Operational Energy Efficiency

Operational energy efficiency

 

In addition to driving energy efficiency with our Green Products, we aim to further increase the energy efficiency of our operations by 25% by 2012. In line with this target to increase our operational energy efficiency, we are striving for an absolute reduction of our operational carbon footprint of 25% by 2012.To achieve this target we are running many initiatives in IT, logistics, manufacturing, business travel and more.

 

Our operational carbon footprint includes:

• Direct emissions from our manufacturing processes and non-manufacturing facilities.

• Indirect emissions from purchased electricity.

• Other indirect emissions that we can influence directly: business travel and logistics.

 

Based upon available data, we calculated our total operational footprint to be approximately 2.35 million tons CO2 equivalents. For each area we have action programs in placed to drive energy efficiency and associated CO2 reductions.

 

Manufacturing

In manufacturing we have targets to improve energy efficiency. This has been part of all of our environmental action programs. Currently we are expanding this to specific targets for each sector through 2012.

 

In 2007, 11 of our industrial sites purchased green electricity, generated from renewable energy sources. As a result, CO2 emissions from industrial sites were 3% lower than they would otherwise have been, reducing our operational carbon footprint by 1%. We are looking to extend this program.

 

Non-industrial facilities

For our non-industrial facilities (offices, warehouses, etc.) we are focusing on upgrading our lighting systems and on our “Green IT” project.

 

Business travel

For many years, of course, employees around the world have been making their travel arrangements online. We use both paperless tickets and credit card statements. Last year we added a new functionality when you book travel – a pop-up window that suggests video-conferencing as an alternative, to raise awareness and encourage people to consider this option. Our car rental policy already stipulated the use of small vehicles, and working with our rental car provider, we added the option of renting a hybrid in 2007.

 

Leased cars

We have sharpened our existing green lease car policy to further decrease emissions. In addition to the standards that were already in place on emissions, engines and carbon filters, we include the cost of fuel into the lease price. This will raise user’s awareness and provide incentive to lease smaller vehicles.

 

Logistics

Air transport accounts for the majority of the total CO2 emissions related to logistics. We are putting programs in place to use the type of transportation that has the lowest CO2 impact per kilometer, balancing business needs and environmental impact. This clearly requires mature demand planning. We are also running a program on freight consolidation/deconsolidation to eliminate “empty” kilometers by ensuring maximum loads per kilogram on both outbound and return trips. We are promoting e-billing and are working with freight companies that use clean engines.

 

Supply chain carbon footprint

We are undertaking a large scale project to map CO2 emissions throughout our supply chain. For six pilot products – two for each sector – we make a breakdown into components and assess the CO2 emissions of each of them in all relevant tiers of the supply chain, including our own production. The goal of the project is to identify big sources of CO2 emissions and find abatement measures.

 

In our supplier approach we will increase our cooperation with them by investigating and implementing these abatement measures, thereby reducing CO2 emissions in our supply chain. In the future, the findings of the pilot products can be rolled out across the entire product portfolio.