Electrolux Environmental Report 1998
We have chosen to not react passively, but to regard the environment as a business opportunity. And it works.

Michael Treschow

In Our Business Environment, Environment is Business
Like it or not, environmental problems exist and concern everyone. Likewise, no global company can afford to disregard the resulting demands from customers and legislators. The choice is between passively reacting and reluctantly adapting on the one hand, or being proactive and constructive, regarding challenges as a potential source of competitive advantage. We have come a long way since the issue of the ozone layer and CFCs forced us to both act and rethink our strategy in the late 1980s. Today, Electrolux is a leading company, not only as the worlds largest manufacturer of household appliances for indoor and outdoor use, and of the corresponding products for professional use. We are also global leaders with a strong environmental prole and proof that this strategy is good business. We have chosen to not react passively, but to regard the environment as a business opportunity. And it works. The Electrolux Group is well-respected by legislators and environmental organizations as a discussion partner, and our strategy is studied by other companies and nancial analysts. Our environmental performance indicators clearly show that the work has paid off. And the trend is clear. The driving forces on which we base our strategy will not diminish on the contrary. Legislation will not be more lenient, but stricter. The need to control and reduce costs will only increase both in terms of more resource-efcient manufacturing methods at our production sites, and as a demand for more resource-efcient appliances. This demand will rise as awareness increases, both about environmental problems and about cost savings potentials in products with high environmental performance. More and more customers realize that by choosing these appliances, theyre not only doing a good deed for the environment, but also for their own budget. We will continue to take these factors seriously, and strive to remain in the lead by keeping a proactive and holistic perspective considering scientic ndings and legislative trends as well as public demand and technological innovation. The goal is to make Electrolux an even more attractive and protable company. Although the trends are obvious and the logic behind our strategy may appear self-evident, my conviction is that our pioneering work is actually leading to a new perspective on how to do business; a perspective that is putting the customer in focus in a new way. Resource-efcient appliances are about saving money for the customer,
and our environmental work is to a large extent about helping the customer see savings potentials. To continue to build and maintain a trust in us as a conscientious and reliable supplier and business partner is the core of our continuous environmental work. Corporate environmental work is not a luxury to be discontinued during hard times, but a tool both for survival, long-term competitive advantage and increased shareholder value.

Examples of regulations affecting the appliance industry
Examples of current and expected regulations on national and international level. These affect or will affect our operations in different business areas.
Current and expected regulations
energy standards in new markets, EU and USA requirements in EU, Japan, Norway and Switzerland requirements within EU and USA EU and USA and new markets Kyoto Protocol Montreal Protocol regulations in EU and USA

Affected business areas

household appliances professional appliances all business areas outdoor products all production facilities all business areas household appliances professional appliances
Energy Producer responsibility Emissions from combustion engines Emissions to air and water, solid waste Climate change Ozone depletion

Life Cycle Cost

Life Cycle Environmental Impact

Washing Machine

water 8% purchase price 33% energy 24% use 80% production 20%

service 3% detergent 32%

The purchase price is only a part of the total cost carried by the consumer.The disposal cost is not included in the chart. Source: Group for Efcient Appliances, European Energy Network, 1995.
The environmental impact occurs mainly during use. The impact of recycling/reuse is not included in the chart.
introduced regulation, but the most important discussion is occurring on the EU level. The issue right now is not if such legislation will be introduced, but to what extent this will be a marketdriven system with economic incentives to facilitate recycling. One of two major alternatives discussed is the generation solution, which would oblige anyone selling a product to take back a similar old one. The other is a direct marketdriven system which keeps responsibility with the producer (more specically, a responsibility for products of the same brand). In the US and Canada on the other hand, producer responsibility seems not to be a preferred political solution for waste management at the present. North America, the USA and California especially, are leading the way with ever-stricter limits on emissions from outdoor products. Maximum noise levels have been introduced in many areas. In most of the industrialized world, the threat
against the ozone layer is tackled through prohibition on substances with an ozone-depleting potential, most notably CFC and HCFC, so called Freons. Regulations vary between countries, regions, and, of course, types of appliances and can consist of taxes, levies, emission caps or downright prohibition (see illustration page 6). The appliance industry can react, by following the law once its passed, or act in a proactive way by participating in the development of legislation and adapting production and design before regulations are introduced. The Electrolux Group has chosen the proactive strategy. The Electrolux answer to these driving forces Electrolux bases its strategy on the driving forces; market forces, resource and cost efciency, regulation. Electrolux strives to act in a responsible and proactive way. As can be seen above, the interactions between the driving forces

