Energy

Managing energy consumption is a key element to reducing our overall carbon footprint.

Our key energy usage relates to fuels, natural gas, electricity and heat that the Group consumes for the buildings and vehicles it operates. Electricity continues to be the most significant energy source. Together with our carbon footprint calculation, we have continued improving scope coverage (estimated at covering operations representing 94% of employees, full-time equivalent FTE) and data quality in 2007/08 and will continue to work in that direction.

Richemont’s total energy consumption for 2007/08 was 158 GWh. This represents a 2% increase compare to previous year, taking into account the improved scope. This growth is lower than the 14% increase in the number of employees.

GRI	Energy	Units	2006/07	2007/08
	Total energy consumption	GWh	154	158
EN3	Direct energy consumption	GWh	32	31
EN4	Indirect energy consumption	GWh	122	126

Improving energy efficiency forms a key part of our strategy to achieve carbon neutrality by 2009. The environmental audits of Montblanc Simplo (Hamburg) and Chloé (London) have captured current energy practices in key sites that are representative of many of Richemont’s business operations, and identified opportunities for improving energy efficiency.

Case Study: IWC building for the future

IWC has a proud tradition of innovation in energy management and reduction.

Since 2003 IWC has significantly extended its production site at their main manufacturing location at Schaffhausen on the banks of the river Rhine. By using market leading energy efficient technology, it has kept energy consumption constant for the last five years despite increasing its floor space by more than 6,000m².

Environmental considerations have been an integral part of the design process for the new expansion. Most notably, the new buildings have benefited from a ground-breaking heating and cooling system that exploits the natural differences in temperature inherent in waste water. Waste water which flows through the city sewerage pipes does so at a temperature of 12^oc to 14^oc. IWC has installed a combined heat and power pump which can extract heat from the waste water as well as discharge excess heat generated by the production process. At the same time, IWC collects groundwater which can be used for cooling. This innovative system is among the first in Switzerland and attracted public sector investment so that it could be used as a demonstration project.

IWC has made further environmental progress this year. Since the start of 2007, IWC has sourced its electricity needs exclusively from hydro-electric power, which as a source of renewable power is zero-rated for carbon purposes. The latest element of the expansion programme, which was opened in June 2008, includes a recycling system which re-uses rainwater for toilet flushing, solar panels for hot water production and harnesses the heat generated from the machinery to heat the building. In addition, IWC intends to have a high-efficiency internal filtration system and ultrasonic cleaning mechanism, to isolate and dispose of hazardous substances created by some of its production processes.

Alongside the environmental improvements to infrastructure, IWC has implemented CO₂ reduction measures across other areas of the business, such as travel and in the workplace. These initiatives have helped IWC achieve carbon neutral status since the summer of 2007. Whilst the focus has been on reduction, where emissions cannot be completely eliminated, IWC has invested in a renewable energy offsetting project.

Case Study: Cartier energy assessments for boutiques

Boutiques play an integral part in showcasing Cartier’s distinctive products. This year, independent experts were commissioned to conduct an assessment to ascertain where energy efficiencies could be made within boutiques. As a result of the evaluation, Cartier is in the process of designing a new, energy-efficient form of lighting for its boutiques, which will be rolled out as part of a wider programme of refurbishment. The design process is complex, as Cartier must ensure that the new form of lighting is compatible with the stringent presentational requirements for its jewellery and precious stones.

Case Study: Richemont energy efficiency initiatives

This year, Richemont has been focusing on the energy efficiency of its IT
equipment. It has invested in a new server system which uses 60-70% less energy than using individual servers. New generation PC monitors and new photocopiers introduced this year are more energy-efficient and automatically switch to standby mode.

In addition, our main data centre in Switzerland, undertook building improvement work in the year which has led to significant energy savings. The 24-hours-a-day usage of IT servers produces large quantities of heat and to avoid overheating, a cooling system regulates the server room temperature. This cooling system also produces excess heat. Previously this heat was lost, however following improvement work on the building, the energy produced by the cooling system is recycled back into the heating system in the rest of the building, making it fully self-sufficient.

In pursuit of saving more energy, Richemont’s head office in Bellevue, Geneva has changed the lighting system in its underground car park. The new energy-efficient system has delivered both an 80% electricity saving and better lighting.