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.
For electricity, we use local factors whenever available, if not available we use country specific factors from the IEA (International Energy Agency). For heat and steam, we 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 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.
Waste and water
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 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.
Waste is measured in kg per 1 million working hours.
The components in this indicator are hazardous and nonhazardous waste disposed
at landfill, incinerated with energy recovery and incinerated without energy recovery. Recycled waste is not included.
Some of our (smaller) companies have no information available on water and energy consumption, as this in included in the rent and not measured. The same challenge goes for non-hazardeous waste from some offices. The consequence is that this is either estimated or not included. It is estimated that the volume for this is not significant. However, we will make more specific reporting requirements on how to solve this in the future.
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.
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 2015. 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 per
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.
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 (%)
The Key Group positions are defined as Mercer band level 1 to 4, corresponding approximately to “top 100” leaders in Grundfos. The result cannot be compared with earlier years, where only selected positions were included.
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.
Absence from LTIs that occurred in previous years is included.
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.
Data from 2012 and 2013 are not comparable with 2014 and 2015 as we in 2014 changed the data source. In 2016, the EDD process will be merged with the Employee Performance Dialogue (EPD); and going forward we will only have one Performance & Development Dialogue (PDD). A new system, Success Factor, has been implemented to support this process. This may affect the numbers and the comparison in 2016.
During 2015, 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.
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).
A process of data quality improvement and a new organisational setup for the European area has during 2015 led to a large increase in the number of counted group suppliers. It has not affected the processes linked to the suppliers.
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 focus solely on supplier performance within the areas of labour standards, employment practices, anti-corruption and community impact and sub-supplier responsibility.