are difcult to separate. To be a leading company in the global appliance market, it is necessary to consider regulations, trends, market demands and environmental challenges. This is the holistic perspective we have adopted. We welcome mechanisms that reward environmental proactivity, such as a market-driven system for producer responsibility, and energy labeling to help consumers make informed decisions. An overall priority is to further improve the relationship between ecology and the economy. In the long run this is a strategy for sustainability, since good protability generates resources for the development of technology that makes a dynamic contribution to a harmonious relationship between society and nature.
Environmental Vision, Policy and Strategy
Protection of the environment is a key to long-term survival for the individual, for corporations and for society in general. All our activities must be adapted with regard to the limits that nature can accept in the form of resource consumption and pollution. Care for the environment will be a continuous component of our operations, as well as the hallmark of our daily work. Growth in consumption of nonrenewable raw materials and natural resources cannot continue indenitely. Our operations and our products must be integrated into a cycle, so that we can satisfy the needs of our customers without jeopardising the prospects of future generations. The keywords for our operations are, therefore, resource efciency and recycling. We are going to meet our customers expectations for safe, environmentally sound products, and we will actively distribute information aimed at stimulating demand for these products. Good protability generates resources for the development of technology that makes a dynamic contribution to the harmonious relationship between society and nature. Resource efcient production and far-sighted product development will contribute to maintaining our competitive position in the future as well.

Vision

Responsibility Our role as a company is to full the needs of society that generate demand for our products. This involves a responsibility to contribute to sustainable development by continuously improving our products and our production processes from an environmental perspective. Precaution Precaution must be our guide for all development and production within the Group, in order to avoid irrevocable environmental impact. This requires a cautious approach to activities that might have a serious environmental impact. Total approach We must adopt a total approach in our operations, based on knowledge of every phase of the life cycles of our products, from raw materials and production, to use and recycling. We must choose the options that minimise negative environmental impact, as well as consumption of raw materials and energy. Preparedness Our business development must include an active commitment to development and marketing of products with the least possible environmental impact. As we continuously acquire more knowledge and promote our environmental efforts, we will also be prepared to meet future environmental needs.

ISO 14001

Knowledge and skills
determine educational needs, roll out education

Experience exchange

ENVA Network, functional networking, external input

Performance measurements

implement Group EPIs, identify and develop own measurements
responsibility of business sectors

Communication

Environmental and Annual Report, media and stakeholder relations
Environmental Affairs. Eco Know How consists of three modules Basic Training, Electrolux and the Environment, and Environment at Work and is available to all team members via the intranet. In addition to the main modules, an environmental glossary is also provided, as well as a quiz to help users test themselves. The main target group is those who are recognized as having a major inuence on the environmental performance of our operations. Eco Know How is currently available in English, French and Swedish. German and Italian versions are underway. Selected modules are also available on the Internet at www.electrolux.com Environmental Management Systems An environmental management system offers a structure for environmental work, guarantees management involvement and helps continuous improvement. It denes responsibilities, work methods, as well as processes and resources required to develop, implement, assess and maintain a companys environmental policy. Strict protocols for processes with a signicant environmental impact minimize the risk of environmental incidents. An environmental management system is also an efcient
way of controlling and reducing costs at production units. The Group has chosen ISO 14001 as its standard, and is working towards having all production facilities certied before the end of year 2000. The certication work is described in the Results section. Product Development Product development within the Group follows the Integrated Product Development Process (IPDP), developed by the Group. Environmental assessment is an important part of this process. Eco-design handbooks have been developed for most of our product lines. They are used during IPDP as tools to assure that the right questions are asked and the right factors are considered during each step of the process. Single entities within the Group have developed their own processes, often based on the idea of integrating skill on all levels. Our lawn mower manufacturer Flymo in Newton Aycliffe in the UK for example, has had success with the Product Introduction Control (PIC) process, which considers environmental aspects in both design and marketing.

