The Global Appliance Company

The Global Appliance Company

Environmental Annual Report 1995

Contents

1 This is Electrolux

2 Message from the GroupPresident and CEO

3 Introduction

4 Electrolux and the environment

6 Environmental vision, environ-mental policy and environmentalstrategy

8 Methods and resources forenvironmental activities

13 Environmental achievements

Household AppliancesCommercial AppliancesOutdoor Products

20 Production and facilities

24 Glossary

25 Need more information?

Electrolux Environmental Annual Report 19952

Environmental milestones 1995

● We launched several environmentally sound products thatare market leaders. They include the AEG dishwasher withthe market’s lowest water consumption and noise level; newcatalyzer-equipped products from Husqvarna with signifi-cantly reduced fuel consumption; quieter electric lawnmowers and lawn trimmers, and new absorption refrigera-tors that use up to 40% less energy.

● Between 1993-95 we phased out CFCs (“hard freons”) fromproduction in Europe and the United States. We continue tophase out HCFCs (“soft freons”). By the end of 1995, we hadcompleted the work in Europe on household refrigeratorsand freezers, as well as absorption refrigerators.

● We established a Group staff to oversee environmentalquestions. The staff will elaborate our environmentalstrategy and environmental policy, and assist in introducingthem into the business strategies of the product lines.

● We decided to base our environmental management systemon ISO 14001, the international standard. In 1996 ISO 14001will become the global standard for environmental manage-ment.

● Environmental management systems at several of ourfacilities were certified during the year in accordance withthe British standard BS 7750 and EMAS, the European Unionregulation for environmental monitoring and accounting.Electrolux Food Service Equipment in Alingsås becamethe first ever company certified in Sweden.

Electrolux phase-out of ozone-depleting substances in all product groups

%

1992 1993 1994 1995

Ozone-depleting potentials from used cooling agents and insulation gases. Greenhouse warming potentials from used cooling agents and insulation gases.

0

20

40

60

80

100

The chart shows relative reductions in ozone-depletion potential and greenhouse effects of total amountof cooling agents and insulation gases used by the Electrolux group from 1992-95. In these calcula-tions, we have taken into account the specific ozone-depleting and greenhouse potentials of thesesubstances as determined by UNEP estimates.

Electrolux Environmental Annual Report 1995 1

This is Electrolux

Electrolux makes daily life easier, safer and more convenient for customers the world over.

We are the No. 1 global producer of white goods products such as refrigerators, washingmachines, stoves and vacuum cleaners.

We are the No. 1 global producer of forestry and gardening products, including lawnmowers, garden tractors, and chainsaws.

We are the No. 1 global producer of commercial equipment for food service, refrigerationand industrial laundering.

Every year, our worldwide staff of 112,000 produces and sells more than 55 million appli-ances and equipment, resulting in sales of more than SEK 110 billion. Electrolux hascompanies in more than 60 countries, with more than 90% of total sales occurring outsidethe home market of Sweden.

EU 56.1%

North America 28.2%

Latin America 1.9%Oceania 0.9%

Asia 5.1%Africa 0.8%

Rest of Europe 7.0%

Worldwide sales

EU 55.8%

North America 23.4%

Latin America 4.7%Oceania 0.7%

Rest of Europe 5.8%Africa 0.3%Asia 9.3%

Employees worldwide

Household Appliances Commercial Appliances Outdoor Products

This business area primarily includes

all white goods, such as refrigerators,

freezers, stoves, ovens, washing ma-

chines and dishwashers. White goods

accounted for 75% of sales in 1995,

and nearly 50% of total Group sales.

The main operations comprise food

service equipment for restaurants and

institutions, as well as laundry equip-

ment for apartment buildings, laundry

rooms and commercial laundries. These

products account for nearly 75% of

sales in this business area.

This business area includes garden

equipment as well as chainsaws and

other products for forestry work. Gar-

den equipment includes lawn mowers

and garden tractors, as well as portable

equipment such as lawn trimmers and

leaf blowers.

Sales by business area, billions of SEK 1995 % 1994 1993

Household appliances 75,209 64.9 66,272 58,888Commercial equipment 11,081 9.6 10,467 10,531Outdoor products 15,902 13.7 15,237 13,638Industrial products 13,608 11.8 16,028 17,064

Totals 115,800 100.0 108,004 100,121

● The industrial products business area is not included in core operations.

Message from the Group President and CEO

That statement outlines the environmen-tal vision that Electrolux formulated in1992. This goal underlines policy andstrategies that determine how we putthe vision into practice.

The laws of nature are immutable.Our activities and products shall beadapted to nature’s own cycle. We willsatisfy customer needs without jeopard-izing prospects for future generations.

We are convinced that companiesadapting to environmental imperativescan maintain and even improve profit-ability. Adaptation gives us the bestprospect for long-term survival.

That is why we decided to leaddevelopment toward environmentally

sound technologies, at every stage, andin all product areas. Our aim, always, isto use the best available technologies.This not only will meet the challenge ofour environmental vision. It will alsoprovide competitive advantages, whileimproving opportunities to create valuefor shareholders.

Each year, Electrolux sells around 55million products. Customer requirementsare changing because of enhanced envi-ronmental awareness. Customer valuesare reflected in requirements that will

affect our success. We can be certain thatfuture generations will be more knowl-edgeable and environmentally aware.

To pioneer development means influ-encing it. Our environmental activitiesare directed at anticipating legislationpending in several areas. As marketleader, we want to carry out strategicpriorities and product development thathasten market demand for environmentalorientation. Those products at the fore-front of environmental suitability willlargely constitute our basic assortmentwithin five years.

Credibility means we need a holisticview of the product life cycle—from rawmaterials processing and refinement tousage and recovery. This total approachis especially important since 80% to 90%of the environmental impact during thelife cycles of our products occurs duringtheir usage.

The total approach perspective alsomeans that environmental questions can-not be referred to a few experts or aparticular function. We want to inte-grate environmental imperatives intomanagement strategy, and into the thou-sands of decisions that all our employeesmake.

For many years, industry regarded envi-ronmental issues as a threat. Those daysare behind us. I am convinced that eco-logy and economy are two sides of thesame coin. All over the world, environ-mental activities are significant in corpo-rate development. At Electrolux, weregard this as an opportunity and a cata-lyst in achieving our goals for the benefitof customers, shareholders and em-ployees.

Leif Johansson


Leif JohanssonPresident and CEO

“Environmental protection is a long-term question ofsurvival for individuals, companies and society. Activitiesmust be adapted to nature’s own limitations in terms ofresource use and pollution. Environmental care must bea cornerstone in our operations and characterize ourdaily work.”

Introduction

Environmental management concretizesour visions, values and ambitions tomeet and exceed customer expectations,while providing shareholders good divi-dends on risk capital.

Our newly instituted environmentstaff is developing strategies for theentire Group in cooperation with opera-tional units. Competence and technologynow being developed will enhance ourcompetitiveness, both in the short- andlong-term.

A long process of change has com-menced. Most of our strategies have beendetermined. We are now working inten-sively to integrate them into our opera-tions. We are coordinating and facilitatingthese strategies into our product lines,companies and factories. We are continu-ing to improve work methodologies.

This environmental report providesan overview of our values and policies. Itdescribes ongoing work in developingstructures, knowledge, methods andtools for environmental implementation.

The work proceeds on the basis ofintegration, step-by-step implementation,measurability and scientifically basedprinciples:

● Environmental activity is integralto our business strategies. It is also

integral to the value-added chainthat starts with raw materials andconcludes with product usage andrecycling.

● Step by step, we are synchronizingenvironmental activities with devel-opment of long-term commercialand technical solutions.

● Our activities will be measured bysystems that take into account theentire value-added chain — focus-ing on the environmental effectsas well as business results.

● Our aims and methods will bebuilt on the latest, scientificallyverified procedures. We strive forlong-term improvements both forthe environment and our custo-mers.

This document is our first formal envi-ronmental report. It aims at improvingunderstanding of our working methods,and describes the results we are achiev-ing. We will issue an environmentalreport every year. We hope it helps cre-ate confidence among interested partiesdealing with Electrolux.

This report explains how we havesucceeded so far in reducing environ-mental impact. Product usage, in partic-

ular, has considerable impact — 80 % to90 % in the perspective of a life cycle.That is why we detail our efforts toimprove the environmental performanceof products. We also explain internalenvironmental activities linked to proc-esses and factories.

This report encompasses the entireGroup with the exception of Gränges,which is regarded as a financialundertaking.

Electrolux is a global company. Weare found in virtually every country,each with its own culture and legal sys-tem. We are also expanding rapidly innew markets, usually through acquisi-tion. Our corporate culture is an ex-tremely complex reality consisting of oldand new units and operations with verydifferent stages of maturity— particu-larly in the environmental field.

That does not affect our environ-mental goals. These goals apply to allour operations. But the pace of changeobviously varies from country tocountry.

This report reflects our structuresfor implementing environmental strat-egies. The report is also meant to createmeaningful dialogues with the worldbeyond our doors.

Per Grunewald


Per GrunewaldSenior Vice PresidentEnvironmental Affairs

“The ultimate purpose of our proactive EnvironmentalStrategy is to create shareholder value based on sustain-able competitive advantages, responding to growingawareness and expectations among our customers.”

RecoveryCustomerSuppliers

Wastes and emissions Wastes and emissions Wastes and emissions

Recycling

Re-use

Recycling

Re-use

Manufacturing

Materials Components Packaging

Product Packaging

Product

Packaging Chemicals, water, consumables

Re-use/ Recycling

RemainderRemainder

Electrolux and the environmentTotal approach based on the life cycle philosophy...


Our efforts are founded on a holistic approach to the environmental impact of products during their entire life cycle. We are working toward a sustainablesociety characterized by effective production and based on life cycles. Environmental work includes the flow of materials and energy. This starts withsuppliers and continues through the entire value-added process, including wastes and emissions.

Total approach

Viewpoints about environmental activ-ities have changed in the past 10 years.Manufacturing facilities and referralsites were then regarded as problems.

