Electrolux 2004 Annual Report Download - page 102

Download and view the complete annual report

Please find page 102 of the 2004 Electrolux annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 114

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

98 Electrolux Annual Report 2004
Within major appliances in Europe, the products with the best environmental
performance accounted for 15% of total sold units in 2004, and 22% of gross
profit.
Green range
25
20
15
10
5
0
%
2000
2001
2002
2003
2004
Percentage of units sold Share of gross profit
Environmental Activities
Reduction in energy consumption for products sold in Europe, with energy
index set at 100% in the year 2000.
Fleet average
100
90
80
70
60
50
%
2000
2001
2002
2003
2004
Refrigerators/
freezers Dishwashers Washing
machines
Energy directives and product labeling
Energy-efficiency and product labeling are core issues for the
Group, and for the appliance industry as a whole. In the Group’s
major markets in Europe and North America, regulations require
that every product bears a label indicating the product’s energy
consumption. Environmental impact and electricity costs are thus
displayed to the consumer and become factors in purchasing deci-
sions. Similar labeling regulations are also applied in Mexico,
Japan, India, China and Australia. In Hong Kong and Brazil, labeling
is currently voluntary but may be mandatory in the future.
Energy labeling of products has contributed greatly to increased
demand for energy-efficient products, and the Group’s focus on
meeting this demand has resulted in a significant increase in prof-
itability. As shown in the graph “Green Range,” the most efficient
products have a higher share of gross profit, reflecting consumer
awareness that life-cycle savings from lower electricity costs offset
higher purchase prices.
The Group’s products are well within all regulatory limits and are
well represented in the highest energy-efficiency classes as defined
by the EU’s Energy+ scheme and the US Environmental Protection
Agency’s Energy Star program. In addition, Electrolux and the other
major manufacturers in Europe are committed to voluntary agree-
ments on improving energy-efficiency for washing machines and
dishwashers, which are not covered by Energy+. The European
Commission has endorsed these voluntary agreements.
Restricted materials in products
The Montreal Protocol was adopted by the United Nations in 1986
and calls for phase-out of ozone-depleting substances. The use of
chlorofluorocarbon (CFC) as refrigerant and insulation material is
prohibited in most markets including the EU and the US, and the
Group’s products in these markets have been free of CFCs for sev-
eral years. The Group has been a leader in the phase-out of both
CFC and HCFC in new markets such as China and Brazil.
The RoHS Directive
The European Union has adopted the Directive on the Restriction
of the use of certain Hazardous Substances in electrical and elec-
tronic equipment, known as the RoHS Directive. This Directive,
which has not yet been implemented in national legislation of sev-
eral member states, will ban placement in the EU market of electri-
cal or electronic equipment containing lead, mercury, cadmium,
hexavalent chromium and two groups of brominated flame retar-
dants (PBB and PBDE) from July 1, 2006, with a limited number
of exceptions.
Fleet-average energy-efficiency for various categories of appliances
sold in Europe showed a continued improvement in 2004, most
notably for dishwashers, see graph “Fleet Average” below. This is
largely due to the development of the Group’s dishwashers on a
single global platform and the replacement of mechanical
controls with electronics.
End of life 3%
Production 9%
Consumer use,
10 years 88%
Electrolux products
In general, the greatest environmental impact of Group products
occurs during use, through consumption of energy, fuel and water.
Efficient appliances reduce the consumer’s operating costs. The
Group’s focus on offering products with superior environmental
performance provides competitive benefits.
Life-cycle cost
Environmental impact of household appliances occurs mainly during use, and
the purchase price is often less than half of the total life-cycle cost. Efficient
appliances mean both economic and ecological savings. The charts are based
on data from washing machines sold in Europe.
Life-cycle impact
Water 8%
Price 42%
Detergents 28%
Service 8%
Energy 14%