example, non-nancial items such as employee satisfaction and service call rate are being measured within some business sectors and parts of business sectors and compiled into balanced scorecards. All results from the Environmental Performance Indicators are found in the Results section. Environmental Declarations Electrolux has developed a system for Environmental Product Declarations, which is still, after two years, unique in the business. The Environmental Declarations contain comprehensive information relevant to a products environmental impact during its life cycle. Originally developed to meet demands from professional users, the system is offered today for White goods Europe, Laundry and Refrigeration equipment within the Professional appliances sector and, starting in 1999, the outdoor products from Husqvarna. The declarations, covering environmental aspects of manufacturing, transport, packaging, recycling and material content, can be accessed from a PC connected to the Electrolux intranet anywhere in Europe.
Energy labeling Energy labeling of white goods, launched by the European Union is a useful tool in marketing of environmentally leading appliances. The classication system, ranging from A for the most energy efcient, to G, was introduced for refrigerators and freezers in 1995 and for washing machines and tumble dryers one year later. Since about 15% of the total electricity consumption in Europe is attributable to use of household appliances, labeling is a good way of making customers focus on crucial environmental, as well as economic, issues. Though the process to implement the system has not been as quick as desired (even as the use of energy labels increases steadily), all statistics show a clear trend towards an increased demand for more energy efcient products. Environmental labeling There are also a number of environmental labels available on a national and international level. When used, they signal in an easy way that the product has fullled
Symbolism is a new concept proposed by Electrolux Industrial Design. Symbolism is an alternative method of cold storage without an external power source. Passive cooling uses the integrity of natural materials combined with water to create an environment sufcient for storing many types of foods at moderate temperatures. Drawing inuence from the past and re-inventing the traditional food cellar, this along with six other concept products are part of a submission to the Sustainable Kitchen competition run by the United Nations in Germany.

Electrolux is an excellent example of an organization committed to safeguarding the future of the environment. It has clearly embraced the principles of the Green Code and helped its workers to do something positive. In Finland, we sponsored an information package from the organization Hll Skrgrden Ren (Keep the Archipelago Clean). For the second year, our professional product line Food-service equipment has presented the Electrolux Eco Kitchen Prize to professional kitchens in Sweden with the best ecological entrepreneurship. Electrolux Australia sponsors the annual Australian Youth Parliament of the Environment (AYPE), bringing pupils together at the parliament house in Canberra to discuss environmental issues. Partnerships, marketing and media As electricity consumption constitutes a large part of the environmental impact of our appliances, an important task is to encourage households to replace their appliances with new high efciency ones. Successful cooperation with both government and electricity suppliers has been established on many markets. In Sweden, a pilot project together with the publicly owned utility company Vattenfall, to promote the most energy efcient refrigerators, freezers and washing machines, resulted in increased turnover in Electrolux Home stores. A campaign supported by Electrolux and other white goods manufacturers,
energy authorities and suppliers, Eltarna (the Electricity Eaters) to encourage early replacement of white goods, resulted in increased sales of efcient products (energy class A and B) from 10-15% of the market to 50-60%. In the UK, Electrolux dishwashers and washing machines can be seen in the BBC television series Dreamhouse. The appliances communicate with the electric meter to get the cheapest possible electricity. Similar collaboration also takes place in North America. Power companies in for example, Connecticut, Massachusetts, New York and Vermont have joined together to offer promotions to stimulate the purchase of energy efcient washing machines, like the Frigidaire Gallery Tumble Action Washer. Internet High environmental performance is a strong marketing tool as it also involves cost savings for the customer. During the year an Eco Save Guide was developed, to help customers calculate the life time cost of a household appliance. This will be introduced during the year on the Internet or at retailers. The popular Electrolux homepage, which soon will be available in ten different languages, is also a powerful tool for environmental communication. Visitors to www.electrolux.com can download environmental reports, get basic
information about our environmental work and visit a green product gallery. Parts of the internal educational database Eco Know How are also accessible on the Internet. Naturally, specic questions can be mailed to Environmental Affairs by e-mail. This environmental report is also available on the Internet. Legislators, Business organizations The Electrolux Group is a respected discussion partner by legislators in many countries and for example the European Union. Together with branch organizations we actively participate in for example the discussions concerning producer responsibility. In the USA, Frigidaire Home Products participates in the Major Appliance Resource Management Alliance (MARMA) through the Association of Home Appliances Manufacturers. During the last one and a half years, Electrolux participated in a consortium together with Deutsche Bank, Gerling, ICI, Monsanto, Unilever and Volvo. The theme of the consortium was Sustainable Strategies for Value Creation. The group of companies gathered to develop a better understanding of how to further capitalize on their environmental efforts. Electrolux is a member of the Swedish Association of Environmental Managers (Nringslivets Miljchefer) and has been elected to join the steering committee. An important discussion concerns the

