Atlas Copco 2008 – tough ending to a record year Annual Report ...

companies were ISO 14001 certified. Out of the Group’s 83 productionunits, 53 are ISO 14001 certified, representing 92% (91) ofcost of sales.Use of resourcesThe transformation of raw materials and purchased componentsinto finished products is a fundamental part of the Atlas Copcobusiness, and substantial amounts of materials, energy and waterare consumed in this process. The Group works constantly to improvethe efficient use of resources in the manufacturing process.In 2008, the energy used in production increased by 2% measuredin relation to cost of sales. The increase was due to a restatementin the reporting from a major production unit and to theacquisition of a large factory in China. Adjusted for these twoaspects, the decrease was 6% in relation to cost of sales.Divisional measurable targets regarding energy efficiency onmajor product categories have been established during the year.Achievements versus these targets will be reported on in thecustomer section regarding product developments.Atlas Copco tracks materials used in the production process,and for packing finished products or parts.By far the most significant material used in the productionprocess is steel, either as raw steel, or as part of components thatare machined in-house or by sub-suppliers. In terms of weight,steel represents more than 94% of the material used in production.The consumption decreased slightly in 2008. Approximately 90%of the used steel is recycled material. Other materials used in theproduction process include: aluminum,copper and brass, plastics, rubber, oils and greases, and natural gas.Every year the Group awards internal environmentalachievements. Atlas Copco Environmental award winner 2008,was the screw compressor team that launched a new near netshapedrotor in cast iron, which will reduce material used by 50%.The Group has a number of initiatives to reduce its use ofresources, for example a new energy saver policy was introducedin the United States in 2008. It involves laptops, desktops andworkstations across the country.Optimizing packaging material is a focus area for the Group’scompanies. However the consumption increased in 2008 due to anewly acquired company and business growth.The water withdrawal is disclosed as a total figure and not bysource, as water is normally purchased. The water consumptionincreased by 3% in relation to cost of sales. The water usage is to agreat extent related to the non-production process. The majorityof the Group’s plants are connected to municipal wastewatertreatment plants and a few have their own treatment plants.Emissions and wasteClimate change is high on the political agenda and one of themost global of all environmental problems; it is to a great extentcaused by the emission of greenhouse gases into the atmosphere.The most abundant greenhouse gas is carbon dioxide (CO 2) alsoproduced as a by-product when burning fossil fuels for producingenergy or transportation purposes. Atlas Copco reports CO 2emissions from direct and indirect energy used in production, andfrom transportation to and from production sites. Standardizedconversion factors published by the Greenhouse Gas ProtocolInitiative are used to calculate CO 2 emissions, see alsowww.ghgprotocol.org.’000 tons120100806040200300250200150100500’000 tons50454035302520151050CO 2 emissions from energy0404050506Waste0607CO 2emissions (energy)CO 2emissions (energy)for comparable units07Index08Index0812010080604020Index in relation to cost of salesCO 2 emissions from transport’000 tons3500405060708CO 2emissions (transports)100908070605040302010WasteIndex in relation to cost of sales0Index14012010080604020Index in relation to cost of salesEnvironmental indicators are measured in relationto the activity level in cost of sales.Extract from Atlas Copco’s Group Environmental Policy:All companies shall operate within applicable national andlocal environmental limits and standards, and work proactivelyto reduce adverse effects to air, ground, water, faunaand flora, and strive to efficiently use natural resources.00Atlas Copco 2008 105