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.

 

We have action programs in placed to drive energy efficiency and associated CO2 reductions. CO2 emissions dropped 10% in 2009 compared to 2008.

 

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 2009 CO2 emissions from manufacturing decreased 6%.

 

Renewable energy

We are actively searching for alternative energy sources to reduce our greenhouse gas emissions. One of our efforts is directed at using direct or indirect (through our energy supplier) renewable energy sources like geothermal energy, wind and solar systems to produce green electricity that run our sites. We doubled our purchase of green electricity from 7% in 2007 to 15% currently. By 2012, the number of sites which use green electricity should be raised to the level needed to achieve our 25% carbon footprint reduction target for 2012. We critically ask our energy suppliers to introduce procedures to avoid double counting of renewable energy certificates.

 

Non-industrial facilities

For our non-industrial facilities (offices, warehouses, etc.) we reduced the amount of facility space through co-location and workplace innovation projects. Additionally we focus 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.

 

The total level of CO2 emissions in 2009 related to business travel, which represents 11% of the total, decreased. 17%. This significant reduction was achieved by promoting videoconferencing in combination with our strict air travel policy. CO2 emissions from lease cars decreased 8% compared with 2008 due to our green lease car policy.

 

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.

 

In 2009, overall CO2 emissions from logistics decreased 14%

 

Supply chain carbon footprint

In 2008 we selected six products and assessed CO2 emission of their components throughout the supply chain. The goal of this pilot project was to create awareness in our supply base, identify large sources of emissions per product type and implement abatement measures collaboratively with our suppliers. We continued this exercise in 2009 by analyzing four more products.

 

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.

 

The first stage of the supply chain, inbound logistics, is already reported as part of the logistics part of our operational carbon footprint (see ‘Logistics’).

 

We are participating in the Carbon Reporting System of The Electronics Industry Citizenship Coalition (EICC) to improve measurements and increase understanding of CO2 emissions from our supply base, The EICC system collects and tracks the emissions of direct suppliers to participating companies and provides guidance for estimating the allocation of emissions to clients.

 

For more and detailed information on our 2009 carbon footprint performance, visit our Annual Report website.