Energy and carbon emissions Reduced energy consumption and higher efficiency is a top priority for all factories and companies within the Group. ASSA ABLOY has been conducting assessments of its products and production processes for several years. Results show that energy consumption in the production phase has the most significant impact on the environment. Energy consumption Targets for 2020: To identify areas of further improvement, the Group frequently conducts a detailed mapping of energy consumption in several units. ASSA ABLOY compares entities producing similar types of products and monitors data, such as energy consumption related to heating and cooling. The analysis includes climate data per geographical area. Energy reduction targets for 2020: Reducing energy intensity by 20 percent compared to 15 percent during the 2010-2015 period Reducing the greenhouse gas emissions by 20 percent compared to 10 percent during the 2010-2015 period Achievements 2015 Energy ASSA ABLOY improved energy efficiency and decreased energy intensity by 6.2 (6.2) percent for comparable units. The accumulated improvement of energy intensity since 2010 is 29.8 (23) percent. In 2015, 9.1 (7.8) percent of the energy used came from renewable sources. Carbon emissions The Group's total CO2 emissions decreased by 13.3 (1.0) percent for comparable units. The CO2 emissions related to energy consumption decreased by 1.3 (6.3) percent for comparable units. ASSA ABLOY aims to increase energy efficiency in its operations and processes. To gain a better understanding of the main drivers behind the Group’s energy consumption it is continuously monitored by each unit. This has resulted in a mapping of energy consumption per unit. In recent years, about half of the energy consumption in large manufacturing units was related to factors independent of production volume, such as heating, ventilation, lighting and office equipment. Activities for increasing efficiency Using machines, equipment and floor space more efficiently. Adopted equipment for more intelligent energy-consumption control. Developing the Sustainability Database to cover all relevant data. Most recently climate data per geographical area was included. Consolidating ASSA ABLOY’s manufacturing footprint by streamlining and specializing certain production processes. This allows the production facilities to work at full capacity while supporting efficient working practices and high standards of quality. Greenhouse gas emissions Phasing out substances that impact global warming ASSA ABLOY aims to phase out the use of ozone-depleting substances (ODSs) and replace them with environmentally adapted alternatives. There are two units in particular that use substances with significant global warming impact. Efforts to substitute these substances are ongoing and new technologies to substitute chemicals with high global-warming potential (GWP). The use of ODSs is related to door producing entities in China, acquired in 2011. Works to subsitute the ODSs with environmental-adapted alternatives is ongoing. ASSA ABLOY complies with the Montreal Protocol and country specific legislative initiatives concerning these ODSs. Transportation and greenhouse gases ASSA ABLOY is increasing the portion of products being manufactured in low cost countries, both in internal factories but also by external suppliers. In order to minimize both the cost and the environmental impact the ambition is always to optimize the load of the transports. With improved IT-tools for forecasting and planning almost all of the intercontinental transports are done by sea. Transports are scheduled to arrive as frequently as possible in order to have a continuous flow of new products. Reusable packaging is being used by more and more entities in the Group. Database locating suppliers ASSA ABLOY has established a database to locate suppliers to optimize transportation within the Group and reduce greenhouse gases. The database stores the geographical locations of all suppliers of direct materials, as well as all factories and sales companies. The database has been successful in a number of ways: GPS coordinates of all suppliers or direct materials, as well as ASSA ABLOY factories and sales companies, are included in 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 can be used for optimization and coordination of transportation within the Group, as well as from suppliers in different geographical regions.