Achievements so far

Carbon emission performance 2002-2011

As with other aspects of our environmental impact, when acting to reduce global carbon emissions, SKF followed the principle of "starting in our own back yard".

The direct ownership and management of SKF's facilities gives the company absolute responsibility and the direct power to minimize the carbon emissions associated with direct energy use. Therefore, in 2002 the Group set up energy and carbon reporting systems for its own facilities and defined clear targets to reduce these emissions by 2007.

Having already achieved these first targets in 2005, 2006 saw the launch of a broader, more aggressive strategy and targets, requiring an absolute reduction in carbon emissions resulting from direct energy use in SKF's facilities of 5% per year - irrespective of volume development.

This new target has been delivered year after year by a strategy focused on reducing energy intensity in the factories and the carbon intensity of the energy used.

The results of these concerted efforts at all SKF facilities in terms of energy efficiency can be seen in the graph below.

The Group's absolute annual energy requirements have been reduced by over 10% during a period between 2002 and 2011 when SKF’s business (net sales) grew by around 54%.

Despite this impressive performance in terms of energy efficiency, SKF's commitment to achieving absolute reductions in carbon emissions resulting from the energy used in the factories, has become increasingly challenging to maintain.

Despite increased sourcing of green and low carbon energy in those markets where this is available, SKF's rapid organic expansion in manufacturing capacity in countries where green energy is not readily available and where most electricity is generated from coal, has overshadowed energy and carbon savings.

Because of these challenges, and in order to maintain the Group's commitment to absolute carbon reductions, it was necessary for SKF to purchase verified emission reduction (VER) certificates in 2010 and 2011.

The impact of these purchases is shown in the graph below.

Taking the purchase of VERs into account, the 2011 total emissions were 424,000 tonnes, a 6% reduction compared to 2010, meaning that the Group target of 5% absolute reduction has been achieved.

About the offsets purchased 2011

The Voluntary Emission Reduction (VER) certificates purchased by SKF in 2011 had been produced according to the Voluntary Carbon Standard (VCS). For the 2011 period, these VERs have been produced by the Changtu Wind Power Project located in Liaoning Province, China (a province in which SKF has several large manufacturing sites). This project uses wind energy to generate clean electricity for the North-East China power grid. Fifty-eight wind turbines have been constructed, with a total installed capacity of 49.3 MW.

In total, the Changtu Wind Power Project provides approximately 101,420 MWh of electricity per year and delivers an estimated 115,689 tonnes of emissions reductions per year (of which SKF has purchased 80,000 tonnes) as well as providing local employment.

Climate change

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