Electrolux 2001 Annual Report Download - page 37

Environmental activities
ELECTROLUX ANNUAL REPORT 2001 33
Costs for environmental activities
Electrolux has chosen not to report envi-
ronmental costs separately, as environmen-
tal issues are one of many components in
product development and new investment,
as well as marketing and communication.
Improved environmental performance is
a core part of the product development
process, and new products generally have
better environmental features than older
ones.As illustrated by the Environmental
Performance Indicators, these products
also generate higher profitability. Similarly,
implementation of environmental man-
agement systems involves a cost, but actu-
ally results in cost savings, as well as
increased value of the units.
Results
In order to assess the results of the Group’s
environmental work, a number of environ-
mental performance indicators have been
developed. Production-related site meas-
urements have been calculated at the
Group level since 1988.The product and
market related indicators have been fully
implemented for white goods in Europe
since 1996.
This year’s data confirm the trends to
improved environmental performance in
Group products and production processes,
and to relatively higher profitability for
environmentally leading white goods.
Consumption of water and energy, and
related CO2emissions at manufacturing
units decreased during the year. However,
restructuring resulted in an increase in
relation to added value.
Environmental management
systems
An environmental management system
(EMS) is a vital tool for achieving and
maintaining a high environmental standard
in manufacturing.The Group’s policy
stipulates that all manufacturing units with
at least 50 employees shall be certified
according to ISO 14001. Newly acquired
units shall complete the certification process
within three years after acquisition.
By the end of 2001, 58% of the Group’s
total manufacturing area was certified
according to ISO 14001, which corre-
sponds to 49 production units, or 43% of
the total number of units.The correspond-
ing figures for Europe were 79% or 43
units, corresponding to 63% of the total
number of European units.Three certified
units were divested during the year, and
seven units that lack EMS were acquired.
The Group also aims to implement
EMS for the entire operation in each
business sector.Apart from production
units, five non-manufacturing units have
received ISO 14001 certification. Five units
are also registered according to EMAS.
Electrolux as an environmental
investment
The Electrolux share continues to be
selected by a number of environmental
investment funds and is recommended by
several analysts, e.g. Miljöeco,The Natural
Step, FTSE4Good and Innovest, and has
a high rating on the Dow Jones Sustain-
ability Index. In the assessment for 2001,
Electrolux received a rating of AAA (on
a scale from AAA to CCC) by Innovest
Strategic Value Advisors, which com-
mented “Electrolux has below-average
risk, above-average environmental man-
agement capacity, and above-average
engagement in environmentally-favorable
businesses.”
Total incoming
material including
packaging Emissions to air
Finished products
including packaging
Emissions
to water Hazardous
waste To landfill (non-
hazardous waste) External
material and energy
recycling
Direct material balance for the Group in 2001, based on
data from more than 99.5% of total manufacturing area.
Direct material balance, %
0
5
10
15
20
%
Share of
gross profit
Percentage of
units sold
1998 1999 2000 2001
Within major appliances in Europe, the products
with the best environmental performance accounted
for 14% of total units sold in 2001, and 20% of
gross profit.
Green range
75
90
95
100
%
85
80
1998 1999 2000 2001
DishwashersWashing
machines
Chest
freezers
Combined
refrigerators/freezers
FreezersRefrigerators
Reduction in energy consumption for products sold in Europe,
with energy index set at 100 in the year 1998.
Fleet average
100
86.8
0.0(03) 0.4
1.1
11.6
0.1