standards for environmental reporting. Electrolux participates, along with organizations such as WBCSD (World Business Council for Sustainable Development), and ACCA (Association of Chartered Certied Accountants, UK), in the Global Reporting Initiative, launched by CERES (Coalition of Environmentally Responsible Economies) and aimed at producing a standard for environmental and sustainability reporting. External verication of Corporate Environmental Reports is one issue up for discussion. As no accepted global standard yet exists, we have chosen not to use external verication for this report. Some sections, especially those nancially related, could, however, be subject to future external verication. There is also a shorter section about environmental work included in the Annual Report. During the year, Electrolux received a number of very encouraging recognitions of the success of our environmental work. Last years Environmental Report was rated the best in the manufacturing industry, by Swedish business magazine Affrsvrlden and the Institute for Business Economics (Fretagsekonomiska Institutet) in Sweden. Per Grunewald, Electrolux Environmental Affairs was voted the best Environmental Manager in Sweden by the same magazine. We are also proud to announce that the Electrolux share has been chosen by several international environmental investment funds.
In Italy, Electrolux supports various information packages from WWF, for example teaching children about sustainability.
The Institute of Packaging in the UK awarded Electrolux Cookers the Silver Award 1998 for the packaging of wide range combined gas/electricity cookers.
In order to encourage consumers to consider the lifetime cost (retail price and electricity cost) of household appliances, Electrolux has developed the Eco Save Guide. It provides a clear and easy way to calculate the total costs of appliances, break even years and potential savings from choosing efcient products. It was developed to be used at retailers.

Household Appliances

Household appliances is Electroluxs largest business area, representing almost three fourths of total sales.The business area is divided into product lines: White goods cold: refrigerators, freezers wet: dishwashers, washing machines, dryers hot: cookers, ovens, hobs, cooker hoods and microwave ovens Floor-care products: vacuum cleaners Leisure appliances: hotel minibars, refrigerators for trailers and mobile homes Components

goods have been or will be introduced in both Europe and North America. Electrolux offers products that meet and exceed these demands. As environmental impact most often goes hand in hand with the household economy, the trend is clear towards increased market demand for more efcient appliances. This is shown by our own environmental performance indicators, as well as by market statistics in general. In 1995, the European Union introduced a system for energy labeling of refrigerators and freezers, ranking efciency from A to G. Washing machines and tumble dryers were included in the system the year after. Dishwashers will be included in the system starting in 1999. Implementation of European directives is not a quick process; only
Electrolux meets increased demand Share of freezers sold in Europe in energy classes A and B
Electrolux market, all producers %
Demand is increasing for resource efcient appliances in the European market. For example, 27% of all freezers sold in Europe in 1997 belonged to energy class A or B. In 1998 the volume had increased to 32%. During the same period the share of Electrolux freezers was even higher.
Frigidaire Home Products in North America has expanded its offering of refrigerators with the unique PureSource Ice and Water lter.The built-in lter system reduces impurities in ice and water served through the door of side by side refrigerators. It also removes undesirable tastes and odors from the water.The PureSource lter has been praised by leading consumer magazines.
The greatest environmental impact from household appliances occurs during use. Less than 20% is attributable to manufacturing, transport etc. Most crucial environmental issues are energy and water consumption, but materials, chemicals and noise are also of interest. Another important issue is recyclability, highlighted by current discussion about producer responsibility. Electrolux is well prepared with a recyclability rate of around 80% for our refrigerators, and higher for vacuum cleaners. Important environmental issues may vary between different products, but energy consumption is central all over. Minimum energy standards for white
about 40% of all refrigerators were actually labeled in 1995. In 1997 this gure had increased to 70% and in 1998 to 80%. Market statistics from eight European countries show that the most energy efcient freezers, energy classes A and B, increased their share of the market from 26% to 32% between 1997 and 1998. Corresponding gures for Electrolux were 31% and 41%. Refrigerators and freezers Energy consumption is a key environmental issue in this product group. Legislation and market demand work simultaneously to promote more energy efcient products, which is