A total approach now prevails. Thisincludes global, regional and local eco-systems and human impact and inter-action. The impact of products in a lifecycle perspective is a key question. Weare working towards a sustainable soci-ety based on productivity and life cyclephilosophy.

Our environmental work is holistic.It is the basis for development of visions,strategies, methodologies and an under-standing of operations. It is inspired bythe life cycle philosophy and systemsoverview found in the principles for sus-tainable development put forth by TheNatural Step Foundation.

We are developing tools and methodsto systematically assess the total environ-mental impact of products and opera-tions. With these procedures, we will beable to identify and prioritize measures.Electrolux has also actively participated indeveloping methods for life cycle analysis.

The function in focus

The total approach focuses on the pro-duct, its function and usage. Deter-mining environmental impact in relationto product performance is essential inselecting appropriate environmental ini-tiatives and priorities.

All our products share a common char-acteristic. They satisfy human needs byperforming a function that makes dailylife easier and more comfortable. Prod-ucts use energy. In many cases, they relyon water and chemicals such as lubri-cants, and laundry and dishwashingdetergents.

Energy and additives have their ownlife cycles with varying degrees of envi-ronmental impact. Life cycle analysesshows that the environmental impact ofa product in use is far greater thanduring manufacturing or recycling. Thisinsight has helped us prioritize work thatsystematically reduces the total environ-mental impact of a product. But wenever neglect small environmental pro-blems just because there are larger ones.We work tirelessly to reduce environ-mental impact in all stages of the lifecycle.

What is Electrolux doingfor the environment?Resources and the eco-systems

We want to reduce our use of resour-ces—fossil resources (metals, oil andminerals), liquid resources (water) andrenewable resources (plant life, forests).

The debate about resources used tofocus on the depletion of oil and coal.The discussion now tends to be directedtoward questions of despoliation or des-truction caused by emissions and pollu-tion. We must reduce emissions by deal-

ing more sensibly with resource usage.We must protect our eco-system, re-cover harmful substances, and create alife cycle for materials as we movetoward greater efficiency.

Electrolux products are primarilymade from metals, glass and plastics,which are derived from fossil resources.We are developing and fine-tuning thelife cycle for materials, and recycling.We also want to adapt product usage tonature’s requirements by using resourcesmore effectively, using energy sourcesbetter, shifting to acceptable chemicalsand additives, or rendering usage ofharmful substances unnecessary.

Climate and atmosphere

Over the past decade, intensive extrac-tion and utilization of fossil fuels havedemonstrated that human activityaffects the earth’s atmosphere.

● Increasing numbers of researchersbelieve that emissions of carbondioxide, methane, CFCs and othergreenhouse gases will alter the cli-mate.

● Release of chlorinated and bromi-nated compounds such as CFCsperiodically depletes the ozonelayer which shields us from hazard-ous ultraviolet radiation.

● Substances such as sulfur andnitrous oxides released primarily

… which encompasses totalenvironmental effects

Systematic analysis of the life cycles of our products shows that usageusually accounts for the biggest impact on the environment. Bars on theleft illustrate a life cycle analysis utilizing EPS methods. Middle bars summa-rize wastes by weight and the bars on the right summarize energy usage.

The holistic approach means we consider both long-term global envi-ronmental questions, as well as close-at-hand problems experienceddirectly by customers.

from combustion processes resultin smog, acid rain and fertilizersaturation. Emissions from solventsand other hydrocarbons result insmog and ground ozone, creatinghealth hazards and environmentaldamage.

We have taken many initiatives to reduceatmospheric emissions, including thephasing-out of solvents and CFCs. Mostimportantly, though, we are making ourproducts more energy-efficient. Theyconsume less fuel, derived eitherdirectly or indirectly from electricityproduction. This reduces emissions into

the atmosphere. Exhaust gas filters andcatalyzers also reduce some types ofemissions from our motorized products.In addition, we release fewer emissionsby transporting materials and productsby rail instead of truck, whenever pos-sible.

Water and soil

Water pollution damages the environ-ment and diminishes available resources.Emissions have affected animal and plantlife in seas and lakes. In addition freshwater is a scarce commodity, over-exploitation, release of chemicals andheavy metals contribute to eutrophica-tion and acidification reducing availablereserves.

Many land areas have higher concen-trations of detrimental substancesbecause of direct emissions of chemicalsand metals. The circulation of air andwater disperses these substances overvast areas.

For decades, Electrolux has sought toimprove our production processes inorder to reduce emissions into water. Weare putting pressure on our suppliers tofollow suit.

With our washing machines anddishwashers, water consumption hasdecreased dramatically. At the sametime, washing detergents have becomefriendlier.

The risk of dispersion of harmfulsubstances means that we try not to use

them. At the same time, we are creatinga cycle for materials and safe wastehandling.

Human environment

We should not define the environmentalconcept too narrowly. We are also deal-ing with the work environment and thecustomer’s immediate environment—along with the more ecologically-framedquestions. That is why we also take intoaccount ergonomy, noise, vibrations andodors when dealing with the work envi-ronment issue. Hence, quiet dishwashersand vibration-free forestry equipment arealso included in our total perspective.


Environmental impact is greatest when the product is used

%

Energy consumption of refrigerators

Solid wastes from a washing machine

Total environmental impact of chainsaws

0

25

50

75

100Production RecoveryUsageThe Total Approach

Customer

Local

Regional

Global

Short term Long term

Ozone- depletion

Greenhouse effect

Resources

Water

Wastes

Toxic pollution

Allergies

Noise

Odors

Acidification

Less energy

Reduced environmental

impact

=

Electricity

Power station

Fuel

Emissions

Environmental effectsGreenhouse warming Acidification Environmental contamination

Nuclear wastes, ash and other contamination

– CO2 – SO2 , NOx – Ash

Less water

Reduced environmental

impact

=

Water pollution Damaged ecology Health hazards Diminished access to fresh water

Clean water

Dirt

Impure waste water

Clean water

Solid wastes

Purifying plant

Waste water

Water purifi- cation station

Environmental vision, environmental policyand environmental strategy

Electrolux achieved its position of globalleadership primarily through acquisitionof other companies over the years. Acornerstone of our continuing develop-ment is a corporate culture built on ashared vision and shared values.

We are developing all our strategiesand activities within the frame of ourestablished visions and values. This plandescribes products Electrolux will sell,and which features we will integrate intoour work patterns and corporate culture.One of the five key values expresses thestrategic importance of the environmen-tal question. The other four provideguidelines for conducting environmentalwork.

Environmental vision and policy

The values comprising our environmen-tal policy are linked to the principles forsustainable development adopted by theUnited Nations environment conferencein 1992 in its Rio Declaration on theenvironment and development. Otherimportant sources of inspiration havebeen the International Chamber of Com-merce’s 16 principles for sustainabledevelopment, as well as The Natural StepFoundation’s basic principles and systemsconditions.

Our environmental policy applies toall operations worldwide. Local policiesapply in various situations, but are sub-ordinate to basic global policy. We alsoassist in interpreting or clarifying com-plex questions and, in some cases, com-municate this externally.

Environmental strategy

Operationally, our strategy reaches downto the product line level. Strategy isdetermined at the Group level in someinstances, and is then applied to all oper-ations worldwide. Product line strategiesare tailored to specific conditions.

We have formulated a concise butfar-reaching environmental strategy.Electrolux pledges to:

● be a leader and driver in environ-mentally sound technology, prod-ucts and processes.

● actively develop demand throughuse of environmentally soundproducts.

Leading development means we will beable to offer customers the most envi-ronmentally suitable alternative. At thesame time, we will continually improveall products and processes.

To encourage demand is a challeng-ing task in those markets where environ-mental awareness is still in its infancy.There are only a few countries, inEurope, where environmental considera-tions influence consumer demand. Butdevelopment in this direction is defi-nitely underway in many other countries.

The ultimate aim of our environmentstrategy is creating value for sharehol-ders. We build enduring competitiveadvantages by increasing customerawareness. Good examples are productperformance and competitive solutionsthat gradually reduce environmental

impact, compared to solutions fromcompetitors.

Society is being forced to forgefirmer links between environmentalimpact and costs. As a global leader,Electrolux can help introduce betterenvironmental standards. Increasingcompetitive pressure means acceleratingthe rate of transition. The abandonmentof ozone-depleting substances in refrige-rators in Europe has occurred in justhalf the time required by legislation.

More efficient resource utilizationcan also create enduring competitiveadvantages. The concept “more for less”characterizes the direct link in the sys-tem to economics, and embraces virtu-ally everything—from the energy effi-ciency of a product to efficiency inmajor factory systems.

Application of strategy and policy inthe developing world

Electrolux is rapidly growing in EasternEurope, Asia, South America and Africa.In these new markets, environmentalawareness is still low. The competitorsare usually local, with limited under-standing of environmental questions.

Since our environmental policy isglobal, we will contribute both know-how and capital to provide more environ-mentally-suited technology. Deficienciesin local industries and social structuresmay sometimes slow down the transitionto better environmental technology.


Environmental work within the GroupThe Group’s vision and values

Environmental vision Environmental policy ICC

Environmental strategy

Business strategy of product lines

Local business strategyLocal environmental policy

Vision of the EnvironmentProtection of the environment is a key to long-term survival for the individual, for corporations and for societyin general. All our activities must be adapted with regard to the limits that nature can accept in the form ofresource consumption and pollution. Care for the environment will be a continuous component of ouroperations as well as the hallmark of our daily work.

Growth in consumption of non-renewable raw materials and natural resources cannot continue indefinitely.Our operations and our products must be integrated in a cycle, so that we can satisfy the needs of ourcustomers without jeopardizing the prospects for future generations. The keywords for our operations aretherefore resource-efficiency 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 forthese products.

Good profitability generates resources for the development of technology that makes a dynamic contributionto a harmonious relationship between society and nature. Resource-efficient production and far-sightedproduct development will contribute to maintaining our competitive position in the future as well.

