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PUMPS, PROFITABILITY AND THE ENVIRONMENT
Pump Industry Analyst
August 2002
FEATURE/IN BRIEF
PUMPS, PROFITABILITY AND THE ENVIRONMENT Two new publications from European pump manufacturers Grundfos and ITT Flygt illustrate how efforts to protect the environment are also making sound business sense for both companies. While Grundfos’s environmental efforts are based on the Group’s fundamental values, the third Grundfos Group Environmental Report shows that a determined effort can produce benefits for both the global and local environments. ITT Flygt also belives that a company does not need to compromise environmental thinking, staff welfare, or social responsibility to be profitable – in fact this can be a corner stone of the business concept. This is highlighted in ITT Flygt’s Sustainability Report 2001, which is published according to the Global Reporting Initiative (GRI) guidelines, which are supported by the UN. Savings Grundfos says it has achieved energy savings of up to 57% and materials reductions of up to 17% in newly developed products compared with the products they replace. According to estimates, Grundfos pumps in 2001 alone generated energy-savings equivalent to the annual energy consumption of 283 000 households. While pump energy consumption puts a heavy strain on the environment, the production process also has an impact on the immediate environment. As a result the Danish pump company says it is always looking to improve its production processes focusing on cleaner technologies, reducing materials and recycling. For example, energy consumption during production in 2001
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was cut by 10% on 2000’s level, while water consumption was reduced by 2%. The Grundfos Group Environmental Report reports that overall environmental efforts at Grundfos ensured a reduction in electricity, water and heating expenses of DKr3.1 million in 2001. The report also suggests that industrial accidents and injuries at Grundfos are also on the decline. A campaign in all Grundfos production companies, for example, resulted in an 18.5% reduction in the number of accidents and injuries throughout the group. Performance management For ITT Flygt, the concept of sustainability represents the integration and management of economic, social and environmental performance. “For our company working with sustainability, with its three focuses environmental thinking, social responsibility and economic success - is an important part of our business concept. In our activities we should always act in a way that meets today’s business demands, without jeopardizing anything for future generations,” says ITT Flygt president Anders Hallberg. Communication For both pump companies these documents are proving to be useful communication tools. “Customers focus more and more on documentation for environmentally sound behaviour, evaluating the company for its credibility and responsibility by the way companies communicate. This report and the great amount of commitment that we see in the entire Grundfos Group make me look towards the future with great confidence,” says soon-to-
retire CEO and Group president Niels Due Jensen. As ITT Flygt is 100% owned by ITT Industries, the Swedish company does not produce an annual report. The Sustainability Report 2001 is therefore an important channel to present the company’s activities, vision and goals to employees worldwide. The report includes a comparison of the production facilities in Argentina, China and Sweden, for example, in an effort to create greater global understanding between the company’s employees. Facts on production, salary, environmental work and human rights are also included. “Naturally the type of information that comes from a Sustainability report provides us with lots of positive news, however it also highlights certain weaknesses, which we are aware of. By finding out the areas that need to be addressed, we can work towards improving these,” says Hallberg. Highlights of ITT Flygt’s Sustainability Report 2001 include the fact that no fines or charges have been imposed on the company for breaking national or local rules or laws; 78% of all the electricity used at ITT Flygt is green electricity; water consumption decreased by 25% during the period 1997–2001; and that all minimum wages payed by the company are above those set by law in each respective country. Further Reading Grundfos Group Environmental Report www.grundfos.com/web/gr fosweb.nsf ITT Flygt’s Sustainability Report 2001 www.flygt.com/sr01
IN BRIEF • Rietschle’s cool running TWISTER series has been certified by an EC Notified Body, as complying with the requirements for Category 1 of the ATEX Equipment Directive 94/9/EC, which comes into force from June 2003. • Australia’s Thompsons Kelly & Lewis (TKL) has released a new brochure and a new software program, to simplify the selection of Titan slurry pumps. They’re both available through TKL’s website at www.tkl.com.au. • Crane Co has acquired Corva Corp, a privately held distributor of valves and actuators with annual sales of approximately US$12 million. Corva will be integrated with Crane’s North America valve company. • Framatome ANP is buying the assets of Washington Group International Inc’s Equipment and Services (E&S) Division. E&S, headquartered in Denver, Colorado, specializes in fuel handling machines and transfer systems for both PWR and BWR nuclear power plants. • Unfavourable equity market conditions have forced Roper Industries to withdraw its proposed offering of up to 5 million shares of its common stock. Roper president and CEO Brian Jellison said they had announced the offering to capitalize on a window of opportunity to enhance the strength of Roper’s balance sheet and increase its long-term financial capabilities. “In light of the current market conditions, we believe that window of opportunity has closed,” said Jellison. As a result, the company does not believe that the offering would serve the best interests of its shareholders.
