CO2 emissions from third party factories that manufacture our products contribute to the environmental impact in the production phase.
The energy used in our production countries are oftentimes not from renewable energy sources and some production facilities may not have energy efficient equipment, because it is old or not regularly maintained. Because of this, the choice of country of manufacture also affects the total environmental footprint. In recent years, we have moved some production to Europe, such as to Turkey and Lithuania. At the same time China is one of the countries in the world that currently invests most in renewable energy.
To address climate impacts in the production phase, we must take action to influence our third party factories. Our target is that the factories will reduce their energy consumption and other climate impacts too, such as from emissions or waste handling, and over time achieve measurable improvements.
What we are doing to achieve our target
We factor environmental performance into our supplier evaluation. Two times per year we do a supplier evaluation, covering several performance areas of which sustainability is one. Supplier engagement and willingness to improve are evaluated as well. Each manufacturer receives a total score in our evaluation, and those with good scores, and particularly those that improve over time, have a chance to get more business (purchase volumes) from us. Our supplier baselining in Q4 of 2016 looked into type of energy used at the premises, efforts to reduce energy consumption, emissions handling, water handling, waste handling, chemical handling and existence of any environmental certificates or standards. Based on the baselining, we have a better understanding of the current performance level and development areas of our suppliers and have a basis to set priorities and focus areas for our efforts on improvements over the next years. We communicate our long-term sustainability targets to our suppliers, making them understand our commitment in reaching those targets and that we expect them to partner with us in reaching the targets of our Sustainability Roadmap. Long term plan is to set yearly, specific targets with each supplier, which will be followed up to track progress.