Has sustainability thinking changed the company? Jukka Ylijoki VP, Technology Development Automation Business Line Metso
Sustainable development Development which meets the needs of current generations without compromising the ability of future generations to meet their own needs (Our Common Future 1987, The World Commission on Environment and Development) 2 Metso J.Ylijoki 8.4.2010
Sustainability: Three Dimensions of Corporate Responsibility (these also reported in Metso s sustainability report) Economic Responsible company: Is profitable, competitive and efficiently operating Responds> to investors expectations in terms of return on investment Participates in generating economical well-being to the society Implements also responsible personnel policy & financially supports environmental actions Socially Responsible company: Respects and takes into account stakeholders views on responsible and ethical practices Provides safe and clean working conditions to its employees Takes care of employees health Takes care of company s talents by providing education, challenges and job rotation Environmentally Responsible company: Takes environmental issues into account in all its actions Constantly seeks to improve its environmental performance by reducing environmental impacts of its operations Provides environmentally more friendly solutions 3 Metso J.Ylijoki 8.4.2010
Environmental perspectives in the Sustainability Report Solutions for reducing the load on the environment - Environmental business and Metso's environmental solutions to reduce our customers' load on the environment New business opportunities through environmental solutions - Environmental innovations Environmental business development road map Key environmental figures of Metso's production plants 4 Metso J.Ylijoki 8.4.2010
Sustainable development in Metso The main themes of our strategy are growing our service business, eco-efficient solutions local presence. By responding to the challenges of sustainable development we are creating value and prosperity for our stakeholders and the surrounding communities over the long term. We use our know-how and expertise to promote sustainability in industry around the world. 5 Metso J.Ylijoki 8.4.2010
Protection of the environment and abatement of climate change A key driver of our business is to develop and offer to our customers eco-efficient products and services for the efficient and sustainable use of energy and materials. This includes technologies for energy-efficient industrial processes and the reduction of emissions, dust and noise. We provide solutions for the efficient recycling of raw materials and waste. We offer our customers product life-cycle support that ensures the best long-term environmental performance. Already more than half of our business can be considered environmental business (as defined by the OECD), which we view as a responsibility and a challenge that drives our daily operations. 6 Metso J.Ylijoki 8.4.2010
Protection of the environment and abatement of climate change We anticipate the environmental concerns of our customers and the expectations of the public. Our technological competence is supported by our global research and development activities, and our cooperation with customers and other technological partners. Also in our own operations we strive for reduced use of raw materials and energy as well for minimizing related waste and emissions, and we strive for ecological sustainability in all our activities. 7 Metso J.Ylijoki 8.4.2010
Protection of the environment and abatement of climate change We strive to expand the implementation of our environmental management practices in accordance with ISO 14000 standards and look for opportunities to maximize the use of best practices and synergies between our businesses. Metso has endorsed the International Chamber of Commerce s (ICC) Business Charter for Sustainable Development in 2000. Together with our partners and customers we strive for a minimized carbon footprint and thereby for abatement of climate change. 8 Metso J.Ylijoki 8.4.2010
Our solutions portfolio serves our customers environmental challenges Metso Environmental Technology Clean Technology Materials efficiency Process optimization Renewable Energy Technology Bioenergy Energyefficiency Water management Environmental consulting and measurements Waste management and recycling 9 Metso J.Ylijoki 8.4.2010
In three words... 10 Metso J.Ylijoki 8.4.2010
Sustainability thinking - eco-efficiency - how does it change us Inside Metso
Measurements and indicators New environmental reporting system, CSM The central environmental considerations of Metso's production plants are related to the consumption of raw materials, energy and water, and to emissions and waste Every year Metso gathers environmental figures from some 100 units whose operations have an impact on the environment (94 units in 2008) The environmental data collected covers environmental management, use of raw materials and water, ecoefficiency, emissions to the atmosphere, waste, risk and compliance with regulations By the end of the year 2008 certified ISO 14001 systems, in proportion to energy consumption, covered 58 percent (2007: 60%) of the production value of our continuing operations. Certified systems and systems under development, in proportion to the energy consumption, covered 66 percent (70%) of our production 12 7 Metso J.Ylijoki 8.4.2010
