KÄHRS ENVIRONMENTAL REPORT EMAS 2014

Transcription

1 AB Gustaf Kähr, reg No S-S KÄHRS ENVIRONMENTAL REPORT EMAS 2014 This report is a translation of the controlled Swedish EMAS-report and includes Kährs Group s subsidiary AB Gustaf Kähr and its facilities in Nybro, Blomstermåla and Malmö.

2 CONTENT Letter from our CEO 3 About EMAS 4 Environmental Year Summary 5 Kährs Group Operations & Main Process 5 History & Environmental Events 6 ESG - Environmental & Social Responsibility 7 Environmental Work 8 Environmental Policy 9 Environmental Aspects 9 Significant Environmental Aspects 10 Ecology Balance 2014 & Targets 11 Environmental Target Certified Wood 14 Environmental Target Waste 16 Environmental Target Energy Use 19 Risks 22 Internal and External Audits 22 Local Conditions 23 Certificates 24 Kährs Group at a Glance 25 Kährs Group - Other Production Units 26 Certifications & Registrations 28 Definitions 30 Contact 31 Cover photo: Jesmond Gardens Primary School, Great Britain. The school s 2,055 m 2 are designed around principles of transformational learning. Kährs Oak Siena and Reflex Oak Activity Floor were specified and installed, by Reflex Sports, throughout the main hall and open plan class bases. 2 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

3 LETTER FROM OUR CEO Using a floor from Kährs Group must be safe and secure. Our products must not affect the quality of the interior environment when they are used. When we produce them this should be done in a way which minimizes their effect on the environment and on people. Developments in the market are tending towards a situation where the environment and product safety are no longer sales arguments. Instead proven responsibility, in the form of certificates and declarations, is in many cases the basic requirement for becoming qualified as a supplier to projects, construction companies and retail store chains. We closely follow developments in the world around us and all the while strive to become better. For many years there has been a trend towards more certificates aimed at making it easier for users to understand how they should make a good product choice. In principle this is a highly positive development but it also means that the gamut of certificates and labels may be experienced as complicated and difficult to monitor. For a company such as Kährs Group, which operates in over 70 countries, it is important to keep a constant eye on what is happening in the respective markets and understand what the customers in the different countries expect from us and our products. We cannot associate ourselves with all the available certificates and marks, but we have chosen to use the market s leading certifications which monitor different aspects and parts of the product life cycle, e.g. Svanen (the Nordic Ecolabel), DIBt, M1, E1, FloorScore and ISO 14001, to give just a few examples. Our principal shareholder, Triton, has endorsed the UN principles of responsible investments, and as one of their portfolio companies we also operate in accordance with the principles of responsible business practice. This involves a holistic view of responsibilities that include environmental and social control (ESG: Environment, Social, Governance). During the year we have prepared an overview of our descriptions of responsibilities within Kährs Group and we have summarized the most important in a new Code of Conduct, which describes how the company and its employees, as well as business partners, are expected to act. Our new Code of Conduct will be launched within the Group in In 2014 we made substantial investments in technology with a view to improving material exchange and increasing efficiency in our production. At the same time the investments mean an improvement in the working environment and also result in more efficient use of raw materials, with a lower transport requirement. Examples of investments are the transition from manual inspection of hardwood strips to X-ray inspection and automatic processing of knot holes and filling. Our project with the Linnaeus University, extending over several years, relating to water matters, which was completed this year, is a good example of Triple-Helix cooperation to the benefit of both industry and the university. Christer Persson President and CEO KÄHRS ENVIRONMENTAL REPORT EMAS

4 ABOUT EMAS EMAS is the European Union s voluntary environmental regulation. Its purpose is to promote environmental management, environmental improvements and environmental audits within the industry as well as to provide the public with information about the participating companies and their status. DeDNV-GL is accredited as an environmental verifier by EMAS and by SWEDAC (accreditation number 1053). DNV-GL has reviewed Kährs production and has found that our environmental management system meets the requirements stated in the EMAS regulation (No. 1221/2009). From 2006 and forward, Kährs Swedish units are registered collectively as Kährs Nybro. SE Approved DNV-GL has reviewed the environmental statement in 2014 and has found it to be accurate, and detailed enough to meet the requirements in EMAS. The report includes the production units in Nybro as well as Blomstermåla and AB Gustaf Kähr s collective functions in Nybro. The next environmental audit for Kährs will take place during the first half of Solna Ann-Louise Pått Management Representative DNV-GL Business Assurance About Kährs Group Company: Kährs Holding AB (publ) CEO: Christer Persson Owners: Triton & Hartwall Capital Activity: The group develops, manufactures and markets wood flooring as well as resilient floors Global sales: In more than 70 countries EMAS-statement comprises: The subsidiary AB Gustaf Kähr and its operations in Nybro, Blomstermåla and Malmö (760 employees) Production in Nybro: Approx. 6 mill m 2 wood flooring AB Gustaf Kähr, reg No S-S KÄHRS ENVIRONMENTAL REPORT EMAS 2014

5 ENVIRONMENTAL YEAR SUMMARY The environmental work in 2014 was focused on meeting more stringent requirements in the market regarding product certification and on processes for cleaning process wastewater and stormwater from irrigation Kährs comprehensive approach to responsible and sustainable businesses and stakeholder s expectations means that we consider principles of social, economic and environmental considerations into our planning and operations Our production facilities are located in the heart of urban areas, close to residences and other municipal operations which make issues concerning noise, dust and traffic very important. Tests show that we have met the required levels. Work on product certifications places demands on the entire operation at Kährs from product development and purchases via production and environment and safety functions as well as marketing and communication departments. Natural tannins leak from the oak and that gives a dark color in stormwater. Researchers from Linnaeus University have run pilot studies of various methods to reduce discoloration and tannins in stormwater at Kährs. Expanded storage capacity for irrigation water, increased collection of stormwater and a vegetative sedimentation filter at the outlet improves the cleaning of irrigation water. Climate change and the reduction of our carbon emissions affect all planned activities and in particular transport and energy use. One of Kährs strengths is a very high proportion of renewable raw materials in both production of flooring and biofuel. Delivering our floors to over 70 countries leads to a high quantity of transportation, mainly by boat or truck. Dependence on fossil fuels for transport is accordingly a part of the climate impact, and thus requires future Positive Results/Measures Through collaboration with our chemical suppliers we seek new solutions and products to meet customer demands and requirements in regards to different product certifications. Nearly 6 million square meters of hardwood flooring means that over tonnes of carbon dioxide has been stored away. We have continued to support building of fauna depots at the Kährs location in Nybro as the breeding ground of Stag beetles. improvements and research. A carbon offset although is that Kährs has an excess of bioenergy from our continued operations and that our wood products store carbon dioxide during the decades the floors are in use. We stored more carbon dioxide than we released during The projects around Kährs water issues together with Linnaeus University has been reported and a total of six new doctors graduated in connection with this work. Future Challenges Increased transports between Kährs Group units and external suppliers leads to increased carbon dioxide emissions. Our challenge is to optimize the logistics to reduce carbon dioxide emissions. Chemical management requires continuous improvement in accordance with the updated risk analysis. The action plans to reduce energy use and the amount of waste has not been sufficient to reach the goals. Still, energy use and waste per square meter produced wood flooring did decrease. KÄHRS GROUP OPERATIONS & MAIN PROCESS Steering processes Strategy & vision Business planning Budget planning Targets & KPIs Financial forecasting Demand planning S&OP Purchasing Production Order-to-Cash Logistics Main processes Offering development Launch After-market Sales Customer demand Supporting processes Finance/IT HR Marketing Environment Quality Research Technical Investments Communication KÄHRS ENVIRONMENTAL REPORT EMAS

