Global Vision and Strategy The Group has three strategic directions that form the basis for ASSA ABLOY’s business and sustainability priorities: Sustainability supports strategy and vision ASSA ABLOY works to continuously strengthen sustainability within its operations. The sustainability work supports the Group’s vision and strategic priorities by helping to identify and manage business opportunities, as well as exploit the brand portfolio across diverse segments. It also helps to build a strong brand and a good reputation, which facilitate expansion into new markets. ASSA ABLOY’s sustainability agenda was set in 2010. The priorities to reduce the Group’s environmental impact clearly support and inherently contribute to the strategy on market leadership and cost efficiency. The results of acting to fulfill priorities will reduce manufacturing costs in both the short and long term. They will reduce ASSA ABLOY’s exposure to new regulations and support continued expansion. Priorities to reduce environmental impact Energy and carbon emissions Reduced energy consumption and higher efficiency is a top priority for all factories and companies within the Group. ASSA ABLOY has been conducting assessments of its products and production processes for several years. Results show that energy consumption in the production phase has the most significant impact on the environment. Innovation For ASSA ABLOY sustainability is an integral part of product innovation. Every attempt ismade to ensure that newly designed products are as energy efficient as possible.The intention is to develop new product concepts that solve customer problems and create customer value, based on sustainable solutions and processes.ASSA ABLOY is committed to getting it right the first time – at the moment of conception.It is better and more efficient to design new sustainable products than it is to reduce the environmental impact of existing, less sustainable, products.Sustainable products and processes are inherently more efficient in their use of resources.ASSA ABLOY can reduce costs and create value both for the Group itself as well as its customers by making sustainability an integral part of the product innovation process. Manufacturing & Environment Energy consumption and associated carbon emissions make up ASSA ABLOY’s most significant environmental impact. Several initiatives have been introduced to manage the company’s expansion while reducing the impact. Water and waste ASSA ABLOY works systematically to cut water consumption and improve waste management. In doing so, ASSA ABLOY simultaneously reduces its environmental impact while increasing efficiency and cutting costs. Value chain efficiency ASSA ABLOY cuts production costs and improves sustainability by focusing on value chain efficiency. This is done, for example, by applying the reduce-reuse-recycle principle from the conception phase and on wards in the value chain.ASSA ABLOY also works to improve value chain efficiency by exploring new ways of reducing production materials, optimizing product components as well as streamlining production and transport methods.In keeping with the Group’s long-term risk-management strategy, sustainability is an integral part of the approach to value-chain management. How performance is measured Since 2010, the divisions are obliged to identify and report the most material environmental risks for each individual entity, and to explain how these risks are managed.The Group reports its sustainability performance (certain KPIs) every six months through a Group-wide sustainability reporting system.