Key focus areas for our near-term Sustainability Program

To measure the performance of our Sustainability Program, we've set targets for many of our sustainability indicators and have identified four key areas of our Sustainability Policy - global warming, green products, social engagement, and employees - that will receive special attention over the next several years. In 2009, we reviewed our programs and made changes where necessary.

Our work in these areas promises to maximize our contribution to society while minimizing our impact on the environment. In the area of global warming, for example, more than 80% of our direct and indirect greenhouse-gas emissions result from the electricity we use in manufacturing and the PFC emissions we produce. Meeting targets on energy use and PFC emissions will reduce our impact on global warming. Similarly, by following our EcoDesign principles when we develop new products, we will move toward best-in-class environmental standards, and will supply products that use fewer hazardous substances and can be recycled or disposed of in an environmentally sound way. Also, by emphasizing social involvement and issues of employee health and safety, we improve life in our local communities.

We have defined key performance indicators (KPIs) and have reporting systems in place to provide accurate data for global warming, products, and employees. To make clear what our real impact is on the environment and society, we have, wherever possible, made our targets absolute and not relative. In this report, we've included all the KPIs that already have data available.

Our work on KPIs is ongoing. In 2008, we introduced a new KPI, called the Green Design Indicator, which lets us measure how many of our new products were developed using EcoDesign principles. Introducing a new KPI with higher standards made it necessary to adjust our short-term target (explained in the Products chapter). We had planned to publish the first results of this new KPI in the 2009 report, but various changes in our business, resulting from divestments, closures, and the like, are not yet fully reflected in our product databases. The 2010 target for the KPI remains the same.

Recent events, including the global economic downturn, our efforts to redevelop our business, changes in management, closures, and mergers and acquisitions, have led us to reevaluate our KPI for social-engagement activities. To ensure that the KPI continues to be a reliable and measurable indicator, we will refine it to reflect changes in our organization and strategy. We are also considering a longer-term target for this KPI, as 2010 is likely to be too soon to see any real progress. We continue to encourage our employees to participate in existing activities while we perform our evaluation, looking for those programs that will help us, as a company, make the greatest contribution.