6 HISTORY & ENVIRONMENTAL EVENTS In 1857 Johan Kähr the elder moved from Mönsterås to the small, but thriving community of Nybro in Småland. He brought with him a lathe and a few other tools to setup a shop crafting wooden utility goods such as parts for spinning wheels. These simple beginnings became the foundation of the modern Kährs Group of today. History In 1919, Gustaf Kähr, grandson of founder Johan Kähr, set up the company AB Gustaf Kähr. Under his leadership the company developed and became an important and innovative producer of wooden doors, toys, furniture and flooring. Gustaf was dedicated to find efficient ways to use the sustainable wood raw material and to improve the stability of wood when used in building materials. His perseverance paid off when in 1937 he received the patent for the invention of the modern multi-layer, laminated door. Following upon this success he worked hard to find a solution for the problem of gapping, twisting and cupping of solid wood floors. After several years Kährs was awarded a patent, in 1941, for the invention of today s modern engineered hardwood floor, the multi layer floor. Kährs today Today, the Kährs Group is a group operating worldwide, with production at several locations in Europe. Our product portfolio has been complemented with resilient flooring for use in environments with high wear and the main focus are PVC-free products. Our objective remains to provide the market with flooring that is even better looking, stronger, easier to install and more sustainable. We re proud that people all over the world appreciate the result. Today, our floors can be found in homes, offices, shops, hotels, concert halls, theaters and sports arenas from Europe and Asia to the Americas. World Class Innovations Kährs has always been at the forefront when it comes to innovations we begin using waste wood as biofuel for steam energy we were awarded the first patent for the multi layer wood door we get the first patent for multi layer wood flooring we introduce the first factory finished floor we develop the first sports floor system we introduce the first solvent-free, lacquer system our veneer wood floor, Linnea, is introduced first glueless joint, Woodloc is introduced new generation Activity Floor we introduce Woodloc 5S, the next generation wood joint we open the first LEED certified (green) warehouse we are certified according to DIBt, French VOC A we make the first wood floor made from dual labelled FSC -Fairtrade certified wood merger with Karelia-Upofloor, provides even better conditions for the continued development of products and activities towards a sustainable business Kährs first Nordic Ecolabelled products were launched. The company s Swedish production units become PEFC certified Investment in a new production line for own production of advanced flooring design and better utilization of oak raw material. The multi annual research collaboration with Linnaeus University, concerning water, was completed. 6 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

7 ESG - ENVIRONMENTAL & SOCIAL RESPONSIBILITY Corporate responsibility naturally includes the creation of a strong, efficient and profitable operation. But a company also has a responsibility for the impact on society from an environmental and social perspective. This is usually called CSR, Corporate Social Responsibility or ESG (Environmental, Social and Corporate Governance) and includes environmental and social principles for governance. ESG Our owner, Triton, is signatory of the UN PRI, Program for Responsible Investing and these principles give guidelines for our work with ESG for the benefit of our stakeholders and society. In 2014 Kährs Group dedicated itself to further incorporate ESG principles across all of its operations. A compliance committee was organized and governance policies were rigorously reviewed and enhanced. These ESG policies are to be approved by the board and launched during the first half of Our policies shall be a support to: Adopt effective corporate governance structures which provide appropriate levels of oversight and accountability Manage risks effectively and seeking to minimize or mitigate any adverse effects on the environment, community, workers and other stakeholders. Communicate more effectively and transparently Maintain strict anti-corruption policies During the first six months of 2015 all employees of the company will be educated in the company view of responsible business as described in our Code of Conduct We will also implement a confidential, company-wide Speak-Up System for all employees in 2015 for reporting of detrimental company behavior. Svanen-Swan Certified Products 2014 In 2014 Kährs submitted many of its products for the Nordic Ecolabel - Swan - certification. The Nordic Ecolabel is a voluntary Nordic environmental label that guide consumers to good product choices with less environmental impact Over 150 Kährs products now carry the respected and trusted Swan certification in the category Floor Coverings. We are proud to have the most products in our industry certified with the Swan certification. The certification process includes meeting criteria for forest certification, for wood sourcing, waste management program, quality control management system, environmental management system, production energy, product emissions, chemical registration, chemicals, no nanoparticles, laboratory verifications of indoor environmental quality, site audit, product durability, product traceability, product marketing, and supplier documentation. FSC and Fairtrade 2014 Kährs Group was the first flooring manufacturer to use wood raw material certified according to both FSC and Fairtrade and has been involved in the project since the start in In 2014 the project management went through a significant and positive change to move overall responsibility to the Swedish FSC offices from the FSC International offices in Bonn. This project was moved to a full program status with renewed support from FSC International and Fairtrade FLO-CERT. We are glad to see other Swedish producers making products of FSC and Fairtrade certified wood like Bovalls doors. We are proud that Sweden is at the forefront of the FSC and Fairtrade Timber movement globally today. Kährs today can produce four different floors on demand using a mix of dual certified Roble and Rauli from Chile. We expect to see in 2015 a renewed focus and energy on this program not only for the project in Curacautin, Chile but also for the beginning of a project in Java. We believe the opportunity for alleviating poverty and restoring forest biodiversity can in years ahead benefit many people of the estimated one billion who live from the forests today floors tested to M1, E1, DIBt, Swan - Nordic Eco Label, FloorScore and CARB In 2014 there was a dramatic increase of customers requesting certified healthy flooring options in their residences and workplaces. Allergies, asthmagens, and chemical sensitivities are very real chronic medical condition that have been only slowly gaining the public recognition it deserves. An example of our tests is the M1 tests which are not only about low formaldehyde emissions but also includes an odor test component. This product certification is gaining importance in Scandinavia today and is a criteria especially for BREEAM-NOR projects. KÄHRS ENVIRONMENTAL REPORT EMAS