Environmental policyResponsibility

Our role as a company is to fulfill the needs of society that generate demand for our products. This involvesa responsibility for contributing to sustainable development by continuously improving our products and ourproduction processes from an environmental perspective.

Precaution

Precaution must be our guide for all development and production within the Group, in order to avoidirrevocable environmental impact. This requires a cautious approach to activities which might have a seriousenvironmental impact.

Total Approach

We must adopt a total approach in our operations, based on knowledge of every phase of the life cycles ofour products, from raw materials and production to use and recycling. We must choose the options thatminimize 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 productswith the least possible environmental impact. As we continuously acquire more knowledge and promote ourenvironmental efforts, we will also be prepared to meet future environmental needs.

Priorities

Our development will involve continuous gradual reduction of the environmental impact of our operations.Our work must be goal-oriented and cost-effective. We will assign priority to our environmental investmentson the basis of what is most appropriate in terms of ecology.

Market Leader

Active, far-sighted research and development will enable us to continuously offer products that meet highenvironmental expectations. An active commitment to the environment, which integrates care for theenvironment in all our operations and involves a contribution from all our employees, will keep us competitiveand will strengthen our position as market leader.

Profitability

Effective use of resources will be a decisive criterion for profitability. Good profitability is a prerequisite forour environmental activities, as it generates resources for investment and development.

Every product line manager is responsible for preparing an action program to insure that the abovepolicy is carried out. The Electrolux Environmental Affairs Committee is responsible for developmentand interpretation of this policy and for monitoring its implementation.



Methods and resources for environmental activities

Integration of environmental andbusiness strategy

Our analyses suggest that the industrialworld is at the threshold of comprehensiveenvironmental adaptation. Calls for stillgreater environmental vigilance will meanimportant changes in commercial andcompetitive conditions. In the future, suc-cessful companies will need to identifyand explore the threats and opportunitiesthese changes imply for their operations.

Electrolux 20 product lines havevarious preconditions affecting theirbusiness operations. These involve custo-mers, products, markets, and the institu-tional, social and economic environ-ments. The same holds true for environ-mental considerations. The degree ofawareness, knowledge and regulationsvaries considerably between customercategories and countries.

The management of each productline must identify the preconditions thatapply to the specific commercial situa-tions. These preconditions affect howproduct lines are integrating environ-mental management with their overallbusiness strategies.

In 1993, plans were drawn upexplaining how each product line woulddeal with the most urgent environmentalquestions. These plans have been contin-ually revised and updated.

In 1995, our environmental affairsstaff introduced a method that simplifiesidentification and handling of environmen-tally related threats and opportunities—inthe short-and long-term. The method iscalled the Environmental Change Program(ECP). It is based on future scenarios indifferent environmental issues.

Two product lines tested the method in1995—Floor Care Appliances and Com-mercial Cleaning Appliances. Otherproduct lines are now using the method,which we are refining further.

We are introducing a new procedurefor obtaining an overview of the businessstrategies for product lines. This willintegrate other strategies, including theenvironmental. From then on, individualenvironmental plans will cease beingreported separately, and a first steptoward integration will be completed.

Research and development

Research and product development isperhaps one of the most important areasfor successful environmental work in thefuture. How our products actually per-form is decisive for our total impact onthe environment. That is why continualproduct improvement is basic to carry-ing out our environmental strategy.

Our environmental work is based onintegration implemented in stages, withmeasurable and scientifically-based proce-dures. This is particularly true for re-search and development. Developmentwill be founded on a scientifically-basedunderstanding of the environmentalimpact our products exert seen in a lifecycle approach. Parallel to this knowledgeis the requirement by the market as thebasis for projects which result in newproduct ideas, new technologies orimprovement of existing products. Onlywhen the project has been evaluatedagainst various factors—including envi-ronmental strategy—can we begin todevelop, manufacture and sell the pro-ducts.

We deal with environmental questionswithin the framework of the IntegratedProduct Development Process (IPDP).This is our model for research and pro-duct development. This model gives pro-duct developers routines and tools tosystematically incorporate the environ-ment into their work. They get, amongother things, support for project specifi-cations and target formulation, designhandbooks, checklists and control pointsfor various phases in the developmentproject. These routines are also inte-grated into the environmental manage-ment system we are introducing.

We distinguish between three levelsof innovation:

l. Continual improvements to exist-ing products by fine-tuning exist-ing technologies and materials.This can mean improved energyperformance, reduced water con-sumption or reductions inexhausts.

2. Introduction of new technologiesfor improving existing products.Examples are electronics and sen-sors for control of processes inproducts, Direct Spray for watercontrol in washing machines, cata-lyzers for chainsaws, and vacuumtechnology for refrigerator insula-tion panels.

3. Conceptual changes that redefinethe functions of the product. Here,we can make the most significantenvironmental changes. Examplesare the automatic solar-driven lawnmower, and the system thatreplaces traditional dry cleaning

Step-by-step improvements New technology New Concepts

Dishwashers using 15 liters of water

Low-energy refrigerator

Washing machines using 40 litres of water

Absorption refrigerators

Rack-type dishwashers

Electrical gardening equipment

Catalytic technology

Aquaclean by Wascator

Solar-powered lawn mowers

Product development in three stages for improved environmental performance

Electrolux environmental management system for continous improvements

Electrolux environmental

management system

Environmental policyInitial review Electrolux environmental

strategy

Environmental objectives

Environmental programs

Internal environmental audit

Management review

Corrective actions

Successive environmental performance improvements have been madewithin existing product concepts. Big improvements can often be madewhen new technology is introduced. The biggest improvements occurwhen the new product concept is used to obtain the same function.

The environmental management system at Electrolux is based on ISO14001. A systematic approach to work that incorporates Group strategywill result in continuous improvements.


with water-based cleaning. Thesenew technologies will set newstandards in years to come.

Environmental management system

In 1995, Electrolux decided to instituteISO 14001 as the environmental manage-ment system for all facilities before theyear 2000. We chose ISO 14001 becauseit is the only global system. If a localmarket wants to recognize another sys-tem such as EMAS adopted by the Euro-pean Union, we can adapt, of course.

We currently have some 150 facilitiesworldwide, including many new ones,that will introduce the environmentalmanagement system. The time framedepends on local conditions.

Environmental management systemswere instituted and certified at fiveinstallations in 1995 in accordance withthe British standard BS 7750, and EMAS.

The factory in Alingsås was the firstin Sweden, and the Vallenoncello factoryfirst in its line of business in Italy. Byyear’s end, some 20 units were preparingfor certification. More than half areexpected to be certified in 1996.

Successful environmental workrequires a monitoring system that ena-bles management to set targets, draw upaction plans and follow up on results.

There are currently two standards(BS7750 and ISO 14001) and the EU’sEMAS regulation which describe howsuch a system should be set up and used.There are many similarities betweenthese standards and the ISO 9001 qualitystandard.

Basic to these systems is environmen-tal management. It has two dimensions.

On one level, environmental managementsystems is a management tool: Manage-ment defines environmental aspects andpolicy; sets targets; operational plans andmeasurements; internally audits thesystem; judges its effectiveness, andadjusts course settings. This is theaspect of the system that brings aboutenvironmental improvements.

The work procedures are docu-mented in the second dimension. Everytime an aspect of the production processhas an environmental consequence, thework methodology should be docu-mented. Employees should be trained touse the appropriate work routines.

When the system is introduced andoperational, it can be certified in accord-ance with BS 7750 or ISO 14001, orregistered in accordance with EMAS. Anindependent organization reviews thesystem’s effectiveness and results at leastonce a year.

BS 7750 is a British standard and theoldest. ISO 14001 corresponds almostprecisely. But since ISO 14001 is global,it is expected to be the dominant stand-ard in the future. EMAS has won consid-erable standing in Germany. It differssomewhat from the others, especially therequirement for external environmentalreporting audited by an independentorganization.

Investments and costs forresearch and development

The consequences of our environmentalstrategy mean that the environmentalapproach will characterize all our opera-tions. This is true, in particular, for re-search and development. Integration also

embraces investments in facilities.Against this background, the possibil-ities are restricted for closely measuringwhat an environmental investment reallyis. That type of singling out wouldundermine the strategy of integration. Inother words, environmental efforts mustbe intertwined with all work and allinvestments.

In 1995 we invested more than SEK5 billion in facilities and new products.These investments were made with dueregard to routines, policy guidelines anddirect application of our environmentalpolicy. The investments will helpimprove our overall environmental per-formance.

Those areas where environmentalissues significantly influence investmentsare primarily product development,including investments in tooling and newproduction technologies.

Suppliers

We ask our suppliers to operate inaccordance with the same basic environ-mental principles as we do. The environ-mental management system ISO 14001also stipulates evaluation of the environ-mental activities of suppliers.

Our purchasing departments willassess the suppliers’ facilities. The devel-opment units will assess their compo-nents and environmental performancebased on our environmental targets forproduct development.

In 1996, we will supplement ourglobal supplier assessments with environ-mental aspects, regardless of whether thepurchasing units have introduced certi-fied environmental management systems.

Five factories were certified during the year. The Electrolux Food Servicefactory in Alingsås, Sweden, became the first in Sweden to receive theenvironmental management certificate.

Nordwaggon, partly owned by Electrolux, is an important component in theGroup system for international transport of goods in Europe.



Logistics and transport

An operation the size of Electrolux requi-res transport of considerable quantities ofcomponents to production sites, and deliv-ery of products to customers.During the year, we developed our ownanalysis system of the environmentalimpact of transport operations. Thisinvolved quantifying emissions for com-plete transport chains, including theeffects of loads measured as CO, CO2,NOx, SO2, HCs and particles. The systemis a complement to the analysis of internaland external transport conditions.

Analysis shows that rail transportoffers important environmental benefits.Energy usage, emissions and demands onsurface area are reduced. Safety increases.