burning off. This made it necessary to reorganize production and change the insulation material. This process is described in an article reprinted with permission from Tomorrow on page 4. Floor-care products Filtration is a central environmental issue for vacuum cleaners. At the National Asthma Conference in the UK in 1998, Electrolux presented the only reusable lter on the market to exceed the stringent HEPA H-12 standards (High Efciency Particulate Air). These Gore Cleanstream lters, made exclusively for Electrolux are used in the Electrolux Oxygen vacuum cleaner. In the North American market our company Eureka has been leading the way with the Enviro Vac, equipped with HEPA 99.97% level ltration in a sealed system. Also in Europe, the exhaust air from some of our models is actually cleaner than the ambient air. We were also the rst on the market to offer portable vacuum cleaners using cadmium free, rechargeable batteries. Leisure appliances Electrolux is the world leader in absorption refrigerators used as hotel minibars. Energy efciency is crucial as the total number of appliances is normally high. This is also a strong marketing argument which is appreciated by large professional customers. Advanced electronic controls and vacuum panel insulation have reduced energy consumption in our
bar refrigerators by almost 40%. For a hotel with 100 rooms, this represents annual savings of about SEK 30,000. Similar technology is also being introduced in refrigerators for trailers and mobile homes. The increasing shortage of clean water makes the unique Electrolux water purier interesting. The in-house developed membrane process leads to exceptionally ne water quality, good water management but low energy consumption.

Professional Appliances

The Professional appliances business area represents about one tenth of total sales.The business is divided into product lines: Refrigeration equipment Laundry equipment (during the year, the European operation in Senkingwerk, Germany, making large tunnel washer installations, was divested) Food-service equipment Cleaning equipment (during the year, Electrolux Euroclean operations were divested)
and more common, as are Functional Sales, meaning the sale of the function of an appliance, rather than the appliance in itself, keeping responsibility with the manufacturer during the entire life cycle of the product. Another important environmental issue is, of course, the work environment, in terms of both noise and ergonomics. Customer demand for more convenient appliances is a strong driving force for our product development. An important strength for Electrolux operations in this business area is our global organization which makes it possible to offer whole solutions for e.g. a hotel chain or a hospital, by providing all appliances from laundry equipment to an entire kitchen. Our environmental commitment and focus on efciency is integrated into all parts of such offers. Investment and cost of use