8 ENVIRONMENTAL WORK Continuous Improvement Management Review Audit Internal and External Follow up Internal inspection and handling of deviations Organization & Responsibilities Environmental Review Identifiy environmental aspects and legal requirements Training Competence, Awareness and Participation Environmental Policy Environmental Targets & Action Plan Routines Communication Internal and External Our operations affects the environment. We are therefore constantly working to improve and monitor our activities. Our management system helps us to control the environmental work in a structured, efficient manner. The system includes the effect of our activity on the environment and the environmental effect of the product throughout its life cycle, and incorporates: Organization and distribution of responsibilities Identified environmental aspects and legal requirements Kährs environmental policy, environmental targets & plans of action Routines for controlling the environmental effect of the activity/product and preparation for emergencies Internal and external environmental communication Training, competence and participation Monitoring through internal inspection and handling of deviations Auditing of the environmental management system Management review Environmental aspects and legal requirements The cornerstones of Kährs environmental work are a knowledge of the effect of the activity, the laws that concern us and the requirements imposed on us by the surrounding area and other stakeholders. The environmental aspects are updated and re-evaluated every year to ensure that development is moving in the right direction. The evaluation we have carried out indicates the environmental aspects that affect the environment the most and therefore constitute the significant environmental aspects. Effects and risks of the significant environmental aspects are described in the next section. The laws and requirements that concern Kährs are constantly being identified. The laws are collated in a common register and are linked to the responsible person and routines in that register. Policy and environmental targets Kährs environmental policy gives an indication of the focus of the environmental work. On the basis of the significant environmental aspects at least one environmental target with associated programmes of action is created. It is our environmental targets that drive us in our long-term work on continuously improving the processes of the organization and ensuring that actual improvements are happening. Execution of environmental work The persons concerned by the significant environmental aspects are key personnel employed to carry out Kährs environmental work. These persons are largely incorporated in the line management and receive training in environmental matters which concern them in their work. We have broad support from improvement groups in TPM (total productive maintenance) conducted on all the production lines. Routines, instructions, process descriptions and other information controlling the environmental work are made available via our Intranet. There are separate remedial plans or routines for identified environmental risks. In the deviation system any near accidents and accidents, as well as proposals for improvements, can be highlighted and followed up. Communication and training The environmental matters are communicated both externally to customers, authorities and other stakeholders, and internally within the company. EMAS audits and reports over the last 18 years show the history and openness of our environmental work. The EMAS report is available at An Ecology Balance of environmental conditions relating to the activity is compiled every year. On our Intranet, information material is available which is used for internal training but also as presentation material on customer visits and other external visits Monitoring and auditing To be able to monitor the environmental effect of the company and to ensure that the activity meets the requirements set out in applicable licences in decisions and environmental legislation, measurements and inspections are carried out. Since the company is certified according to ISO and registered according to EMAS, external independent auditors check compliance with the EMAS and ISO requirements annually. The outcome of legal requirements is reported for the respective plants. The inspections are carried out continuously and the results are indicated in the annual environmental report to the supervisory authority and in the EMAS report, among other things. The deviation system is a monitoring source and must ensure that any incorrect handling and accidents do not recur. Any deviations indicate whether a process is working or not. Internal audits are also conducted continuously throughout the year by specially trained personnel who check compliance with the requirements in the environmental management system. The audits are also an aid used by the management to evaluate whether the management system is effective and contributes towards improvements. Examination of the management and continuous improvements The Kährs Group management monitors the environmental work and the environmental management system through the Kährs Management Review (KMR) forum. By monitoring results of audits, environmental targets and deviations that have occurred, KMR must ensure, among other things, that the environmental management system is working and that it contributes to reducing the environmental impact deriving from the activity. 8 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

9 ENVIRONMENTAL POLICY Our commitment to the environment must be genuine and all issues handled with the upmost thought and respect. We will strengthen our environmental commitment further and create a long term sustainable business, for the benefit of current and future generations. We must lessen our environmental impact through continuous improved management of chemicals, water, raw materials, transportation and energy efficiency while reducing our use of non-renewable energy. We must contribute to and support responsible forestry. Our development and flooring manufacturing processes must reflect the natural life-cycle, following the principles of sustainable development. We must fully understand and comply with legislation and environmental requirements, and apply this method throughout the whole supply chain. Christer Persson, President and CEO, Kährs Holding AB (publ) ENVIRONMENTAL ASPECTS An environmental aspect is a part of an organization s activities, products or services that affect or could affect the environment. The identified environmental aspects are evaluated one by one to decide whether they should be regarded as significant or not. In order to make the assessment, the following points must be evaluated: Laws: Connection to legal requirements (regulations) and if any connection is found the environmental aspect is treated as significant. Risks: How large is the risk of accidents are due to the activity, service or product. National Environmental Goals: Connection to Sweden s 16 national environmental goals. Scope: Amount of emissions and resources used. System conditions: 1. The concentrations of substances from the crust of the earth must not be systematically increased in the natural surroundings. 2. The concentrations of substances produced by society must not be systematically increased in the natural surroundings. 3. The physical basis for natural productivity and diversity must not be systematically impoverished. 4. Effective and fair distribution of resources to satisfy human needs. The environmental program is concentrated on the significant environmental aspects. Do you need more information? Find contacts on page 31. KÄHRS ENVIRONMENTAL REPORT EMAS

10 SIGNIFICANT ENVIRONMENTAL ASPECTS Some aspects will have no impact on the environment during normal operation, but only in connection too incidents or accidents. The ecological balance in the next chapter presents key trends and development for Kährs significant environmental aspects Significant environmental aspect Key indicator* Use of raw materials Biological diversity Consumption of supplementary material Material Efficiency Use of energy Energy Efficiency Transports Emissions Discharge of process wastewater Water Significant environmental aspect in normal operation/ activity Environmental effect Risk Symbol Purchasing of wood raw material Consumption of supplementary materials/chemical products that may contain hazardous substances Drying of material and heat for pressing are the processes which use up most energy at Kährs Transport of material to, from, between and inside Kährs operational sites. Discharge of polluted washing water, formaldehyde and hardeners with a low ph from the cleaning of gluing and hardening equipment. Can cause a deterioration in biological diversity and an altered carbon sink. Use of a finite resource and the risk that these substances may spread into the natural environment. Acidification, emission of carbon dioxide and the consumption of resources in the conversion of energy. Emissions of carbon dioxide from fossil fuels into the atmosphere give rise to an increased carbon dioxide content and an enhanced greenhouse effect. Water pollution and the dispersal of organic material which is not broken down in a municipal waste treatment plant (ARV). Wood from felling operations that do not meet requirements regarding sustainable forestry is delivered to Kährs Hazardous chemical substances risk getting into the environment and being absorbed by plants, animals and humans Increased use of energy Procurement of less efficient transport. Damage to treatment processes in a waste treatment plant or recipient. Hazardous waste Waste Emissions from using the product Emissions Fire Emissions into soil or the surface and waste water network The formation of hazardous waste from production processes (particularly surface treatment, repairs and glue handling) and product development and maintenance. The use of wooden floors, as well as maintenance products and detergents. Accidents that cause emissions of chemicals or hazardous waste The efficient use of materials does not produce waste. Hazardous waste presents a risk of violating System Condition 2. Recommended methods can reduce environmental pollution, e.g. less dispersal of chemicals and extend the life of the product. Emissions from the wooden floor are monitored according to the requirements for different product certifications. Pollution of soil or recipients (St. Sigfrid River or the Alster River). The handling and storage of hazardous waste involves a risk of leakage into nearby soil and watercourses. Poor care of wooden floors may result in unnecessary dispersal of chemicals. Emissions External production and service Purchasing of a product (wooden floor) or service from an external manufacturer. Risk that the activity of an external manufacturer may have a negative effect on the environment. Handled by an environmental assessment of a supplier and Code of Conduct. * Key indicators according to EMAS: Energy Efficiency Material Efficiency Water Waste Biological diversity Emissions Green symbol = Positive development during the year compared to the previous year. Yellow symbol = The situation is stable. Red symbol = Environmental impact increases, needs immediate action. The basis used for calculating key performance indicators is the number of square meters (m²) of Nybro produced wood flooring. All values in the ecological balance refers to full-year KÄHRS ENVIRONMENTAL REPORT EMAS 2014

