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.In 2008, we reduced our carbon footprint with an absolute decrease of 5%. Including our major acquisitions (Genlyte and Respironics) there was a significant upward effect on our total operational carbon footprint with an increase of nearly 6%.
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.
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 16% 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 2008 related to business travel, which represents 11% of the total, decreased 8% in absolute terms and 11% on a comparable basis, excluding the acquisitions.
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 2008, overall CO2 emissions from distribution increased 6% nominally, and 1% on a comparable basis, excluding the acquisitions.
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.
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