Chairman's Message
Governance
Environment
SocialReduce Greenhouse Gas (GHG) Emissions
We are committed to reducing our carbon footprint through the reduction of greenhouse gas emissions.
- 2017 vs. 2016 performance: Steady year-over-year emissions reflects improved efficiency despite increased productive hours in 2017. This improvement reflects continued adoption of alternate energy sources and efficiencies achieved in various manufacturing processes and procedures, which resulted in total GHG emissions of 196,268 tons.
- New acquisition facilities (i.e. Air Liquide Welding) are not included in the data as they are not integrated into Lincoln Electric’s EH&S program at this time.
- Scope 1 GHG (direct) emissions constitute 0.2% (approximately 391 tons) of total GHG emissions in 2017. Scope 1 emission levels were significantly reduced in 2011 following the elimination of coal used in our manufacturing facilities in China and the conversion of our forklifts to propane and electric power.
- To achieve our 2020 goal, the Company will focus on improving our carbon footprint through Scope 2 (indirect) GHG reductions. Key activities include our continued investment in LED lighting, skylights and renewable energy sources, achieving improved energy efficiency and reducing.
GHG data reflects the use of energy including electricity, natural gas, coal, fuel oil and LPG and represents data from all Lincoln Electric manufacturing facilities worldwide, including acquisitions after their first year with the organization. The data reflects 2006 IPCC Guidelines for National Greenhouse Gas Inventory and includes Scope 1 and 2 Emissions for Manufacturing Industries and Construction and standards from the Environmental Protection Agency (EPA). Scope 1 emissions are produced from the burning of fossil fuels on Lincoln Electric property (e.g., heating buildings by burning oil or natural gas, organic gases) or from different operations directly related to the process; Scope 2 emissions are associated with the electricity that Lincoln Electric facilities purchase from other third parties. The company does not have a fleet and does not currently track Scope 3 emissions.
Success Stories
Reducing Greenhouse Gas Emissions
To increase energy from renewable sources and reduce energy consumption overall, Lincoln Electric India installed a 100 kilowatt rooftop solar array and replaced metal halide lighting systems with all LED lighting in the shop floor and outdoor areas.
Reusing Equipment Heat for Building Use
An auxiliary building at the ISAF facility in Storo, Italy is heated to prevent snow from accumulating on the canvas roof. The building had been heated using a diesel oil boiler, which can be costly and produce excessive emissions. The facility eliminated the boiler by capturing heat emissions from a nearby compressor, and blowing the heat into the building. This process eliminated the need for the boiler and reduced diesel energy usage by 1000 liters, and reduced carbon dioxide emissions of 2,650 kilograms.
Improving Insulation to Reduce Greenhouse Gas Emissions
A thermal image of the calcination kiln at Lincoln Electric France found the exterior surface temperature to be 400 degrees Celsius. A project was undertaken to improve the insulation of the kiln. The result was a 300 degree reduction in surface temperature resulting in a reduction in energy and greenhouse gas consumption.
Reduce Energy Intensity
Improving the energy efficiency of our operations supports a reduction in greenhouse gas (GHG) emissions. A key metric is energy intensity, which is the amount of energy consumed for every hour worked.
- 2017 vs. 2016 performance: We achieved a 4.6% improvement in year-over-year energy intensity. The improvement reflects a broad program that includes: the combined adoption of renewable energy sources such as wind, geothermal and solar; the utilization of skylights and more efficient lighting; and more energy-efficient manufacturing processes.
- New acquisition facilities (i.e. Air Liquide Welding) are not included in the data as they are not integrated into Lincoln Electric’s EH&S program at this time.
- Reducing energy use is a key focus as energy represents the second largest input cost in our operation. To achieve our 2020 goal, we will continue implementing facility efficiency projects, replacing inefficient equipment systems, modifying manufacturing processes to reduce energy usage, and are evaluating opportunities to source energy from renewable sources.
Energy data reflects electricity, natural gas, coal, fuel oil and LPG consumed across all Lincoln Electric manufacturing facilities, including acquisitions after their first year with the organization. Energy intensity is measured as gigajoules used per hour worked.
Success Stories
Increasing Equipment Efficiency to Reduce Energy Consumption
To reduce energy consumption, our Mexico City facility initiated a project to replace low (85%) efficiency motors with premium (92.4%) efficiency motors. The motor changeover resulted in an energy savings of over 70,000 kilowatt-hours per year.