11 ECOLOGY BALANCE 2014 & TARGETS The ecology balance relates to AB Gustaf Kährs production plants in Nybro and Blomstermåla, Sweden, and shows the outcomes and trends for Kährs most important environmental aspects, describes processes and explains outcomes. Energy Electricity for work equipment, lighting, compressed air, ventilation, etc. District heating for warming Raw materials Emissions to air and noise Dust from wood processing Carbon dioxide (CO2) from internal & external transports Solvents(VOC) from surface treatment and gluing Noise from fans and transportation Finished product wood flooring Other auxiliary material Water for irrigation of logs and cleaning of equipment Glue, filler and lacquer Other chemicals Fuel for internal transports Packaging material Emissions to water Sanitary waste water and treated process wastewater to municipal treatment plant Storm water from the industrial area Waste by products Wood waste that become bio fuel Waste to material/energyrecycling and landfill Hazardous waste Water - Sources & Usage The largest proportion of water use goes to irrigation of timber and to regulate the moisture content in the drying process. Irrigation is done to keep up the yield by less cracking. About m³ of oak and ash timber is irrigated in Nybro and Blomstermåla. The water used in Nybro 2014 is only from collected rainwater. The process for the irrigation of timber in Nybro is based on recirculation to reduce the use of water. A research collaboration with Linnaeus University has been carried out to improve the purification of process-, storm water and leachate. A vegetative sedimentations filter has been built according to recommendations based on this research. Leachate from biomass stock and timber causes raised levels of oxygen demanding substances. This water is treated in the vegetative sedimentation filter. Liter Water use l/m 2 Process wastewater generated within the manufacturing is mainly for the cleaning of machinery and equipment. The process wastewater is treated and then released to the wastewater network and municipal sewage treatment plants. Irrigation of timber improves production yield In Nybro, collected rain water is used for irrigation Risks to contaminate water or soil are related to the loading and discharge of chemicals. These risk are identified in the Kährs risk analysis. Procedures have been developed to prevent incidents and to minimize environmental impact in the event of an accident Municipal drinking water m 3 5 l/m 2 Ground water for irrigation of logs 0 m 3 0,0 l/m 2 River water for irrigation of logs m 3 5,4 l/m 2 Storm water for irrigation of logs m³ 16 l/m 2 KÄHRS ENVIRONMENTAL REPORT EMAS

12 Material Efficiency Wood material The wood materials consist of coniferous wood and broad-leaved deciduous wood or semi-manufactured in the form of sawn board materials. The floor boards consists of a surface of hardwood and auxiliary materials (middle layer) of softwood. Oak, beech and ash is sawn in Nybro or Blomstermåla. After drying, the material is taken into the flooring factory. The surface and auxiliary materials are processed, assembled and surface treated. More than 70% of the wood used in production comes from Swedish forests, while 3 % originates outside of the EU. The oak logs bought directly from forest owners come from forests in southern Sweden, which is primarily within a 180-kilometer radius of Kährs sawmills. Logs purchased from Denmark and Germany mainly go by train and ship. Kg/m Wood material t 22 kg/m 2 Logs t Sawn wood and semi manufactures t Semi-products for the veneer floor Linnea was manufactured in Poland part of the year. It consists of a HDF board with a veneer top layer. From April 2014 the product is finished in Poland. Auxiliary materials to products To produce wooden flooring, other materials such as glue, filling and lacquer are also needed. The packaging is also an auxiliary material, and at Kährs it consists of corrugated cardboard and plastic wrap which can be recycled. Before any new chemicals are introduced for use in any of our operations they are individually assessed for environmental and safety criteria aspects. Approved chemicals are then listed in our database, the chemical register, where information about each chemical also can be found, such as material safety data sheets. Currently, about 500 approved chemicals are listed. Amount of wood material to produce 1 m 2 wood floor in the flooring factory (estimated on sawn, external or own sawing to the floor ing factory). Logs converted to sawn timber. Blue line is trendline. Extra material for the products t 642 g/m 2 Renewable 995 t 167 g/m 2 Non-Renewable t 542 g/m 2 Maintenance chemicals 55 t 10 g/m 2 Renewable 26 t 4 g/m 2 Non-Renewable 29 t 5 g/m 2 Fuel 130 t 22 g/m 2 A water-based glue is used to join the layers in our flooring. Since the surface (top) layer hardwood is not entirely smooth after sawing, wood filler is applied to smooth the surface and after sanding, the surface (top) layer is prepared for a surface treatment. Lacquers, stains and or oils are used for the surfaces of the flooring to produce the desired appearance and performance. The different finishes we can apply give the flooring a durable and long wearing surface. Kährs finish lacquers are water-borne and UV cured. The stains and oils contain small amounts of VOC s that are emitted during curing. The final products meet indoor air certifications E1 and CARB (ATCM) Phase II. The renewable auxiliary materials consist of wax and cardboard for packaging. The supply of renewable auxiliary materials is limited and constitutes a challenge in product development and purchasing. Among non-renewable auxiliary materials are the plastic wrap, plastic banding and metal banding used in pallet packaging. Metal and plastic is recycled. The paper in all of our carton packaging is made of a high proportion of recycled paper while the paper used in our product magazine is FSC certified. Maintenance Materials Maintenance materials such as lubricating oils and hydraulic oils for machinery are also listed in our chemical registry. Through a review of our range of lubricating and hydraulic oils we have been able to reduce the number of different products significantly. Fuel At Kährs we use almost exclusively diesel and alkylate petrol. Alkylate petrol is a cleaner fuel and particularly important for smaller motorized tools. Diesel is used for our forklifts and loaders and alkylate petrol is mainly used in chain saws at our production facilities. New production plant in Poland In 2014, Kährs Group started to produce finished 7 mm veneer flooring in Poland. Previously the plant made semi-manufactured boards that were finished in Nybro. The new factory means more efficient production, proximity to raw materials and reduced transportation between the countries with less carbon dioxide emissions as a result. The operations in Bialosliwie in Poland became FSC-certified in KÄHRS ENVIRONMENTAL REPORT EMAS 2014

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14 Biological diversity Responsible Forestry ENVIRONMENTAL TARGET CERTIFIED WOOD One of Kährs main environmental targets is to increase the amount of certified wood In 2014, our goal for certified wood was 48%, calculated as a proportion of the total volume purchased. Kährs achieved 71% certified wood. A great increase in the amount of controlled wood has had a positive effect on our target during Over 50 % of the Swedish forests are certified today. The forest certifications Kährs accepts are FSC, FSC-Fairtrade, FSC Controlled Wood, PEFC and other certifications Kährs has deemed acceptable in conjunction with leading environmental NGO organizations. All timber purchases follow our specifications that all wood must be in full compliance with the requirements of the Lacey Act and the 2013 EU Timber Regulation. Our ambition is to purchase according to Kährs standard of controlled wood, as our minimum acceptable level, which is an important step to give support to responsible forestry. The amount of sold FSC certified flooring is driven by demand of our customers. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Other Certification FSC Certified Target Photo: Örjan Karlsson 71 % certified wood The proportion of FSC-certified oak logs in Sweden is dependent on the proportion of woodland that is certified. All the local Swedish raw material is classified as from low risk area by the FSC but due to costs considerations many of the small landowners choose not to become FSC certified. 14 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

15 A sustainable forest is the foundation of Kährs wood flooring business One of Kährs main environmental aspects is the risk of using wood from a non-sustainable forest. It is our belief that a future, sustainable supply of controlled wood is of outmost importance not only for Kährs but is a global concern as well. 80 % of the floors we sell have a surface layer of oak. The Swedish oak tree is harvested and maintained according to the Swedish Broad Leaf Act (Ädellövsskogslagen) forest owners are in contact with Kährs hardwood purchasers. These contacts include discussions and education at Kährs to encourage and to protect high nature values in the forest. Normally there is no conflict between nature conservation and flooring production since old oaks are not used for wood floors. It is very important however that forest owners actively take care of their protected valuable broad leaved forest; otherwise they will be overtaken by spruce and other softwood species. Kährs carries out a number of activities to support a growing, active forest and to further strengthen the southern Swedish oak forestry: Special forest days for the education of local forest owners Production and distribution of the Kährs Oak (Ek) educational magazine to 7000 forest owners. Bonus for certified wood. Stag Beetle (Lucanus cervus) - Re-population & Habitat Project As part of our commitment to CSR, Corporate Social Responsibility and ESG Environment Social Governance the Nybro, Sweden site started a project with regional authorities to help repopulate the Stag Beetle which is today extinct in Denmark and endangered in much of Europe. Kährs built nine breeding sites in 2014 and provided oak logs for other habitat sites nearby. The breeding sites consists of oak logs that for different reasons cannot be used in the flooring production, and of wood chips where the stag beetle can lay her eggs and where the larvae can develop. More information about Kährs and ESG can be found on page 7. KÄHRS ENVIRONMENTAL REPORT EMAS 2014 Photo: Per Engström < 15