a standard Group procedure is followed.The objective of the Phase I study is to obtain a general understanding of areas of potential environmental concern, and identify the need for further investigation in the form of a subsequent Phase II ESA.This in turn is a more thorough and quantitative assessment procedure and includes sampling and testing. A Phase II ESA should conrm contamination, evaluate the extent, suggest suitable remediation techniques and estimate the magnitude of remediation costs.
All potential environmental hazards, liabilities and investment needs are carefully assessed before an acquisition, says Arne Pontenius, project manager. Standard protocols are essential to maintain high assessment quality and to minimize the risks for the Group and the environment.
environmental hazards, liabilities and investment needs before an acquisition. Since environmental legislation and practice is extensive and complex, and the Group is global and diverse, a standardized approach is needed. A Due Diligence process according to a strict protocol has been developed to fulll this need. The process is divided into different levels of minimum assessment activities required for different situations. A desktop study, meaning an evaluation of the facility from photos, maps, etc. and phone interviews with people who are responsible on site, is required for any transaction. This is carried out by Electrolux personnel. Should the desktop study so suggest, the next step is to proceed to a Phase I study. The Phase I Environmental Site Assessment (ESA) includes a site visit together with external, objective specialists. In certain countries, for example the US, standard protocols are required by state or federal law for this phase in which case they are used. In other cases,
Different levels of assessment are conducted depending on the results from the previous level. However, in the case of taking over production sites or in situations where hazardous chemicals are or have been stored, all levels of assessment are mandatory. In addition to the Phase I and II ESA, there are also Phase III and IV assessments.These provide detailed information for negotiations with the authorities and the design of remedial actions. Says Arne Pontenius, project manager: Our standardized protocols for this are absolutely essential to maintain high quality assessments. By investing time and effort at an early stage of the acquisition process we clear the table for future operations and ascertain that all responsibilities are assumed in a just way.We make sure that all skeletons are out of the closet before we make an acquisition.This is the method we have chosen to minimize the risks for the Group and the environment.

Results

In earlier Environmental Reports we reported on the production related Site measurements. This is the rst year that results related to products and strategic development are included in this section. The aim is to further extend this section in line with the implementation on a Group level of all Environmental Performance Indicators. In June 1997, Electrolux started a major restructuring program, running over a two-year period. This involved, among other things, the planned closing of 25 production facilities and 50 warehouses. A large part of this restructuring has been accomplished. It is important to keep in mind the changing structure of the Group when comparing the production related measurements. Differences in reported measurements can partly be explained by both the individual performances of the production facilities and of the current Group structure. Most of the facilities that were taken out of operations were located in Western Europe and at the same time facilities were bought in India and Eastern Europe. These new Group facilities do not have the environmental standard of the ones that were taken out of operation. However, the standard will increase over a few years, as has been the case with our Hungarian and Brazilian production facilities.

Products

Green Range Phase out of substances with ozone depletion and global warming potential
Total Group including and excluding new markets. % share of gross margins
ODP and GWP compared to 1992 levels (%)

GWP incl. new markets

20 share of volume

ODP incl. new markets

GWP excl. new markets ODP excl. new markets
Leading products show good margins Green Range is one of the Environmental Performance Indicators, EPIs. The graph describes the results for White goods Europe during three consecutive years. Products within this sector, with the highest environmental performance, accounted for 16% of total sales and 24% of gross margins during 1998. Fleet average The average energy efciency of Electrolux sales of freezers in eight European countries improved dramatically between 1997 and 1998. In 1997, the average energy consumption equalled a good energy class D freezer, while in 1998 it had improved to a good energy class C freezer. That means that the total eet of freezers sold in 1998 was about 15% more energy efcient than in 1997, with substantial energy savings as well as related savings in CO2 emissions.

Direct materials balance 1998, metric tonnes

Input No. of facilities

Output Internal restow External restow Recycled Incinerated
9,432 1,1,829 18,949 3,358 4,213 75,1,123 1,18,089 12,978 1,298 150,570 84,795 5,344 5,246,448 307,830 231,13,14,0 14,885 17,602 15,651

Country/Region

Austria Denmark Finland France Germany Great Britain Hungary Italy Luxembourg Norway Romania Slovenia Spain Sweden Switzerland Europe, total North America South America Asia Other Total 1998 Total 1997 Total 1996

Direct material

36,158 8,344 6,533 48,633 71,922 47,916 67,862 644,938 3,813 6,736 12,120,319 141,082 7,662 1,224,638 1,117,046 89,270 43,273 1,917 2,476,145 2,556,520 2,361,560

Finished products

26,306 6,332 6,126 45,356 52,010 43,354 61,619 554,411 3,700 5,456 9,101,060 111,112 6,146 1,032,731 1,015,472 82,796 37,381 1,829 2,170,209 2,183,491 2,073,920

