Electrolux 2006 Annual Report Download - page 52

sustainability
By year-end 2006, almost all EU member states, with the exception
of Malta, had transposed the Directive into national legislation. Nor
has it been implemented in Norway. Malta is expected to transpose
the Directive in 2007.
Electrolux is compliant in all countries where laws have been
implemented. In most states, management of producer responsibil-
ity is organized through national recycling schemes initiated by
industry associations.
In order to meet the need for a cost-effi cient recycling system in
large volume countries, Electrolux, Braun (Procter & Gamble),
Hewlett-Packard and Sony have set up a jointly owned company,
European Recycling Platform (ERP), to manage a pan-European
recycling scheme. During 2006 the ERP handled waste in seven EU
member states, and in 2007 two more countries will be added to the
ERP’s list. These nine states will account for 50 percent of the
Electrolux obligation for recycling in Europe. Through investment in
this scheme, competence built in one market will benefi t the
others.
Producer responsibility for Electrolux currently covers products
representing a volume of 650,000 tons. The cost for compliance
fl u c tuates, depending on a number of cost drivers including admin-
istration, collection and treatment costs; the market price of scrap
metal; disposal costs for non-recyclable material and components
of equipment; as well as collection costs per unit and collection rates,
which may vary between countries.
The volume of returned products will increase in 2007 as a result of
WEEE implementation in Italy and the UK. Implementation in Eastern and
Southern European countries is also expected to increase return volumes
in the long term.
The cost of waste for Electrolux in 2006 was almost entirely recov-
ered through visible fees that have been added to the price of prod-
ucts. According to the Directive, the cost for recycling products sold
before August 2005 will be divided among producers and calculated
according to their respective market share each year. Based on
current national laws this applies for products sold after August 2005
in most countries. Provisions for future recycling of products sold
after August 2005 are required in only a few EU member states.
The estimated annual cost of handling waste for Electrolux when
the WEEE Directive is fully implemented is approximately SEK 600
million. Visible fees will be phased out by 2013.
Environment in operations
The Group works continuously to reduce consumption of energy
and water at production sites, and to achieve high rates of utilization
of purchased material and components.
Group Management has stipulated that an environment manage-
ment system is to be implemented for each business sector’s entire
operation. All manufacturing units with at least 50 employees are
mandated to be certifi ed according to ISO 14001. Newly acquired
units must complete the certifi cation process within three years
after acquisition.
Environmental legislation
Environmental legislation in Europe often sets precedents for other
markets, especially regarding the use of hazardous substances and
producer responsibility.
RoHS Directive
The EU RoHS Directive has been transposed into national legisla-
tion in EU member states. As of July 2006 the Directive bans place-
ment on the market of electrical or electronic equipment containing
lead, mercury, cadmium, hexavalent chromium or two groups of
brominated fl ame retardants (PBB and PBDE), with a limited num-
ber of exceptions. The Directive has been introduced at the national
level by EU member states as well as by Norway and Iceland.
Electrolux has adopted a stringent interpretation of the Directive.
A comprehensive Group-wide program has been in place since
2003 to identify cost-effective alternative components and manu-
facturing methods. A monitoring program also helps ensure sup-
plier compliance.
Electrolux does not anticipate additional costs for the imple-
mentation of RoHS in Europe.
Producer responsibility (WEEE Directive)
The EU WEEE Directive (Waste Electrical and Electronic Equipment)
defi nes producer responsibility for collection, treatment and dis-
posal of electrical and electronic products.
The Directive stipulates that as of 2005 producers and importers
have producer responsibility for products put on the market. The
target for material recovery is 80 percent for large household appli-
ances and 70 percent for small appliances.
» ISO 14001 certifi cation
0
40
20
60
80
100
%
97 98 99 00 01 02 03 04 05 06
Data from 54 manufacturing units, %. 2006 2005 2004 2003 2002
Finished products (incl. packaging) 91.74 92.28 91.41 90.89 90.12
External material and energy recycling 7.24 6.54 7.25 7.91 8.53
Waste to landfi ll (non-hazardous) 0.83 0.97 1.10 0.95 1.08
Hazardous waste 0.17 0.19 0.20 0.19 0.24
Emission to air 0.025 0.020 0.034 0.046 0.020
Emission to water 0.003 0.003 0.003 0.006 0.009
Total incoming material 100 100 100 100 100
Utilization of material in production decreased in 2006,
while hazardous waste and waste to landfi ll were reduced.
» Direct material balance
Share of factories with
more than 50 employ-
ees that have certifi ed
ISO 14001 environmen-
tal management sys-
tems.
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