16 Waste Waste Products and Recycling Material by-product that is collected for energy recovery consists of domestic refuse (for example) and anything from sand paper, adhesive residue, plastic ribbons to filter bags from our filtering systems. Under material recycling, recyclable waste is included, such as office paper, metal, plastic and corrugated cardboard. Hazardous waste consists of items such as batteries, waste from the filling and surface treatment processes, and electronic waste such as capacitors containing PCB. The amount of hazardous waste depends largely on changes in production processes. Intensive efforts to develop new products require test runs of chemical solutions which in turn lead to many changeovers in machinery. The waste is collected in approved containers, located throughout the facility for their particular purpose, and stored and managed under control at the production centers. Licensed vendors are used to handle the hazardous waste professionally and environmentally correct. Everything that is unsuitable for recycling or incineration are included in landfill, which can be waste such as concrete. Waste from renovations handled by construction companies is not reported here. Even though all the waste is dealt with in an environmentally acceptable manner, it still interrupts the natural cycle. Waste, and espe- Ton cially hazardous waste, constitutes a risk of emissions with an environmental effect. In order to take the next step and reduce the quantity of hazardous waste, new cleaning methods are required, and we must improve our methods and knowledge concerning environmental practices in the various manufacturing processes. To energy recovery 210 t 35 g/m 2 To material recycling 303 t 122 g/m 2 Sent as hazardous waste 200 t 34 g/m 2 To landfill 13 t 2 g/m 2 Total amount of waste , expressed in tonnes, per fraction Material recycling Landfill Hazardous Waste Energy Recovery Total amount ENVIRONMENTAL TARGET WASTE One of Kährs environmental targets is to reduce the amount of waste To reduce the amount of waste by 10 g/m2 and the cost of management by 10% compared to The goal has been pushed back a year because of changes in operations that changed the conditions. During 2014, the increase in production meant that the total amount of waste showed an increase instead of decrease. Measures carried out to reduce waste and costs were not enough to reach the target. However, the efforts have resulted in a small reduction per produced square meter of flooring. This section do not handle by-products as wood chips and saw dust (information can be found under Energy Efficiency Use and Biofuel Production on the next spread). g/m2 emballerat golv Amount of waste per square meter manufactured floor Total and by waste fraction. Waste Hierarchy All waste must be sorted according to Kährs waste standard. The waste standard is based on the principles of the waste hierarchy, which is a priority list for how we should treat our waste when we do away with it. Material Recycling Landfill Hazardous Waste Energy Recovery We are working to move the waste as high up the waste hierarchy as possible and increase the quality of each step. 16 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

17 Emissions Transports Cargo ships and trucks dominate the transportation work. All calculations of transportation emissions are based on material from NTM and DB Schenker contractors. Transportation by rail comprises the incoming transport of logs to the Blomstermåla sawmill. Kg CO2/m 2 3,00 2,50 2,00 1,50 1,00 0,50 Amount of carbon dioxide from transports, kg CO2/m 2 Cargo ships are used primarily to transport incoming wood material from Europe and other sources, and for outgoing transport of finished flooring to customers around the world. Truck transportation is used for short distance transport between suppliers and the production sites and for transport needs that cannot be served by ship or train Tonne-km Kährs total transport work Approx. 500 milj tonne-km CO2 Kährs total carbon dioxide CO2- emissions Approx tonne Most transportation work is via cargo ships, but the largest carbon dioxide emissions come from over the road transports. Internal transports Intermediary transports Internal transports Intermediary transports As an alternative to cargo ships, trains have been used for the transport of goods between China and Nybro when faster delivery is necessary. This provides a faster but more expensive freight, however, no direct environmental benefit. The train s environmental benefits are difficult to exploit when the train does not meet customers requirement for delivery time and precision. Cost combined, the train also loses out because of several stops to re-load. Transport flows Transports out Transports in to production & warehouse Transports out Transports in to production & warehouse Carbon dioxide emissions Kährs sells wood flooring all over the world, which involves long-distance transport. The resulting fossil carbon dioxide emissions that arise, contribute to an increased greenhouse effect (measured in GWP100) and thus an increase in the risk of climate change. Transport types Transport work (tonnekm) Carbon dioxide CO2 (tonne) Nitrogen oxide NOx (tonne) Transports to production & warehouse Transports out Intermediary transport 3, ~0 Internal transports 9* ~0 *All internal use converted to truck transports. Sulphur dioxide SO2 (tonne) Climate Impact Our main activities to reduce carbon dioxide are to increase the efficiency in the logistic planning and use transportation methods that give lower carbon dioxide emissions. Burning wood does not give a net increase of atmospheric carbon dioxide, when the forests are replanted. A Kährs floor can have life cycle of fifty years, and it is then usable as biofuel (98% wood), or for use as another wood based product. The greatest decrease of carbon dioxide is in the use of wood floor. Kährs sold quantity, during 2014, stored over tonne of CO2 for 50 years in installations. KÄHRS ENVIRONMENTAL REPORT EMAS

18 Energy Efficiency Use and Biofuel Production Kährs produces more energy than what is used and the surplus is carbon neutral! The total amount of produced biofuel shipped from our facilities would generate, in an efficient power plant (90% efficiency), approximately MWh electricity and about MWh of heat. Kährs activity in 2014 resulted in a surplus of carbon neutral fossil free energy of about MWh. Our dry residues (sawdust) is purchased by a local energy company to produce wood power or pellets for production of heat energy. The ash from the combustion of biomass boilers is collected and then spread back in the local forests as a nutrient. The total energy amount of fossil-based fuel which was used for Kährs transportation in 2014 is equivalent to approximately MWh Biofuel Electricity Heat Transports Net surplus Energy surplus, MWh Positive energy balance When all internal use of energy and use for transports are subtracted from the total amount of biofuel produced, there is still MWh left. This corresponds to the heating of normal sized houses. Electricity consumption MWh 7,1 kwh/m 2 Heat consumption MWh 6,8 kwh/m 2 Transportation energy (fossil) MWh 8,4 kwh/m2 Production of biofuel MWh 50 kwh/m 2 Net-Energy Produced (Carbon Neutral) MWh 23 kwh/m % renewable energy in our facilities All energy from electricity used at Kährs is registered as 100% renewable. All heat energy used in Nybro is generated from burning bark, wood chips and sawdust from our own sawmill, in Nybro Energy s district heating plant. 18 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

19 ENVIRONMENTAL TARGET ENERGY USE To carry out measures that will decrease energy use by 3 GWh per year. The target for 2014 was not fully met by our conducted activities. Measures to reduce energy use by 0,7 GWh/year have been completed. Recirculating of air added to new machinery. Searching for air pressure leaks and measures. Continued exchange of lighting to LED. In 2015, the action plan will handle measures remaining from Continue to measure energy use in our facilities and processes. With those results and measurements, identify and implement new possibilities for reduced energy use. Studying the feasibility of recovering energy (heat) from the exhaust air from our large filtration system. Note: The potential for reducing energy use is influenced by many factors, including weather, mild or severe winters and increases or decreases in production volumes. More efficient use of energy reduces the environmental impact and makes renewable energy available for other consumers who are still using fossil fuels. All conversion of energy has a certain effect on the environment, particularly in the form of its effect on the climate due to the consumption of fossil fuels and the formation of acid gases MWh kwh/m Elektricity Heat Electricity Photo: Örjan Karlsson KÄHRS ENVIRONMENTAL REPORT EMAS

