The SKF Group
SKF and Sustainability
Tom Johnstone, President and CEO
November 30th, 2009
To make a decent
profit –in a decent
way
October 30, 2007 © SKF Group Slide 1
SKF -
A truly global company
Established: 1907
Sales 2008: SEK 63,361 million
(~USD 8.5 billion)
Employees: 44,799
Production sites: 110 in 28 countries
SKF presence: in over 130 countries
Distributors/dealers: 15,000 locations
Global certificates:
ISO 14001OHSAS 18001 certification
October 30, 2007 © SKF Group Slide 2
SKF Group Vision
To equip the worldwith SKF knowledge
October 30, 2007 © SKF Group Slide 3
SKF’s
Environmental Care milestones
Environmental Policy
19891989
SKF EnvironmentalReport
19941994
ISO 14001
19981998
Global ISO 14001 certification covering all manufacturing sites, distribution centres, and technical centres –90 sites in 28 countries
SKF’s
Environmental targets:
•
50% solvent reduction by 2012, compared to 2007’s level
•
80% recycling rate for grinding sludge by 2012
•
Water consumption reduction target –
site specific
• CO2
reduction target
October 30, 2007 © SKF Group Slide 4
SKF’s
Environmental Care milestones
Environmental Policy
19891989
SKF EnvironmentalReport
19941994
ISO 14001
19981998
SKF’s
first CO2
target:
-10%
over 5 years adjusted for volume increases(2002 –
2007)
This was achieved in 2005
SKF’s
new CO2
target from 2006:
-5%
absolute reduction annually
CO2
emission reporting and target
20022002
New CO2
emission target
2006
October 30, 2007 © SKF Group Slide 5
SKF Care
Employee Care
Community Care
Business Care
Environmental Care
BeyondZeroTM SKF Care
0
2
4
6
8
10
12
14
2003 2004 2005 2006 2007 2008
Operating margin
October 30, 2007 © SKF Group Slide 6
BeyondZeroTM
0
-
+BeyondZero
Reduce
energy
intensity•
Energy
training
+ energy
toolbox•
Energy
efficient
pumps•
Energy
efficient
motors•
Waste
heat recovery•
Improved
window
insulation
Reduce
carbon
intensity•
On-site
solar power•
Sourcing
renewable
energy
Energy
efficient
bearingsMechatronics
in welding
robotsActuators
in window
facadeBy-wire
auto-throttle
in aerospaceClient
Needs
Analysis
–
Energy
and Sustainability
October 30, 2007 © SKF Group Slide 7
SKF’s
focus on CO2 emissions
2007: 473K tonnes2008: 426K tonnes
2007: 473K tonnes2008: 426K tonnes
2007: 86K tonnes2008: 82K tonnes
2007: 86K tonnes2008: 82K tonnes
2008*: 18K tonnes2008*: 18K tonnes
2008*: 60K tonnes2008*: 60K tonnes
October 30, 2007 © SKF Group Slide 8
SKF –
Internal Energy and CO2
Strategy
Value added =standard cost, ps rate
SupplyCarbon
Intensity
Energy Intensity
Energy Demand
CO2
from Energy Supply CO2
5% Absolute Reduction
October 30, 2007 © SKF Group Slide 9
I) Reduce energy intensity
Compressed air managementfrequency control in honing oil pump motor
Waste heat recycling Building insulation
LED lighting
LEED building certification
-
140 MWh -
226 MWh
-
200 t CO2 -
150 t CO2
October 30, 2007 © SKF Group Slide 10
Energy Reduction Grinding Water System
Grinding
water
pressurePressure
reduction:from
6.5 bar to 3.5 bar
CoolerPressure
difference
reduction:from
1.5 bar to 0.7 bar
System pumpsVariable speed
drive
Filter pumpsVariable speed
drive
Hard Savings:Power
72kW
Energy:
432.000kWh per yearCO2 :
110 Tonnes
pre
year
Costs:
€
43.700
October 30, 2007 © SKF Group Slide 11
II) Reduce carbon intensity
SKF Sweden BTP, Netherlands
Carbon neutral source for building heatingSKF Airasca, Italy (-
2,294 tonnes
CO2)On-site photovoltaic power generation
SKF Schweinfurt, Germany (-365 tonnes
CO2)
SKF European Distribution Centre, Belgium
Green electricity sourcing in :
Total saving
–
10,000 tonnes
CO2 pa
October 30, 2007 © SKF Group Slide 12
