Reporting principles

Environmental footprint

Carbon emissions and energy consumption

The reporting of our energy consumption and carbon emissions data is based on the emission calculation factors provided by the IEA (International Energy Agency) and is in accordance with the Greenhouse Gas Protocol (GHG Protocol), which is an internationally acknowledged standard for measuring greenhouse gas emissions developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD).

The GHG Protocol categorises direct and indirect emissions into three broad scopes:

Scope 1: all direct GHG emissions

Scope 2: indirect GHG emissions from consumption of purchased electricity, heat and steam

Scope 3: other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered by scope 2, outsourced activities, waste disposal, etc.

As in previous years, Grundfos provides reporting on scope 1 and 2; however, the fuel consumption from our own vehicles is not included in scope 1 emission figures. Data has been collected, but the data processes are to be further improved before including this in the Group report, not least when looking at comparison years.

The sustainability data provides no reporting on scope 3 emissions. Our data measurement techniques rely on the total energy consumption related to corporate operations. The carbon footprint gives a general overview of the company’s CO2 emissions and is based on reported data from the reporting entities. CO2 emissions are measured in metric tonnes. Emissions are calculated for all activities in Grundfos companies which are included in the reporting scope.

The baseline year for carbon emissions and energy consumption is 2008.

Changed calculation method for CO2 emissions

For the 2014 data, we have updated our method for calculating CO2 emissions for purchased electricity. The reason for this change is a change of reporting method from the IEA. Previously, the IEA reported country-specific conversion factors including electricity, heat and steam. Now (as of the 2013 edition “CO2 emissions from fuel combustion – highlights”) this report includes conversion factors for purchased electricity only.

For electricity, we continue to use local factors whenever available, if not available then we use country specific factors from the IEA; for heat and steam, we continue to use local factors whenever available, if not available then we use the factor from the largest Danish production company (“GBJ”). This CO2 factor for heat and steam is close to the global average. Please note that only 10 small companies are affected by this change.

The performance impact on CO2 emissions from this change is that the 2008 baseline and subsequent years will increase. The impact gets smaller the closer we get to recent data. The table below shows examples of how the data from comparison years is affected:

Effects from change of calculation method for CO2 emissions

Effects20082013
CO2 emissions from electricity, heat and steam+5.43%+0.72%
Total CO2 emissions+4.71%+0.60%

The table shows that using the updated method increases CO2 emissions at group level by nearly 5% in the baseline year 2008. Please note, however, that this does not affect the conclusion: that we are living up to our ambition of never emitting more CO2 than in 2008.

Please note that this data cannot be compared directly with the CO2 data from the Management´s report on sustainability in Grundfos Annual Report 2014. The scope is different; the Annual Report includes only 26 production companies which corresponds to 90% of the emissions / 91% of the energy consumption. Data in this report includes all Grundfos companies.

Please note that comparison figures for year 2008 had minor adjustments since first reported. This is due to enhanced data measurement, reporting measurement and reporting process. The adjustments are not material. For this report the data on energy – and thereby CO2 – has changed. This is mainly due to enhanced data scope from one reporting unit.  For 2013, this change increases energy consumption with 7,700 MWh/ CO2 emission by 2,255 metric tonnes. The improvement impacts 2012 to 2014 data. All data for comparison years has been corrected, so comparing progress over time is possible.

Water usage

Baseline year for water and waste was established in 2008. Water is reported in total use of water m3. The water usage is defined as delivered municipal water, ground water from own well and surface water from e.g. lakes, measured in m3. Rainwater is not included.

Please note that this data cannot be compared directly with the data from the Management´s report on sustainability in Grundfos Annual Report 2014. The scope is different; the Annual Report includes only 26 production companies which corresponds to 80% of the water consumption. Data in this report includes all Grundfos companies.

Please note that comparison figures for water consumption for year 2008 have had minor adjustments since first reported. This is due to enhanced data measurement and reporting process. The adjustments are not material.

ISO Certification

The number shows the percentage of Grundfos production companies certified according to ISO 14001 and OHSAS 18001. It is Grundfos policy that within three years of acquisition or production start all Grundfos production companies have implemented management systems according to ISO 14001. Until 2012 only companies with more than 100 employees were targeted with this policy – this limitation has been removed in 2012.

