Smith & Nephew recognizes its primary climate change impact comes from the carbon dioxide emissions associated with the energy it consumes, the transportation of its goods, and its business travel. The company reports efforts to reduce energy consumption group-wide, from manufacturing efficiencies to choosing the mode of transport for its products. Smith & Nephew’s operational efficiencies can, in part, be attributed to the company’s capital expenditures. As part of the company’s Earnings Improvement Program Smith & Nephew introduced Lean and Six Sigma manufacturing techniques and implemented projects to reduce consumption and waste. Smith & Nephew estimates that in the period of 2000-2008 it saved $4.4 million per year from “good environmental management.”
Although a majority of the company’s products are subject to strict controls with respect to their functionality, efficacy, and safety, in light of the onset of raw material restrictions, Portfolio 21 urges Smith & Nephew to increase its development of alternative raw material sources and strengthen its supplier guidelines.
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 1/31/13 and may not reflect current opinions or subsequent events.