We pursued a rail strategy in Europefor many years. Electrolux owns 50 % ofthe private rail company NordwaggonAB. The company operates, among otherthings, special cars for our Europeanwhite goods transport. Some 75 % of ourinternational white goods traffic inEurope moves by rail. We plan toincrease that percentage. We are alsoincreasing collective consignments. Fin-ished products and components formanufacture are relying increasingly oncommon carriers. We are doing a greatdeal to increase the efficiency of goodsflow. Our American factories use a stan-dard-ized reusable package system forcomponents. This reduces the need forpackaging material.

Intercontinental transport relies to agreat extent on ships. In the longer term,sea transport will also play a greater rolein moving goods regionally.

But most products reach customers byroad transport because of existing infra-stuctures.

Recycling

Electrolux annually produces about 55million products. Sooner or later theyare no longer serviceable. An importantquestion for the future is the re-use ofthe materials comprising these pro-ducts—metals, plastics and other sub-stances. In this perspective, muchremains to be done. We are talkingabout business development, design ofrecycling sites, information transfers andlogistics, improvement of existing recy-cling processes or developing new ones.

The life of our products is usuallysplit up among many players.

They look for the best economicreturn without very much cooperationamong themselves; recycling and proces-sing of wastes is generally somethingthat no one wants to deal with.

Our view is that products have con-tinuous value, and are excellent sourcesof raw materials after final use. Byfocusing on the net value of the pro-ducts (market prices) at the time ofrecycling—rather than on the technicalquestions in recycling—we want to pro-vide market forces with the opportunityto close the life cycle of materials. Webelieve recycling should be included inthe very same business environment asother aspects of the product life cycle.

Electrolux and our partners are deve-loping commercial systems for recycling.We want to create conditions that areecologically and economically sound. We

have started pilot projects and introducedfeasible commercial systems in severalcountries. The systems are built oncoordinated logistics for delivery andrecovery. Electrolux in Switzerland offersfree collection of products when deliv-ering new ones. Our German companiesprovide similar services. Other productlines such as Food Service Equipment inSweden are conducting pilot programs.Several projects are getting underway in1996.

Consideration is paid to materialsselection when designing facilities forrecycling, as well as dismantling oppor-tunities and suitability for scrapping.Undesirable materials are removed.Information and labeling of materialsfacilitate recycling.

Recycling processes are being devel-oped rapidly. It is our responsibility tocontribute, since we understand theproducts so well. Cooperation with therecycling industry makes solutions allthe more effective. Easy access toinformation about our products andtheir composition also contributes toimproved recycling.

Communication

We communicate on three levels: corpo-rate (of which this report is an example),brand level and product level.

Since most environmental impactoccurs during product usage, we havedecided to prioritize communicationsabout the environmental performance ofthe products.

Our environment strategy is to de-velop, produce and market leading pro-

Value-added chain for products

Value- added

Suppliers

Production/ manufacturing

Sales

Usage by customer

Recycling and waste handling

Collection of obsolete products

Our American companies have developed a returnable container systemthat is used between the various factories and suppliers.

To bring about concrete environmental and economic solutions in thefuture.

ducts from an environmental perspec-tive. A key to the strategy is to thor-oughly explain the importance of protec-ting the environment and how our activi-ties impact it. That is why we are develo-ping information systems and methodsfor environmental communications thatare based on transparency, differentia-tion and function. This means that:

● We seek open product-related com-munications based on analysis andscientifically-based facts.

● Communications should make itpossible for the customer to makeproduct comparisons at the pointof purchase.

● Communications shall describeenvironmental impact in relationto product function. It then beco-mes possible to gauge environmen-tal impact and product usefulness.

In 1995, The EU introduced a system forenergy labeling of refrigerator products.The system permits customers to com-pare products in the store. Similar sys-tems are also in the pipeline for dish-washers, washing machines and stoves.

Buyers in the construction, realestate and retail industries are request-ing environmental declarations for prod-ucts. We are developing methods to offerthese statements when rendering tenders.

Cooperation

Electrolux participates in collaborativearrangements with various degrees ofenvironmental linkage. We participate inexternal activities—for instance, with

The Natural Step Foundation. We coope-rate in research with universities, tech-nical institutes and research bodies inmany countries.

Many collaborative arrangements areformalized, and aim to systematicallyextend our pool of knowledge. We arealso contributing expertise in projectsthat aim at scientific methodologicaldevelopment and practical application ofenvironmental measures such as eco-labeling and recycling.

We encourage all employees tobecome involved in external environmen-tal activities to support exchanges ofknowledge and rising awareness of envi-ronmental issues.

An important aspect of externalenvironmental cooperation is local activ-ities at work sites. These activities ofteninvolve sponsorship and have a conserva-tionist tone. In Italy, for instance, wecooperate with the World Wide Fund forNature (WWF).

Training

So far we have conducted environmentaltraining on the regional and local levels,partly within the EMS system and partlyin special programs. In 1993, we carriedout a comprehensive program in Scand-inavia attended by 600 staff. We havealso conducted courses in Germany andSwitzerland.

In the autumn of 1996 a comprehen-sive Group program involving interactivetraining will be put in place. In this case,we are using our electronic network. Theprogram will be complemented by prod-uct and function-oriented training at the

product level.

Targets and measuring methods

The targets we formulate and the meas-uring instruments we use to monitortarget fulfilment are the logical result ofour holistic approach to environmentalmanagement.

As mentioned earlier, our environ-mental monitoring system accords withISO 14001, corresponding to our envi-ronmental platform. At the Group level,we have developed three product-linkedmeasuring tools. They will be linked toour economic development:

● The share of leading environmen-tally sound products

● Improvement of products fromyear to year

● Practical recycling possibilities

The product lines will use the measuringtools, and within each area quantitativetargets will be set in relation to businessstrategies. Targets and measuring toolsare primarily intended for internal moni-toring. In the longer perspective, we willalso provide external reporting at theGroup level.

We formulate targets and measuretarget fulfilment for product lines andproduction unit levels in accordance withISO 14001. Group Environmental Affairsmonitors the environmental work of prod-uct lines, and works toward integration ofenvironmental questions into businessstrategies and business development ofproduct lines. About half of the productswere monitored in this way in 1995.


Vision for a closed loop material cycle

Suppliers

Manufacturing/Production Re-manufacturing/re-production Renovation

Recycling

Usage

Re-use

Closed loop for materials without compromising quality

Elimination of waste flows

Need for non- renewable resources is eliminated

Raw material sources for future products

Electrolux products contain attractive and recyclable material. By refiningdesign and development of recycling processes, a greater portion of ourproducts can be re-used at lower costs, with the least possible degene-ration of materials quality.

In the future, added value is tied more to the function than to productor material flows.

Organization

Our environmental organization intro-duces and integrates environmentalpolicy and strategy into operationalmanagement for all product lines. Work-ing more with processes rather thanfunctions, for example product develop-ment, logistics and marketing makes theintegration process easier.

We are now introducing environmen-tal strategies into our processes.

The core of our environmental organ-ization consists of environmental coordi-nators. They report directly to productline management. In most cases, a coor-dinator has other responsibilities, but inthe case of many larger product lines,the job as environmental coordinator isfull time.

The product lines have, in varyingdegrees, devised their own environmentnetworks. They correspond to the require-ments of ISO 14001 and will be ready inthe next three years. The exception is ouroperation in North America, which to alarge extent already has an active organi-zation.

We are organizing the environmentalgroups by region. This set-up comple-ments our product line groups. In addi-tion, there are several environmentalcoordinators operating at the functionallevel. In all, there are some 70 coordina-tors.

The environmental board chaired bythe Group CEO has overall responsibi-lity for our environmental activities.

Since 1995, development of strategiesand preparation of policy questions havebeen delegated to a new unit, Environ-mental Affairs. Their mission:

● Further develop environmentalstrategies and policies at theGroup level for approval by theenvironmental board.

● Accelerate integration of envi-ronmental strategies into thebusiness strategies of productlines.

● Develop and coordinate environ-mental competence and experi-ence.

● Assume responsibility for exter-nal communications on environ-mental questions.

● Insure that our environmentalpolicy is observed, and, in cer-tain cases, make operationaldecisions.

The Group staff consists of individualswho work through the network of theenvironmental coordinators. This encou-rages integration of environmental workthroughout the Group.



Environmental organization at Electrolux

Group Staff for Environmental Affairs

Area coordinators

Environmental coordinators for product lines

Expertise and function- oriented environmental

coordinators

Environmental BoardChairman: Group CEO

Refrigerators, freezers,refrigerators/freezers

Important environmental issues● Energy● Cooling agents and insulation gases● Noise● Recycling

In recent years the phasing-out of CFCsand HCFCs in Europe has been a prio-rity. It is strongly supported by publicopinion and legislation. In 1993 we werethe first manufacturer to introduce acomplete product range that eliminatedozone-depleting substances.

Since then, technical development ofalternative cooling agents and insulationmaterials has proceeded swiftly. In 1994,


we completely changed the way wemanufactured our European refrigera-tors/freezers. We are moving toward thesame goal for our production in Ame-rica. Reduction of ozone-depleting sub-stances in our refrigerators and freezerscorresponds to at least 4 million kilos ofCFC 11 yearly.

Phasing-out of CFCs has significantlyreduced the negative effect on the ozonelayer—along with the introduction of ournew low-energy products. The authoritiesare tightening regulation of energy con-sumption. Stricter legislation is expect-ed to eliminate poorly performingproducts in both Europe and theUnited States.

Our conversion to better coolingagents and insulation materials contin-

ues. We are gradually phasing out R134aas a cooling agent in favor of isobutane, ahydrocarbon that is ozone-safe. Its con-tribution to the greenhouse effect isinsignificant. About 30% of Europeanproduction is now based on isobutane.In Europe, we also are using cyclopen-tane as insulation gas, another hydrocar-bon without harmful effects to theozone layer.

We are determined to improve thetechnological opportunities and marketconditions for recycling. This workinvolves design and choice of materials.We have reworked the composition ofmaterials and use fewer fixed parts. Thismakes dismantling easier when refrigera-tion units are scrapped.

