SKF also uses life-cycle analysis to inform its product design. Smaller, lighter bearings, combined with higher viscosity lubricants can lead to significant energy and resource savings. The company's president and CEO, Tom Johnstone, states that, "Sustainability for the SKF Group is about combining our responsibility to run and develop our business successfully with our responsibility to safeguard resources for future generations." SKF has launched the Beyond Zero strategy, which goes beyond the traditional practice of reducing negative impacts by ensuring that the Group's operations provide an overall positive impact on the environment. The company accomplishes this by providing positive environmental benefits to customers that outweigh any negative impact from SKF manufacturing operations.
While the primary input for SKF's bearings is recycled steel, energy use is the major concern; the company continues to work on reducing its energy use, direct impacts of operations, and climate change emissions. Areas of concern for SKF include expansion into developing nations. Portfolio 21 encourages SKF to improve its transparency of environmental and labor issues in these regions.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/12 and may not reflect current opinions or subsequent events.