20 Emissions Emissions from use of the product Millions of square metres of flooring from Kährs Group are installed in homes and in commercial and official premises every year. During the lifetime of the floor it is cleaned and maintained regularly, which is essential for maintaining the appearance of the floor and extending its life. However, cleaning and maintenance also involve the use of detergents and maintenance chemicals. As a manufacturer we have no control over the cleaning and maintenance methods employed by users, but we can be clear in our recommendations. Care and maintenance instructions accompany every delivery of wooden flooring and detailed information is available in many different languages on our home pages and on our care products. Care and maintenance are important components of our flooring schools, where floor contractors, floor layers and shop staff are trained. Our own maintenance products have been tried and tested to combine efficiency with minimized impact on the environment. Gen- erally we advocate dry cleaning methods for daily care and our Cleaner when necessary. Oiled floors require treatment immediately after installation, then periodically as necessary. This maintenance is carried out by Kährs Satin Oil. Emissions from wood floors All wood floors can generate emissions, e.g. formaldehyde and VOCs, both naturally through the wood and from additives. There are a number of guidelines and marks to help users select good products with low emissions. The wooden floors from Kährs Group meet the requirements from some of the market s toughest environmental marks such as Svanen (the Nordic Ecolabel), E1, M1, DiBT and CARB, to give just a few examples. Read more about our certifications and registrations on pages Kährs Flooring School Is an opportunity for us to provide information on suitable methods of care & maintenance In 2014 we trained over 300 floor professionals, building contractors and shop staff on site at our premises in Nybro. Moreover, care and maintenance are included in our presentations given on customer visits and at events all over the world. Products and product maintenance Excessive use of aggressive cleaning agents and chemicals favors neither the indoor environment, the environment or the wooden floor. Choose a mild detergent and use it sparingly. The best way to safeguard the floor is to prevent dirt and debris from spreading into the room using dirt barrier systems at the entrance and to be sure to wipe up spills immediately. Photo: Studio Zee 20 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

21 Emissions Emissions from production Emissions to the atmosphere from production processes are primarily diffuse emissions of VOC and dust from the filter installations. VOC VOC s originate from dissolving agents in lacquer, stain and glue, and from various chemicals used in machine and building maintenance. The greater part of dissolving agents used for cleaning in the production processes, are handled as hazardous waste and sent for treatment by regulated waste service providers. The VOC emissions have decreased since 2006, which are partly due to reduced production and partly due to on-going product development in gluing technology. Changes in the product range has meant that a trend has been broken in recent years. Dust Pipelines transport large quantities of wood shavings and wood dust through filters at Kährs plant in Nybro. A preventive maintenance program ensures that the filter equipment operates well. By measuring, examining and listening to the equipment we find faults in proper time to stop emissions and avoid costly repairs in the filters. Other emissions to the atmosphere Tonnes Total amount VOC (Volatile Organic Compounds) 4 t 0,7 g/m 2 Dust (estimated quantity) 1,8 t 0,4 g/m 2 TOC in process water, to sewage plant, estimated 0,3 t 0,1 g/m 2 The heat energy for the production units is bought from a local energy company using bio-fuel from Kährs. The burning process releases carbon dioxide, nitrogen oxide, sulphur dioxide and dust. The carbon dioxide emissions contribute to the greenhouse effect, but bio-fuel does not cause a net increase of carbon dioxide in the atmosphere. However, nitrogen oxide and sulphur dioxide contribute to acidification. The energy conversion does not occur on Kährs premises, and no emission is therefore stated for this in the report. The location of Kährs main factory in central Nybro is a challenge in terms of noise. Noise is caused primarily by our fans and filters in the manufacturing plant, but also in connection with transports (loading/ unloading or road/motor noise). Excessive noise may be harmful or least cause a nuisance to people both inside and outside the company premises (employees, neighbors and nearby residents). TOC in process wastewater Process wastewater is treated in a sedimentation/adsorption process to reduce persistent organic substances - these are difficult to treat in the municipal wastewater treatment plant in Nybro. The development of this treatment process was made in collaboration with researchers from Linnaeus University. In 2014, improvements for the treatment plant for wastewater have resulted in reduced amounts of organic matter (TOC) to the municipal treatment plant. As the industry s chemicals often do not break down, it is important to take care of them at the source. Irrigation water Emissions of VOC from Kährs Storm water diverted from irrigation water contains tannins from the watering of oak logs. The amount of irrigation water diverted is limited to the retaining reservoir and recirculation in Nybro. In 2013, a vegetative sedimentations filter was built in Nybro to reduce the amounts of organic matter to the recipient. In Blomstermåla no recirculation of irrigation water is taken place but it is infiltrated into the ground before it reaches Alsterån. KÄHRS ENVIRONMENTAL REPORT EMAS

22 RISKS Once a year, a Kährs risk analysis is conducted from an environmental point of view, by a group responsible for environment, fire, recovery, safety and work environment. Laws have evolved towards greater demands on risk assessment and measures to reduce the risks. Both of probabilities and consequences of an event affect that risk. At Kährs we have for several years coordinated out risk work in a group with representatives for environment, work environment, infrastructure and safety. The risk analysis is followed by an action plan established with measures of what should be corrected to reduce risks. In 2014 we have strengthened the organization working with risk assessment. Implemented measures have been followed up and a new action plan has been developed, where continued management of chemical is one of the heavier elements. Expanded collection of stormwater prepares us in the event of a chemical spill on the ground. A review of chemical risks and training of personnel have been made in connection with placement of new emergency boxes for chemical spills. According to the analysis, the major environmental risks are associated with fire and filter breakdown and with the loading and unloading of chemicals. Incidents involving spills of chemicals have proven that Kährs employees know how to act correctly. The handling of the incidents meant that we avoided spread and environmental impact. INTERNAL AND EXTERNAL AUDITS Internal audits are a tool to follow up the function of important processes, by ensuring compliance and endeavour of the requirements and targets set in the management system. Management prioritizes the processes to be evaluated through audits. The standards for each management system (SS-EN ISO 9001:2008 and SS-EN ISO 14001:2004 together with the EMAS regulations) define the requirements for internal audits. We conduct internal audits at planned intervals to determine whether the management system has been properly introduced and maintained in an appropriate manner but also to identify areas to improve. Internal auditors with different roles in the company comprise a competent group of auditors. Both planning, execution and reporting are designed to evaluate and support continuous improvements in Kährs according to the PDCA (plan, do, check, act) wheel. The audits are carried out according to Kährs shared management systems for environment and quality. Effectiveness verification of the system at the different sites is included in the audit. External Audits Periodic audits of the management system for environment (ISO 14001) and quality (ISO 9001) were made during the year. For Kährs FSC certification, we have had an external audit. Audits were also conducted to verify that we meet the demands of our flooring products. 22 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