Household Appliances

Environmental achievements

The Household Appliances business area is decisive for the Group’s total environ-mental impact, because it accounts for 65 % of total sales. Between 80 - 90 % of envi-ronmental impact occurs when customers use these products.

Environmental considerations for these products include energy and water con-sumption, chemicals, noise, materials and recycling. Product development stands atthe forefront in environmental work, and has definitely resulted in improved productperformance.

Our life cycle perspective also means that we scrutinize materials and recyclingprocesses. We are simplifying product design, with fewer parts and more recyclablematerials.

We have washing machines and dishwashers that are market leaders from theenvironmental point of view. This includes energy and water consumption andnoise levels. Electronic monitoring control has reduced energy use in all productareas.

Product groups

● Refrigerators, freezers,refrigerators/freezers

● Dishwashers, washingmachines, dryers

● Stoves, ovens, microwaveovens, ranges, hobs, hoods

● Vacuum cleaners

● Leisure appliances

● Room air conditioning units

● Sewing machines

● Kitchen/bathroom cabinets

● Compressors

A new EU system for eco-labeling of house-hold appliances came into force in 1996. Allrefrigerators, freezers, and refrigerator/freezerunits will bear a label providing information onenergy usage and fresh food volume of refrig-erating compartments. Energy efficiency isranked in seven classes where A is best andG worst. About 500 of our European modelsbelong to class A or B.

EnergyManufacturer Model

Energy consumption kWh/year

Fresh food volume I Froozen food volume INoise

More efficient

Less efficient

ABCDEFG

(Based on standard test results for 24 h)Actual consumption will depend on how the appliance is used and where it is located

Further information is contained in product broschyres

Norm EN 153 May 1990 Refrigerator Label Directive 94/2/EG

(dB(A) re 1 pW)

ER 3207 C

A

153

309

36

Electrolux phasing-out of ozone-depleting substances in refrigerators and freezers in the United States and Europe

Millions kg (CO2)

GWP

ODP

GWPODP

Tons (CFC11 equivalent)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

0

500

1,000

1,500

2,000

2,500

3,000

3,500

92 9493 95

Europe

USAGreenhouse effect/ozone depleting potential from the use of cooling agents and insulation gases

Greenhouse effect/ozone depleting potential from the use of cooling agents and insulation gases

include more effective fans, carefullyselected materials and simpler design forrecycling purposes.

An important aspect of Electroluxpolicy is teaching the customer how tosave energy. Boiling water with a lid onthe saucepan, for instance, results inenergy savings of up to 80 %. Othersimple measures include using the cor-rect size pan on the hot plate, using theleast possible amount of water in cook-ing, and utilizing residual heat by turn-ing off the oven or the hot plate earlier.

Vacuum cleaners

Important environmental issues● Energy● Suction efficiency/filtering● Noise● Allergies● Materials selection

AEG, Volta, Progress and Electroluxlaunched new models in 1995 withenergy-efficient motors. Up to 80 % ofthe plastic parts were made of recycledmaterials.

For many years we have worked toreduce the noise level and improve filtra-tion. Multiple filter systems and theHEPA filter mean the exhaust air isoften cleaner than surrounding air in theroom.

We have commenced delivery ofvacuum cleaners packed three to apackage. Customers carry their cleanershome in a cloth bag that can also beused for other purposes.

and water. In addition, many componentsare made from recycled plastic.

Analysis of customer behavior showsthat environmental development is linkedclosely to the market. Germany is atrendsetter. This market has reactedmost positively to the introduction ofenvironmentally improved products.

Water-efficient washing machines,for instance, are capturing new marketshares all the time.

Stoves, ovens, microwave ovens,ranges, hoods

Important environmental issues● Energy● Choice of materials● Recycling● Emissions in kitchens

The greatest environmental impact iscaused by energy that is used in dailyhousehold work. In recent years, productdevelopment has been directed towardsaving energy. We have introduced elec-tronic controls that reduce energy con-sumption, including utilizing surplus heatin the oven itself. In an AEG model, theoven compartment can be divided intosmaller compartments, which savesenergy.

Cleaning of ovens and other “hot”products has long been troublesome,requiring environmentally unfriendlychemicals. We have now developed cata-lytic enamel and pyrolysis agents thatburn away grease and residues at a veryhigh temperature. Other improvements

Electrolux has also been a driving forcein development technology to deal withcooling agents and insulation gases in oldrefrigerators. We have set up SvenskFreonåtervinning (Swedish Freon Recov-ery) and contributed to a similar systemin Switzerland.

Dishwashers, washingmachines, dryers

Important environmental issues● Energy● Water● Detergents● Noise● Recycling

Thanks to technical advances, 1995 sawthe launch of products that significantlyimproved environmental performance.Cutting-edge technology is an importantavenue for success, because it oftenbecomes tomorrow’s standard.

An example is a new front-loadingwashing machine that uses only 40 litersof water—just half of what standardproducts consume, and 20 % less thanthe best competitor. A new technologysaves the last cycle’s rinse water, anduses it for the next load of laundry.Water volume is automatically adjustedto the load throughout the entire wash-ing cycle. A special spray technologyusing water circulation saves time,energy and water.

Another example is the new AEGdishwasher, the quietest on the market,which consumes very little electricity



0

20

40

60

80

100

Sales of washing machines in Germany

Sold units %

1st third 1994

2nd third 1994

3rd third 1994

1st third 1995

2nd third 1995

- 60 liter61 - 65 liter

66 - 70 liter71 - 80 liter

81 + liter

Water consumption trends for washing machines

Water consumption, liters

Electrolux0

255075

100125150175200

88 89 90 91 93 9492 95

Maximum consumptionMedium consumptionMinimum consumption

This chart shows the trend in water consumption of washing machines onthe European market, where Electrolux has been leader in recent years.

Success in Germany points to the potential for water-efficientwashing machines.

Leisure products

Important environmental issues● Energy● Recycling● Noise

Electrolux is by far the world’s biggestmanufacturer of absorption refrigeratorsused primarily in hotels and recreationalvehicles. Absorption technology makes itpossible to produce small, materials-effi-cient and completely silent electric orgas refrigerators.

Our new bar refrigerator MiniBaruses considerably less energy than earliergenerations. Energy use is reduced by upto 40% because of advanced electroniccontrols and a new type of vacuum panelused in insulation.

CFCs and HCFCs were completelyphased out in the autumn of 1994. Wenow use cyclopentane as insulation gas.

Compressors

Important environmental issues● Energy● Cooling agents● Recycling● Noise

Electrolux is the world’s biggest manu-facturer of compressors used in the cool-ing systems of refrigerators and freezers.Environmental work has concentrated onenergy efficiency and phasing out ofCFCs.

Several years of development have

resulted in a family of highly effectivecompressors which save considerableenergy. We also have compressor techno-logy for new, non-CFC-based coolingagents. We now offer a complete line ofcompressors for the new cooling agentsisobutane and R134a.

Air conditioning

Important environmental issues● Energy● Cooling agents● Noise● Recycling

Environmental work has been primarilydirected toward reducing energy con-sumption and noise. The present seriesfrom our Edison factory in the UnitedStates uses about 18% less energy thancorresponding models 10 years ago.Noise levels have also been reduced byabout 5 decibels—making these prod-ucts the quietest on the Americanmarket.


New washing machine from Electrolux with aspecial tank for water recovery offers the lowestwater consumption on the market.

Energy-efficient stove from AEG has an ovencavity that can be divided to decrease energyconsumption.

Delivering vacuum cleaners in a three-packsaves packaging materials. Customers get areusable cloth bag to carry the cleaner homewith them.

Industrial laundry equipment

Important environmental issues

● Energy● Water● Laundry detergent● Dry cleaning● Recycling considerations● Working environment (noise, heat,

and odors)



Commercial Appliances

For many years energy savings and otherenvironmental measures have signifi-cantly reduced laundry costs. Theyearly cost of a machine made in theearly 70s—with the same washingvolume—is four times as high ascurrent machines.

Environmental improvements arecharacterized by technological innova-tions that have improved performances

of many different products.● Microprocessors control and opti-

mize the washing process, whichreduces energy consumption.

● Washing loads are electronicallyweighed to minimize water andenergy consumption.

● Thanks to residual moisture con-trol, dryers stop automaticallywhen the load is dry.

still being manufactured



still being manufactured19931989198619801972

Laundry costs per year

Ceased being

manufactured

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

WE55 MPWE47WE65WE60W73W71

Older manual models, 12 kg

WE65 MP/LE

WE75 MP/LE

W74 MP

SEK

Phasing out of ozone-depleting substances used in commercial refrigeration

%

0102030405060708090

100

92 93 94 95

Ozone-depleting potential when using cooling agents and insulation gases

Greenhouse warming potential when using cooling agents and insulation gases

AquaClean is an en-vironmental alterna-tive to dry cleaning.The method involveswashing in water withbiodegradable de-tergents.

The chart shows annual laundry costs expressed in real terms for a Swedish apartment building with 20 households and 10 kg of laundry per week perhousehold. A selection of models from Electrolux Wascator has been chosen.

Companies and organizations offering laundry services and cleaning services, as well asfood storage, preparation and cooking. They all use our products for many hours eachday. Environmental impact occurs mainly through usage, and certainly exceeds that ofhousehold products.

Important environmental issues are energy and water consumption, chemicalsused in dishwashing and laundering, recycling, and the work environment.

Efforts to reduce environmental impact are based on studies of daily usage of theproducts. Technical innovation is the most important means. Innovations include moni-toring and optimization of processes in products to reduce resource usage as well asencourage the use of more environmentally friendly chemicals. Environmental improve-ment is intimately linked to user economy, since reduced resource utilization pays off inthe form of lower costs—even if the new products initially cost somewhat more.

Product groups

● Industrial laundry equipment

● Food service equipment

● Commercial refrigeration

equipment

● Commercial cleaning

equipment

Other measures, as well, reduce environ-mental impact. All plastic and rubberparts are marked to facilitate dismant-ling and recycling. All packaging is madefrom recycled materials.

