Environment

NKT Cables has a very high rate of material utilisation and constantly strives to reduce CO2 emissions

Today our cable manufacturing processes have limited impact in terms of external noise, waste water and air pollution. The main environmental impacts from our business activities stem from two sources: the energy consumed at our production facilities and the use of non-renewable resources in products, primarily copper, aluminium and plastics originating from oil derivatives. Thus it is important for us to:

Minimize the use of energy
Minimize scrapping raw materials and maximize recycling possibilities
Avoid the use of hazardous materials in our products and processes

Initiatives along these lines will benefit the environment as well as improve the competitiveness of NKT Cables.

A diverse portfolio of initiatives is underway to reduce energy consumption in our operations.

This includes:
The commissioning of the new factory, a new production building, a replacement of one coal boiler by ground source heat pumps and one steam boiler by a combined heat and power plant.

Finally, at NKT Cables we have successfully extended our business involvement in the fields of renewable energy by assisting our customers to conserve natural resources and reduce CO2 emissions. Our submarine cables are instrumental in realising the benefits of offshore wind farms, and our supply of monitoring solutions and technologies contributes to a significant reduction of transmission and distribution losses.

GOALS: ENVIRONMENT
Phthalate (DEHP)
Goal: 31.12.10 To phase out the use of DEHP, and during 2010 the use of DEHP-softened PVC is to be phased out in most markets	Actions Cease offering products containing DEHP-softened PVC	Status as of 30.06.11 The use of DEHP was phased out at all sites before the end of 2010.
CO2 emission
Goal: 31.12.11 Direct emission from factories and indirect emission due to consumption of electric power is to be reduced by 12% in 2011 revenue compared to 2008, measured in standard metal prices	Actions We have moved to a new factory in Cologne, Germany. A number of old boilers were substituted by new, more efficient ones at plant in Denmark	Status as of 30.06.11 Heating: CO2 emission is reduced by 8% compared to 2008. Production: CO2 emission at a steady state. We do not expect to reach the goal within the defined timeline. The goal cannot be accomplished, hence it is revised
Revised goal: 31.12.13 CO2 emission from heating reduced to less than 80% of 2008 level. The weighted CO2 emission reduction of heating and production by 4-5% compared to 2008 level	Actions Establish reporting and follow-up system to ensure local action plans, including time frame and expected results. Planned projects: Change from coal boiler to heat pumps and from steam boiler to combined heat and power plant
Material utilization
Goal: 31.12.12 Material utilization efficiency is to be increased from 95.2% in 2008 by 0.2% per year, thereby reaching 96% in 2012	Actions We register our material utilization on a monthly basis in all manufacturing units using operations scorecards. We establish reporting and follow-up system to ensure local action plans, including time frame and expected results. Material utilization to be incorporated as KPI in the management reporting	Status as of 30.06.11 Material utilization first half of 2011: 95.7%. As the markets demand more sophisticated cable constructions, it is uncertain whether the goal will be reached
Water savings
New goal: 31.12.13 Water savings of 35% per ton of cable compared to 2010 level	Actions Focus will lead to better management and identification of leakages, optimization of cooling systems and the phasing out of open cooling systems
Energy savings
New goal: 30.06.13 Optimize the energy consumption on machinery.	Actions Measure and analyse energy consumption for important machinery to define specific goals

Accomplished Partly accomplished Not accomplished

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Consumption of gas at factory in Cologne, Germany

Energy reduction was an important topic in the planning and design of the new factory in Cologne. Consumption of natural gas in the new factory is reduced by approximately 40-50% compared to the old factory. The electric heaters in the degassing chamber were replaced by recycled heat supplemented with natural gas. This way CO2 emissions are reduced by almost 50% and the use of electricity in the degassing chambers eliminated.