23 LOCAL CONDITIONS KÄHRS NYBRO Permitting Terms In 2014, contacts with the authorities was mainly related to planning for the final covering of an internal landfill site. Measures to improve the quality of storm water and process water is ongoing. No noise complaints were received during the year. Measures have been made to reduce noise from filters and saw dust pipes. Activities to develop the handling of process water has continued in cooperation with LNU. Efforts to develop the self-control programs continue. Notes from inspections have been taken into action or are in progress and are reported in the environmental report. No elevated levels that indicate any environmental impact from the landfill has been registered. Term (Date of issue) Guideline Status 3. Discharge of VOC ( ) KÄHRS BLOMSTERMÅLA Max 0,75 tonnes of VOC per started million m 2. As a limit value, however, 15 tonnes of VOC per year. 4. Noise ( ) 55 db (A) Monday - Friday. 07:00 to 18:00 45 db (A) at night 10:00 p.m. to 7:00 50 db (A) at other times Maximum momentary noise level at night is 55 db (A). 5. Noise ( ) At a new establishment, measures shall be taken to reduce noise emissions to the Swedish Environmental Protection Agency s guidelines for newly established industry. 8. Decontamination and aftertreatment Examine the need for decontamination and aftertreatment measures Met: 0,59 tonnes per started million m 2. Target for night met in the current operating times. Noise suppression by fans in a dryer has performed with acceptable results. The location in Nybro town center is a challenge. MIFO-FAS2 was conducted in No further measures necessary. 9. Dust ( ) 2 mg/nm 3 dry air, measured as random sampling. Measurement performed in four filters during All results <0,5 mg/ Nm³. Maintenance and monitoring of the filters is made according to the regular maintenance system. 10. Water ( ) Process wastewater shall undergo sedimentation and adsorption before it is released to the municipal sewage network Water ( ) The residues arising from the sedimentation and adsorption shall be disposed of as waste. Outgoing water must not damage the municipal sewage network, water treatment plant or the recipient. In the environmental report, Kährs shall annually present its work to reduce the amount of process waste water and pollutants into the municipal sewage treatment plant. Met through the operation of a new process water treatment plant. Provisional adsorption filter with wood chips has been installed. Residue as glue and sawdust from the water treatment processes are disposed as waste for energy use. Low ph in outgoing water after treatment. Evaluation of adsorption method and other alternative methods was made by researchers at Linnaeus University. Suggested measure reported. Risks Transports and the risk of accidental discharge into the nearby Alsterån river are most important environmental aspects connected with the Blomstermåla sawmill. Kährs is included in the Alsterån Water Council and follows the program for recipient monitoring. No complaints concerning external environmental findings were received during the year. An emergency box in case of chemical spill has been placed at the sawmill. Protective equipment is available at selected spots as preparedness in case of spills near the stormwater retainers. Irrigation The watering system has operated the entire season. Tests of the runoff from the irrigation have been, conducted, and reported to the Environmental Office (Mönsterås). At the most, approx m 3 of timber was stored in the irrigation area. Analyses of TOC in water from irrigation gives a result of approx. 30 mg TOC/l. Analysis of the water upstream and downstream in Alsterån show no elevated values m³ logs were irrigated with m³ of water from Alsterån Transports Over 60% of the imported logs delivered to Blomstermåla were transported by train or boat in The Swedish logs are primarily transported by truck and constitutes of twothirds of the totally delivered amount. KÄHRS ENVIRONMENTAL REPORT EMAS 2014 Supervision The last supervised visit was conducted in May Spreading of sawdust was reported. A new storage facility is being built to prevent the spread of saw dust to the adjacent area. Improvement of self-monitoring has begun to secure measures and monitoring of environmental aspects. The sawmill in Blomstermåla sawed m³ timber in No changes affecting noise have been made during the year. 23

24 CERTIFICATES Kährs Group subsidiary company AB Gustaf Kähr and its Swedish units are included in the quality and environmental management system according to ISO and ISO 9001 and EMAS registration. Certificates are available for download at Certification EMAS FSC ISO 9001 ISO FSC and Fairtrade PEFC Year (ISO ) EMAS purpose is to promote environmental improvements. It is a voluntary EU program that requires public reporting of environmental conditions. FSC is an international organization working for global responsible forest management that takes into account both the environment and the people living in and from the forest. Kährs chain of custody certification means that we may buy FSC material, manufacture and sell flooring products as FSC Mix products. PEFC (Programme for Endorsement of Forest Certification) is an international system for sustainable forest management. Kährs has a chain of custody certificate. ISO 9000 is a set of internationally agreed standards that provide guidelines for a Quality Management System. ISO 9001 is the international quality management system. ISO Family of related, auditable, international standards and supplementary guidelines that apply to an organization s environmental management system. Administered by the International Organization for Standardization. ISO is the international standard for environmental management, designed to protect the environment, prevent pollution and achieve constant environmental improvements. Fairtrade (FLO Cert) is an independent product labelling standard and organization tackling poverty and injustice through Fairtrade. Aiming at better prices, decent working conditions, local sustainability in disadvantaged regions of the world. 24 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

25 KÄHRS GROUP AT A GLANCE Kährs Group, with the legal name Kährs Holding AB (publ) is a world s leading wood and resilient floor manufacturer with a number of strong brands in the product portfolio such as Kährs, Karelia and Upofloor. The company s innovations have shaped the industry throughout the history and Kährs is dedicated to continue supplying the market with new innovative flooring solutions. The group delivers products to more than 70 countries and is a market leader in Sweden, Finland, Norway and Russia, and holds strong positions also in other important markets, e.g. the UK and Germany. The group employs some 1,550 people and has an annual turnover of approximately MEUR 300. The Group s production units Kährs Group s three global brands which are marketed within all Kährs sales regions worldwide. Units ISO 9001 ISO FSC PEFC Wood flooring manufacturing Tuupovaara, Finland Yes Yes Yes Maklino, Russia Yes Yes - Satulung, Romania Bialosliwie, Poland - - Yes - Veliki Bukovec & Kupres, Croatia from 2015 Yes Yes Yes Resilient flooring manufacturing Ikaalinen, Finland Yes Yes Nokia, Finland Yes Yes This page is not a part of the controlled EMAS-Report 25

26 KÄHRS GROUP - OTHER PRODUCTION UNITS Maklino, Russia Satulung, Romania Tuupovaara, Finland Bialosliwie, Poland Ecology Balance Data Wood 2014 Unit Per m² Unit Energy Energy Use Electricity MWh 12,8 kwh/m² Heat MWh 9 kwh/m2 Other 0 MWh 0,0 kwh/m² Material Use Wood material to products tonnes 22 kg/m² Chemicals to products, Adhesives, hardeners, lacquers, stains, oil etc. Emissions 908 tonnes 0,45 kg/m² Dust kg 0,8 g/m² VOC 56 kg 0,028 g/m² TOC or COD in process water kg g/m² Other Waste Recycling of paper kg 1,7 g/m² Recycling of plastic kg 8 g/m² Recycling of metal kg 12 g/m² Hazardous Waste kg 44 g/m² Energy recovery kg g/m² Production Flooring Production tonnes Semi finished, wear layers tonnes Bio Fuel tonnes Wood Flooring In 2014 Kährs Group had four production units for production of wood flooring and components for wood flooring outside Sweden. In Tuupovaara Finland the design product Saima is manufactured. In Maklino Russia, the full-scale flooring factory mainly supplies the Russian market. In Poland, the existing production of semi finished veneer flooring was expanded to a full-scale factory for veneer flooring. The factory in Satulung Romania provides the other flooring factories with surface layers of different wood species. In 2014, the management of Kährs Group decided to expand the facility in Satulung to a full-scale flooring factory to be completed in This page is not a part of the controlled EMAS-Report