Reducing Energy Consumption by Targeted Diagnostics
Compressed air is one of the largest consumers of energy at Lincoln Electric and is being targeted across our platform. Lincoln Electric subsidiaries, Tennessee Rand and LE Bester have begun to use ultrasonic leak detectors to identify maintenance repairs necessary in their pneumatic lines. Facilities such as Harris Products in Gainesville, Georgia have begun replacing inefficient piston-type air compressors with quieter and highly efficient screw-type air compressors. These moves have resulted in notable reductions in energy use.
Reclaiming Heat to Reduce Energy Consumption
The Harris Products Group facility in Poland employs an industrial heat recovery system for their paint baking operations. The air-to-air exchanger system captures heat from exhaust air and recirculates the heat back into the process. This reduces the amount of heating necessary for cold intake air, and in turn, provides measurable energy savings.
Air Compressor Smart Controllers
Air compressors at the Harris Products Group Dzierzoniow, Poland facility were maintained at shop pressure at all times, which resulted in excessive energy use, as air compressors are major consumers of energy. The facility installed a programmable controller on two compressors, which set operating pressure to a schedule. In the year after installation, the facility reduced energy usage by 7.2%, or 627 megawatt-hours, and reduced carbon dioxide emissions by 232,000 kilograms.
Reduce Waste through Increased Recycling and Re-Use
Our waste management program prioritizes a “reduce, re-use, and recycle” approach to divert waste from landfills and leverage waste as a resource.
We aspire to achieve zero waste and focus on initiatives that divert waste from landfills by working with regulators to increase recycling and the beneficial re-use of materials currently not accepted in the recycling stream. This includes expanding the use of our waste as a feedstock by third parties and increasing the capture and re-use of our chemicals in our manufacturing processes with new collection and chemical handling systems.
- 2017 vs. 2016 performance: we achieved a 400 basis point improvement year-over-year in our recycling/re-use rate from enhanced programs in a number of facilities in our International Welding segment.
- For waste that is qualified for recycling or re-use, we achieved a 93.9% recycle/re-use rate in 2017 as compared with 93.2% in the prior year period.
- We have worked to reduce our hazardous waste and hazardous air pollutants primarily through the elimination of solvents in coatings and in our manufacturing processes by increasing the proportion of re-used materials in our products.
- In 2017, 5% of all waste materials, or 2,972 metric tons, was hazardous waste.
Success Stories
Conserving Rainwater
In an effort to conserve water and reduce dependency on municipal water sources, Lincoln Electric Mexicana installed a 300,000 liter water retention cistern. The tank is filled with stormwater collected from the facility’s roof and parking lot, which is filtered through a vortex separator. The water collected into the tank is used to feed the facility’s new fire protection system and other plant services, such as cooling towers and gas scrubbers.
Waste elimination of aerosol cans
In the molding area of Lincoln Electric Maquinas (Torreon, Mexico), three different spray-on products are regularly used. These three products have been applied using aerosol spray cans, resulting in 480 aerosol cans disposed of each year. A study was initiated to identify a method of applying the products with less waste generation.
The facility implemented a method, which applied bulk chemicals using spray guns powered by compressed air. The use of readily available compressed air eliminated the use of flammable aerosol propellants. As a result, a hazardous waste stream was eliminated, and the facility’s waste & greenhouse gas footprint was reduced.
Natural Resource Usage
Water Management
Water is an important natural resource and we acknowledge our responsibility to manage water use carefully. Water is predominately used in our consumable formulations and manufacturing processes.
We have focused our water management initiatives on reducing water usage and our reliance on freshwater. Since our 2011 baseline year, we have reduced our total water usage by 36% to 957,681 cubic meters annually. We achieved this reduction by increasing the re-use and recycling rate of our water through improved wastewater treatment initiatives. We have also invested in manufacturing processes that have lower water requirements and achieved greater water efficiency, with a 38.2% reduction in water used per hour worked. Additionally, we currently have two "zero water discharge" facilities and several manufacturing facilities capture rainwater for re-use in manufacturing processes or for fire protection.
Air Emissions
We track emissions released from our facilities and are committed to reducing any hazardous air pollutants (HAPs) and volatile organic compounds (VOCs) that are released during our production processes through the use of alternate chemicals and materials.
We have invested in programs that have replaced worldwide use of solvent-based paints and metal preparation systems with solventless varnish, powder and water-based coatings. Currently, our operations do not emit significant quantities of SOx and NOx and we remain committed to reducing these levels whenever possible.
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