We launched AquaClean in 1993, acomplement to traditional dry cleaning.It involves washing in water with biode-gradable detergents. This eliminatesemissions of perchlorethylene which nor-mally is used in dry cleaning. The systemhas been developed in cooperation witha German research institute.

Commercial refrigeration equipment


● Cooling agents and insulationgases

● Energy● Recycling● Noise● Work environment

From 1993-95 we phased out CFCs in allmarkets. We will soon complete thephase-out of HCFCs. The phase-out ofall ozone-depleting chemicals will thenbe complete.

Phasing out of CFCs also reduces theproduct’s potential contribution to thegreenhouse effect. See the diagram atthe top of page 16.

This oven is available for electricity orgas, and is the market leader in perfor-mance. Energy consumption is 50 % lesscompared with earlier models, and atleast 30 % lower than competitive prod-ucts. Halving of surface temperature andreducing heat loss also improves thework environment. The oven has beenawarded a well-known prize in theindustry.

Another innovation is our gas stovewith burners that automatically switchto low when the pan is removed. Besidessaving up to 25 % energy, the unit alsolowers the heat levels in the kitchen— a common problem in restaurants.

Commercial cleaning equipment


● Chemical usage● Noise● Ergonomy ● Energy● Recycling

Product development is focused on ergo-nomic design, noise and the compositionof chemical products. Improvements inchemical formulas mean that many chem-ical products have been eco-labeled. In1995, our launches included three prod-ucts that fulfill the requirements of theSwan label. This is the eco-label establish-ed by the Nordic Council of Ministers.

Food service equipment


● Energy● Water● Detergents● Recycling● Noise● Odors● Work environment

Innovative technology in recent years hasreduced energy consumption andresource usage, while also improving thework environment. One example is thenew type of rack-type dishwashers thatcan be equipped to recover heat fromwaste water and steam. The extra invest-ment pays off in less than one year,through electricity savings of 25 -30 %.The table below shows savings with theESD option.

Comparison of electricity, water and deter-gents use in Electrolux rack-type dishwash-ers

Model D55 D580 WT150 WT150w ESD

Year -82 -93 93- 93-

Electricity 48,740 kWh 45,860 kWh 31,900 kWh 22,114 kWh

Water 166 m3 151 m3 100 m3 100 m3

Detergents 270 kg 170 kg 140 kg 140 kg

Annual usage data for various generations ofrack-type dishwashers from Electrolux FoodService Equipment is measured on the basis of500 meals/daily.

In 1995 we launched a new oven thatutilizes steam in food preparation.


Automatic switching to low flame when the panis removed saves energy.

Rack-type dishwashers from Electrolux FoodService Equipment with energy-saving device.

Electrolux EuroClean supplies a series of eco-labeled cleaning solvents.

equipped with the converters. Cataly-zers are also featured on riders andmowers.

Electrical and battery products


● Work environment (weight,noise and vibrations)

● Energy consumption

● Recycling

● Life cycle of organic materials

Electrical products—both battery-drivenand mains—complement our gasolinepowered products. An electrical systemmakes them lighter and quieter, but theydo have a shorter user span and are lessflexible. Customers usually have theirown backyards, and appreciate the lownoise levels. Those driven on mains or bat-teries include chainsaws, trimmers, lawnmowers, leaf blowers and brush cutters.

Two-stroke enginesSaws


● Work environment (weight,noise and vibrations)

● Atmospheric emissions

● Fuels and lubricants

● Recycling

● Life cycle of organic materials

Meaningful improvements in the envi-ronment have occurred over the past 15years, and particularly with exhaustemissions. The diagram above illustratesnormal emissions of HC and NOx at thebeginning of the 1980s. Various improve-ments have reduced emissions of hydro-carbons and nitrogen oxides by about60%.

The breakthrough of catalyzer tech-nology has ushered in a new era in thebattle against exhaust emissions. In


Outdoor Products


1990, Husqvarna launched chainsawswith catalytic converters. This was parti-cularly welcomed by users who hadexperienced respiratory problems.

Together with Aspen Petroleum,Husqvarna has created a specially dis-tilled petroleum that contains 99 % lessbenzene and aromatic hydrocarbons thanregular gasoline. Husqvarna is also mar-keting biologically degradable oil derivedfrom turnip rape. This reduces oil con-sumption by 40 % compared with min-eral oil. We sold about 500 tons of oureco-oil in 1995.

More catalyzer products

We strongly believe in the potential ofcatalyzer technology. We have developedseveral applications for it. The thermody-namics of engines has been developedand tailored to make catalyzer techno-logy feasible for small motors as well. In1995, Husqvarna became the first tomarket brush cutters and trimmers

We use air-cooledtwo-stroke engines forgasoline poweredhand-held equipment.The advantage is anoptimal relationshipbetween weight andoutput, and reliabilityunder extremeconditions.

Exhaust emissions Professional hand-held small-sized chainsaws

HC NOx

0

20

40

60

80

100%

-1980 1987 1990

(utilizing catalyzer products)

For many years this business area has dealt with a broad spectrum of environmentalconsiderations. We have prioritized improvement of the work environment. We havealso focused heavily on improving ergonomy.

New technologies have made it possible to reduce vibrations, improve motorperformance and reduce motor weight and noise. We have also reduced emissionsby rapidly introducing catalytic technology. In many cases, we have been the firstto do so.

The Solar Mower, for instance, entails an entirely new approach that utilizes solarpower. Driven by solar cells, its launch has attracted considerable interest.

Product groups

● Saws

● Trimmers and clearingsaws

● Lawn mowers

● Leaf blowers andgarden vacs

● Cutting machines

● Goods protection


Handling of batteries

Batteries adversely impact the environ-ment if toxic substances like lead andcadmium are not properly disposed ofafter the batteries cease charging. Elec-trolux has carried out environmentallysound measures such as:

● Simple dismantling for recycling

● Collections in stores

● Phasing out of nickel cadmiumbatteries

Solar lawn mower

A new technical advance was made byElectrolux in 1994 with development ofthe Solar Mower. It is driven on solarcells, replacing gasoline or mains with arenewable energy source.

The Solar Mower integrates develop-ments in several technical areas. Some34 solar cells transform sunlight intoelectrical energy. The mower waslaunched in 1995 on selected markets.We view it as an important advanceinto tomorrow’s technologies.

Noise

Noise is disruptive—particularly atworkplaces. Flymo has launched a newgeneration of quiet lawn mowers andclippers, such as the Venturer rotaryblade lawn mower showing a 6 decibelreduction. A reduction of 7 decibels isexperienced by the human ear, a halvingof the noise level. With the new TCproducts, the noise level has sunk by 3decibels. A new leaf blower has a noise

level 3 decibels lower than its predeces-sor.

BioClip

Husqvarna has launched a new techno-logy for lawn mowers, called BioClip. Amulching blade grinds the grass into tinybits during clipping. A stream of airthen spreads these bits back into thegrass, where nature decomposes them.This new composting has created cons-iderable interest, particularly in the Uni-ted States. The technology is also avail-able for rider lawn mowers. Our com-pany American Yard Products has nowintroduced the composting blade into itsmodels.

Överum plows

Överum has developed a new generationof plows, the XL. Combined with theheavy furrow press, the plow introduceda new system of cultivation that resultsin 90 % less nitrogen leakage than con-ventional methods. This also permitsplowing in the spring. Labor costs arereduced, compared to other methods,while seeding productivity is increasedby 15 %.

Goods protection

Jonsereds Miljösystem develops, manu-factures and markets systems for goodsprotection and weather protection.

Jonsered is best known for its tar-paulin system, which protects stocksduring warehousing, at building sites,and in transport. A rapidly growing

industry consists of systems for “dry”building sites. The entire structure iswrapped in tarpaulin. The work cancontinue irrespective of weather, whilebuilding materials themselves are pro-tected. The savings in time and materialsis significant. Another growing market isthe system for reusable packaging, whereJonsered has developed solutions forseveral big retail chains.

The program for catalyzer-equipped motor products for gardening equipment was expanded in 1995.

Production and facilities

In recent years, Electrolux has continu-ously improved its environmental perfor-mance as measured in energy consump-tion, water consumption and carbondioxide emissions (calculated fromenergy sources used in different coun-tries) in relation to added value. Waterconsumption has been reduced by morethan half. Energy consumption hasdropped some 30 % and carbon dioxideemissions nearly as much.

In 1995, however, our environmentalimpact increased slightly when measuredin these terms. Several factors arebehind this increase. A certain slowdownin improvements was to be expectedbecause we have now eliminated themost important sources of environmen-tal impact. In addition, we have ex-panded into new markets during the pasttwo years. Many factories with oldertechnology have been acquired. After afew years of investing in new technology,developing work routines, and transfer-ring knowledge, a noticeable improve-ment will usually occur in terms of theirenvironmental impact.

Our data is produced by a measuringsystem for environmental impact in facto-ries, offices and warehouses. This meas-uring system can never be exact or com-prehensive. However, our data still showsa significant and complete picture of con-siderable progess in the core environmen-tal area.

Energy

Energy consumption has decreased bothin relation to our total added value andper heated area of surface (see chart).

Today, heating energy accounts for abouta third of our energy consumption. Allenergy consumption affects the environ-ment. Energy systems primarily based onfossil fuels generate carbon dioxide, agreenhouse gas, that together with otheremissions can affect the climate.

The development shows continuousimprovements that result from conscioussavings in processes in the factories.Environmental improvements go hand-in-hand with cost savings. We invest inmachinery, processing equipment andbuildings. We operate existing factoriesmore effectively by changing operationaltimes, better use of waste heat from pro-cesses, better monitoring of heating thefacilities. We also build new, more effec-tive factories that replace the older ones.

An important internal key figure isenergy cost per added value. This showsa clear improvement during the pastdecade. Energy costs are now about 3 %of added value on average for the Group.

Carbon dioxide (CO2)

The steep decline of carbon dioxideemissions reflects to a great extent ourreduced consumption of energy. Figuresare calculated as the average of theenergy consumed in different countries.The countries’ selection of primaryenergy sources influences the carbondioxide value. Electricity based on coalreceives a higher carbon dioxide valuethan electricity based on nuclear poweror renewable energy sources.