August 2002
FEATURE/IN BRIEF
PUMPS, PROFITABILITY AND THE ENVIRONMENT Two new publications from European pump manufacturers Grundfos and ITT Flygt illustrate how efforts to protect the environment are also making sound business sense for both companies. While Grundfos’s environmental efforts are based on the Group’s fundamental values, the third Grundfos Group Environmental Report shows that a determined effort can produce benefits for both the global and local environments. ITT Flygt also belives that a company does not need to compromise environmental thinking, staff welfare, or social responsibility to be profitable – in fact this can be a corner stone of the business concept. This is highlighted in ITT Flygt’s Sustainability Report 2001, which is published according to the Global Reporting Initiative (GRI) guidelines, which are supported by the UN. Savings Grundfos says it has achieved energy savings of up to 57% and materials reductions of up to 17% in newly developed products compared with the products they replace. According to estimates, Grundfos pumps in 2001 alone generated energy-savings equivalent to the annual energy consumption of 283 000 households. While pump energy consumption puts a heavy strain on the environment, the production process also has an impact on the immediate environment. As a result the Danish pump company says it is always looking to improve its production processes focusing on cleaner technologies, reducing materials and recycling. For example, energy consumption during production in 2001
10
was cut by 10% on 2000’s level, while water consumption was reduced by 2%. The Grundfos Group Environmental Report reports that overall environmental efforts at Grundfos ensured a reduction in electricity, water and heating expenses of DKr3.1 million in 2001. The report also suggests that industrial accidents and injuries at Grundfos are also on the decline. A campaign in all Grundfos production companies, for example, resulted in an 18.5% reduction in the number of accidents and injuries throughout the group. Performance management For ITT Flygt, the concept of sustainability represents the integration and management of economic, social and environmental performance. “For our company working with sustainability, with its three focuses environmental thinking, social responsibility and economic success - is an important part of our business concept. In our activities we should always act in a way that meets today’s business demands, without jeopardizing anything for future generations,” says ITT Flygt president Anders Hallberg. Communication For both pump companies these documents are proving to be useful communication tools. “Customers focus more and more on documentation for environmentally sound behaviour, evaluating the company for its credibility and responsibility by the way companies communicate. This report and the great amount of commitment that we see in the entire Grundfos Group make me look towards the future with great confidence,” says soon-to-
retire CEO and Group president Niels Due Jensen. As ITT Flygt is 100% owned by ITT Industries, the Swedish company does not produce an annual report. The Sustainability Report 2001 is therefore an important channel to present the company’s activities, vision and goals to employees worldwide. The report includes a comparison of the production facilities in Argentina, China and Sweden, for example, in an effort to create greater global understanding between the company’s employees. Facts on production, salary, environmental work and human rights are also included. “Naturally the type of information that comes from a Sustainability report provides us with lots of positive news, however it also highlights certain weaknesses, which we are aware of. By finding out the areas that need to be addressed, we can work towards improving these,” says Hallberg. Highlights of ITT Flygt’s Sustainability Report 2001 include the fact that no fines or charges have been imposed on the company for breaking national or local rules or laws; 78% of all the electricity used at ITT Flygt is green electricity; water consumption decreased by 25% during the period 1997–2001; and that all minimum wages payed by the company are above those set by law in each respective country. Further Reading Grundfos Group Environmental Report www.grundfos.com/web/gr fosweb.nsf ITT Flygt’s Sustainability Report 2001 www.flygt.com/sr01
IN BRIEF • Rietschle’s cool running TWISTER series has been certified by an EC Notified Body, as complying with the requirements for Category 1 of the ATEX Equipment Directive 94/9/EC, which comes into force from June 2003. • Australia’s Thompsons Kelly & Lewis (TKL) has released a new brochure and a new software program, to simplify the selection of Titan slurry pumps. They’re both available through TKL’s website at www.tkl.com.au. • Crane Co has acquired Corva Corp, a privately held distributor of valves and actuators with annual sales of approximately US$12 million. Corva will be integrated with Crane’s North America valve company. • Framatome ANP is buying the assets of Washington Group International Inc’s Equipment and Services (E&S) Division. E&S, headquartered in Denver, Colorado, specializes in fuel handling machines and transfer systems for both PWR and BWR nuclear power plants. • Unfavourable equity market conditions have forced Roper Industries to withdraw its proposed offering of up to 5 million shares of its common stock. Roper president and CEO Brian Jellison said they had announced the offering to capitalize on a window of opportunity to enhance the strength of Roper’s balance sheet and increase its long-term financial capabilities. “In light of the current market conditions, we believe that window of opportunity has closed,” said Jellison. As a result, the company does not believe that the offering would serve the best interests of its shareholders.