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The Group's environmental policy applies to the Company and all its subsidiaries worldwide. The policy includes commitments to the prevention of
pollution, compliance with all relevant legal and regulatory requirements and to the continuous improvement of environmental performance. The policy was reviewed, revised and reissued in July 2011.

In support of the policy, Rotork's Environmental Management System, which is a system of procedures developed to minimise the impact of our operations on the environment, will:

  • Allocate formal environmental responsibilities to ensure compliance with legislation;
  • Support a culture of consultation with employees, key stakeholders and other interested parties;
  • Provide environmental information, guidance and training that meets best practice;
  • Monitor, measure, audit and seek continuous improvement in its environmental performance;
  • Work with external agencies and bodies to ensure continued adoption of best practice solutions in environmental management;
  • Communicate best practice and publish internal and external information detailing its aims and achievements;
  • Foster open communication with employees, customers, suppliers and other stakeholders via email and face-toface discussion.

Environmental Performance

Systems and procedures are in place to gather environmental performance data and enter the data onto a web based reporting tool. The data gathered includes energy and water consumption, waste generation and recycling and business travel. In addition, all Rotork manufacturing companies are required to separately report usage of volatile organic compounds (VOC) and refrigerants (HFC).

This year's report includes performance data from Flow-Quip and Hiller, both located in the USA and acquired in 2009 and 2010 respectively. The 2011
acquisitions will be included in the 2012 report.

Energy Consumption

Rotork operates an assembly only philosophy in all but three of its business units relying on specialist suppliers for most of its manufactured components.
In all facilities energy is used for IT systems, lighting, heating and cooling. Exceptions are Rotork Gears BV (Losser), Rotork Sweden (Falun), and Rotork Valvekits UK (Nottingham) where machine processes are in operation. In other facilities test equipment is used to ensure the product meets customer operational requirements. This test equipment can consume large amounts of energy for short periods of time when in use.

Energy consumption of electricity, gas and steam is established via utility invoices. The consumption of liquid petroleum gas (LPG) and oil is gathered via invoices.

In 2011 energy consumption increased 10.8% on the 2010 figure. This is due to increased business activity, new acquisitions and small fluctuations in
climate conditions at some facilities.

Waste Generation and Recycling

Waste generation includes packaging waste (card, wood and plastic), metal waste (ferrous and non-ferrous), hazardous materials (paint waste, oils and adhesives), batteries and waste electrical electronic equipment (WEEE).

Rotork's environmental aspect and impact assessment completed in 2003 established that packaging waste generation was the Group's most significant
environmental impact. Recycling systems were introduced to reduce this impact in 2004; this was followed by a Group recycling key performance indicator (KPI) of 62% in 2005. To support this KPI a supplier packaging policy was introduced in 2009 to ensure suppliers only used packaging materials compatible to Rotork's recycling systems.

The Group's 2011 change in environmental impact measures since 2010

  • The Group's waste recycling performance improved from 62% to 76% of the total waste produced. In 2012, a new KPI has been set to take into account the current performance and acquisitions with the aim of recycling 70% of total waste generated;
  • Waste sent to landfill fell by 6%.

Improved recycling and reduction in waste going to landfill reflects the Company's commitment to reduce this impact on the environment.

Legal compliance

  • Waste Packaging (Producers Obligation) Regulation 2007: Rotork is a member of the Clarity compliance scheme, membership number CPC0009;
  • Waste Electrical and Electronic Equipment Regulations 2006: Rotork is a member of the ECONO-WEEE compliance scheme, membership number WEE/JD2053ZR;
  • Waste Battery and Accumulator Regulations 2009: Rotork is registered as a small battery producer, Batteries Producer Registration Number
    BPRN01259;
  • Licensed waste carriers are used for the removal of all types of waste from Rotork's facilities and the waste goes to licensed treatment facilities.  

Water

Water consumption has been measured by the Group throughout the year to monitor water efficiency. For the majority of sites, water consumption derives from normal operation and sanitary use. The Group's water is supplied by local utility providers, except for Rotork's facilities in Lucca, Italy and Chennai, India, where the water is metered and extracted direct from boreholes.

A number of our sales offices have less than five employees and are situated in shared facilities where water consumption is not measured separately. Some landlords have assisted Rotork with measuring water consumption, however, we are still in the process of encouraging others to assist.

The Group's 2011 change in water usage measures since 2010

  • Water consumption increased by 15% against 2010 results.

Rotork does not operate any process that consumes large amounts of water, the increase is seen as a result of fluctuations in normal usage and the inclusion of performance data from new acquisitions.

Carbon Emissions

Since 2003, the Group has been measuring and disclosing their Scope 1 & 2 Greenhouse Gas Emissions (GHG) which comes from the use of electricity, gas, LPG, oil and steam.

The Group's Scope 1 GHG emissions derive from the consumption of gas, LPG, oil and through business travel and the transport of goods by Company owned vehicles. The Group's Scope 2 GHG emissions derive from the consumption of electricity and steam.

The Group records emissions of greenhouse gases in accordance with the Greenhouse Gas Protocol (GHG Protocol) developed jointly by the World Business Council for Sustainable Development and the World Resource Institute.

All Scope 1 & 2 GHG emissions are calculated in accordance with the GHG Protocol using conversion factors published by the US Environmental Protection Agency (EPA), The Department for Environment, Food and Rural Affairs (DEFRA) and the International Energy Agency (IEA). All Scope 2 GHG emissions have been calculated using the relevant conversion factor for the territory where energy was consumed, based on the mix of coal, oil, gas, hydroelectric or nuclear generation used.

Group's 2011 Scope 1 (excluding business travel or transportation data) & Scope 2 GHG Emissions

Whilst the Group does not operate any processes that consumes large amount of energy, the Scope 1 increases are seen as a result of increased business activity, fluctuations in normal usage and new acquisitions.

  • Scope 1 GHG emissions increased by 14% against 2010 results;
  • Scope 2 GHG emissions increased by 15% against 2010 results.

Group's Other Emissions

The Group's Scope 1 & 3 GHG emissions derive from the use of materials in the product, supply chain emissions, business travel, water usage and generation of waste.

The Group is committed to reporting these emissions in its Carbon Disclosure Project (CDP), starting with business travel in 2012 and GHG emissions for the manufacture of products on a progressive basis from 2013.

Progress

  • Scope 1 & 3 GHG emissions for business travel will be disclosed in the 2012 CDP disclosure;
  • The Group has commenced calculation of GHG emissions for the manufacture of its products.

 

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