Energy consumption and CO2 emissions

Reduced energy consumption is a top priority for all factories and sales companies within the Group. The reported data forms the basis for performance evaluation and benchmarking. New metrics such as energy consumption per square meter and energy consumption in relation to number of worked hours have been introduced to be able to compare similar entities with each other.

ASSA ABLOY has been conducting assessment of its products and production processes for several years. The results show that it is energy consumption in the production phase that has the most significant impact on the environment.

Energy consumption in factories and sales companies

Analysis of the energy consumption in large manufacturing units show that 40–60 percent of the energy consumption in those units is related to heating, ventilation, ­lighting, office equipment and other non-production volume dependant consuming devices. This means that the ongoing manufacturing footprint consolidation will contribute to further energy reduction savings. Each remaining facility will be streamlined and specialized on production of certain products, meaning high utilization of machines, equipment and floor space. It is important to stress that the streamlining enables full capacity, efficient working practices and high standards of quality at the remaining sites.

Understanding the main drivers for the base consumption is important to achieve further reductions in energy consumption. Each entity has defined a target for energy consumption for the coming year and a detailed mapping of the energy consumption has been made in several units. Ongoing consumption is measured continuously. Performance metrics and targets are being displayed visually and employees are encouraged to come up with ideas for improvements. Many entities have invested in equipment for more intelligent control of energy consumption, such as:
• Timers for control of heating/cooling, ventilation, lighting and compressors
• Sensors for lighting and ventilation

The ASSA ABLOY Sustainability database and analysis tool contains current and historical data per entity as well as a set of standardized measures of energy performance – for example, energy consumption per square meter and energy consumption per worked hour. In order to identify areas for further improvements, entities producing similar types of products can be compared. The analysis capabilities will be further developed in 2012 and will, for instance, include climate data per geographical site as heating and cooling are important drivers of total energy consumption in certain areas.

Transport

Efforts to reduce our carbon footprint continued in 2011, including the improved monitoring of transportation of goods and employees. A database has been established to store the geographical locations of all suppliers of direct materials, as well as all ASSA ABLOY factories and sales companies. At the end of 2011, the GPS coordinates of 4,000 suppliers had been entered into the database. The database is connected to ASSA ABLOY’s central purchasing database, which enables transportation impact estimations based on purchased value, weight of purchased goods and mode of transportation. The system will also be used for optimization and coordination of transportation within the Group, as well as from suppliers in different geographical regions. The implementation of the system will continue in 2012.

ASSA ABLOY has increased its demands for information from its travel agents in relation to business travel. This information allows ASSA ABLOY to better understand its employees’ current travel behavior and to promote more environmentally efficient behavior. On the Divisional level, there are guidelines for business travel and routines for approval of such travel.

Environmental impact

ASSA ABLOY is dependent on energy in its production processes and the company is vulnerable to the effects of energy retrieved from exhaustible resources. Examples of such effects are an increase in price and reduction in supply of certain energy sources. Further, the company affects the environment in the consumption of energy and fossil fuels and through emissions. There are trends toward taxes on emissions and increasing oil prices – emphasizing the fact that ASSA ABLOY’s ability to run its business in an effective, environmentally sensible way is closely linked to the supply and cost of resources.

Performance

Total energy consumption for comparable units decreased by 14,000 MWh or 2.3 percent compared to 2010. The normalized result – i.e. energy intensity – improved by 5.5 percent in 2011. The target for 2015 is to reduce energy intensity by 15 percent compared to 2010. Total carbon dioxide emissions for comparable units decreased by 2,600 tonnes or 1.1 percent compared to 2010. Emissions intensity for comparable units improved by 4.3 percent compared to 2010. In 2011, 10 percent of the energy used came from renewable sources. The reduction in energy consumption did not translate into a comparable reduction in emissions due to the varied energy mix across the ASSA ABLOY Group. ASSA ABLOY is looking for ways to make its energy supply more efficient and cleaner.

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