We make deliberate decisions whenselecting the type of energy for opera-tions and heating—with the aim to get

as cost-effective energy as possible. Ourutilization of natural gas has improvedour environmental performance at theexpense of coal and oil. Several plants inSweden have switched to district heat-ing.

Water

We use water mostly for cooling andflushing in manufacturing processes aswell as for testing our washers, driersand dishwashers.

The measurements take into accountpurchased treated water, or water thatwe treat in relation to the added value.Again, the illustration shows a continu-ous decline. From the late 1980s, ourwater consumption has decreased bymore than 50 %. That is the result ofdaily savings and continual improvementsof our processes, equipment and workroutines.


Energy cost for the entire company in % of added value%

199519941993199219911990198919881987

0

1

2

3

4

CO2 for the entire company per added value

kg/kSEK

199519941993199219911990198919881987

20

30

40

50


Direct material efficiency for the entire companyPercent of incoming direct material. Calculated on an average of 135 factories. Note: Arrow size is not proportionate to actual flow.

Suppliers’ packaging material that is re-used

0.7%

100%

Internal recycled material and material reused as energy

1.5%Emissions to water

0.01%

Emissions into the atmosphere

0.1%

Environ- mentally hazardous wastes

0.4%Wastes to landfill excluding environmentally hazardous wastes

1%External recycled material and material reused as energy

10%

Finished products including packaging

88%Total incoming direct material including packaging

99.3%

Key figures, environmentEnergy consumption

Per added Per heated Energy CO2/added Water/Number value surface costs % of value added value

Year of units kWh/kSEK kWh/m2 added value kg/kSEK m3/kSEK1987 91 184 637 3.45 47 1,81988 100 168 630 3.15 44 1,51989 137 166 634 3.42 45 1,91990 150 160 615 3.49 44 1,61991 156 156 609 3.54 45 1,51992 156 149 609 3.33 43 1,21993 165 128 608 3.24 37 1,01994 181 112 585 3.08 33 0,71995 173 117 587 3.05 35 0,7

Electrolux key figurecalculations

Environmental impact in manufacturingunits is accounted for at the corporatelevel with the help of six key measure-ments combined. At the local level, thereare other measurements that reflectlocal conditions. These are not followedup at the corporate level. Because muchof the environmental impact is related toproduction volume, it is natural that cal-culations are made in relationship toadded value—defined as the differencebetween total manufacturing costs anddirect material costs. The use of addedvalue makes the measurements take intoaccount changes in the production struc-ture, both locally and at the corporatelevel.

Key figures can briefly be described as:

Energy costs per added value showsthe share of energy cost. Measured as apercentage.

Energy consumption per added

value shows how much energy is re-quired per 1,000 SEK in value to aproduct. Measured in kWh/kSEK.

Carbon dioxide emissions per added

value shows the amount of carbon diox-ide emitted by the energy consumed. Thevalue is calculated, and consideration isgiven to the different types of energy thatare used, as well as the different coun-tries’ carbon dioxide equivalents for elec-tricity. Measured as kilograms per kSEK.

Water consumption per added value

shows the use of treated water, as meas-ured in cubic meters per 1,000 SEK.

The following key figures not related toadded value are also used.

Energy consumption per heated

area shows how much energy is used forheating and production per square meterof heated surface. Measured as kilowatthour per square meter.

Direct material efficiency shows howmuch direct material is included in theend product (i.e., a measurement of theefficient use of resources). Measured as apercentage. This figure is illustrated withthe help of the input-output balance.

Water consumption for the entire company per added value

m3/kSEK

199519941993199219911990198919881987

0,0

0,5

1,0

1,5

2,0

Production and facilities

Direct materials flow balance

The material flows balance shows com-bined resource flow in the Electroluxmanufacturing systems. We include 135units or about 90 % of the surface areain our factories, and their consumption,manufacturing and the residuals ofmaterial that either go to landfills or areemitted into the air or water.

The balance measures the efficiencyof resource use. The figures show that113 kilos of material are required to pro-duce 100 kilos of product, for example,a refrigerator or lawn mower. Of those13 “extra’’ kilos, 11 go to recycling,mostly as scraps from cutting metaltrimmings. The rest goes into landfill oris emitted into the atmosphere or water.

Measurement system formanufacturing and plants

To be able to continuously follow ourenvironmental results as well as direct,monitor and manage, Electrolux has ela-borated a series of measurement meth-ods. They register the development atthe product line level and of each indi-

vidual unit. Some are well established,for example, measurements for energyand water consumption. Others areunder development (e.g., reporting ofmaterial balance, wastes and environ-mentally hazardous substances).

The measurement system is nowused to set goals for units, product linesand the entire company with a stronglink to business operations. This way,they become integrated with the mana-gement system that steers activitiestoward profitibility and increases valuefor the shareholders.

The system measures products’ envi-ronmental development and their prere-quisites for recycling. It also measuresour environmental impact on manufac-turing. Accountability for environmentalimpact during manufacturing is based onstandardized reports from factories andwarehouses with more than 1,000 squaremeters of heated area. In the 1995 reporton energy consumption, water consump-tion and carbon dioxide emissions, about97 % of our total building surface wasincluded. The report has existed for a

decade and is very accurate.We are now adapting reporting of

other types of environmental impact tothe requirements that introduction ofenvironmental management systems andenvironmental certification put. It isbased on the analysis of the environmentalaspects that is the beginning of the certifi-cation process. The most important indi-cators are followed up at the corporatelevel. The measurements of other environ-mental impacts are new for 1995. Figuresindicated here are based to a great extenton the estimates made by the factories.The goal is to have measurements withhigh reliability within three years.

Accounting of measurements beyondenergy, water and carbon dioxide emis-sions represent about 90 % of our totalfactory surface area. Measurements arereported irrespective of whether the unithas introduced an environmental manage-ment system. Sites and product linesinvolve more environmental measure-ments than the Group, because many areoperations-specific and cannot be aggre-gated at the corporate level.


Direct materials flow balance 1995 (in thousands of kilos)

All values are in 1,000 kg. Zero means that the value is less than 1,000 kg. The figures in the chart come from 135 of the company’s factories whichcorrespond to about 90% of the company’s total surface area in the factories. In some cases, information regarding the balance is based on the factory’sestimate when exact data was unavailable.

Country,Region

Number offactories

Input

Directmaterial*

Finishedproducts

Output

WasteInternal External

Recycled Incinerated Recycled Incinerated Landfill HW**Austria 3 325 280 0 0 45 0 0 0Denmark 6 3,257 2,573 1 0 618 0 27 39Finland 4 8,978 7,968 0 0 798 60 110 21France 7 49,344 44,447 2 0 3,819 1,037 20 0Germany 9 158,092 136,726 1,226 0 20,314 123 266 541Great Britain 3 35,101 30,801 426 0 2,930 0 1,233 9Hungary 3 55,418 50,128 5,000 0 3,668 0 1,301 237Italy 23 530,736 451,276 3,045 0 72,143 583 3,050 2,459Luxembourg 1 4,432 4,390 0 0 40 0 2 0Norway 5 11,487 10,266 0 0 1,062 22 133 3Spain 5 102,725 85,808 0 0 16,128 10 689 3Sweden 23 136,763 118,818 2,342 1,303 12,756 1,097 2,044 653Switzerland 4 8,212 6,975 20 0 1,117 120 0 0

Total Europe 96 1,104,871 950,456 12,062 1,303 135,439 3,052 8,875 3,965

North America 34 1,074,351 976,609 20,525 1,400 75,835 286 15,038 3,803South America 3 171,232 155,903 300 0 13,269 0 290 1,010Other 2 18,059 12,293 18 0 5,766 0 0 0

Total Group 135 2,368,514 2,095,261 32,905 2,703 230,309 3,338 24,203 8,778


Rapid environmental improvements at Lehel

Ground cleanup

Following corporate acquisitions, weinspect the environment and test the soiland ground water. If we detect contamin-ation, we initiate a cleanup programtogether with local authorities.

An example is the acquisition in1991 of Lehel, the Hungarian manufac-turer of refrigerators and freezers. Theoperation had previously caused wide-spread contamination in soil and groundwater. During a three-year period, wecleaned 120,000 cubic meters of soil pol-luted by solvents and heavy metals. Inaddition, we have invested in new pro-

cesses and machines that providedenergy savings and reduced water con-sumption.

The energy consumption curve perproduced unit shows a typical pattern ata factory that we have acquired in a newmarket. The first year’s investment oftenyields dramatic results. After that,manufacturing increases significantlyand environmental improvementsslow down. After a few more years, thenew manufacturing is trimmed and envi-ronmental improvements accelerate onceagain with new preconditions in a newmanufacturing situation.

Lehel, total energy consumption per unit

kWh/manufactured unit

1991 1992 19941993 1995

0

25

50

75

100

Consumption of oils and solvents in the productionprocess 1995 (in thousands of kilos)

* Direct material bought for production to be included as a product component.** Hazardous waste (HW) that requires special handling. Different countries

have different legislation about environmentally hazardous waste disposal.

Country,Region

Number offactories

Emissions VOC, volatileChlorine-based organic

solvents compounds OilsAir Water0 0 Austria 3 0 0 20 0 Denmark 6 0 0 14

21 0 Finland 4 0 4 61 20 France 7 33 11 35

52 70 Germany 9 15 1 244128 0 Great Britain 3 102 1 51884 0 Hungary 3 16 66 20

1,224 1 Italy 23 67 193 8080 0 Luxembourg 1 0 0 01 0 Norway 5 0 4 8

82 5 Spain 5 6 70 29675 17 Sweden 23 45 786 1530 0 Switzerland 4 3 0 6

1,668 113 Total Europe 96 288 1,136 2,111

1,164 216 North America 34 59 291 1,693758 2 South America 3 79 53 111

0 0 Other 2 0 0 5

3,591 331 Total Group 135 426 1,480 3,919

Acidification. Acid rain increases acid levels in soiland water; Ph levels drop to such an extent that condi-tions supporting biological life deteriorate or change.