SKF –
Internal Energy and CO2
Strategy
Value added =standard cost, ps rate
Energy Demand
CO2
from Energy Supply CO2
Target :-
5% Absolute Reduction pa
2008 Result> -9% CO2 emission
October 30, 2007 © SKF Group Slide 13
SKF’s
Environmental Care milestones
Environmental Policy
19891989
SKF Environmental
Report
19941994
ISO 14001
19981998
CO2
emission reporting and
target
20022002
Life Cycle Management
20092009
New CO2
target
2006
October 30, 2007 © SKF Group Slide 14
SKF Operations
InboundLogistics
Outbound
Logistics
Componentsupply
Material Supply
Use Phase(at Customer)
Disposal
Use Phase(at Customer)
Life Cycle Thinking applied to Carbon Emissions
Energy Demand
CO2
per unit Energy supplied SKF Operations
InboundLogistics
Outbound
Logistics
Componentsupply
Material Supply D
isposalValue Chain
Area = total emissions, tonnes
October 30, 2007 © SKF Group Slide 15
BeyondZeroTM
0
-
+BeyondZero
Reduce
energy
intensity•
Energy
training
+ energy
toolbox•
Energy
efficient
pumps•
Energy
efficient
motors•
Waste
heat recovery•
Improved
window
insulation
Reduce
carbon
intensity•
On-site
solar power•
Sourcing
renewable
energy
Energy
efficient
bearingsMechatronics
in welding
robotsActuators
in window
facadeBy-wire
auto-throttle
in aerospaceClient
Needs
Analysis
–
Energy
and Sustainability
October 30, 2007 © SKF Group Slide 16
SKF Energy
Efficient
(E2) bearings
Deep groove ball bearings
Cylindrical roller bearings
Spherical roller bearings
Tapered roller bearings
October 30, 2007 © SKF Group Slide 17
Energy Efficient Bearings –
The Sangam
Textile Group -
India
SKF E2 energy efficient bearings provide power savings, extended life and R0I of 37 days when tested on Twister Electric Motors at The Sangam
Group Textile Mill.
The customer now plans to expand the use of Energy Efficient Bearings throughout the Sangam
Group.
October 30, 2007 © SKF Group Slide 18
Energy Efficient Bearings –
GlaxcoSmithKline
-
India
SKF E2 energy efficient bearings provide power savings and ROI of 17 days when tested on Cold Water Pump Motors at GlaxcoSmithKline
India.
The customer now plans to install Energy Efficient Bearings on all Cold Water Pump Motors
October 30, 2007 © SKF Group Slide 19
EU Parliament –
2,7 million kWh/year Beverage manuf
–
1 000 m3 water,-
95% lubricants
Business jet –
1 million l of fuel / aircraft SKF
Client Needs Analysis
–
Energy and Sustainability
Deliver higher efficiency for customers
October 30, 2007 © SKF Group Slide 20
Enable cleaner technology for tomorrow
Wind energy –
one of the fastest growing markets for SKF
October 30, 2007 © SKF Group Slide 21
SKF solutions for wind turbine
October 30, 2007 © SKF Group Slide 22
SKF Benefits of the Partnership with Göteborg Energi
•
Wind Power Energy•
Biogas•
District Heating•
District Cooling•
Heat Recovery
•
Supplier of Bearing arrangements•
WindCon, WindLub and other SKF-products for wind turbines in the project.
•
Remote monitoring •
Top of turbine services•
Repairs and Spare part supply
Sustainable Production Arena for R&D
Business opportunity within Solution and Maintenance Service
•
Access to existing wind turbines ownedby Göteborg Energi for testing of SKF products
Building Brand•
Reference Case •
Create Business Opportunities•
SKF focus on Sustainability
October 30, 2007 © SKF Group Slide 23
SKF Care
Employee Care
Community Care
Business Care
Environmental Care
BeyondZeroTM SKF Care
0
2
4
6
8
10
12
14
2003 2004 2005 2006 2007 2008
Operating margin
October 30, 2007 © SKF Group Slide 24
Awards and recognition
October 30, 2007 © SKF Group Slide 25
October 30, 2007 © SKF Group Slide 26