Climate Change and Energy Comsumption ASSA ABLOY has a three-step approach to energy optimization with a focus on efficiency and smart solutions in our production processes and in facility management. ASSA ABLOY has been conducting assessments of its products for several years. Results show it is energy consumption in the production phase that has the most significant impact on the environment. Up till now ASSA ABLOY has worked with sales as a reference for its energy efficiency analysis and effects on energy consumption. The aim is to identify ways to better assess how changes in operations effect the energy consumption. Therefore the figures for 2009 are reported in relation to value added. Three-step approach During 2009, ASSA ABLOY continued to focus its efforts on those aspects of production that were having the greatest environmental impact caused by energy consumption. The aim was to reduce CO2 emissions through energy optimization. A three-step approach was taken. First, manufacturing processes have been streamlined to involve as few production sites as possible, while maintaining full capacity, efficient working practices and high standards of quality at the remaining sites. Second, smart solutions such as low-energy lamps and lights, sensors in heating and cooling systems, and timers have been implemented. Third, use of alternative energy sources is explored, which together with innovative product design, can create further energy efficiencies. Transport Efforts to reduce the internal CO2 footprint will continue, particularly in distribution and transport of goods, by monitoring energy consumption and CO2 emissions. Rail and surface transportation will be evaluated as well as any methods emphasizing use of renewable energy sources. Video and telephone conferencing will be encouraged further to minimize travelling, particularly in Europe. Risk Climate change risks for ASSA ABLOY are mainly related to energy consumption in manufacturing and transport. Performance The total energy consumption for comparable units was reduced by 38,000 MWh. A reduction of 8 percent compared to 2008. The normalized result, i.e. energy intensity, was basically flat in 2009. The objective to reduce the normalized energy consumption by 15 percent from 2006 to 2012 has been passed and we expect it to be further improved. CO2 emissions have been reduced by 12,800 tonne for comparable units. A reduction of 8 percent compared to 2008. In 2009, 13 percent of the total energy consumption came from renewable energy sources. This was the first year this was reported on, and results from an extended follow up on energy consumption and CO2. Carbon Disclosure Project ASSA ABLOY has participated in the Carbon Disclosure Project (CDP) for the third consecutive year. The CDP is an international initiative to assess the preparedness of companies with regard to risks and opportunities associated with climate change.