ENVIRONMENT
The importance of environmental issues is increasing in pace with more stringent requirements and increased awareness on the part of consumers, customers, suppliers and authorities. Legislation and other standards in the environmental area are constantly being tightened.
Swedish Match continuously strives to make improvements and works with a systematic environment and quality focus in areas with environmental impact.
Approximately 80 percent of the Group’s raw materials are renewable and production handles environmentally harmful substances to only a limited extent. In order to increase resource efficiency, the Group is continuously developing its systems for cleaning and reducing emissions. Swedish Match works constantly to achieve improvements in areas that have an environmental impact, such as water and energy consumption and waste management.
Environmental vision and environmental policy
Swedish Match’s environmental vision is to work toward a balance whereby it attains its commercial goals while simultaneously meeting external demands. Swedish Match integrates its operations and its products in the natural ecocycle system so that the results of the Group’s commercial and environmental efforts are interlinked and strengthen each other.
Swedish Match has adopted an environmental policy encompassing all aspects of its operations, which is based on the principles of the ISO 14001 environmental management system.
Swedish Match’s commitments include:- complying with prevailing legislation, regulations and other requirements wherever its operations are conducted.
- employing effective environmental
management systems designed to prevent pollution and reduce the risk of negative environmental consequences.
- measuring commercial initiatives according to both financial and environmental criteria.
- identifying and implementing changes in products, production processes and services intended to achieve cost-efficient environmental gains.
Responsibility for environmental issues
The Group-wide environment function is responsible for coordination, development and training in environmental issues. The presidents and heads of local units have overall responsibility for ensuring that Swedish Match meets the demands stipulated by environmental legislation imposed on the Company and that improvement activities are actively conducted in their individual business units. An environmental coordinator is appointed in each major business unit.
Environmental work is carried out locally and each plant has specific targets and improvement projects. These targets shall be clear, measurable and follow the principles in the environment policy.
A Group Council responsible for environmental issues and reporting environmental results was established in 2005. The Council meets annually to coordinate Group projects, to exchange knowledge and experience and to follow up the compliance with the Group environmental policy.
Environmental management system
To systematize and enhance the efficiency of environmental activities, Swedish Match works with a Group Environmental Management System, EMS. Certification ensures that environmental considerations are integrated into the Group’s manufacturing and business processes.
Approximately 80 percent of the Group’s sales are generated by units with ISO 14001 certification. Units that do not have ISO 14001 certification shall adhere to the EMS. The aim is that the EMS must not only apply to manufacturing units but also to other large units in the Group.
General Cigar, with production plants in Dominican Republic and Honduras, plans to become ISO 14001 certified during 2007/2008.
Climate work
The greenhouse effect is considered by many researchers to be one of the most serious global environmental problems. Swedish Match’s prioritized aim is to limit the impact of emissions on the climate. The Group applies goal-oriented measures that are monitored by, among other agencies, Swedish insurance company Folksam through its Climate Index. The index includes for example emissions of carbon dioxide from fuel or the Company’s own production processes, as well as from purchased electricity, heating, goods transport and travel.
Production
Production represents the largest portion of Swedish Match’s carbon-dioxide emissions, amounting to approximately 50,000 tons of carbon-dioxide emissions per year. Some plants in Europe have switched to natural gas and green electricity, and some have introduced energy-savings programs, which combined have reduced emissions by approximately 10 percent in two years. The Company aims to make further advances in this area in the future.
| Information from Folksam’s Climate Index 2006 1) |
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| Source |
Tons of CO2 |
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| Production 2) |
49,868 |
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| Properties, total 3) |
5,710 |
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| Transport, goods 4) |
10,152 |
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| Business travel, air |
3,303 |
0.27 tons per employee |
| Total |
69,033 |
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| 1) Folksam’s Climate Index 2006 is based on data on CO2 emissions during 2005. |
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| 2) CO2 emission reduced by 10 percent in two years. |
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| 3) CO2 emissions from properties reduced by 1,000 tons in 2005. |
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| 4) Measures the use of fuel for transport in 85 percent of the Group. CO2 emissions from transport reduced by |
| approximately 20 percent in two years. |
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Properties
The majority of Swedish Match’s business units in Europe and North America have introduced programs to reduce the consumption of electricity for heating/cooling and lighting. Measures that have been taken include the installation of low-energy lighting, insulation, heat-recovery systems and energy-consumption controls. Units in other parts of the world are in the process of introducing programs, which will be monitored by EMS. During the period 2003-2005, carbon-dioxide emissions declined by around 1,000 tons (of a total of approximately 5,700 tons). The target is to continue to save energy in the Company’s properties in future years.
Transport of goods
The transport of goods is the second largest single source of carbon-dioxide emissions caused by Swedish Match, since tobacco requires long-distance transportation, both as a raw material and as finished products. Emissions have been reduced partly due to logistics planning and efficient transport chains and vehicles.
Business travel
There is room for improvement in this area. Many projects aimed at increasing awareness and reducing the environmental impact of travel have been initiated within the Group. A program of environmentally sound company cars has been introduced to reduce the environmental load and videoconferencing as well as teleconferencing are being used to a larger extent.
Consolidated Income Statement