Case: Metso HQ WWF certified Green Office 12/2009 Some of the targets 2009-2011 - Energy 5% - Paper 15% - Waste 5% - Travelling - reduce - Cars emissions limited 13 Metso J.Ylijoki 8.4.2010
LCA - Life cycle analysis LCA (Life cycle analysis) is a strategic analysis competence and critical in the current business environment (e.g. service and environmental business growth). Customers are increasingly demanding these analysis regarding the products and supply chain and setting challenging targets as criteria for the offering Similar demand from Metso to it s partners Metso is continuously developing its tools for analysis of the life cycle impacts of its products and operations Environmental impact analysis exists for wide range of Metso solutions (ref. case examples) 14 Metso J.Ylijoki 8.4.2010
Sustainability thinking - eco-efficiency - how does it change us Solving energy and environmental challenges with our customers
Challenges in Metso s Customer Industries Global climate change and emissions trading - energy efficient technology - demand for new power generation solutions - bio-energy technology Limited forest resources in China - alternative fiber sources Inadequate water resources in developing countries - water management and closed loop solutions Increasing land fill fees - recycling technology solutions Demand for less noise and dust producing industrial processes Evolving need for integrated production of fiber, energy and chemicals products (biorefineries) 16 Metso J.Ylijoki 8.4.2010
Challenge: CO2-emissions Energy-related CO2 emissions by region 1900-2005 (IEA, World Energy Outlook 2007) 17 Metso J.Ylijoki 8.4.2010
Challenge: Demand for energy is growing World primary energy demand in the reference scenario (IEA, World Energy Outlook 2007) 18 Metso J.Ylijoki 8.4.2010
Sustainability thinking - eco-efficiency - how does it change us Metso cases
Energy efficiency from water management using high-tech solutions Metso's water management solutions have been crucial in increasing the efficiency of water use by the paper industry and thereby in improving energy efficiency. In Finland it can be estimated that Metso's solutions have saved a total of 180 million cubic meters of clean water in ten years (equal to the water used by 2 mill. consumers/year) and the power produced by one big thermal power plant (+800 MW). 5 20 Metso J.Ylijoki 8.4.2010
Renewable fuel boiler capacity the world s largest biomass boilers come from us Since 2000, Metso has sold almost 5 GW e of boiler capacity fuelled with renewables equalling to 6 average nuclear reactors. Solver effect Replaces over 140,000 rail car loads of coal annually. Solver effect CO 2 emissions to the equivalent of over 24 million cars are avoided annually when above boiler capacity is fuelled with renewables instead of coal. 21 Metso J.Ylijoki 8.4.2010
Recyling metals reduces the use of ore Metso equipment forms 30% of the world s metal scrap processing capacity. Recycling scrap metal lowers the negative effects on environment that are caused by mining and use of chemicals in metal production. Metso Shredder Metso Heavy shears Metso Baler Metso Light shears Metso Briquetting Other suppliers Annually over 150 million tons of metal scrap is processed through Metso equipment. Use of scrap instead of iron ore in steel production reduces the energy use by more than 74% and causes 86% less air pollution.* In 2006 recycling of 459 million tons of steel saved 242 million tons of anthracite coal.** *Source: Bureau of International Recycling **Source: World Steel Association 22 Metso J.Ylijoki 8.4.2010
New environmental waste gasification technology A waste gasification plant to Lahti Energia Oy in Lahti, Finland. Scope includes waste gasification process, gas boiler and flue gas cleaning system with auxiliary systems and automation system for the whole power plant. There will be two gasification lines and together they will produce 50 MW electricity and 90 MW district heat. The gasification plant represents new type of technology that enables to convert recycled waste into energy at high efficiency and reduce use of fossil fuels. In a gasifier, waste is turned into combustible gas, which is cooled and cleaned and then combusted in a high-efficiency gas boiler to produce steam for a steam turbine. Solver effect Replaces over 1 500 rail car loads of coal annually Solver effect CO 2 emissions to the equivalent of over 260 000 cars are avoided annually when above boiler capacity is fuelled with renewables instead of coal 23 Metso J.Ylijoki 8.4.2010
Has sustainability thinking changed the company?
Environmental business in Metso All of our businesses offer products and services that reduce the environmental impact and improve the quality of our customers operations. Our eco-efficient solutions are related primarily to Renewable energy sources Energy-efficiency of production processes Recycling Efficient utilization of raw materials Reducing emissions Process optimization Environmental business accounts for some 60 percent of our business, based on the OECD definition. 25 Metso J.Ylijoki 8.4.2010
Thank you