Sustainable product solutions

High efficiency circulator pumps – electricity saved

Electricity savings are calculated as the electricity saved by all Grundfos high efficiency circulator pumps sold in EU between 2005 and 2014. The estimate is based on the actual sales figures for the year and assumptions about which previous models the sold pumps replace. The savings per year are accumulated as each pump leads to electricity savings for several years. The figure is calculated as electricity savings in kWh a year.

Investment in the development of new products

The investment in development of new products is defined as expenses/activities related to research, development and launch of new products. This is indexed in relation to the annual turnover.

Workplace

Workforce size

This covers the total number of employees at the end of the year - converted into full time employees. A full time employee has the standard number of working hours according to local rules/agreements. Personnel rented from a temporary employment agency are not included.

Female leaders (%)

Leaders are defined as having staff responsibility meaning having people reporting to them. Non-Danes in Group positions (%)

Group positions are defined as managers from Group management to Group directors and selected regional managers and Group managers in key positions. The baseline from 2011 shows 23% non-Danes in Group positions.

Employees on special terms (%)

The indicator is calculated as the number of employees who are given special consideration by Grundfos, and for whom Grundfos installs facilities aimed at the employees’ physical, psychological or social problems. Special consideration is given to employees by amending or adjusting the workplace with regard to time, flexibility or mobility, and by adjusting the content of the job and nature of the work, to enable this to be carried out in spite of reduced working capacity. The number of employees working for an external business partner who carries out assignments for Grundfos is also included.

Number of injuries per million working hours

Injuries are measured as lost time injuries, which has caused lost working hours for at least one day after the injury. The indicator is indexed as injuries per one million working hours for blue and white collar employees.

Working hours lost due to lost time injuries

Lost time due to lost time injuries is measured in number of hours. The indicator is indexed as working hours lost due to injuries per one thousand working hours.

People competences

Employee Development Dialogue (EDD)

At Grundfos, EDDs are used to discuss the employee´s tasks, qualifications and motivation for doing her/his job and the employee's development ambitions and competences. It is Grundfos’ objective that all employees with more than 6 months contract attend an EDD every year.

 

Training hours

Training is registered in hours and includes hours registered spent on development, training and supplementary training. It is to be considered a minimum, as some of the training activities are not registered – e.g. informal training.

 

Compliance workshops

During 2013, 2 compliance workshops were arranged. The concept was launched in 2009, and Grundfos Corporate Internal Control (CIC) executed many workshops in order to educate the whole organisation. Workshops are now mainly conducted for new finance managers. This means that CIC expects to conduct 1 or 2 workshops each year.

Group entities audited, Grundfos Code of Conduct

Grundfos Corporate Internal Control (CIC) visits a selected amount of Grundfos companies every year. The purpose is to review and rate the internal control environment and to submit observations, risk descriptions and recommendations for improving business processes and controls, including in relation to the Grundfos Code of Conduct.

Responsible business conduct

Compliance workshops

During 2013, 2 compliance workshops were arranged. The concept was launched in 2009, and Grundfos Corporate Internal Control (CIC) executed many workshops in order to educate the whole organisation. Workshops are now mainly conducted for new finance managers. This means that CIC expects to conduct 1 or 2 workshops each year.

Group entities audited, Grundfos Code of Conduct

Grundfos Corporate Internal Control (CIC) visits a selected amount of Grundfos companies every year. The purpose is to review and rate the internal control environment and to submit observations, risk descriptions and recommendations for improving business processes and controls, including in relation to the Grundfos Code of Conduct.

Actions taken in response to incidents of corruption

This includes breaches reported to the Ethics Committees or discovered by e.g. Grundfos Corporate Internal Control.

Purchase

Group suppliers

A Group supplier is a supplier who supplies materials directly to more than one Grundfos production company. Group suppliers can be global (serving several Grundfos companies across several regions) and regional (serving several Grundfos companies within a region).

System and process audits

System audits are quality audits of potential and existing suppliers. System audits include social and environmental aspects related to the Grundfos Supplier Code of Conduct. During 2013, process audits were introduced to sharpen the scope and increase the pool of resources able to conduct audits, enabling Grundfos to carry out the audits where and how they provide the greatest value. Process audits, however, do not include social and environmental aspects.

Social audits

Social audits focus solely on supplier performance within the areas of labour standards, employment practices, anti-corruption and community impact and sub-supplier responsibility.





    Facebook Twitter LinkedIn Technorati