Energy Reduction Initiative

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Energy Reduction Initiative The GKN Way
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Our Product
Steel is the starting material
Forgings are machined and assembled into CV joints
Forgings are made through warm and cold forming
GKN has more than 40 of the global market for CV
joints
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HR-EHS-014 / January 2, 2001 / Rev. Date 5/5/04
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OUR SIGNIFICANT ENVIRONMENTAL ASPECTS IMPACTS
ENERGY CONSUMPTION
WASTE GENERATION
WATER CONSUMPTION
ISO14000 ENVIRONMENTAL MANAGEMENT SYSTEM
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THE GKN Energy Policy - Background

• GKN Executive Committe has authorised the issue
  of the GKN Energy Policy

• released on 14th September 2005
• The GKN group annually spends 79m on energy,
  which is equivalent to 36 of profit

• Each location must formulate its own strategy.
• The name of 1 person responsible for coordinating
  the project must be reported by Friday 17th March
  2006.
• Review the Energy Action Plan as produced by GKN
  plc.
• Formulate and report Actions relevant to the
  location by Friday 24th March 2006.

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GKN GROUP- Energy Policy

• As part of our stated principles for delivering
  outstanding products and services to our
  customers, for maintaining the well being of our
  employees and for delivering superior returns to
  our shareholders, GKN is committed to long-term
  sustainability. Optimising the Groups
  consumption of energy is an essential element of
  this. Our policy is

1. to improve progressively energy efficiency at
all levels in the Group 2. to have clearly
defined energy management roles, responsibilities
and plans within an environmental management
systems (EMS) framework based on the ISO 14001
standard 3. to set achievable targets for
reducing energy consumption per unit of
production in all our operations 4. to purchase
energy at the most competitive rates, to leverage
energy purchases across the Group to obtain
maximum commitment from suppliers and to develop
supply side hedging strategies to minimise
exposure to market fluctuations 5. to ensure
that energy consumption is taken into account
when specifying new plant and equipment and that
significant consumers of energy have energy
meters with an output compatible with modern
energy management systems (continued)
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GKN GROUP- Energy Policy (cont.)

• 6. to ensure that energy efficiency receives
  adequate resources and investment in order to
  meet the Policy objectives and targets
• 7. to include energy awareness and management in
  employee training programmes
• 8. to minimise the environmental impact of our
  energy consumption by exploring ways of using low
  carbon technologies, by maximising the use of
  renewable energy sources where economically
  feasible, by seeking to reduce progressively
  emissions of carbon dioxide relative to
  production and by abiding by international
  agreements and protocols
• 9. to communicate the achievements with external
  bodies and stakeholders and
• 10. to influence our supply chain to pursue
  improvements in energy efficiency and to adopt
  low carbon technology.

As a broad strategy for achieving these Policy
objectives, we will continually monitor and
review our performance in energy management and
target achievements throughout all our operations.
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GKN Energy Action Plan
Summary of key Steps outlined
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GKN Driveline Driveshafts ENERGY TARGET
Topic Measure Why Target
Energy kWh Energy (kWh) immediately illustrates the quantity of raw materials used to generate the energy OR it can be translated into the environmental KPI of CO2 emissions

5 reduction per annum
To achieve the target reduction the key areas for
review include Energy management and awareness
(for all operations and activities) as well as
the areas of heating, use of fast-acting doors,
lighting management of office equipment.
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Corporate Target
Corporate target 10 reduction by 2005 from 1999
baseline 5 annual reduction, thereof
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EnergyCO2 Relationship
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Transportation CO2
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