27 KÄHRS GROUP - OTHER PRODUCTION UNITS Ikaalinen, Finland Nokia, Finland Ecology Balance Data Resilient 2014 Unit Per m² Unit Energy Energy Use Electricity MWh kwh/m² Heat MWh kwh/m2 Other MWh kwh/m² Material Use Polymers to Resilient Floors tonnes kg/m² Chemicals to products, adhesives, hardeners, lacquers, stains, oil etc. Other Emissions 0 tonnes VOC 0 kg 0,0 g/m² Waste Recycling of paper kg g/m² Recycling of plastic kg g/m² Recycling of metal kg g/m² Hazardous Waste kg g/m² Energy recovery Production Waste kg g/m² Household Waste kg g/m² Production Flooring Production tonnes Resilient flooring In Ikaalinen and Nokia in Finland the manufacturing of resilient flooring is under the brand Upofloor. The main product is a PVC-free floor that has a growing market within the public project sector such as hospitals and schools with a high environmental profile. This page is not a part of the controlled EMAS-Report 27

28 CERTIFICATIONS & REGISTRATIONS Terms and certification systems of which our wood flooring products are covered under and which are marketed under the brands Kährs, Karelia and Upofloor. Emission of Formaldehyde (EN 717-1) DIBt Blue Angel M1 CARB 2 BASTA Swan Nordic Eco Label French VOC A Basis European Formaldehyde Standard German Formaldehyand TVOC Finnish Formaldehyde and Odor Testing - BREEAM NO Formaldehyde Standard for Composite Wood Comprehensive Environmental and Quality Certification Production, Waste, Emissions, Wood French Formaldehyde and TVOC Emissions Notes Emission class E1 (0,1 ppm boards) obligatory in the entire EU today. Was required in some countries since 1985 Visit Kahrs.com for the latest update or ask your Kähr s srepresentativ e * Over 150 products Certified. Visit Kahrs.com for the latest update or ask your Kährs representative Link E1 DIBt Blue Angel M1 RTS CARB BASTA Svanen French VOC A 12mm Obligatory for wood-based panels 13mm E1 * 14mm E1 15mm E1 * 22mm E1 Activity Floor E1 Artisan 15mm E1 Atelier 10mm E1 Gallery 11mm E1 Grande 20mm E1 Linnea 7mm E1 Spirit 10mm E1 Studio 9mm E1 The information in this table is updated continuously. The current status can be found on 28 This page is not a part of the controlled EMAS-Report

29 ECHA REACH Floorscore RFCi CE Mark DIN EUTR Lacey Act REPA Gront Punk Pyr FSC PEFC Lacey Act Formaldehyde and TVOC Emissions, CDPH 01350, LEED 2009 EU Timber Regulation Law - Legal Sourcing NGO certifying forests and wood fiber material. Visit Kahrs.com for the latest update or ask your Kährs representative Meets En 14809, En 12235, pren14903, DIN V * Products are available on demand. Ask your Kährs representativ e * Products are available on demand. Ask your Kährs representative ECHA REACH Floorscore RFCi CE CPR DOP EUTR Lacey Act FTI FSC PEFC * * * * * * * * * * * * * * * * * * * * * * * * * * This page is not a part of the controlled EMAS-Report 29

30 DEFINITIONS Auxiliary material Material other than wood that is included in finished wood flooring. Carbon dioxide (CO2) Is included in the natural cycle and contributes to the greenhouse effect. Burning fossil fuels results in a net increase in carbon dioxide, which may affect the climate. Chlorophenols Chlorophenols is a generic name for chemical compounds that are both chlorinated organic compounds and phenols. Chlorophenols used until the late 1970 s to include dipping (rot protection) of sawn softwood. DNV Det Norske Veritas Certification AB - the certification body for Kährs environment and quality management system, as well as EMAS and FSC. Dust Particles that can cause contamination if discharged. E1 A requirement for formaldehyde emissions according to European Standard EN 14342:2005 (Wood Flooring), class E1 is <0.124 mg/m 3. EMAS Eco-Management and Audit Scheme - the EU s environment management and environmental auditing program. Environmental aspect Part of an organization s activities, products or services that affect or could affect the environment. Kährs significant environmental aspects are identified, evaluated and prioritized. Expression of Kährs significant environmental aspects, outcome and how we work with them are described in this environmental report. Examination of permit applications. Process of decision making on permits for activity that can be dangerous to the environment. Committees, the ECD and the application are involved. The decision is taken by the Environment Inspection Committee of the County Administrative Board. Formaldehyde A toxic compound that is found naturally in green plants (including trees) and fruit. Also found in many glues. The glues used by Kährs are within the E1-norm. Fossil fuel Oil, coal and natural gas which are not classified as renewable. FSC Forest Stewardship Council - an organization that works internationally for environmental certification of ecologically, economically and socially sustainable forestry. GWh Gigawatt hour - an energy unit = million kwh (kilowatt hours). GWP100 The GWP factor indicates how much effect a gas has on the climate compared with carbon dioxide. One kg of carbon dioxide corresponds to 1 GWP. This is calculated on a 100-year perspective, which means for instance that biofuel does not add any carbon dioxide. The hydrocarbons subject to restriction under the Kyoto protocol (various forms of HFC) have GWP values between 120 and , depending on their absorption of radiation and atmospheric lifetime. HDF High Density Fiberboard - layers used as the cores of Linnea floors. LNU Linnaeus University, Sweden MIFO Methodology for the Inventory of Contaminated Areas. Phase 1 includes interviews and compilation of historical documents. Phase 2 includes sampling and analysis at critical locations. MWh Megawatt hour - an energy unit = thousand kwh (kilowatt hours). Nitrogen oxides (NOx) A group of gaseous compounds of nitrogen and oxygen, which are formed in combustion. In humid air nitrogen oxides are converted to nitric acid, which falls in the form of acid rain. Emissions of nitrogen oxides also have a fertilizing effect. NTM Network for Transport and the Environment). PDCA Is short for Plan, Do, Check, Act and is a scheme in quality management for systematic improvement. PEFC The Programme for the Endorsement of Forest Certification. An international nonprofit, non-governmental organization promoting sustainable forest management around the world and tracking of timber from certified forests as well as the processing and trading chain. Renewable When a resource is used up more slowly than it is regenerated. Examples are water, wood and various biomass products. Non-renewable means something that is depleted faster than it is regenerated, e.g. products based on fossil oil, such as diesel or plastics. Responsible forestry Wood material that comes from suppliers who can show verification that the forest of origin is managed in a sustainable manner. Examples of verification are FSC, PEFC, documented origin, underwater sawing. Sulphur dioxide (SO2) A gas that is formed when fossil fuel is burned, and the sulphur in the fuel is oxidized by atmospheric oxygen. In contact with humid air sulphur dioxide is gradually converted into sulphuric acid, which contributes to acidification. System conditions Four system conditions for a sustainable society: The concentrations of substances from the crust of the earth must not be increased in the natural surroundings. The concentrations of substances produced by society must not be increased in the natural surroundings. Conservation of space for the natural cycle and diversity. Efficient and fair housekeeping with natural resources. Read more: Tannins Also known as tannins and polyphenols which is found in oak wood and red grapes. Tonne-km Tonnes per kilometer - unit of transport work performed. It is calculated as the number of tonnes transported times the number of kilometers. Triple Helix cooperation Interactions between the academic, industrial and institutional systems as means to foster technological innovation and economic growth. UV-lacquer Lacquer that is hardened by exposure to ultraviolet (UV) light. VOC Volatile Organic Compounds A collective designation for organic compounds (solvents) primarily consisting of carbon, hydrogen and oxygen. VOCs contribute to the formation of ozone close to the soil. 30 KÄHRS ENVIRONMENTAL REPORT EMAS 2014

31 CONTACT Bruce Uhler Environmental Ambassador Åke Erlandsson Environmental Manager Helen Johansson EMAS-editor helen.johansson@kahrs.com Kährs Småland Collection Oak Ydre KÄHRS ENVIRONMENTAL REPORT EMAS

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