Added value. The value added to a product duringthe manufacturing process. It is estimated by subtrac-ting the purchased raw materials and component pricefrom the product’s final value.

Aggregate. The compilation of results or measure-ments into a sum or total of more comprehensive value.

Biofuel. A renewable fuel derived from plant life (e.g.,wood).

Brominated substances. Organic or carbon com-pounds combined with bromine. Many substances inthis group may be, or have been proven, environment-ally hazardous. Examples are flame-retarding additivesin plastics and textiles.

BS 7750 (British Standard 7750). The first nationalstandard for environmental management, established bythe British Standards Institution. BS 7750 is the precur-sor to the international standard ISO 14001.

Cadmium (Cd). A toxic heavy metal found, for exam-ple, in batteries and pigments. Symptoms of cadmiumpoisoning are kidney damage and skeletal deformation.

Carbon dioxide (CO2). Colorless natural gas that ispart of nature’s cycle. It is extracted from the atmos-phere by plants during photosynthesis and releasedduring combustion. People and animals also release car-bon dioxide when exhaling. The burning of fossil fuelsincreases the amount of carbon dioxide in the atmos-phere.

Catalytic enamel. A rough surface of catalyticmaterial that coats the interior of an oven, acceleratingthe breakdown of grease and dirt.

Chlorine-based solvents. Organic solvents cont-aining chlorine and often fluorine. Chlorine-based sol-vents usually are not fire hazards. Some can have nega-tive health effects and contribute to ozone depletion.

Chlorofluorocarbon (CFCs). Synthetically producedsubstances containing chlorine, flourine and carbonused, e.g., to transfer heat and cold for refrigerationand airconditioning. It was also used in the insulationfoam for refrigeration appliances. CFC’s breakdownstratospheric ozone which protects the earth fromharmful UV radiation. CFC’s are also powerful green-house gases, contributing to global warming. CFC isalso known by the trade name “Freon”.

CFC is prohibited in industrialized nations since1996 and will be completely phased out in the future,according to the United Nations “Montreal Protocol”.CFC11 and CFC12, also known as R11 and R12 respect-ively, are the most common CFC gases previously usedfor refrigerators.

Cooling agent or refrigerant. Substances thattransport or remove heat by transformation betweengas and liquid during pressure changes.

Cyclopentane. A hydrocarbon (HC) used as insula-tion gas for polyurethane insulation in refrigeratorsreplacing CFC11. Cyclopentane has no negative impacton the ozone layer, with only a negligible contributionto the greenhouse effect.

Direct material. Material purchased for productionas a component of a product.

EMAS. Eco-Management and Audit Scheme. A Euro-pean Union regulation for voluntary environmentalmanagement and environmental audits of industrialactivities. Companies can become EMAS-registered byundergoing regular reviews conducted by an accreditedindependent individual or organization.

Emission. Release or discharge of substances, efflu-ents or pollutants into the environment.

Energy recovery. Recovery of heat formed by theburning of waste material.

Environmental audit and certification. Regularreview of an organization’s environmental activities. An

independent expert then certifies that the environmen-tal management system in place meets standard requi-rements (for example, BS 7750 or ISO 14001) for envi-ronmental certification.

Environmental management system (EMS). Astructured system for environmental management,attained by introducing routines for goal-setting, docu-mentation and follow-up of an organizations activitieswith effect to the environment.

Environmental performance. The measuredresults that an organization actually attains throughenvironmental management.

Fossil fuels. Coal, oil, natural gas formed from theremains of ancient animal and plant life. As a finiteresource, fossil fuels are consumed far more rapidlythan they are formed.

Greenhouse Effect. Through an increase in green-house gases in the atmosphere the dissipation of heatfrom the earth is hampered. This disturbs the balanceof the atmosphere, leading to increased temperatureand a more unstable climate. The most importantgreenhouse gases are carbondioxide from coal and oilcombustion, methane from rice production and land-fills, and CFCs.

Greenhouse Warming Potential (GWP). Meas-ure of the greenhouse effect of gases if these gaseswere released into the atmosphere. The greenhouseeffect is indicated by the CO2 equivalent by comparingthe actual gas with the greenhouse effect of carbondioxide which is GWP = 1. For example, CFC11 has aGWP of 3,500.

Ground level ozone. Ozone in the stratosphereprotects life from ultraviolet radiation. High concentra-tions at ground level, however, are toxic and hazardousfor fauna, flora, human health and buildings. Groundlevel ozone is formed under certain conditions fromemissions of gasoline or solvents.

Halons. Brominated fluorocarbons that are used forfire extinguishers and severely deplete the ozone layer.Use of halons will be prohibited after 1997.

Hazardous waste. Waste requiring special disposaltechniques. Different countries have different regula-tions.

Hydrochlorofluorocarbons (HCFC). Also called“soft freons.’’ Less harmful alternative to CFCs, withapproximately 90 percent lower ozone-depleting charac-teristics and greenhouse warming potential.

Hydrocarbons (HCs). Organic compounds consistingof hydrogen and carbon. Examples are propane, butaneand pentane. HCs are replacing CFC, HCFC and HFCin many applications due to no ODP and negligableGWP. HCs are regarded as the best overall refrigerantand insulation gas.

ISO 9000. Standard for quality work from the Inter-national Standardization Organization, which inspiredthe development of the ISO 14000 environmental stan-dard.

ISO 14000. A series of standards for environmentalwork drawn up by the International Standards Organ-ization. ISO 14000 now touches upon environmentalmanagement (e.g., ISO 14001) but, in the future, willinclude environmental audit and life cycle assessment.

Isobutane. A hydrocarbon used as a cooling agentinstead of R12 and R134a. It has no negative impact onthe ozone layer, with an insignificant greenhouse effect.

Landfill. A land area where waste is deposited.

Life cycle analysis or assessement (LCA).Methods for determining the environmental impact aproduct or system exerts during its entire life cycle—from extraction of raw materials through productionand usage to recycling.

Nickel (Ni). Metal used in alloys, batteries, surfacecoatings, and coins. Nickel can cause allergic reactions,while certain gases of nickel compounds are carcinogenic.

Nitrogen (N). The atmosphere is primarily composedof nitrogen gas. Nitrogen is an important building blockfor all biological life. Nitrogen compounds also arefertilizers, and overly high nitrogen releases results inalgae overgrowth. This, in turn, creates a shortage ofoxygen when organic substances break down.

Nitrogen oxides (NOx). They contribute to acidifi-cation and fertilizer saturation. Nitrogen oxides alsocontribute to the formation of smog and ground levelozone.

Ozone-depleting potential (ODP). Indicates asubstance’s potential to destroy the ozone layer. TheODP value indicates the substance’s characteristicscompared to CFC11 which has an ODP equal to 1.

Ozone-depleting substances (ODS). They breakdown the earth’s protective ozone layers. These sub-stances include CFCs, HCFCs, halons, dinitrogen oxideand several chlorinated solvents such as carbon tetra-chloride and methyl chloroform.

Ozone layer. The layer of ozone gases, 15 to 40 kmhigh in the stratosphere, that protects the earth fromthe sun’s harmful ultra-violet radiation.

The ozone layer has been damaged because of theemission of chlorinated and brominated compounds,such as CFCs and halons. The chlorine and bromine inthese substances act as catalysts in breaking downozone molecules.

Perchloroethylene. Chlorinated solvent used in drycleaning compounds. Perchloroethylene may be carcino-genic, difficult to break down, and toxic in water.

Primary energy. The amount of energy a fuel repre-sents without consideration for loss, for example, inelectrical energy production. To produce 1kWh of elec-tric energy, 2 to 2.25 kWh of heat from coal or oil isrequired. This relationship is called conversionefficiency.

R134a (Hydrofluorocarbon or HFC compound). Acooling agent that has replaced CFC12 (R12) in coolingsystems. Has no hazardous effects on the ozone layer,and has a reduced greenhouse effect.

Sulfur dioxides (SO2). Formed when burning fuelscontaining sulfur (coal, peat, oil). When mixed withrainwater, sulfur dioxide forms sulfuric acid.

Thermodynamics. A science within physics dealingwith the relationships between heat and other forms ofenergy.

VOC (Volatile Organic Compounds). Organic com-pounds that easily evaporate and spread throughout theenvironment. They are often directly or indirectlyhazardous to the environment and health. Commonexamples are xylene and toluene used for cleaning andpainting.

Units of measurement

MWh. Millions of watt hours = 1000 kWh.

kWh/kSEK. Thousands of watt hours per thousandkronor.

KWh/m2. Kilowatt hour per square meter.

kg/kSEK. Kilogram per thousand kronor.

m3/kSEK. Cubic meter per thousand kronor.

kWh/unit. Kilowatt hour per unit

CO2 - equivalent. The greenhouse effect ofone kilogram of CO2.

CFC11 equivalent. Ozone-depleting capacity of one kilogram of CFC11.


Glossary

The Electrolux Environmental Affairsstaff welcomes viewpoints on thisenvironmental annual report. Weencourage a dialogue withenvironmentally concerned groupsand citizens.

Our address:

Group Staff, Environmental AffairsAB Electrolux 105 45 Stockholm, SwedenTelephone +46 8 738 60 00Telefax +46 8 738 76 66

The annual financial report and econo-mic reports can be ordered from AB Electrolux, Group Investor Relationsand Economic Information,105 45 Stockholm.Telephone +46 8 738 60 03 or 738 61 41.

The Electrolux EnvironmentalAnnual Report is available on theInternet: http://www.electrolux.se


The inside pages of this Environmental report areprinted on 115g Arctic Silk. The cover is printed on200 g Arctic Silk. License No. 304047

Lilla Essingen, S-105 45 Stockholm, SwedenTelephone Int +46-8-738 60 00, Telex 11600 Elhead S

Telefax Int +46-8-656 44 78, 656 66 92http://www.electrolux.se

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