Recycled Incinerated

3,500 50,3,58,219 8,67,576 23,733 64,1,305 1,282

Hazardous Landll waste

110 1,1,015 1,707 8,139 1,1,146 1,17,507 15,33,832 36,088 25,5,1,8,1

Emissions to air water

9,258 1,500 8,804 2,071 11,443 3,270

Per Business Area

Household Professional Outdoor 14 2,080,910 73,064 322,172 1,828,182 62,466 279,561 64,2,206,671 8,418 31,359 14,206 22,226 1,913 9,693 8,0
Emissions to air do not include CO2 emissions. Values <0.49 are set to 0. Reported data covers about 85% of total site area. In cases where exact data is missing, estimates are used. Divestment in 1998 of Ballingslv AB resulted in reduction of internally incinerated material. Some corrections have been made for 199697. The materials balance is calculated as: Direct material = Finished products + External restow + Emissions to air and water.
ISO 14001 Implementation status 1998

Business area

Household Professional Outdoor Total

Production facilities

14 123

Certied end 98

Planned 99

%area 98

%area 99
%98 and %99: percentage of units certied. %area 98 and %area 99: percentage of workshop area certied. In 1998, 16 production facilities were certied according to ISO14001.This brought the total up to 35 units by the end of 1998. During 1998 six certied facilities were divested and one was taken out of operation. During the last three years 42 units have implemented an environmental management system certied according to ISO14001. All of them are located in Europe. This equals about 2/3 of the European workshop area. The work to implement an environmental management system has also begun in North and South America. 40 units plan to be certied during 1999, which brings the total to 75 units. This equals 88% of the total area and 61% of the units, mainly due to the structure of the Professional appliances sector with a large number of sites of a comparably small area.

The table below shows the status in terms of coating processes. The surface coating, including pretreatment, has presented and still presents, an important improvement area in appliance manufacturing.
Coating processes and use of solvents and oils
Use of solvents and oils, metric tonnes No. of facilities with PreSolvent treatment painting

No. of facilities

Enameling
Chlorinebased organic solvents
Volatile organic compounds
24 1,0 1,6 3,911 2,6,828 4,687 4,959
Household Professional Outdoor 4,2,183
Use of processes (pre-treatment and coating) and indirect materials (solvents and oils). A facility may perform several critical processes. Figures for one major facility Curitiba, Brazil, are not included. Divestment in 1998 of Ballingslv AB partly explained the reduction in use of volatile organic compound (used in solvent based painting operations).

Key environmental gures

Energy consumption Business area
Household Professional Outdoor

per added value kWh/kSEK

per heated area kWh/m2
Energy cost as % of added value

3.3 2.2 2.5

CO2/added value kg/kSEK
Water/ added value m3/kSEK

0.71 0.11 0.44

The key environmental gures are based on standardized reports from 138 production facilities, warehouses and ofces with more than 1,000 square meters of heated area. (1) Energy consumption per added value. The amount of energy required adding SEK 1,000 value to a product. Measured in kilowatt-hours per SEK 1,000. (2) Energy consumption per square meter of heated surface area. Measured as kilowatt-hours per square meter. (3) Energy cost per added value. The share of energy cost measured as a percentage. (4) Carbon dioxide emissions per added value. The amount of carbon dioxide emitted in generating the energy we consume. Different types of energy as well as different countries carbon dioxide equivalents for electricity are taken into account. It is measured as kilograms per SEK 1,000. (5) Water consumption per added value. The use of treated water in cubic meters per SEK 1,000.
Energy consumption per added value kWh/kSEK 200
CO2 per added value kg/kSEK 50
Water per added value m3/kSEK 2.0
Energy consumption per heated area kWh/m2 700
Energy costs % of added value % 4 3.2.98
Production related measurements The 1998 report for energy consumption, water consumption and carbon dioxide emissions includes about 91% of our total building area. The ve key gures that we follow up on group level since 1988 are shown in the graphs and the above table. In 1995, reporting was extended to cover other production related environmental impacts. This additional reporting now includes about 85% of our total building area (results shown on previous pages). At the Group level, the reported data is aggregated into a number of key gures that show the total environmental impact of production. Other data that reects local conditions is not followed up at the Group level. Much of this data is operations-specic. Because much of the environmental impact depends on production volume, some of our