Electrolux 2005 Annual Report Download - page 109
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Energy-labeling of products has contributed greatly to increased
demand for energy-effi cient products, and the Group’s focus on meet-
ing this demand has resulted in an increase in profi tability. As shown in
the graph “Green range”, the most effi cient products account for a
higher share of gross profi t, refl ecting consumer awareness that life-
cycle savings from lower electricity costs offset higher purchase prices.
Green range
Within household appliances in Europe, the products with the best environmental perfor-
mance accounted for 17% of total sold units in 2005 and 23% of gross profit.
Fleet average energy-efficiency for various categories of appliances
sold by Electrolux in Europe showed continued improvement in 2005.
Fleet average
Reduction in energy consumption for products sold in Europe, with energy index set at
100% in the year 2001.
Materials restricted for use in products
Substances used in Electrolux products must not harm employees in
production, end-users, or the environment. Products must be in line
with market expectations and should not adversely affect “end-of-life”
properties.
Restricted Materials List
The purpose of the Electrolux Restricted Materials List (RML) is to
avoid materials that do not comply with the above criteria. Twenty-
seven individual, or groups of, substances are classified as banned
on the list and shall not be used. An additional 16 are rated as
restricted for use. Both suppliers and Group production facilities
must comply with the requirements outlined in the RML.
The RML is also designed to facilitate compliance with the trend
toward increased regulation of chemicals in markets worldwide, such
as the EU Directive on the Restriction of the use of certain Hazardous
Substances in electrical and electronic equipment (RoHS). Tracking
applications in which substances are considered potentially hazard-
ous enables the Group to act swiftly in response to new scientific
findings or regulations.
For additional information on the Restricted Materials List, visit
www.electrolux.com/rml
Phase-out of ozone-depleting
and global warming substances
The Montreal Protocol was adopted by the United Nations in 1986
and calls for a phase-out of ozone-depleting substances. The use of
chlorofluorocarbon (CFC) as a refrigerant or in insulation is prohibited
in most markets including the EU and the US, where the Group’s
products have been free of CFCs for several years. The Group has
been a leader in the phase-out of both CFC and hydrochlorofluoro-
carbon (HCFC) in new markets such as China and Brazil.
Global phase-out
The graph shows the relative change in the use of substances with ozone-depleting (ODP)
and global warming potential (GWP) in refrigerants and insulating gases used in the
Group’s products.
Environmental legislation
Electrolux is subject to government regulation in all countries in
which it conducts its operations. The Group continuously monitors its
compliance with applicable regulations and adjusts its operations
and applies for necessary permits in accordance with local laws and
regulations.
RoHS Directive
The European Union Directive on the Restriction of the use of certain
Hazardous Substances in electrical and electronic equipment, known
as the RoHS Directive, has been implemented in national legislation
of the EU Member States. As of July 1, 2006, the Directive will ban
placement in the EU market of electrical or electronic equipment
containing lead, mercury, cadmium, hexavalent chromium and two
groups of brominated flame retardants (PBB and PBDE), with a
limited number of exceptions.
Electrolux continues its comprehensive program to identify cost-
effective alternative components and manufacturing methods to
comply with the Directive. Almost all Electrolux electrical products are
being modified to some extent, RoHS substances may be present in
printed circuit boards, solders, plastics, connectors and cables.
Together with its suppliers, the Group is in the process of phasing out
RoHS substances from all these components and materials.
Legislation in other countries
China is scheduled to implement legislation similar to RoHS during
2006 and the US state of California has decided to enact comparable
legislation by 2007.
%
25
20
15
10
5
0
2001
2002
2003
2004
2005
Percentage of units sold Share of gross profi t
%
100
90
80
70
60
50
2001
2002
2003
2004
2005
Refrigerators/ Dishwashers Washing
freezers machines
0504030201009998979695949392
%
100
80
60
40
20
0
ODP Europe
GWP Europe
ODP North America
GWP North America
ODP Rest of the world
GWP Rest of the world
Environmental Activities