change management and community outreach.

Terrafame's Chief Sustainability Officer Veli-Matti Hilla is pleased with the results. Terrafame has been evaluating its operations according to TSM Finland's assessment tools since 2017, and the results have improved year by year. The next external verification will be in 2027.

"The mining responsibility system is an excellent tool for continuous improvement. With the system, we have particularly developed and clarified the documentation related to operational models. The work continues, and the goal is naturally to improve the assessment results in the coming years", says Hilla.

A more systematic approach to energy management

The assessment of the climate change management tool rose from C to A level. Terrafame began systematic work on developing energy management in 2023, and an energy efficiency working group was established within the company. The company's energy management system was certified according to the ISO 50001:2018 standard in February 2025.

Terrafame’s goal is to achieve carbon neutrality (Scope 1–2) in its production by 2039. The internationally recognised certificate demonstrates Terrafame's ability for systematic operation and continuous development.

Terrafame has already reported its greenhouse gas emissions and energy consumption for several years as part of its sustainability review. The lifecycle emissions of the nickel sulphate produced by Terrafame were assessed in 2021. According to the assessment, the carbon footprint of nickel sulphate is 60 per cent lower compared to the industry average.

In addition to building and certifying the energy management system, active preparation for the European Union's Corporate Sustainable Reporting Directive (CSRD) raised Terrafame's rating.

Benefits of voluntary sustainability systems

For Terrafame, commitment to various voluntary, industry-specific standards and sustainability systems brings benefits. They demonstrate the company's commitment to continuous improvement in sustainability.

Many sustainability systems, such as the mining industry's TSM and the chemical industry's Responsible Care, have been developed over the years in collaboration with companies and stakeholders.

According to Veli-Matti Hilla, these systems have included topics that are important to companies, investors, customers, employees, and the general public. The requirements guide companies to pay attention to issues that stakeholders consider essential.

"We don't do reporting just for the sake of reporting, but we can check that we have the required matters in order and where we need to improve", Hilla says.

Versatile assessment tools

TSM Finland includes eight assessment tools:

  • Community outreach
  • Biodiversity management
  • Tailings management
  • Water management
  • Climate change management
  • Mine closure
  • Occupational health and safety
  • Crisis management

Each assessment tool is graded from C to AAA. Terrafame's rating for each tool is at least A, which means the company has developed and implemented its processes. In communication, the company adheres to transparency, and reporting is public.

C is the lowest grade, indicating that the company's operations meet Finnish legal requirements and may have some related procedures in place, but these are not included in documented policies and management systems.

AAA is the highest grade, indicating that the company has an excellent and industry-leading system in place for the respective assessment tool area.

In addition to the mining industry's Towards Sustainable Mining (TSM) sustainability standard, Terrafame is also committed to other voluntary sustainability systems such as the UN's Sustainable Development Goals, the UN Global Compact initiative, and the chemical industry's Responsible Care.

Learn more:

Terrafame enhances low-carbon mobility by delivering responsibly produced battery chemicals to the global battery industry. One of the world’s largest production lines for chemicals used in electric vehicle batteries is located on Terrafame’s industrial site. The plant is capable of producing nickel sulphate for around 1 million EVs per year. The carbon footprint of the nickel sulphate produced by Terrafame is among the smallest in the industry.

Terrafame’s integrated, unique and energy-efficient production process from the mine to battery chemicals is located on a single industrial site. It provides customers with a transparent, traceable and truly European battery chemical supply chain.

Terrafame Ltd was founded in 2015. Its net sales in 2024 were EUR 544.5 million. Around 2,000 people work on its industrial site, approximately 1,200 of whom are employees of partner companies.

Attachments and links: